5 KEY WAYS THE REAL ESTATE

MARKETPLACE HAS CHANGED

What to do if you’re not happy with your real estate representative

5 QUESTIONS TO ASK WHEN HIRING

A REAL ESTATE PROFESSIONAL

REAL ESTATE FACT OR FICTION:8 things you need

to know before you buy or sell a home

BOOMER EDITION

Do you have any comments or inquiries about the reconnect newsletter?Please send them to: communications@reco.on.ca

Real Estate Council Of Ontario3300 Bloor Street WestSuite 1200, West TowerToronto, Ontario M8X 2X2

Tel: 416-207-4800Toll-Free: 1-800-245-6910Fax: 416-207-4820

@RECOhelps

/RECOhelps

Disclaimer: While RECO makes every effort to ensure that the information in this publication is current and accurate, RECO does not warrant or guarantee that it will be free of errors. The information contained in this publication is not intended to cover all situations. It is general information only and users/readers are encouraged to seek their own independent advice for particular fact situations.

Providing objective adviceRECO works to protect consumers and enforce the rules that real estate professionals in Ontario must follow. That means we can offer buyers and sellers impartial advice on how to protect themselves, and ask the right questions during the real estate transaction.

This newsletter is a great place to start. Inside, you’ll find key information about today’s real estate market, how to choose a representative, and more.

Three pillars of protectionAll brokers and salespersons in Ontario are registered with and regulated by RECO. That’s why working with a real estate professional provides buyers and sellers with three pillars of protection.

KnowledgeReal estate professionals must complete courses before they can enter the real estate sector. And once they are in the profession, they complete additional courses every two years to keep their knowledge up-to-date and their skills sharp.

Professional standardsBrokers and salespersons are required to uphold professional standards that emphasize treating anyone involved in a transaction with fairness, honesty and integrity, and following rules and regulations that are there to protect consumers. In the rare instance that something goes wrong and you want to complain about your representative or the brokerage, RECO will investigate the complaint and take steps to hold the real estate professional accountable for their actions.

InsuranceDeposit insurance provides you with peace of mind knowing that your hard- earned payment will be held in trust and insured against loss, insolvency or misappropriation by a brokerage.

Information is powerWhen it comes to real estate, informed consumers have more positive experiences. Understanding the process and asking the right questions can make a big difference throughout the buying and selling process. I encourage you to keep reading to learn more.

You can also find more buying and selling tips on RECO’s website (www. reco. on. ca) and on our Facebook page (www.facebook.com/RECOHelps). RECO’s “Ask Joe” column in the Toronto Star is also a great resource. You can find it in the Saturday “Homes” section.

Downsizing to a smaller home? RECO is here to help.Downsizing to a smaller home, or selling the family home, can be an emotional experience, especially if you’ve been out of the real estate market for a long time. And much has changed in the real estate world in recent years.

There's no shortage of information on the Internet, but much of it focuses on market trends and how to get the best price. You also need information about your rights and responsibilities as a buyer or seller. How do you ensure you are protected?

Fortunately, the Real Estate Council of Ontario (RECO) is here to help.

Message from the CEOBy Kate Murray

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1. Buyers and sellers have more access to info Real estate advice and trends are easily available online at any time. Today, many buyers turn to the online Multiple Listing Service® at REALTOR.ca to see what homes are available for sale. The accessible, up-to-date system is a big upgrade from paper-based listings.

2. Real estate professionals are more accessible Cell phones and mobile technologies have made brokers and salespersons easier to reach, so when you need guidance or advice, you’re more likely to get a quick response.

3. Commerce is conducted electronically Transactions often take place electronically as well. Contracts can be signed with electronic signatures, offers can be submitted via email, and money can be transferred electronically too. This can make the buying and selling process more efficient, if you choose to take this approach.

4. Real estate professionals can offer specialized service Boomers have unique needs when it comes to buying or selling real estate. The real estate profession has responded to this reality, and there are now brokers and salespersons who specialize in serving the boomer market. You can find one near you by visiting www. seniorsrealestate.com or www. thesenioragent. com.

5. The Real Estate Council of Ontario (RECO) is looking out for consumers The Ontario government created RECO in 1997 to protect home buyers and sellers. That means enforcing rules and a code of ethics for real estate professionals, and providing helpful advice to home buyers and sellers. RECO also provides insurance that protects your deposit payment when it is held by a registered brokerage.

5 Key Ways the Real Estate Marketplace has ChangedIf you’ve owned your current home for many years, you may find that a lot has changed in the real estate world. Understanding what has changed can come in handy when you’re entering the market for the first time in a while.

One thing hasn’t changed: the knowledge and experience of a real estate professional can be very valuable when you’re buying or selling your home.

A broker or salesperson can help you navigate the process and provide key advice. Before you choose a representative, ask friends or family if they’ve worked with anyone they would recommend.

Be sure to interview a few candidates to ask them about their approach to the buying and selling process, their experience, the services they will offer, and the fees and commission they will charge. It’s also a good idea to ask for references and actually contact them.

A lot has changed in the real estate world, but the changes have provided a lot of benefits for home buyers and sellers.

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factReal estate contracts are all standardized

– all you have to do is sign.

Every home is unique and so is the contract to buy it or sell it. Buying or

selling your home involves a lot of paperwork and the devil really is in the details. Signing your name on the dotted line is not something to be taken lightly – you’re dealing with binding contracts for significant values. Don’t sign something you haven’t read or don’t understand. You can always ask your broker or salesperson to explain – that’s why you’re hiring them. If it’s still not clear, consider speaking with a lawyer. Don’t sign until you’re comfortable with the whole agreement.

Also keep in mind, many of the terms and conditions in real estate contracts are negotiable, such as how long the contract will be in effect or whether the appliances stay when a home is sold. It never hurts to ask!

When you sign on the dotted line of a

representation agreement, your contract

is between you and your salesperson.

When you sign a representation agreement to buy or sell, it’s a contract between you

and the brokerage where your salesperson works, not with the individual salesperson.

It’s possible that you chose that brokerage because you want to tap into the expertise of a specific representative. After all, you have a lot at stake and you want to work with someone who has a great reputation.

However, sometimes your representative may be reassigned or asked to help out a colleague. This can be distressing, especially if you like and trust your representative. But, it’s allowed so long as the other representative works at the same brokerage. To avoid disappointment, it’s important to have clear lines of communication and share your expectations. And if possible, before you sign your representation agreement, put in writing who your primary contact will be at the brokerage and their level of involvement during your buying or selling process.

A brokerage can’t represent both the

buyer and the seller without written

consent from both.

When a brokerage represents both the buyer and seller, this is called “multiple

representation.” By law, your representative must tell you if a multiple representation situation comes up and let you know how it will affect the services they provide to you. They can’t proceed with multiple representation unless all parties agree to it in writing. So, be sure to ask questions and make sure you are comfortable with the implications.

Real estate fact or fiction: eight things you need to know before buying or selling a home

You read RECO’s Ask Joe column in the Toronto Star each Saturday. You can finish the sentences of your favourite HGTV real estate show host. You consider yourself as savvy as can be when it comes to real estate knowledge. But when it comes time for you to buy or sell a home, can you decipher fact from fiction? Read on for the eight home buying and selling essentials that you need to know before you buy or sell a home.

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fictionIn a bidding war, sellers must go

with the highest priced offer.

Sellers do not have to choose the highest priced offer, even if it’s at or above the

asking price. Other factors could be more important to them, such as the size of the deposit, the closing date and other conditions attached to an offer. For example, a seller may accept a lower value offer with an earlier closing date because they already bought their new home and don’t want to carry both mortgages.

Having an open house can come

with risks if you’re not mindful.

Holding an open house can be a great way to show off your home to potential buyers.

But the possibility of theft or damage is there. Before the open house, be sure you talk to your representative about how the open house will work. If you have concerns, voice them! Agree on a game plan about what precautions will be in place. There are some basic safety measures you can take. Store all valuables, medications and financial information in a secure place. Have a sign-in sheet for all visitors. Ask your representative to have an assistant on hand to escort visitors at all times. It’s important to remember that it’s your home, and you set the rules for visitors.

A home inspection’s a waste of money –

if you give the place a good look around,

you’ll know if it’s been kept up or not.

A home inspection may find problems that could turn your ‘dream home’ into the

nightmare you avoided. Carefully consider the risk of future expensive repairs before you skip an inspection. Given the risk, you might want to ask yourself, “Can I afford not to have an inspection?” A qualified and experienced home inspector will examine the major systems in the home, including electrical, roofing, plumbing, heating/air conditioning, foundation and septic systems. The inspector will help you assess the overall condition of the

home and what repairs might be needed. There is no guarantee the inspection will catch everything, but it’s your best chance. Attending the inspection is also a good idea. You’ll have the chance to ask questions and gain additional insights from the home inspector.

If your conditional offer doesn’t firm up, you

will automatically get your deposit back.

If you do not waive or fulfill the conditions in your offer within the time allowed, the

deal will not proceed. This means your deposit – which is held in a brokerage’s trust account – can be released only if both the buyer and seller agree, or if you obtain a court order. You should seek the advice of your lawyer and real estate representative before you decide to neither waive nor fulfill a condition.

There are stringent rules and regulations

in place to protect consumers when

they buy or sell a home in Ontario using

a registered real estate professional.

Real estate professionals are regulated in Ontario. This means that anyone working

as a real estate salesperson or broker must be registered with RECO and must follow the rules and a Code of Ethics. RECO’s job – with authority from the provincial government – is to protect home buyers and sellers.

Working with a registered real estate professional has its advantages. For one, you can be confident they have met the standards needed to enter the profession and they take part in ongoing education to stay on top of emerging trends. They are also enrolled in an insurance program that protects consumer deposits. In short, you are able to draw on their professional knowledge and guidance as you engage in one of the biggest transactions of your life.

“While buying or selling a home can be complicated, there’s plenty you can do to increase the odds that you will have a positive experience,” says RECO’s Registrar Joseph Richer. “You can achieve that by asking questions, doing your research and taking advantage of the expertise provided by working with a registered real estate professional.”

For more information about these topics or to verify the registration of a real estate professional in Ontario, visit www.reco.on.ca.

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What is your experience? Experience is about more than how many years someone has been in business. Take the time to learn about the types of properties they typically work with, which cities or areas they work in, and how many homes of the type you are looking for they helped buy or sell in the past year or two.

What is your approach to the buying or selling process? For the buying side of things, how will the representative search for suitable properties and what is their approach to negotiations? When selling, how will your home be marketed to help attract the right prospective buyers? By understanding their approach, you’ll know what to expect and will be able to determine which representative is aligned with your preferences.

What services will be included? Discuss your particular needs and expectations to ensure they are able to provide the services you want. For example, when selling, will the representative have professional photos taken of your home or prepare multimedia promotional materials? Will they host open houses? What about advertising? Understanding exactly what services will be provided, and later documenting them in your written contract, will help avoid misunderstandings later on.

to ask when hiring a real estate professional

With nearly 70,000 real estate professionals in Ontario, how do you pick the one that is right for you?

“It’s always a good idea to meet with at least a few different real estate professionals before selecting who you will work with,” says RECO Registrar Joseph Richer. “Consider asking friends or family to recommend a broker or salesperson.”

When you have your shortlist of representatives ready, consider asking these questions to find out which representative is right for you.

What are the commissions or fees that I will need to pay? Commissions and fees can vary between brokerages and for the services provided, so be sure to understand what will be provided, and what it will cost. Keep in mind that, as with most things, the cheapest deal is not necessarily the best one.

Do you have references? As with most job interviews, getting in touch with references is an important step before hiring someone. Were past clients pleased with their experience? Was the representative responsive and easy to get in touch with? Would they recommend them to others?

Buying and selling a home is a major decision, so it’s important to take the time to find the right representative for you.

As the final step before committing to a representative, use the ‘real estate professional search’ feature at www.reco.on.ca to confirm they are registered with RECO.

questions

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to ask when hiring a real estate professional

What to do if you’re not happy with your real estate representativeWhen you’re buying or selling a home, the guidance and support of a real estate professional can be very valuable. That’s why it’s important to talk in detail about your expectations and ask questions about the specific services the representative will provide before you sign a representation agreement with them. It’s also key to get everything you discussed in writing.

If you’re not happy with the quality of services your real estate professional is providing, here are the steps you can take.

Step 1: Talk to the representativeMake it clear which expectations they aren’t meeting. For example, do you need them to communicate more, or in a different way? Are you looking for more guidance about the market? Being specific will make it easier to resolve the problem so you can work on a new plan going forward.

Step 2: Speak to the manager of the brokerageIf the conversation with your representative doesn’t improve the situation, make an appointment with the manager of the brokerage to voice your concerns.

The representation agreement you signed is a contract with the brokerage, not the individual salesperson.

The agreement is a legally-binding contract that typically locks you into working with only one brokerage for a certain period of time. So, in order to fulfill the agreement, the manager may offer to reassign you to another salesperson.

Agreements may also have a “holdover clause,” which may bind you to the brokerage for a certain period after the agreement has ended. You could owe them money if you buy or sell a home while the holdover clause is in effect.

You should avoid working with another brokerage while still under contract to the first brokerage, because there can be legal and financial consequences. If in doubt, consider asking your lawyer.

Step 3: File a complaint with RECOIf you have serious concerns related to the representative’s professional conduct, and escalating the matter within the brokerage hasn’t fixed things, you have the option of filing a complaint with RECO. RECO can’t get you out of your contract with the brokerage, but we will hold the salesperson accountable for their conduct.

You can file a complaint online on RECO’s website, www.reco.on.ca.

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In Ontario, any agreement with a contractor worth more than $50 must be in writing. This means that you should have a contract even for small home renovations or repairs. And, if the contract is signed in your home, you are also entitled to a 10 calendar-day cooling off period. Within these 10 days, you may cancel your contract without having to provide a reason or pay a cancellation fee.Make sure your contract includes:

• The contractor’s name, address and contact information.

• A thorough description of the project, including the materials to be used.

• A copy of the written estimate.

• A clear description of any warranties.

• The total cost and payment schedule, including the deposit amount. We recommend keeping down payments at no more than 10 per cent of the total cost of the contract.

• A work schedule, including start and completion dates.

Avoid falling into the temptation of “paper-free” deals that sound too good to be true. Remember that no receipt means that you have no proof of purchase.

Learn more about your rights at Ontario.ca/HomeRenos.

So your retirement plan is in place, and the first step is to downsize your home.

For many of us, preparing a home for sale can include spending some time and money on upgrades or repairs.

Whether you’re interested in installing new kitchen cabinets or making necessary repairs to your roof, if you’re hiring a professional for the job you’ll need a written contract.

Reno before you resell?

The tips below have been provided by Consumer Protection Ontario, a consumer awareness program from the government of Ontario and partners like RECO.