When the market is hot and properties are moving fast, it can be hard to keep cool. 

CREB^® Member Practice has recently seen an increase in compliance issues and will be providing members with hot market real estate rules and reminders over the coming weeks to keep pace with these trends.

Today’s article provides an in-depth recap of last week’s Matrix™ reminders.

Know your limit, stay within it

The Real Estate Insurance Exchange (REIX) has reported receiving claims for members representing a buyer/seller they cannot physically be with in person.

When a member cannot see a property and knows very little about the area in which the property is located, it is a risk for that member to take on the listing. Such properties should be approached with caution and with the assistance of another member who is familiar with the area and/or transaction type.

Taking on a listing outside an area or sector the member is familiar with may be seen as not acting in the best interest of the client(s), as variation in property types, rules and regulations, and land topography/natural resources exist within cities/towns/municipalities throughout the province.  

A reminder that members are also not to trade in real estate in a sector they are not comfortable trading in and/ or are not licensed to trade in.  

Brokers also need to be aware of the risks associated with their associates transacting outside the area in which they are unable to provide skilled and conscientious service (REALTOR^® Code Article 12). REIX reinforces the need to mitigate risk to yourself, your brokerage, and your clients by ensuring that you are well-informed in the area and sector you’re transacting in.  

New Home Sales 

New homes are appealing for many reasons, but in a seller’s market with record-breaking low inventory, expanding a search outside of the resale market is an entertaining option. We recommend speaking with all your buyers about what they should expect if they consider walking into a new home sales center. 

Having “the talk” to reminding them how builders have a variety of business models and how to work with them may save you the more awkward conversation down the road about “what now?” if they registered with a builder in your absence. 

If your clients are looking for a newly built home, you can remind buyers of how show home registration works to ensure you – as the buyer’s agent – are compensated and can represent the client throughout the new home sales process. 

If you have any additional questions, please email CREB^® Member Practice at crebmp@creb.ca.