Your hardworking deals admins collect and amalgamate all transaction paperwork, typically using an online management system like Skyslope or Nexone. They are the main point of contact amid the flurry of follow-ups from clients, lawyers, and agents alike. Depending on the size of the brokerage, they can input, organize, correct, and follow up with dozens of transactions per day.

All of this is to say: deals admins are busy. Having worked behind the scenes at the branch level for over a decade, and even as a deals admin myself for a couple of those years, here are some tips to ensure you and your deals admin are in sync.

Don’t make us chase paperwork

Be aware of the documents and information you’ve already handed in, and more importantly, what’s still outstanding. Most, if not all successful Realtors—and their teams—are organized. It isn’t a coincidence, it’s by design. If you struggle to remember whether you handed in a receipt of funds or exchanged lawyer information with the cooperating Realtor, create a checklist. 

Deals admins deal with hundreds of agents and even more transactions. Ensuring you, as an independent contractor, are on top of your transactions is critical to ensuring the deal flows smoothly from signing to closing.

Phone call vs. email

It’s natural for agents to prefer picking up the phone rather than replying to an email from their deals admin. It’s faster, easier, and you don’t have to tell yourself, “I’ll get to it later,” only to forget about it. However, sending and receiving a reply via e-mail ensures there’s a traceable “paper trail,” which phone calls don’t have. This means a deal administrator can save your e-mailed reply and add it to their online file in case of a future audit.

For example, your trade sheet does not explicitly state to give 25 per cent of your commission to a coworker, but you mention it in a phone call. Should this deal be selected for an audit in the future, the auditor may question why the commission was split when it wasn’t mentioned on the trade sheet. Instead, either correct your trade sheet or hit reply.

Send everything in one email

Once a deal is accepted, you need to send paperwork to your deals admin promptly. This ensures it’s quickly reported on MLS and all key parties are notified of the sales, such as accounting to verify a direct deposit, lawyers to speed up the closing process, and so forth.

But deals admins get a lot of emails. Ensure you have as many documents as possible in as few emails as possible, so your deals admin doesn’t have to sift through too many to find what they need. There’s no reason why your purchase and sale agreement, representation documents, and FINTRAC forms should all be in separate emails.

Also, in case it wasn’t obvious: clearly identify your e-mail by putting the property address in the subject line. This makes searching for specific e-mail chains much less painful.

Pointing out errors: it’s not personal, it’s business

Part of the deal administrator’s job is to ensure the documents they receive are as accurate as possible. You’d be surprised at how many little things, like missing initials on a price change on an agreement of purchase and sale, or writing “not applicable” as a job description on an individual identification information record (IIIR, but let’s face it, we all still call it a CIR), are fineable offenses. Don’t take a request to correct your errors as a personal attack. Mistakes happen. Correct them and move on.

The same applies when a deals admin asks you to fix something that’s recently changed. For example, your brokerage may have updated its trade sheet since the last time you submitted one, and it no longer accepts the existing one. Remember, real estate is an ever-evolving industry with rules and regulations that change and improve often. It’s your job as a Realtor to stay up-to-date with documents and policies, including your brokerage’s in-house forms. Asking why things have changed is understandable, but directing your frustration at your deals admin—who doesn’t control these changes—isn’t.

They aren’t your personal assistants

Lastly, remember that your deals admin works for the brokerage. They aren’t hired to give you their undivided attention. Most are more than willing to answer questions or direct you to someone who will help. But if you find yourself leaning on your deals admin too often, it may be time to consider hiring an assistant.

On that same note, while real estate has a knack for never sleeping, most deals admins work office hours. This means whatever comes in after 5 p.m., even if you have a deal that needs reporting as soon as possible, will generally wait until the next morning. Keep this in mind when it’s 9:02 a.m. the next day and you’re about to call your deals admin.

So, there you have it. Don’t think of these as a list of commandments chiselled in stone, but rather a handbook on how to get onto your deals admin’s good side. You never know when you’ll need to call in a favour.

Diana Faria

Having stepped into the world of real estate as a receptionist over a decade ago, Diana worked in the industry at different capacities and climbed the ladder since. She has supported Realtors as a front desk assistant, organized incoming paperwork as a deals admin, and processed closings as a head-office accountant. Working at several brokerages gave her insight into their inner workings, from recruiting, social media marketing, commission payouts, and everything in between.

The face of real estate is often portrayed as a confident Realtor, but the hardworking cogs within the real estate machine — office admins, assistants, receptionists, and clerks — are often forgotten. Using her real estate and journalism experience, Diana sheds light on everything going on behind the scenes, while keeping the machine humming along.

The post Paperwork 101: What your deals admin wants you to know appeared first on REM.

This was shocking to me. With a majority market share in most of its core business areas and nearly the largest market capitalization in the world, Microsoft is a 50-year-old dominant force in the industry. How is it that they could be acting like a start-up?

To hear my colleague tell it, the environment has completely shifted with increased pressure to innovate, compete with emerging companies, and adopt new technologies at a rate not seen in years.

The lesson: If even Microsoft is doing it, the rest of us – in the real estate sector and far beyond – need to be both paying attention and ready for anything.

Change is part of the journey

Lately, I’ve been spending an inordinate amount of time listening to Acquired, a podcast focused on the origins and evolution of some of the world’s greatest companies. On a completely different scale, I’ve interviewed dozens of owners of small and medium-sized businesses for my own podcast. There is no denying the fact that lasting companies fundamentally change over time. Their value proposition evolves based on external forces, consumer demand, shareholder expectations, and competitive pressures.

Every Realtor and broker across Canada is a small business owner, and – like with Microsoft – now is a perfect time for each of them to get into startup mode. What is your value proposition today, and, more importantly, what will your value proposition be tomorrow?

When I’ve written articles that challenged the status quo of the real estate sector in the past, inevitably, someone would comment that people have been “crying wolf” for years and yet here we still are. So, let me be clear: I’m not suggesting that Realtors will be replaced by some new technology. In fact, I don’t think anything of the sort. I believe it is our resilience and ability to adapt to the evolving business environment over the past 100 years that will serve us as things continue to change.

This adaptation isn’t always self-motivated. Sometimes it’s resisted at first and simply becomes inevitable over time. Resistance isn’t necessarily a good or bad thing – it’s just a reality. And that goes for most industries and businesses. Sometimes being an early adopter has saved a company or provided them with exponential growth. Sometimes, resisting and delaying the inevitable (while learning from others’ early forays and mistakes) has been equally beneficial.

So, whether you’re a Realtor, own a brokerage, or are in a leadership position in organized real estate, let’s not focus on the myriad changes that are potentially forcing us to adapt, but instead focus on our direct value proposition to our client base.

Looking back, and ahead

Consider for a moment the value proposition of the Realtor at a time before the internet, when the catalogue was the go-to resource for listings. For those in the sector then, you remember it well. For those who weren’t, I’m sure you can easily picture it. 

To see listings – and not just the ones found in a “scroll” through the real estate section in the local paper – clients had to sit across a desk from a Realtor. As such, the catalogues were protected at all costs. A client might leave with photocopies of their favorite listings, but, in some cases, information would be redacted from them. 

There were no professional photos or virtual tours. The exposure to the property happened during the showing. 

There were no FINTRAC compliance requirements and, famously, the contracts were only one, two, or three pages, depending on who you ask (but be sure to ask; anybody in the industry at that point loves to talk about this).

Today, clients know more about a property of interest before seeing it than ever before. They can do virtual walk-throughs and see more information than the catalogues ever had. And that’s not to mention the ancillary information on the internet, not curated by the MLS System. The information is nearly open, available on many different portals in many different forms. 

What’s more, the regulatory environment has become far more robust. Consumer protection by way of anti-money laundering requirements, privacy legislation, licensing and regulatory compliance, and board and association rules are now woven into the fabric of real estate sector business. 

The question is: How are we reacting to all this? Have we accepted this as a changed value proposition or are we just generally annoyed that the contracts are longer and the data is no longer exclusive? Whether accepted or not, I think most recognize that a Realtor’s value has evolved based on the changing world around us.

Regulation as a value-add

I have written before about Realtors and regulation, and continue to believe that there is more opportunity for us to embrace the fact that we are regulated as part of the value proposition. No, we don’t need to get excited every time there’s a new rule or compliance requirement, but with the world changing around us and our clients so quickly, being regulated can help build lasting consumer trust.

As for the value of the data, we need to be ready for a world where the current ecosystem becomes diluted as tens of thousands of Realtors leverage AI systems to assist with data analysis, dispersing data broadly across learning models. Again, this isn’t good or bad – it’s just real, and the value proposition will change as a result. 

Focus will need to be put on ensuring that Realtors’ contribution to this broader data ecosystem continues to be recognized and rewarded. Equally, value will be placed on discovering and exploiting other sources of data by digitizing all aspects of the process and streamlining the consumer experience.

Of course, that’s just the change we can see coming. The value proposition for all of us will continue to evolve in the coming years. It’s up to us as business owners and leaders to contemplate what value we’ll bring to the ecosystem and how we’ll positively move toward that role. 

There will be a struggle between the innovators and the resistors, but there always is. This conflict isn’t unhealthy. It just challenges us to better hone and articulate our vision of what that value proposition is going to look like.

Trevor Koot

As a former managing broker and realtor, Trevor Koot’s nearly two decades in organized real estate gives him hands-on expertise in understanding the profession’s needs. Before stepping in as CEO at the BC Real Estate Association, he served as CEO of Kamloops and District Real Estate Association for four years and Kootenay Association of Realtors for three before successfully merging the two into the Association of Interior Realtors. Trevor’s leadership in the real estate sector began long before his CEO career when he was Chair of the Saskatchewan Real Estate Commission for five years. He played a key role in redrafting provincial real estate regulations during his tenure. Trevor also served two years as Chair of the Governance Committee at the Association of Real Estate License Law Officials.

He holds multiple degrees, from a Bachelor of Science in Kinesiology and a minor in Mathematics through the University of Saskatchewan to a Master of Business Administration degree through Royal Roads University. Trevor is adding to his extensive education through his current pursuit of completing a Master of Laws degree at York University. His daughter, Abby, attends the University of Victoria while he and his wife, Jill, live in Vancouver’s Chinatown.

The post Welcome to startup mode: Why Realtors need to rethink their value proposition appeared first on REM.

MarkWeisleder

Mark Weisleder is a senior partner, author and speaker at the law firm RealEstateLawyers.ca LLP. Contact him at mark@realestatelawyers.ca or toll free at 1-888-876-5529.

realestatelawyers.ca/

The post The Realtor’s essential FINTRAC compliance checklist appeared first on REM.

Natalka Falcomer

Natalka Falcomer is a lawyer, real estate broker and Certified Leasing Officer who started her real estate career in private equity. She created, hosted and co-produced a popular legal call-in show on Rogers TV and founded and recently sold Groundworks, a firm specializing in commercial leasing law. She is currently the Chief Real Estate Officer of Houseful.ca, leading the development and expansion of the company’s personalized home buying and selling experience for the Canadian market. She sits as an advisor on NAR REACH Canada and is the former multi-year board member of the Ontario Trillium Foundation.

The post The big FINTRAC mistakes brokers need to know about: Insights from an expert appeared first on REM.

Danny Kucharsky

Danny Kucharsky is a contributing writer for REM.

The post From app to all-in-one solution simplifying brokerage FINTRAC compliance appeared first on REM.

Jamie Burke

Jamie (she/her) is a Writer with Real Estate Magazine, as well as Partner of a marketing agency, Burke By Burke, with her husband Eddie. She is an avid reader, self-proclaimed foodie, urban land economics enthusiast, Barry’s Tea drinker and part-time yogi. She lives, works and plays in Port Moody, BC, on the ancestral and unceded homelands of the kʷikʷəƛ̓əm (Kwikwetlem), səlilwətaɬ (Tsleil-Waututh), xʷməθkʷəy̓əm (Musqueam), Sḵwx̱wú7mesh (Squamish), q̓ic̓əy̓ (Katzie), qʼʷa:n̓ ƛʼən̓ (Kwantlen), qiqéyt (Qayqayt), and Stó:lō (Sto:lo) Peoples

The post Speeding up the FINTRAC grind: How Fintracker’s technology is setting out to support, not replace, realtors appeared first on REM.

QUICK HITS

• The Canadian government has released regulations ahead of a ban on non-Canadians buying residential property, which is set to take effect on Jan. 1, 2023.
• The regulations outline exemptions for temporary residents who meet certain requirements, including international students and those on work permits.
• CREA is expressing disappointment with the regulations, and is raising concerns on behalf of its members.

Days before Canada’s foreign buyer ban is slated to take effect, the federal government is releasing regulations that detail exemptions and attempt to define the role the real estate industry plays. 

The Prohibition on the Purchase of Residential Property by Non-Canadians Act is expected to come into force together with the newly released regulations on Jan. 1 as an attempt, the government says, to improve affordability for Canadians looking to buy a home.

Under the new regulations, anyone who is convicted of knowingly helping a non-Canadian buy a property could face a fine of up to $10,000.

In a statement to Real Estate Magazine, the Canadian Real Estate Association (CREA) says it’s disappointed with the regulations released Wednesday and is raising several concerns on behalf of its members. 

Who is exempt?

The rules outline several provisions for how the act will be enforced and detail exemptions for temporary residents who meet certain requirements. Canadian citizens and permanent residents are not included in the prohibition. 

International students who have filed tax returns for the past five years and have spent the majority of the past five years in Canada are excluded. In addition, the purchase price of the residential property must not exceed $500,000.

Those who hold a work permit may also be excluded. They must have worked in Canada for a minimum of three years within the four years preceding the purchase and filed tax returns for at least three of the four years.

There are also exceptions for foreign nationals fleeing conflict and refugees. 

The government estimates that the volume of non-Canadians that would be exempt and subsequently choose to buy a home is limited over the next two years. It calculates the number would be in the hundreds to low thousands. 

If a non-Canadian wants to buy a property, the government says the onus is on them to demonstrate their eligibility and says they will be responsible for any costs associated. 

Non-Canadian corporations

Non-Canadian and foreign-controlled corporations will not be allowed to purchase residential property in Canada. Under this act, a foreign-controlled corporation is defined as an entity that is three per cent or more owned by a non-Canadian.

“That’s a relatively low threshold,” says Chris Sharpe, a real estate lawyer and partner at Clark Wilson LLP in Vancouver. Sharpe believes this could catch companies that may have silent investors who are investing smaller amounts into projects.

The government’s regulatory analysis states there will be a minimal burden and costs for realtors because they already comply with existing regulations and standards related to customer identification and due diligence.

CREA disagrees.

One example the association gave was FINTRAC beneficial ownership obligations. Those require a realtor to identify any individual who owns 25 per cent or more of an entity. In contrast, the foreign buyer ban requires them to determine if the entity is three per cent or more owned by a non-Canadian, which could add additional costs and requirements to transactions. 

CREA also notes that FINTRAC requires realtors to verify client identity at the time of a transaction rather than before assisting or advising clients as will be required under the foreign buyer ban.

The regulatory analysis clarifies that record keeping is not mandatory for realtors; CREA highlights that is also contrary to FINTRAC obligations. 

“Without records, an individual charged with an offence pursuant to this act would have difficulty demonstrating that they made reasonable efforts to comply with this legislation in order to avoid a summary conviction and a $10,000 fine,” CREA states.

What about recreational properties?

Also seemingly exempt from the ban— homes outside of areas that meet certain population thresholds based on census analysis. That may include some recreational properties, but not all.

Sharpe explains that based on his understanding, the government has created an exemption for what he would describe as “very rural” residential properties. 

He adds, “My real estate group here…and at all law firms and notaries and realtors across the country need to educate ourselves on where do we go to find the list of census metropolitan areas and census agglomerations?”

CREA is also raising questions about the process for determining whether properties are located in eligible areas.

Sharpe says, “It’s incumbent upon me to become well-versed in this and its application and turn my mind to how to protect and advise my clients. I think realtors would need to be doing the same.” 

Jordana Springgay

Jordana is the editor of Real Estate Magazine. You can reach her by email. 

The post CREA raises concerns over foreign buyer ban regulations appeared first on REM.

QUICK HITS

• LeHomes Realty in Vancouver, B.C. is facing more than $550,000 in fines for anti-money laundering violations committed by Pan Pacific Platinum Real Estate and LaBoutique Realty Ltd., according to FINTRAC.
• Cathay Pacific Realty Ltd. is facing $206,250 fines for anti-money laundering violations.
• All three were found to have failed to submit a suspicious transaction report where there were reasonable grounds to suspect money laundering

Three Vancouver, B.C. realty firms are facing fines for anti-money laundering (AML) breaches, according to the Financial Transactions and Reports Analysis Centre (FINTRAC).

This month, FINTRAC announced Pan Pacific Platinum Real Estate and LaBoutique Realty Ltd., both brokerages operating under LeHomes Realty, were fined a combined $557,780.50 for AML violations.

Pan Pacific Platinum Real Estate was fined more than $280,000 for several violations. In a press release, the financial intelligence unit alleges a lack of compliance and that the firm failed “to submit a suspicious transaction report where there were reasonable grounds to suspect that transactions were related to a money laundering offence.

LaBoutique Realty Ltd. was fined $275,385 for similar violations, according to FINTRAC, as well as failing to “submit a large cash transaction report for the receipt of $10,000 or more in cash.”

On Oct. 18, FINTRAC also announced fines to the tune of $206,250 against Cathay Pacific Realty Ltd. The Vancouver broker is accused of committing several violations, including failing to submit a report where there were reasonable grounds to suspect that transactions were related to a money laundering offence.

Neither LeHomes Realty nor Cathay Pacific Realty Ltd responded to Real Estate Magazine’s request for comment.

In a press release, Sarah Paquet, director and CEO of FINTRAC, said the organization is “committed to working with businesses to help them understand and comply with their obligations under the Act. At the same time, we will be firm in ensuring that businesses continue to do their part, and we will take appropriate actions when they are needed.”

Real estate brokers and sales representatives are required under the Proceeds of Crime (Money Laundering) and Terrorist Financing Act to keep certain records, identify clients, maintain compliance, and report certain financial transactions to FINTRAC.

The post B.C. realty firms slapped with fines over anti-money laundering violations appeared first on REM.

1. Why should I care about FINTRAC?

To me the main reason is that if a lender is suspicious about any buyer at any time before closing, they can cancel the mortgage commitment. Then the deal may not close and you will not be paid your commission. Do not associate with or represent any suspicious buyers.

2. Why does FINTRAC matter if I do not accept cash as a deposit on any real estate agreement?

FINTRAC is not just about cash. Every bank draft you receive as a deposit on a real estate agreement is suspicious because there is rarely any proof who purchased it or how they purchased it. What about a corporation that buys or sells real estate? Do you know who their shareholders are who actually own the corporation? They could be criminals. All of these are examples of potential money laundering.

3. What are some of the key reminders when completing the FINTRAC ID forms?

All sections need to be completed carefully. The client occupation should be specific because this connects the client to their geographic location. Always ask if the deal is being done on behalf of a third party.

4. What are some of the key new requirements announced June 1, 2021?

Every new client should now be considered to be in a business relationship with your brokerage, regardless how many deals they have done in the past with your brokerage. As such, a proper explanation of the deal should be included in section D of the FINTRAC Identification form. There is also a new Beneficial Ownership Form to complete for every client, which will, for example, ask for details on all shareholders of a corporation who own more than 25 per cent of the shares and whether a buyer may be a Politically Exposed Person.

5. What must a brokerage do now to make sure they comply with their FINTRAC obligations?

Real estate brokerages must make sure they have an up-to-date FINTRAC policy with a FINTRAC compliance officer; that all agents and employees of the brokerage have taken the required FINTRAC training; that a proper brokerage risk assessment is completed every two years; and that a FINTRAC audit is also completed to make sure that your FINTRAC regime is up-to-date. I have completed FINTRAC audits for real estate brokerages across Ontario and in other provinces.

If you have any question related to FINTRAC, or if you want to set up a seminar for your brokerage, do not hesitate to contact me.

MarkWeisleder

Mark Weisleder is a senior partner, author and speaker at the law firm RealEstateLawyers.ca LLP. Contact him at mark@realestatelawyers.ca or toll free at 1-888-876-5529.

realestatelawyers.ca/

The post FINTRAC: 5 things to remember in 2022 appeared first on REM.

During my career I have heard many versions of these two questions: “Why should I pay a Realtor to sell my property?” and “What do I get in return for the commission I pay?”

Many sellers believe that their Realtor puts a sign on the lawn, an ad in the newspaper and then waits for the property to sell. Generally, nothing could be further from the truth.

When a seller signs a listing contract the Realtor makes a commitment to help their client obtain the highest price, in the shortest time with minimum inconvenience. A good Realtor gives valuable advice, expert guidance and great value.

The Realtor provides objective and accurate information about current market value allowing seller to select the appropriate listing price. In many cases they can offer expert advice on staging the property for maximum appeal to potential buyers.

When listing the property, a Realtor is trained to represent the seller by making sure the property information is accurately and attractively presented to the marketplace. This includes careful compliance with provincial and federal regulations like the Personal Information Protection Act, the Real Estate Services Act (in B.C.) and the FINTRAC money laundering requirements. The Realtor ensures that required disclosures are made at the appropriate times.

Once a listing is signed, the Realtor begins the obvious marketing process, which includes putting the property on the Multiple Listing System, installing a sign, writing appealing print ads, creating feature sheets to leave at the property and holding open houses. In addition many Realtors feature the property on one or more internet websites, display mall kiosks and at open houses for other agents. Giving the property maximum exposure can be expensive but it is part of the commitment of the Realtor.

Much of the work of the Realtor is done quietly behind the scenes. Realtors invest time and energy in activities like qualifying potential buyers, arranging and tracking showings by co-operating agents and obtaining and sharing feedback from other Realtors. Many sellers take comfort in knowing that their Realtor will handle all inquiries seriously and do their best to ensure that only serious qualified buyers will view the seller’s property. This provides a measure of safety and security.

Realtors are also trained to provide accurate advice and valuable assistance when dealing with the significant complexities of tenant occupied properties, estate sales and foreclosure transactions.

One of areas where the Realtor provides the greatest value is negotiation. Handling objections and tactfully representing the sellers’ best interest is an important skill that Realtors obtain through specialized training and personal experience. Writing an enforceable contract and negotiating a legally binding agreement are important services that are often taken for granted by the general public until there is a problem. Then this great Realtor value quickly becomes evident.

Another generally invisible service is managing the transaction after acceptance of the offer and during the buyer due diligence period. This consists of arranging inspections, scheduling appraisals and obtaining strata documents (if applicable). Sometimes this also involves handling real estate turbulence, which includes things like appraisals lower than the sale price, problems discovered in a property inspection and other unexpected challenges. The experience and guidance of the Realtor and their broker can usually overcome these challenges.

The final job of the Realtor is to do everything they can to ensure a smooth completion of the transaction. This includes monitoring the conveyance process, confirming payment of the sale proceeds to the seller and a timely transfer of keys to the buyer. Selling a property is a significant transaction for most people and the complexities are sometimes not well understood until problems arise. A good Realtor has the training, expertise and experience to assist their client to achieve their desired results.

Probably the most amazing aspect of the tremendous value Realtors provide is guaranteed results. The seller pays nothing unless they receive an acceptable offer. There are very few other professional service providers who are prepared to demonstrate their confidence in their ability to produce results for their client in this manner.

Jim McCaughan

Jim McCaughan has been a Realtor for over 40 years and is the managing broker of Century 21 Creekside Realty in Chilliwack, B.C. He is the past president of the B.C. Real Estate Association and was the chair of the Real Estate Council of B.C. Jim has served as the president of the Fraser Valley Real Estate Board and the Chilliwack & District Real Estate Board.

The post Why pay commission to a Realtor? appeared first on REM.