The End of Commercial Real Estate Teams in British Columbia?

The Office of the Superintendent of Real Estate in British Columbia (OSRE BC) has issued several new regulations governing real estate transactions that will come into effect on March 15, 2018. These new regulations affect licensees trading in either residential or commercial transactions.

One change in particular will have a significant outcome on those involved in commercial real estate transactions including leasing and investment sales. That is the elimination of Limited Dual Agency, except in very remote areas of the province.

Limited Dual Agency permitted the licensee to represent both the seller and buyer or multiple buyers in a transaction, with the consent of the parties. The same applies when acting for both lessors and lessees.

As of March 15, 2018 the licensee will only be able to act on behalf of either the seller/lessor or buyer/lessee and not multiple parties. The licensee will be the Designated Agent for the party they represent. The OSRE BC has placed the onus on the brokerage to ensure that their licensees do not act as Limited Dual Agents.

According to the official summary of the OSRE BC public outreach for comments, the OSRE BC has also taken the following position: “A team will not be able to engage in dual agency to represent both a buyer and a seller, or multiple competing buyers, in a transaction as the team is considered collectively to be the designated agent of a client [NB: the bold emphasis is mine]. While teams may be a convenient business model to facilitate a real estate transaction, a licensee’s responsibility to fulfill their fiduciary duties takes precedence over the ease and timeliness of completing a transaction. Teams wishing to represent both buyers and sellers in a single transaction could consider licensing as a brokerage in order to continue to provide this service.”

Therefore, a team may not have both a buyer’s representative and a seller’s representative, for example. The OSRE BC’s proposed solution would be to create separate brokerages, which may not be feasible or desired.

In speaking with a Realtor® about this, he said his managing broker said that to ensure the licensees representing one party are independent of the other party in an instance where the brokerage represents both the seller/lessor and the buyer/lessee he believed there would need to be a physical separation at a bare minimum, such as walls. Keep in mind, that the new regulation is intended to avoid potential conflicts of interest and reinforce the fiduciary duties of agency. Therefore, my point of view is that the separation would also include information about the other party, their motivations, data, CRM information, and computer files, etc.

What does this mean to full service teams, or teams that work in a specialized niche market that is so small, or the team’s expertise is widely known and accepted by the industry players? Those teams will surely need to break up.

Additionally, brokerages will incur extra expense creating all the separation required.

I’d be interested in knowing your thoughts on this topic. I’ll also be providing information and my point of view on some of the other new regulations in other posts.

 

 

 

 

New Residential Market Insight by Greenstead Consulting Group & Eitel Insights

Peter D. Morris of the Greenstead Consulting Group and Dane Eitel of Eitel Insights have joined forces to exclusively produce and market S.M.A.R.T. InsightTM, a new and innovative technical analysis of market pricing in any residential market in the world.

According to both Morris and Eitel the S.M.A.R.T. Insight analysis not only indicates what occurred in the past, but it can be predictive of what the market is likely to do in the future. Both Eitel and Morris believe this future looking aspect is critically important. For example, the detached single-family home price in Vancouver BC is expected to drop by 21% from its high by 2019 according to a recent analysis performed by Eitel. “More importantly it also suggests when the price will recover,” said Eitel.

“This type of forward looking analysis is unique in the real estate industry, which has typically relied on historic year over year averages,” he said as he explained that the method used to analyze the data was first proven in 1902 in another industry.

Morris said the results provide a distinctive insight to the market that is useful to homeowners, Realtors, lenders, developers and many others around the world. “Imagine the competitive advantage if you knew what the market may do in the future rather than what it did in the past,” he said, adding that most people are interested in knowing what will happen in the real estate market so they can plan what they will do. Eitel, who is also a licensed residential Realtor, noted that Realtors can use this information to guide their clients and improve their business. Morris said lenders can use the information to mitigate their lending risks and developers should be most interested in knowing the future of the market due to the time it takes to get a new development to market. “Anyone involved in residential real estate needs this,” Eitel added.

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IMPORTANT:

The pricing on these reports provides a great return on your investment. Here are some ways you can use these customized reports:

  1. Be seen as a thought leader
  2. Generate new listings
  3. Create sales momentum
  4. Improve your brand
  5. Get more PR

There are many reports that will be made available covering whole markets; sub-markets; and different asset classes, such as single family detached homes, condos, and townhomes. The first report will be out soon and will cover single detached residential homes in Greater Vancouver.

 

Peter D. Morris comments on the closing of Sears in Canada

Principle Consultant for the Greenstead Consulting Group, Peter D. Morris, comments on the closing of all the Sears stores in Canada in this article in Retail-Insider.com

https://www.retail-insider.com/retail-insider/2017/10/sears-canada?utm_source=Retail+Insider+Newsletter&utm_campaign=bcf3861251-EMAIL_CAMPAIGN_2017_10_11&utm_medium=email&utm_term=0_659c2a0c20-bcf3861251-113728729

 

Peter Morris to Speak at the VI Commercial Realtor Summit

We are pleased to announce that Peter D. Morris will be the featured workshop leader at the Vancouver Island Commercial Realtor Summit on October 3, 2017.

This full day workshop, called the Masterguide to Leasing is based on his book Masterguide to Leasing for Retail Landlords; but with expanded content to cover all asset classes and both the landlord and tenant perspectives.

The Summit is a joint presentation of the Victoria Real Estate Board and the Vancouver Island Real Estate Board. These two Boards represent Realtors throughout Vancouver Island and all the Gulf Islands.

 

Peter Morris to Speak at the Victoria Real Estate Board

2277_RealtorQuest_AGM_2016_GP_L4130_Peter D. Morris CRX, SCLS, SCSM, SCMD is in demand as a platform speaker, trainer and coach to the commercial real estate industry across North America. And now Greenstead Consulting Group is pleased to announce that he will be speaking to the Victoria Real Estate Board’s Commercial Division on May 30, 2017.

Whether for an hour, a full day workshop or a multi-day bootcamp, Peter Morris is available for a lively, informative session to real estate boards and companies. In addition Greenstead Consulting Group recently launched the Masterguide CRE Coaching platform that helps Realtors get more business, earn more, perform better and raise their reputation.

Peter has spoken to organizations across North America and internationally including Kuwait, Colombia, China, Taiwan, Indonesia, Hong Kong and others.

Learn more about the programs Peter presents, and the coaching platform, by using our: Contact Us.

 

Peter Morris Will Speak to the Calgary Real Estate Board

Skyscrapers towering over Calgary Alberta Canada at night.

Skyscrapers towering over Calgary Alberta Canada at night.

Peter D. Morris, Founder of the Greenstead Consulting Group and international Commercial Real Estate Trainer, is excited to bring his proprietary S.T.E.P. program to members of the Calgary Real Estate Board April 25, 2017.

The S.T.E.P. program is a 6 hour hands on workshop.

Elevate Your Business Using the S.T.E.P. Program

Do you know the secret to client entanglement? The commercial real estate business is a people business and building relationships is important to your long-term success. Yet studies show that very few clients say they have a preferred provider.

In his exclusive S.T.E.P. Program Peter D. Morris CRX, SCLS, SCSM, SCMD leads you through the top three complaints commercial real estate owners and tenants have with their providers and how to solve them so you can win more business and create long term client retention.

We start with an understanding of the true business you are in.

We show you how to Precision Market your business and yourself to win listings for investment sales or commercial leasing. We also introduce you to the concept of creating the “Story to Sell”.

We go through prospecting and the entire service cycle and show you how to win the business before competitors even know about the potential.

Next, you will learn about the 5 Essential Elements required for a successful negotiation.

In the afternoon, we move from getting the business to doing the business in a way that delights your clients and elevates you to the level of a “Trusted Advisor”, starting with the commercial leasing process representing landlords or occupiers. We also show you how these unique, yet time tested processes continue to set you apart allowing you to stand above the competition.

Finally, we introduce key investment sales concepts applicable to a transaction of any size.

Imperium Blue Management LLC is a New Client

We are pleased to be working with Imperium Blue Management, based in the USA. Recently, entities related to Imperium Blue Management acquired 423,482 square feet of ground-floor retail in the mixed-use villages of six ski resorts and one golf and beach resort in the United States and Canada.