TO ALL REAL ESTATE BROKERS, AUTHORIZED OFFICIALS AND SALESPERSONS
January 10, 2005
With the New Year comes a notice dealing with some issues that have come to our department’s attention during the later part of 2004. Please make note of the following and take the time to ensure that all salespersons are made aware of these issues.
ADVERTISING
A number of real estate salespeople were advertising in the various media not using the complete name of the employing broker. Your attention is directed to sections 44(3) and 44(4) of The Real Estate Brokers Act which read in part;
Disclosure by authorized official
44(3) No advertisement for the purchase, sale or lease of real estate shall contain the name of an authorized official unless(a) the advertisement also contains the name of his employer and indicates, in a manner sufficient to comply with subsection (2), that the employer is a broker;
Disclosure by salesman
44(4) No advertisement for the purchase, sale or lease of real estate shall contain the name of a registered salesman unless(a) the advertisement also contains the name of his employer and indicates, in a manner sufficient to comply with subsection (2), that the employer is a broker;
The key word would be employer e.g. XYZ Realty Inc. is the employer and not XYZ. Please note failure to comply with The Real Estate Brokers Act in regards to proper advertising could result in disciplinary action being taken against both the employing broker and the salesperson.
ADVERTISING ON THE INTERNET
With the increased use of internet advertising another concern has come to the attention of the Commission. It appears that when real estate salespeople are advertising on the internet not everyone is adhering to the Commission’s guidelines with respect to their advertising, in particular, not maintaining accurate and current information and not immediately removing expired listings from the Web site.
A Business Practices Guidelines was previously issued respecting Advertising on the Internet and is posted on the Commission’s web site, www.mbrealestate.ca. Please familiar yourself with these guidelines to avoid any future problems or complaints that may arise from not following these guidelines.
CAVEATS
Under paragraph 7 E of a standard listing agreement contract it states;
" The seller hereby pledges all of the Seller’s interest in the Property to the listing Brokerage as security for payment of all money which may be owed by the seller to the Listing Brokerage under this contract and hereby acknowledges that the Listing Brokerage is entitled to register and maintain a caveat at the Land Titles Office to give notice of this charge upon the Seller executing a legally enforceable contract of sale of the Property."
Information has been received that some Brokers are filing caveats at the Land Titles Office once a listing agreement has been entered into and not in accordance with the above. Firstly, this is being done contrary to what the listing agreement states, and secondly, if the caveat is not removed there is a good chance that any proposed sale will not be completed.
The ability to file a caveat in accordance with the terms of the listing agreement contract is intended to protect commissions in instances where there is a possibility that the collection of commissions may be in jeopardy. This right should not be abused.
CRIMINAL CHECKS
Since November 1, 2004 the Commission has been doing criminal checks on all new applicants. This may delay the processing of an application between 2 to 7 days from the time the application has been received. Please advise all new salespeople of this process.
REMINDER
Do not rely upon information from a previous listing agreement on a property as being 100% accurate. It is advisable to prepare your own listing from your measurements and the information you gathered. A mistake made by a previous agent may be the subject of a complaint against you or an Errors and Omissions Insurance claim. Take the extra time to ensure that all information is accurate.
W.D.Baluk
Registrar
The Real Estate Brokers Act