Real Talk!

Okay, so scrolling through my blog posts, one has to note the number of times I speak out about ethics… I actually left the local real estate board of directors over a point of ethics… I actually left several brokerages over points of ethics… my sister recently changed employment over ethics…

Without my personal set of ethics, I feel I am nothing. Ya, there are “codes of ethics” and “standards of business practice”… but really… you can’t teach people honest morality. It just is. And even though Realtors have to learn the code of ethics, it usually becomes something they memorize for an exam or two… and it gets somewhat hazy after that.

Over the years, I have had people throw snipes at me about rules and regulations and the truth is, they’ve never read them. Over the years, I’ve also had people call me for advice, for they know that I have a pretty good idea of whether the matter is something in legislation or local rules and I can direct folks to the proper source of reference.

I’ve been pretty upset, a number of times… over issues of inappropriate conduct in the industry of real estate… and I’d like to reiterate… I’m not perfect… I strive to be as perfect as I can be.

The past several years have been “learn to bite your tongue, Jody” years… still, I’m baffled.

For the past several years, the Canadian Real Estate Association (who controls Multiple Listing Service®) has been embroiled in a lawsuit. We’re not supposed to talk about it, yet the media is full of reports… and, misinformation, I might add.

Maybe I don’t understand.

The thing is… to be a real estate sales person in Ontario, you take courses (I took mine through the Ontario Real Estate Association) and you learn a whole lot. In fact, a lot of real estate people have to re-take the courses numerous times to pass. These courses are geared into steering the student toward a career in “organized real estate”… that’s what the association calls itself.

Now, to be licensed, you have to get through 3 phases of initial courses and then take an additional group of courses over the next two years. This is professionally labeled “articling”. Sounds good. Licensing for real estate practitioners comes from the Real Estate Council of Ontario (RECO). A real estate sales person does NOT have to be a member of “organized” real estate… a real estate person does NOT have to join the real estate association… but… in order to use MLS®.

MLS ® is a registered trademark of the Canadian Real Estate Association (CREA). The Ontario Real Estate Association (OREA) falls under the CREA… and our local board comes under OREA. Essentially, to work for most franchises, you need to become a member of your local real estate board and pay dues to them, as well as OREA and CREA- this is above and beyond your licensing fees to RECO.

The benefit of being involved in “organized” real estate is that you may expect notification of changes in legislation, be provided the opportunity to purchase educational courses to learn about changes in legislation and, of prime importance, you have access to the MLS® system.

MLS® then, is a tool used by an organization. It has been thoughtfully developed, over many years, to serve the specific needs of the membership that has paid for its development.

Many real estate practitioners have made a good and honest living without being members of the association and without the use of MLS®.

With membership to a local board, and then OREA and CREA, a real estate practitioner also has the privilege of identifying themselves as a “Realtor ®”. This is a term that was developed to refer to members of “organized” real estate. Real Estate sales people who aren’t members are not permitted to call themselves Realtor®.

Are you with me?

I could go on… but frankly, most real estate sales people have a hard time understanding the babble…

All licensed sales people in Ontario must follow the Code of Ethics of RECO, as well as government regulations. Realtors® are required to adhere to further codes, practices, rules & regulations, in addition to the RECO codes and government regulations. Further, CREA and OREA’s codes are noted as “minimal requirements” for Realtors®- meaning that a Realtor® should strive to be even better and more ethical than the codes outline.

No real estate sales person is allowed to discuss commission rates with one another… this would be a violation of “competition law”… still… the media reports constantly about our rates for service… and there’s a lot of misinformation reported there, too.

Realtors® aren’t supposed to talk about the problems or violations that happen within the organization. These are supposed to be handled according to policy & procedure- and sorted as to whether they fall within the jurisdiction of the organization or are a matter for RECO. In most cases, they are handed over to RECO to be reviewed.

Here’s my point…like all Realtors®, I pay a good deal of money to be a member of “organized” real estate… and I want to believe that I am a member of an elite group of real estate licensees who wish to adhere to the highest code of ethical behaviour… after all, our regulations are more strict than those of RECO. I feel that someone who has been found to have violated the minimal requirements under RECO should be kicked out of the club! At least suspended!

We need to have the public realize that there are Realtors® and there are real estate sales people. & we need to them understand the difference.

Before the inception of RECO (around the year 2000), the real estate industry was regulated by the Ministry of Consumer and Corporate Affairs. You can have a look at the RECO website www.reco.on.ca . On the home page, RECO says “Fostering confidence and upholding integrity in real estate transactions.”

Under “Who we are”… “fostering confidence…” is defined as the CORE PURPOSE.. and the RECO mission states: To regulate the trading in real estate in the public interest. Responsibility: Interpret, enforce, and suggest modification to regulation.

If you visit the OREA website www.orea.com you will see 5 boxes: 1/ Become a Real Estate professional 2/ Continue your Real Estate Education 3/ My portfolio 4/ Members only and 5/ Questions about real estate. There is a running banner beneath these boxes that invites people to enroll in the OREA Real Estate College.

At the bottom of the page, you have “What is OREA?” and “What is OREA Real Estate College?” if you click “more”… this is what you will get:

What is OREA?
OREA's Mission:

To represent its members and to provide a professional environment for members to maximize business opportunities.
The Ontario Real Estate Association represents over 45,000 brokers and salespeople who are members of the province's 42 real estate boards. OREA serves its members through a wide variety of publications, educational programs and special services. The association provides all real estate licensing courses in Ontario.

OREA was founded in 1922 to organize real estate activities and develop common goals across the province. These goals included promoting higher industry standards, protecting the general public from unscrupulous brokers and salespeople, and preserving private property rights.

OREA continually strives to improve the image of REALTORS® by enhancing educational and professional standards. OREA develops and publishes standard forms, and supports educational and charitable causes through the REALTORS Care Foundation.

What is OREA Real Estate College?

The OREA Real Estate College provides award-winning registration and continuing education in the field of real estate.

All real estate practitioners in Ontario must pass a comprehensive program of study to ready them for the complex business of trading in real estate. The OREA Real Estate College offers this registration education as the nominee of the licensing body, the Real Estate Council of Ontario.

The College also offers a complete program of continuing education courses designed to provide life-long learning and to satisfy the requirement of continuing education for all registrants under the Real Estate and Business Brokers Act.

Both registration and continuing education courses are offered in three formats: online, by correspondence and in the classroom.

If you visit the CREA website www.crea.ca you will see that:

CREA represents more than 96,000 REALTORS® across Canada. The Association owns the MLS® trademark, has proprietary ownership of the REALTOR® trademark, and operates national web sites including REALTOR.ca for residential properties and ICX.CA for commercial listings across Canada. AND Not every real estate practitioner
is a REALTOR®.

Only real estate professionals who are members of their local real estate board and of CREA, and subscribe to the ethical standards of the REALTOR® Code, are allowed to call themselves REALTORS®.

In 1986 the CREA offices were moved from Toronto to Ottawa, in effect acknowledging the increasing importance of CREA's government lobbying activities.

The mission statement for CREA is

The Canadian Real Estate Association represents and promotes the interests of the members, enhances members’ professionalism and ability to succeed, and advocates policies that ensure real estate property rights and ownership.Key Objectives: · To maintain an organizational structure for CREA . Its volunteer leadership and professional staff are there to effectively address the expectations of all members across Canada. · To promote, protect and safeguard all certification and design marks associated with this association. · To maintain a continuing relationship with the Federal Government in order to monitor and influence all public policy which affect the industry. · To help members become more aware about the Competition Act and how to apply it to their business activities. · To collect, analyze and disseminate data/information on significant market, economic, demographic and technological conditions affecting the housing and real estate industry. · To formulate, promote and foster consistent professional standards of business practice, integrity and ethical conduct among the membership. · To provide an interactive forum for the analysis and communication of industry issues, trends, and association benefits.

The responsibilities of The Canadian Real Estate Association include national and international representation of the industry, and the maintenance, protection and standards for certification marks and trademarks. CREA also develops and maintains a national Code of Ethics, Privacy Code, and Standards of Business Practice, which are implemented at the local board level. The national association also provides arbitration services for disputes between provincial or territorial associations, or between members from different provinces.

CREA explains OREA’s role:

The association at the provincial or territorial level handles membership processing in non-board areas, and is the facilitator for the maintenance of board jurisdictions, or for resolving disputes between boards or members from different boards in the same province. The association is also responsible for provincial or territorial licensing and education, and for the development and implementation of political action activities at the provincial level.

& CREA explains the local board’s role:

The real estate board is the primary point for processing membership, and the recording and collection of dues. It also operates a Multiple Listing Service® system that in turn, provides data for display on either REALTOR.ca or ICX.CA. The local board develops and implements the regulations that support CREA’s national policies, and is responsible for the enforcement of the Code of Ethics and the Standards of Business Practice.

The board also provides an arbitration service to resolve disputes between members, and determines membership prerequisites, including the planning of seminars and workshops. The board also ensures local industry representation, and works in liaison with provincial associations and CREA.

So, with all of these checks and balances, why are there still ethical issues in the industry? Why does the media feel the public should have any proprietary interest in regard to the MLS® system or related websites? Why is there so much misinformation about the industry?

I’m past being cranky and wanting answers. I just want to make an honest living, to do right by my Buyers and Sellers and to be treated with respect.

P.S.

It’s official… Fabian has been made “Ski Hill Coordinator” for Madawaska Valley’s Radcliffe Hills Ski Area (5 minutes south of Barry’s Bay). He is a Level 2 Instructor… in his younger days he was provincially recognized for his skiing talent.

As well as being an avid skier, Fabian is passionate about seeing the local ski hill up and running. I will be assisting him with office administration and day-to-day operations, however, we will both still be available to our Buyers and Sellers.

The hill is being operated by the Township and managed by Craig Kelley, of their offices. Last year, the township had the ski hill open, but faced some serious setbacks. They’ve decided to give it one more try.

Fabian and I believe that the ski hill is an important asset to our community and trust you will understand our dedication to maintaining its operation.

We hope to see you on the slopes!