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RECO introduces on-line voting RECO introduces on-line
voting Ontario housing starts down slightly in
March New rules for real estate lawyer
representation Following consultation with members of the real estate profession, LSUC’s Real Estate Issues Working Group (made up of real estate practitioners, members of the organized bar and the Law Society) recommended adding a rule requiring that an individual lawyer not act for both the transferor (seller) and the transferee (buyer) in a transfer of real property. Under the new rule, the two lawyers in a transaction are allowed to practice in the same law firm so long as the general rules on conflicts of interest are observed. There are also certain limited circumstances where one lawyer may represent both the parties as long as there is no violation of the conflicts of interest rule. For example:
In addition no law statements will be required for transfers involving a government body including a municipality or for transfers of easements. One other amendment also recently approved lets lawyers know that they assume complete professional responsibility for documents that they electronically sign using the e-reg™ system. The amendments to the Rules of Professional Conduct took effect March 31, 2008. Property owners to get a fairer
assessment appeal system The government also intends to introduce legislation to implement changes to the assessment appeal system announced in the 2007 Budget — changes designed to create a more streamlined and transparent appeal system. A key proposed change would make the Request for Reconsideration (RFR) program the first stage of the appeal process for property owners. The RFR, which is free of charge, encourages the sharing of information between MPAC and the property owner, and provides taxpayers with the opportunity to resolve their concerns directly with MPAC in an informal setting. The Ministry of Finance is also working with MPAC and the ARB to disclose valuation information to taxpayers about their property assessment in a timely way. This will help property owners review the accuracy of their assessment, decide whether to engage in the RFR process, and prepare for their hearing if they decide to appeal to the ARB. These measures are proposed to take effect for the 2009 taxation year. Details about the proposed new appeal procedures and deadlines will be communicated to property owners in the coming months, prior to the 2009 implementation date. WIRED OFFICE: New Microsoft technology about to
“Surface” The table, made of hard acrylic, is about 22-inches high and 42-inches wide, with a 30-inch screen. The surface isn't touch-sensitive, but a series of cameras underneath the table can see when someone places or drags a finger, hand or any other object on or across the tabletop screen. Surface uses a custom software interface on top of Microsoft's Windows Vista. The components of the machine are inside the table, including wired Ethernet, integrated Wi-Fi and Bluetooth wireless, a hard drive and 1 GHz processor. The ultimate in interactive computing, Surface can be used simultaneously by multiple people sitting on different sides of the table. People can use their hands to touch and move virtual objects on the screen, just as they would with a mouse on a traditional PC. However, the system can also recognize objects placed on the surface, based on their shape or tagged objects such as game pieces, a Wi-Fi camera, or a digital audio player. Microsoft plans to eventually expand into other shapes and sizes of surface computers, including versions that could hang vertically on a wall. The new technology will be “broken in” through a handful of commercial applications. For example, Starwood plans to put Microsoft Surface devices in common areas of its Sheraton Hotels, to provide functions such as music playlist browsing, photo sharing, games, food ordering and a “virtual concierge.” AT&T plans to harness the power of Surface to allow its retail store visitors to review features of a particular mobile device by simply placing it on the display. Surface will recognize the device and provide a graphical overview of its capabilities or compare the features of two devices placed side-by-side. Harrah’s Entertainment will start by using the Surface tables as a virtual concierge desk at its eight Las Vegas properties which include Caesars Palace and Bally's. People will be able to use the tables to access maps of the different properties, get details about events and venues and create itineraries for themselves. Microsoft hopes consumers will want their own Surface computers after using them in these commercial settings. But an estimated price tag in the range of $5,000 to $10,000 would likely be a major obstacle for the average consumer if the units were available in retail stores today. Although originally slated to launch in 2007, the company says it could be three or more years before Surface hits the broader consumer market. Potential real estate use Clients will be able to view their listing agreement or offer to purchase as you walk them through the virtual copy. They can sign the contract using either a pen or their fingertip and you can instantly send it to a printer and present them with a hard copy. You could even visually demonstrate tips for preparing a home for sale including changing paint colours, adding flowers or shrubs to create curb appeal or eliminating clutter. And, many other real estate related applications are bound to “surface” as the technology becomes available. To learn more about Microsoft Surface computing visit www.microsoft.com/surface. Several video demos of the product are also available on YouTube www.youtube.com and Popular Mechanics’ put together a video review at http://www.popularmechanics.com/technology/industry/4257252.html. Some FINTRAC issues
clarified Under the Proceeds of Crime (Money Laundering) and Terrorist Financing Act (PCMLTFA), REALTORS®, along with financial institutions and others covered by the legislation are required to identify customers who conduct financial transactions such as: depositing funds, purchasing a life insurance policy or buying a money order. The Act also requires you to keep records and identify your clients. Under the Act, you are required to ask to see valid identification from your clients such as a birth certificate, a driver’s license, or similar type of document. For many clients, especially those you have known for many years and worked with several times, it may be difficult for them to understand why you are requesting identification. To help explain the reasons, and your obligations under the Act, FINTRAC (The Financial Transactions and Reports Analysis Centre of Canada), has developed a consumer brochure called, “What you need to know.” To obtain copies of the brochure, or to direct your clients, contact FINTRAC at 1-866-346-8722 or visit them online at www.fintrac.gc.ca. CREA gets answers CREA’s proposed risk assessment questionnaire for each broker to complete (see REALTOR® EDGE April 2008) has been accepted. As well FINTRAC has said that verifying non face-to-face buyers can be done by a real estate professional in the client’s area. For more information check www.realtorlink.ca. As well, OREA offers a two-credit online course called “Money Laundering” and a three-credit classroom course called “Money Laundering and Grow Houses” both of which will address the changes. For more information, visit the continuing education section of this website or contact your board. RECO Decision: registrant concealed
UFFI The case A residential property was listed for sale on the County Real Estate MLS® disclosing Urea Formaldehyde Foam Insulation (UFFI) in the dwelling on the property by stating “UFFI: Yes”. A buyer, represented by the registrant, purchased the property. Later, the buyer wanted to sell the property, and the registrant listed it for sale and on this listing disclosed “UFFI: Yes”. Months later the registrant introduced new buyers, whom she represented, to the property. Not long afterward, the second listing expired. Up to this point, the registrant expressly disclosed the existence of UFFI on the property on the MLS®. The registrant entered into a new listing agreement with the seller for a term of almost a year, however, the provision setting out the term was not specifically initialled by the seller. A subsequent listing indicated: “UFFI, See Remarks” in the relevant line. In the Remarks section, it stated: “MOVE RIGHT IN! NICE RESIDENTIAL AREA! ROOF ONLY 2 YRS OLD, MANY UPDATES INCL DRYWALL, HRDWD PINE FLOORING, SIDING, SOFFIT & FASCIA; SEE SPIS FOR ADDITIONAL INFO.” The buyers saw this listing prior to making an offer to purchase. The seller filled out a Seller Property Information Statement (SPIS) on the third listing and answered “no” to the questions “Have you made any renovations, additions or improvements to the property?” and “Yes” to the question “To the best of your knowledge have the building(s) ever contained urea formaldehyde insulation?” However, the buyers did not sign the acknowledgement on the SPIS confirming they had seen that document and later made an offer to buy the property. The seller signed back with a counter offer, which the buyers accepted. The Agreement of Purchase and Sale included standard form paragraph 21 which stated there was not and to the best of the seller’s knowledge, never had been UFFI in any building on the property. The agreement also confirmed the listing broker represented both the seller and the buyers in the transaction. At no time after she began representing the buyers did the registrant enter into a written representation agreement with the buyers, nor did she, at the earliest practicable opportunity and before the Offer to Purchase was prepared and submitted, enter into a buyer agency agreement indicating her role and the services she was providing to the buyers, and obtain written acknowledgement from them of the same. The registrant did not provide the seller or the buyers with written disclosure of her dual representation in the transaction and obtain written acknowledgement of the same before the Offer to Purchase was prepared and submitted. Nor did she obtain the informed consent of the buyers to her dual representation of both the seller and the buyers in the transaction. The transaction was completed, and about three months later the buyers discovered what they thought might be UFFI. They contacted the municipality, which inspected the property, and informed the buyers that the inspection revealed the presence of UFFI. The RECO CCD panel decided that the registrant acted unprofessionally in that she: a) Did not ensure that the listing agreement disclosed that the seller specifically gave informed consent in writing to a period longer than six months, by having the seller initialing that provision. b) Did not enter into a written representation agreement with the buyers. c) Did not provide the seller or the buyers with written disclosure of dual representation and obtain written acknowledgement of same, at the earliest practical opportunity and before the Offer to Purchase was prepared and submitted. d) Did not ensure that her clients the buyers signed the SPIS, when express reference to UFFI had been removed from the MLS and the SPIS became the means by which the existence of UFFI would be disclosed. e) Drafted an Agreement of Purchase and Sale that stated there was not and never had been UFFI in the property, as opposed to an appropriate alternative clause.24. The registrant breached the following Rules of the RECO Code of Ethics: Rule 1 – Ethical Behaviour PENALTIES LEGALBEAT: Initialled counter-offer
stands They decided to sell if the price was $65,000 an acre and if they could remain in the home for 3 years. Changes were made to the offer and a 3-year occupancy clause was added as a schedule and initialled by the seller. The counter-offer was made irrevocable until September 6th. The buyer agreed to sign the counter-offer but preferred the occupancy period to be changed from three years to one year. However he did not want to lose the deal so he accepted the counter-offer. On the same day the buyer signed an Amendment to Agreement offering to change the occupancy date. Those were to be delivered to the seller, but she was not available. The husband of the seller was informed of the acceptance and the suggested amendment and they were also delivered to the seller's address. The seller then took the position that there was no agreement – the buyer sued. The judge reviewed all of the circumstances and decided that there was a validly enforceable agreement, and that the notice had been communicated to the seller's agent (husband) within the required time limits under the circumstances. The buyer was awarded damages of $270,763 for breach of contract. Pyne v Footman 2007 CanLII 12712 MERV'S COMMENTS Using OREA's new Amendment Form 120 could help solve some of these issues as it clearly states that it is an offer to amend and if not accepted, will be void and the original agreement will continue. If it is being used to suggest a change in an existing conditional agreement, be careful to ensure that the irrevocable date is before the end of any conditional date in the original agreement. Construction at
OREA Keep cell phone handy New course maximizes use of your
Blackberry® Each course has instructions and demonstrations that are specific to the device interface. The course focuses on key functions of the “Trackball” or “TrackWheel” device to help you take full advantage of the mobile functionality of the BlackBerry® handheld. Standard functions that are currently offered on all models in Canada are discussed and some of the newer devices and their unique features are reviewed. This course will help you get to know your device better so you can become more efficient using these devices to communicate with your clients and colleagues. By the end of the course you will be able to customize features such as notifications, font style and size, date and time, owner information, speed dial, and auto-text as well as create contact lists, use the calendar, create and reply to e-mail from clients, manage attachments, and use the internet. The course also provides tips and tricks to make using your BlackBerry® easier and faster. For more information, visit the continuing education section of this website. Continue leadership training with
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