RECO Update

Niagara Association of REALTORS®, Niagara Falls, ON, January 15, 2019

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Presenter: Glen Thomas, RECO Complaints,

Compliance and Discipline (CCD) Manager

RECO Update

• Who we are
• Education
• REBBA changes

Lockboxes

Advertising and social media

Complaints

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Agenda

RECO Update

Real Estate Council of Ontario (RECO):

• Founded in 1997
• Regulates real estate salespeople, brokers and brokerages in Ontario
• Protects consumers by helping to ensure a fair, safe and informed marketplace

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RECO Update - Who we are �Over 20 years of consumer protection

RECO:

• Decides fitness for registration
• Inspects brokerages
• Investigates complaints
• Educates consumers
• Establishes educational prerequisites and MCE
• Administers insurance program that includes deposit protection

RECO Update - Who we are �RECO’s role

Very important to have regular, �face-to-face meetings with industry professionals

• We want to hear your feedback
• We want to help you raise the bar for professionalism and consumer protection

Example: RECO’s Registrant Toolkit

RECO Update - Who we are�Reaching out to registrants

• Registrants who are renewing or reinstating their registration must meet MCE requirements
• To meet MCE requirements, you must complete:
• A Residential Update Course or a Commercial Update Course, and
• Your choice of two elective courses

RECO Update - Education�Mandatory Continuing Education

2018 Courses

• RECO introduced five new elective courses in 2018/2019, bringing the total number of electives to 14:
• Home inspections
• Waterfront properties
• Commercial leasing
• Multiresidential investment properties
• Mortgage financing – guiding client conversations

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RECO Update - Education

Mandatory Continuing Education

Review

RECO has hired CamProf Inc. to conduct an extensive MCE review �that will examine:

• The technology itself
• The learning experience
• Course delivery methods

RECO Update - Education �Mandatory Continuing Education

• In December 2017, previous government passed the Strengthening Protection for Ontario Consumers Act
• Max fines for salespeople/brokers who violate Code of Ethics increased from $25,000 to $50,000 (max penalty for brokerages increased to $100,000)

RECO Update - REBBA changes

Lockboxes

• Steady stream of complaints indicates greater clarity needed
• Violations have received �media attention
• All registrants should read �the bulletin and apply it

Lockboxes

• Code given to to the buyer �or other unauthorized person
• Code used outside of the scheduled viewing time
• This is a very serious breach of trust and privacy

Lockboxes

Issues leading to complaints

• Brokerages are expected to have clear lockbox policies �in place
• Brokers of Record should �take a leadership role

Lockboxes

• RECO encourages registrants to take advantage of the latest technology
• Lockbox codes should be changed regularly
• US-based National Association of Realtors: “temporary codes/access should expire within seventy-two hours (72) after being issued”

Lockboxes

Electronic versions

Advertising and social media

Guidelines help uphold RECO’s consumer protection mandate

• Advertising must be accurate, not misleading, false or deceptive
• The guidelines establish a level playing field among registrants, �but allow for some flexibility

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Advertising and social media �Advertising compliance

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All advertisement �must include:�

1. Registered brokerage name

2. Title/designation: �Brokerage

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If ad includes �an individual:�

3. Registered name

4. Title/designation: Salesperson or Broker

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Advertising and social media �4 minimum requirements

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Get written consent if ad identifies:

• The parties
• A property
• Details of an agreement

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Advertising and social media �Written consent

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Common issues:

• Promises about commissions �or savings
• Statements about honours �or awards
• Statements about business volume or trading activity
• Comparative claims

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Advertising and social media�False, deceptive statements

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• Team name cannot appear to be that of a brokerage or another registrant
• Full brokerage identification must be clear and prominent
• Individual members need not be identified but if performance claims are made, the size (number) of team members must be clearly disclosed

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Advertising and social media�Team Advertising

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Incorrect

Advertising and social media

Disclaimers

Correct

Advertising and social media

Qualifiers

Potentially misleading

Acceptable alternative

For all social media advertising, �you must:

• Comply with RECO’s guidelines on �your profile page and bio section
• Display your RECO registered name, and the name of your brokerage
• Display your title/designation

�For blogs, you must:

• Have a theme with an adjustable header to display the information above

Advertising and social media�Social media and blogs

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Remember: �Do not misrepresent yourself or provide false, deceptive or misleading statements

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• Don’t advertise a property without a signed listing agreement or written permission
• Only display an MLS logo if the property is on board’s MLS system
• Does your board/association allow “coming soon” ads? Check first

Advertising and social media�“Coming Soon”

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Remember: �Do not misrepresent yourself or provide false, deceptive or misleading statements

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• Don’t advertise a property if the listing has been temporarily suspended – that includes lawn signs
• Once ownership of a home has changed, you need permission of new owner to continue advertising it
• If the previous selling brokerage can’t/won’t remove an old ad, call RECO

Advertising and social media�Other issues

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Remember: �Do not misrepresent yourself or provide false, deceptive or misleading statements

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Complaints

• It takes an average of about 70 days to resolve a complaint
• We now manage advertising complaints by:
• Placing greater accountability with brokerages
• Providing support for brokerages
• Working with registrants to resolve minor issues
• Reviewing ads before they run

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Complaints

Ad complaints

Step 1: �Ask your BOR to review

• * If BOR is still unsure

Step 2: �Complete Advertising Review Request Form �and submit to RECO

���* This form is to be submitted by �a BOR ONLY.

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Complaints

Is my advertising compliant?

• A significant increase in failure to provide conscientious/ competent service
• New complaints: presentation �of offers, and duty to client
• Possibly the result of recent focus on problems associated with multiple representation?

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Complaints

Top complaints 2015 to 2017

Question

On an annual basis, what percentage of RECO’s complaints come from other registrants?

Complaints

Complaints from registrants

• On an annual basis, 25 to 30 �per cent of our complaints come from registrants
• A complaint is a complaint – we bring the same investigative effort to every case file
• If you know of a salesperson, broker or brokerage that is violating REBBA or the Code �of Ethics, TELL US

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Complaints�Complaints from registrants

• RECO gets a lot of complaints �about unprofessional conduct �(ex. skipping appointments, �leaving the lights on, etc…)
• When you’re a guest in somebody’s home, act like it
• Remember: your clients expect courteous, competent, ethical and professional conduct

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Complaints

Professionalism

• A healthy real estate industry requires public trust, so consumer protection is essential
• RECO recommends using a registered real estate salesperson – don’t let us down
• Consumer protection is a shared responsibility

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Consumer protection �is a shared responsibility

Questions?