The Superintendent of Real Estate, Micheal Noseworthy, the Real Estate Council of BC’s CEO, Erin Seeley, and the CEO of BCREA, Darlene Hyde, accepted an invitation to meet with the REBGV/FVREB Broker Advisory Group and both Boards’ presidents on July 26 to discuss the impact of the new Rules implemented on June 15.
Also discussed was the anticipated timeline for further rule changes as outlined in the 2016 Independent Advisory Group (IAG) report and how Brokers and organized real estate can participate in the process.
The Broker Advisory Group, made up of sixteen Brokers from both boards and senior staff, was formed in June with the goal to elicit feedback from some of the industry’s most senior leaders and develop a formal mechanism to share that input with the Office of the Superintendent of Real Estate (OSRE) and Council.
In his presentation to the group, the Superintendent acknowledged the importance of Brokers and their responsibilities within real estate’s regulatory framework in BC. Noseworthy said, “We recognize that Brokers play an integral role within our regulatory framework.
“In collaboration with Council, we want to review the roles and responsibilities of Managing Brokers and we aim to do that in a multi-phased approach.”
He said that his office is planning to first generate a white paper regarding managing broker policies and guidelines to be released in 2019 for review and input from the profession. And then later that year post consultation, the OSRE would present draft rules specific to managing brokers.
In response to the groups’ questions and comments regarding adjusting to the new rules, both Noseworthy and Seeley acknowledged the challenges and struggles licensees are facing currently. Noseworthy said, “We recognize adjustment time is needed, which is why we’re not rolling out new rules every few months.”
Erin Seeley commented, “We want to understand what you’re facing. What are the impediments to holding your licensees to account? How can we support you?”
She added that this is the reason why Council is embarking on its upcoming listening tour in August and September to get feedback directly from Brokers regarding the impact on brokerages. “In our 90-day report – post June 15 – that we will be submitting to the Superintendent, we will be reporting back on the consequences and unintended consequences of the rule changes.”
In thanking BCREA for their July submission including feedback from REALTORS® around the province, Seeley said, she knows that Council needs to make changes to the forms and will be doing so once they hear back in greater detail from licensees and brokers during Council’s listening tour.
She noted that although Council is receiving a lot of questions and some frustrated comments from licensees, they have not received any complaints from the public. “We haven’t had opposition, just some confusion regarding the new forms and optional signatures. We will be launching a public information campaign this fall and we will be forming a consumer advisory group.”
One concern raised by Darlene Hyde, BCREA CEO, and echoed by all Board participants is the need for more industry representation on the Real Estate Council. Currently, there are only two licensees serving on Council. Seeley reminded the room that Council members are appointed by the Lieutenant Governor. She indicated that Council has informed the Minister that they’re not adverse to seeing more industry represented, in addition to staggered terms so that Council appointments don’t all come due at the same time. “That’s just good governance.”
Hyde explained how complex the process is to apply to serve on Council – one must apply through the Crown Agency Board Resourcing Office – which is why BCREA is embarking on a strategy to inform licensees across the province with the aim of attracting interested and qualified applicants. Click here for more information.
Both Seeley and Noseworthy thanked attendees for the feedback saying they welcome more discussions and will be assessing Brokers’ expectations and requirements in the months ahead. They recognize the market has changed since the IAG report was published in 2016 and the role that demographics plays for many brokerages. In BC, the majority of managing brokers are over the age of 50 and more broker training will be required in the future.
Both the Superintendent and Council CEO will be making presentations at BCREA’s Advocacy Exchange: Managing Broker Conference on September 19 in Richmond. All managing brokers in BC are encouraged to attend. Click here for event and registration details for this one-day event.
The REBGV/FVREB Broker Advocacy Group will continue to meet as needed.