Real Estate Marketing News Mortgages Te c h n o l o g y Opinion

Issue #234 December 2008

CREA’s
ironman President
Cal Lindberg
on FINTRAC,
the Competition Bureau,
the economy & more
Page 18

Canada’s most giving

real estate office
Page 12

Kick your open

house up a notch
Page 46

The secrets of
PR marketing
Page 48
Each office is independently owned and operated.

Educate your clients, panel urges
Eight company leaders offer their insights on the economy and the state of the real estate industry
By Jim Adair
ow can you prosper in
H the current real estate
environment? Educate
your clients about the changing
marketplace, show them your
expertise, keep an eye on the bot-
tom line, and ignore the news
media. That’s the advice of a panel
of real estate company executives
who recently addressed more than
1,000 members of the Toronto
Real Estate Board during its
Annual General Meeting.
With sales and prices dropping
in most parts of the country, “it’s
our job to calm the market – not to
panic with the rest of the popula-
tion,” said Stephen Wong, chair-
man of Living Realty of Toronto.
“We all have to believe in the
market ourselves. We don’t have a
problem.” Wong pointed out that
high immigration levels in
Canada, and particularly in the
Toronto area, provide a built-in
“guaranteed market” for real estate
sales. He said that low interest
rates, good employment numbers
and an extremely low rate of mort-
gage arrears means the economy is
not as bad as some people are mak-
ing it out to be.
“Stop reading newspapers and
stop watching TV,” said Michael
Polzler, regional director and exec-
utive vice-president of Re/Max
Ontario-Atlantic Canada. “The
market hasn’t really slowed that
much. We’ve gone from going 150
mph to 120. It feels slow, but it’s
still a very healthy market.”
Howard Drukarsh, vice-presi-
dent of Right at Home Realty in
Toronto, said agents must adapt to
the new market. Since the market
was so good for so long, “many
agents have never had to deal with
a price reduction before. But you
have to get out and tell your ven-
dors, ‘I can tell you what you want
to hear, or I can tell you the truth.’”
“You need to educate and com-
municate with buyers and sellers,”
said Gary Hockey, president of
Coldwell Banker Canada. “There’s
no point in sitting with a seller
with an overpriced house. Out
west, price reductions of 10 or 15
REM DECEMBER 2008 3
per cent are not doing it in some
places….it’s 20 per cent. And let’s
not be afraid to say to a buyer, ‘Let’s
get something on the table so we
can at least negotiate with the sell-
er.’”
Kimberly Fleming, regional
director of Prudential Real Estate
Affiliates, told the audience that
sales reps “need to become consul-
tants, not marketers”. The public
needs to know that Realtors are
here to help them reach their
home ownership goals, she said.
“Look at new ways that you can
use technology to get yourself out
there.”
Brokers should take a hard look
at their financial situation and
“start trimming down for the next
six to 12 months,” said Andrew
Cimerman, CEO of HomeLife
Realty Services. “Managers cave in
to the demands of new agents, but
they have no experience. They
need solid management. New The panel, from left: Howard Drukarsh, Kimberly Fleming, Gary Hockey, Michael Polzler, Stephen Wong,
agents shouldn’t go to a manager Phil Soper, Andrew Cimerman, Don Lawby.
with a note demanding 100 per
cent commissions – they should homes sold. it.” He suggested hosting first-time REM asked the panel questions
say, what can you do for me? Are “Go back and talk to past cus- homeowner events as a way reach about the market outlook and the
you going to help me with offers, tomers,” said Don Lawby, president out to clients. industry. Asked if the number of
listing agreements… you have to and CEO of Century 21 Canada. Polzler said it’s essential that real estate agents was likely to
go back to the fundamentals.” “You have to demonstrate your agents develop first-rate listing pre- dwindle because of the economy,
expertise.” He said that to educate sentations, and pay close attention Lawby said, “I think some of the
Hockey suggested that new
the public about the marketplace, to developing good print and/or new people will outperform some
agents in the business could go
Realtors can’t “leave it up to the web advertising. of those who have been around for
through an apprenticeship period
and be placed on a salary, as is com- media, or to organized real estate or Media representatives from the
to the government. We need to do Continued on page 53
mon in commercial real estate. In Globe & Mail, the Toronto Sun and
tough times, Fleming said that
some agents should consider get-
ting together with other sales reps
to form specialized teams, recogniz-
ing and serving a niche market.
Mississauga Realtor
Phil Soper, president and CEO
of Royal LePage, agreed that bro-
kers need to look after the bottom
murdered
line, but that they must “look for ell-known Mississauga 2006. Larry is a retired Toronto Interim Place.
ways to support your Realtors in
difficult times. This is not the time
to turn your back on your peers in
W Realtor Susan Ryan was
shot to death in her
home November 9, and her hus-
police officer. The couple had
been married for more than 30
years and had no children.
In an interview in The
Mississsauga Business Times in
2006, Susan said that real estate
the office.” He said salespeople band Larry is facing second Susan spent a lot of her free professionals must take a broad
should be “very picky about the degree murder charges. time giving back to the commu- look at their industry and their
buyers and sellers you deal with. Susan Ryan, 57, operated her nity, particularly for Victim community.
Make sure they have financing in own firm, Susan A. Ryan Real Services of Peel. She organized a “How are we going to assist, to
place. Make sure the vendors are Estate. She had been in the real Chef’s Celebrity Challenge event make sure there’s housing for the
willing to price properly.” He said estate business for more than 30 to raise money for the charity. poor within the community?” she
in difficult times, consumers will years, and was president of the She also raised more than said. “People have to care. That’s
“flock to quality” to get their Mississauga Real Estate Board in $20,000 for a local shelter, the bottom line.” REM
4 REM DECEMBER 2008

Multiple Listings
Waterford, Burford, Scotland, Bruce Sheldon of Royal
Oakland, St. George and sur- LePage in Langley, B.C. has been
rounding communities. Royal appointed to serve a two-year term
LePage says the move brings the as chair of the B.C. Commercial
By Jim Adair
company’s share of the Brantford Council. The council includes
Do you have news to share with Canada’s real estate community? marketplace to more than 22 per Realtors from nine real estate
Let REM know about it! Email: jim@remonline.com or use the cent. boards that are working together to
REM news fax line at (416) 406-0882. enhance the practice of commer-
■ ■ ■
cial real estate in the province.
oronto-based real estate I love real estate marketing and Daniel Putnam has been “Commercial real estate in

T
veteran Ernest Furtado
has joined KW
Commercial to assist in the
launch of the new Keller
Williams Realty commercial divi-
sion in the Canadian market-
place.
“There is a tremendous
opportunity to recruit commer-
cial brokers to Keller Williams, a
company that offers more attrac-
tive commission splits than tra-
ditional commercial brokerage
shops,” says Furtado. He serves
as Canada’s representative on
the newly created KW
Commercial Leadership
Council, a group of 27 Keller
Williams commercial associates
who will implement the new
commercial division in nearly
700 offices throughout North
America. Furtado will also serve
as the KW commercial director
in the Toronto-based Keller
Williams Referred Realty office.
■ ■ ■
Barney Johnson, broker of
record at Re/Max Crossroads
Realty, has acquired Re/Max
Associates Realty. Both offices are
in the northeast Greater Toronto
Area.
Johnson says that Re/Max
Associates, under Broker of Record
Peter Chung, was enjoying a ban-
ner year and was one of only a few
offices within the Toronto Real
Estate Board that was showing an
increase in sales volume for the
first nine months of this year versus
the same time period last year.
“Peter has decided to return to
sales with 100 per cent of his time
going towards building a team as
part of the strong Re/Max
Crossroads franchise,” says
Johnson.
Johnson founded Re/Max
Crossroads in 1980, and is still its
manager, trainer and recruiter. “My
27+ years with Re/Max have been
the most enjoyable years of my life.
sales and the freedom it brings with
it. When you love what you do it is
not a job,” he says.
His office, at Victoria Park and
McNicoll avenues, was named
Crossroads because of its location
at the centre of Richmond Hill,
Markham, North York and
Scarborough. With the merger of
the two offices, Re/Max Crossroads
now has approx 200 agents and
ranks close to the top of the
Toronto MLS in production,
Johnson says.
■ ■ ■
Mike Hurley and Michael
Hurley, broker/owners of the for-
mer Prudential Hurley Real Estate
in Brantford, Ont., have joined the
Royal LePage franchise network.
The company will now operate
under the name Royal LePage
Hurley Real Estate.
The brokerage’s team of 42
sales professionals service
Brantford, Paris, Simcoe,
named president
MortgageBrokers.com Financial
Group of Companies.
Prior to joining
MortgageBrokers.com, Putnam
was head of sales for Macquarie
Financial, and he is also the former
president of Mortgage Centre
Canada, a division of CIBC
Mortgages.
Putnam started his career as a
mortgage specialist in South
Western Ontario and within one
year co-founded Tristar Funding
Corporation, which grew to
become one of Canada’s largest
mortgage brokerage operations.
■ ■ ■
of B.C. continues to remain strong
despite low vacancies, higher
rental rates and economic pres-
sure,” says Sheldon, a Realtor for
over 16 years and past-chair of the
Fraser Valley Real Estate Board’s
Commercial Division. “These
markets are still controlled by lim-
ited supply and increasing
demand.”
The council represents over 90
per cent British Columbia’s com-
mercial real estate MLS listings
and includes the B.C. Northern,
Chilliwack & District, Fraser
Valley, Kamloops, Kootenay,
Okanagan Mainline, Vancouver,
Vancouver Island and Victoria real
estate boards. REM

The Coast Realty Group team relaxes after a tour of waterfront and other
rural properties on Denman Island, B.C. From left: Martin Bridges, Don
Luckett, Donna Tuele, Ursula Gustafson, Sylvie Schroeder, Rob Phillips,
Barney Johnson Mike Hurley Michael Hurley Andrena Koch-Schulte, Marty Douglas, Chris Flynn and Scott Reed.

Publisher Editor 2255B Queen Street East If you have industry news or want us to know
HEINO MOLLS JIM ADAIR Suite #1178
about your company or services
e-mail: heino@remonline.com e-mail: jim@remonline.com Toronto, ON M4E 1G3
General Manager Phone: 416.425.3504 Email jim@remonline.com
Senior Editor
JOHN COOPER Fax: 416.406.0882 or fax 416.406.0882
KATHY BEVAN
e-mail: john@remonline.com e-mail: kathy@remonline.com
www.remonline.com
REM is published 12 times a year. It is an independently owned and operated company and is not affiliated with any real estate association, board or
Director, Sales & Marketing Art Director company. REM is distributed across Canada by leading real estate boards and by direct delivery in selected areas. Subscriptions are $40.95 per year
DENNIS ROCK LIZ MACKIN (including $1.95 GST), payable by personal cheque. Entire contents copyright 2008 REM. All rights reserved. Reproduction in whole or in part
without written permission from the publisher is prohibited. The opinions expressed in REM are not necessarily those of the publisher.
e-mail: dennis@remonline.com
DECEMBER 2008 Graphic Design ISSN 1201-1223
Brand Design SHAWN KELLY
Cover photo: SANDRA GOODER
CRAIG HODGE
FROM DAY ONE AND BEYOND,
AT CENTURY 21 YOUR
PATH TO SUCCESS IS
RIGHT IN FRONT OF YOU.
Seasons greetings

CONGRATULATIONS TO OUR
LATEST CONTEST WINNER IN THE
ATLANTIC CONFERENCE 2008:
DONA DALEY OF ROYAL LEPAGE
MIRAMICHI RIVER REALTY

DISCOVER THE BRAND POWER OF CENTURY 21

1-800-446-8737
century21.ca | century21franchise.ca | century21careers.ca | theGoldStandard.ca

Each CENTURY 21® Office is Independently Owned and Operated. ®, Registered trade-mark of Century 21 Real Estate LLC, used under license. TM, Trade-mark of Century 21
Real Estate LLC, used under license. ®™ Trademarks of AIR MILES International Trading B.V. Used under license by LoyaltyOne, Inc. and Century 21 Canada Limited Partnership.
6 REM DECEMBER 2008
DOJ, NAR settlement
moving forward
he U.S. Department of
T Justice and the National
Association of Realtors
have agreed to minor modifica-
tions to their proposed settlement
of the government’s antitrust law-
suit against the Realtors’ associa-
tion, paving the way for a final
judgment in the three-year-old
case.
The government says the set-
tlement, announced in May, will
give consumers access to multiple
listing service data on homes for
sale similar to that enjoyed by
Realtors. After wrapping up its
review of public comments submit-
ted during a 60-day window, the
DOJ proposed leaving the settle-
ment virtually unchanged.
But in its response to com-
ments received from the industry,
the DOJ shed some light on how it
expects the agreement to be
enforced: by NAR. The govern-
ment also left the door open for
future antitrust action concerning
NAR’s Internet Data Exchange
(IDX) policy.
In its September 2005 lawsuit,
the DOJ alleged that NAR’s policy
on “virtual office websites,” or
VOWs, violated antitrust laws.
The policy alleged suppressed com-
petition from real estate brokers
who gave consumers access to mul-
tiple listing service data on a par
with that enjoyed by Realtors
through password-protected sites.
By allowing brokers to with-
hold their sellers’ listings from
VOWs, NAR restrained VOW
brokers in their ability to compete
with traditional brokers, who often
provide information on MLS list-
ings by hand, mail, fax or e-mail,
DOJ lawyers said.
By blocking VOW brokers
from allowing their customers to
review the same set of MLS listings
that traditional brokers can pro-
vide to their customers, NAR’s
rules “restrained VOW brokers
from competing in a way that is
efficient and desired by many cus-
tomers,” the DOJ said.
The proposed settlement
requires NAR to modify its chal-
lenged VOW policy, making it
clear that brokers can operate
VOWs “without interference from
their rivals,” and that traditional
about an MLS’s failure to act in
accordance with the decree,” DOJ
lawyers said.
Modified VOW Policy to be codi-
fied in the settlement to make
explicit that, in cases where sellers
By Matt Carter
MLSs “routinely turn to NAR
for advice and approval on various
issues in order to maintain cover-
age under NAR’s insurance,” the
instruct their broker to withhold
information about their property
or address from the Internet, that
VOW brokers can still provide
brokers cannot withhold sellers’ franchisor that operates VOWs for
listings from display on VOWs.
The proposed settlement
would also allow brokers to operate
hundreds of franchisees.
ZipRealty, which founded a
VOW-based brokerage in 1999
DOJ said, and are expected to con-
sult with NAR to make sure their
conduct was consistent with the
information on those listings by
other methods – such as e-mail or
fax. NAR and DOJ agreed to a
proposed settlement. minor change in language to
referral VOWs, which allow and operates in 35 major markets, accomplish that goal.
prospective buyers to search for said the proposed settlement If any MLS failed to comply
and NAR did not take action, the Washington-based MLS4own-
homes online, but directs them to “favours public and consumer
Department of Justice said it could ers.com, a flat-fee, limited-service
other brokers or agents when they interests.” In its comments, the
pursue further antitrust charges brokerage, asked for clarification
are ready to see a home in person, company said MLSs must be held
to applying the same policies, rules against NAR or sue an MLS on whether the DOJ views NAR’s
negotiate a price, enter into a con-
tract, and close the deal. and regulations to VOW brokers as directly, if needed. Internet Data Exchange Policy as
violating antitrust laws.
Existing referral VOWs have traditional “bricks-and-mortar” Prudential Real Estate, which
brokers, and not subject VOWs to operates VOWs for 480 fran- MLS4owners.com maintains that
established relationships with it does, by permitting brokers oper-
Internet companies and developed additional costs, fees or restric- chisees, asked that the Justice
tions. Department clarify provisions of ating IDX websites to exclude
“significant numbers of potential exclusive agency or limited-service
buyer leads,” the DOJ says, and the The proposed settlement the settlement. Prudential com-
plained that requiring customers of listings from their own IDX web-
proposed settlement prohibits requires NAR to withhold insur-
a VOW broker to agree not to copy sites.
MLSs from standing in the way of ance from and report to the DOJ
VOW brokers referring customers any MLS that “refuses to adopt, or redistribute listings they receive The government “takes no
to other brokers for compensation. maintain, act consistently with, or might prevent them from saving position as to the permissibility
Brokers who are MLS members enforce” its terms. NAR would copies of listings or sharing them under the antitrust laws of NAR’s
IDX policy,” the DOJ said in its fil-
would also be allowed to operate also be required to forward to the with someone in order to consult
ing.
their own referral VOW or con- DOJ any communications it with them about a purchase. The
tract with an affiliated VOW part- receives concerning any MLS’s DOJ and NAR agreed that the Michael Erdman, a Chicago
ner. As long as a broker “actively noncompliance with the terms of provision – intended to protect lawyer who has been monitoring
endeavours to obtain some seller the proposed settlement. MLSs from someone using a VOW the lawsuit, said in an email to
clients... or some buyer clients to The DOJ “believes that these to access and sell MLS data to Inman News that while DOJ
whom it will offer in-person bro- provisions will cause MLSs to com- third parties – was too broad. apparently won’t be modifying the
kerage services,” it can become a ply with the modified VOW Policy The provision will be modified proposed settlement on that point,
member of the MLS and use MLS and will provide the Unites States to allow the copying and redistrib- “it was crystal clear that it is not
taking a position on whether the
data to populate its referral VOW. with the ability to detect whether ution of data “in connection with
IDX policy, as written or applied, is
The DOJ received nine com- MLSs are, in fact, complying,” gov- (a VOW customer’s) consideration
fully compliant with federal
ments on the proposed settlement, ernment lawyers said. The agree- of the purchase or sale of an indi-
antitrust laws.”
including two submissions from ment assumes that NAR “would vidual property.”
VOW brokers and a real estate find out through multiple channels Prudential also wanted the – Inman News REM
Demand for homes ‘strong by
historical standards’ - CMHC
LS sales, which reached a record level of 523,701 in 2007,
M will moderate in 2008 to 452,225 units, and in 2009 will
move to 433,375 units, says the latest forecast from Canada
Mortgage and Housing Corp. (CMHC).
“Despite a moderation in MLS sales, demand for existing homes
will remain strong by historical standards,” says CMHC in its latest
housing outlook. “With housing markets having become balanced
across Canada, the rate of growth in the average price will moderate.
Average prices will reach $306,500 in 2008 and $306,700 in 2009.”
The agency says new home construction will moderate from his-
torically high levels, to reach just under 178,000 units in 2009, a level
that is consistent with demographic fundamentals.
“High employment levels, rising incomes and low mortgage rates
have continued to provide a solid foundation for healthy housing
markets this year,” says Bob Dugan, chief economist for CMHC.
“Housing starts will moderate to 212,200 units in 2008 and 177,975
units in 2009.” REM
 What every broker wants to know:
How can I get maximum value from my business when I retire?

G ood question! It’s one that could influence the rest of your life. In fact, there aren’t many questions as important, yet it’s
one that many brokers push aside as they deal with the demands of day-to-day business. Sound business planning means
putting your goals first. When it’s done right, planning can help you maximize what you’ll get out of your business when you
decide the time is right to step down. And that’s true whether that time is just around the corner or years into the future.
Coldwell Banker® has a team of Business Development professionals who know the Canadian marketplace and can help you plan
for the future. We can work with you on succession planning and help you develop an exit strategy that’s consistent with your
personal and business goals. And in the meantime, we can offer you support and resources to help you grow your business.

Interested? Call John Geha at 1 (800) 268-9599

and find out how we can help. Let’s talk.

This offer is limited to real estate brokerages operating in Canada only. Offices are independently owned and operated.
© Realogy Corporation. The Coldwell Banker logo and trademark are registered marks licensed to Coldwell Banker Real Estate LLC and used by permission.
8 REM DECEMBER 2008
FVREB wants action on drug houses
By Jean Sorensen
.C.’s Fraser Valley Real
B Estate Board is leading a
move to have municipali-
ties register houses used for illegal
drug operations (IDO) in a consis-
tent manner.
“Every municipality is moving
towards this right now in one way
or another and doing it indepen-
dently and with a different conclu-
sion,” says FVREB President
Kelvin Neufeld. “We want to get
everyone working together and
get a standard way of doing
things.”
Neufeld says there are two key
issues facing the seven municipali-
ties that make up the FVREB in
Lower Mainland area. There is the
lack of a central registry or uni-
form method of registering when a
house has been designed as an
IDO, and there are differing defin-
itions for remediation.
Some municipalities have
already taken action but home-
owners or real estate agents are
faced with a range of places to look
for this information. For example,
Abbotsford places an IDO desig-
nation on the title, while Surrey
places it on the tax rolls.
Not only is there an issue with
Online listings battle sweeps U.K.
espite the housing mess in
D the U.K., there is no short-
age of innovation in the
technology real estate sector as
start-up companies and main-
stream media firms like News
International race to take advan-
tage of the opportunity online with
property sales and rentals.
“In some ways, we are ahead (of
the United States), and in other
ways we are behind,” says Ed
Freyfogle, who founded and runs
real estate website Nestoria, which
provides real estate traffic to a
range of European Internet sites,
charging for clicks.
Competition in the online sec-
tor heated up in the last year as
“free-to-list” sites popped up, com-
peting with the dominant online
real estate company in the U.K.,
Rightmove, which was once unaf-
fectionately called Doorknob.
how municipalities are citing
these properties, he says, but there
is the issue of when. (In
Vancouver, a notation was placed
on the property file only after a
second grow-op incident was dis-
covered at the property, not the
first time. As well, there is a ques-
tion of the scale of the operation
and the impact on the house. Was
it used to grow a dozen plants for
personal consumption or three
large cash crops annually for a
number of years? Neufeld says the
individual purchasing the home
should have the right to access
that information and make an
informed decision relating to the
risk in purchasing the property.
There are also cases where
municipal inspectors have given a
24-hour notice of entry to the
owner, and upon inspection found
the grow-op cultivation system
had been stripped out, but suspect
electrical or ventilation systems
remained.
“Sometimes you have to puzzle
it out,” Neufeld says, adding that
municipalities need guidelines for
how to evaluate and record these
houses where suspected grow oper-
ations existed – even when police
Organized by the country’s largest
estate agencies at the beginning of
the decade, Rightmove is the lead-
ing portal for consumers and estate
agents.
The company chose a winning
business strategy a few years ago,
charging estate agency offices a
monthly subscription fee for show-
ing listings on Rightmove. As its
revenue ramped up, the company
launched an advertising campaign
with a popular soccer player that
built the brand with the public and
with the industry.
Today, the site is further popu-
larized as estate agents show the
URL on property signs and in print
and offline ads. Today, most sellers
expect their listings to be put on
Rightmove. Nevertheless, the pub-
licly traded company will likely
face a revenue squeeze as the hous-
ing market sputters. Estate agencies
were unable to seize any prohibit-
ed substances.
Neufeld says that setting down
standards and establishing a cen-
tral registry or uniform reporting
method may require a provincial
legislative change to the powers of
municipalities, and privacy con-
cerns may need to be addressed.
“But, we believe the health of the
individuals moving into such a
house should have priority over
privacy,” he says.
A central registry might also be
able to track homes that trans-
ferred between drug operations
owners when they were busted,
and were then used a second time.
“I am sure police already have that
information,” says Neufeld,
although firefighters and inspec-
tors may not be privy to it current-
ly. As a result, when there is a fire
at a home, firefighters are going in
blind. The scenario can be daunt-
ing as drug dealers booby-trap
premises, says Neufeld. Firefighters
have encountered curtains made
of fishhooks in doorways, and car-
pets laid over pits.
On the issue of remediation,
there is no standard concept of
what that means. “In some areas it
are beginning to close offices,
which is Rightmove’s core revenue
source. Further pressure is being
brought by free listings sites.
One of those is Globrix.com,
which is a free-to-list property por-
tal that is backed by News
International. It has an estimated
500,000 unique visitors per month,
around 20 per cent of the traffic
going to Rightmove, according to
Globrix. Rightmove claims to have
six times the traffic of any other
real estate portal, according to a
report in online property magazine
EstateAgentToday, which did a sur-
vey of estate agents on the question
of free sites and where estate agents
would put their listings. Globrix is
also planning to expand to the U.S.
The National Federation of
Property Professionals was also
preparing to launch a new free list-
ing site, dubbed Propertylive.co.uk,
could be simply painting the walls
and shampooing the carpet,”
Neufeld says. Remediation is com-
plex, he acknowledges, because it
will vary according to the size,
length, and type of operation.
Ken MacKenzie, FVREB’s
executive officer, says there is also
a further downstream concern for
owners or renters of an IDO
house. “There is a public interest
concern,” he says, as often the
houses are prone to break-ins
from individuals intent upon
stealing drugs. These “grow-rips”
can place families in jeopardy and
cause loss of property and damage
to the home.
MacKenzie says that five years
ago, the FVREB was instrumental
in bringing forward (with the Real
Estate Board of Greater
Vancouver), a disclosure form
where a seller indicated if the
house had an IDO history. That
system was eventually adopted
throughout the province.
However, there are loopholes
because the seller may not dis-
close, or may have acquired the
property through a private trans-
action or marital settlement and
not know the history.
says EstateAgentToday.
The listings debate in the U.K.
is familiar to the tension in the
U.S. with Realtor.com and web
upstarts over the last decade.
However, the tension is somewhat
different because there is no MLS
in the U.K. and Realtors in the
U.S. do not have to pay for upload-
ing listings.
Consumer home valuations are
offered in the U.K. with sites like
Mouseprice. In beta, the site is
offered by Calnea Analytics, which
provides market information to
institutions, estate agencies and
government boards.
Global search sites are emerg-
ing all over Europe as the invento-
ry of homes explodes and sellers are
looking for buyers everywhere.
Globaledge offers real estate com-
panies programs for global market-
ing and provides updates on lead-
The FVREB’s first move on
the issue of a uniform reporting
and remediation began with com-
missioning a report on the scope of
the problem. The 50-page report,
available to other Canadian real
estate boards, is entitled The
Impact of Illegal Drug Operations on
Housing.
The board’s next effort was
organizing and hosting a confer-
ence for Realtors, police, firefight-
ers, legislative representatives, and
municipalities to discuss the prob-
lem. The October event drew 100
delegates. Neufeld says there is
now a task force being formed,
which will include members from
the municipalities, police, fire-
fighters, Realtors, and others
affected by the IDO houses.
Support has also come from local
politicians. “We have also asked
the B.C. Real Estate Association
to be part of it,” he says.
Neufeld says he is hopeful that
the work done by the task force
will serve as a lead for other
municipalities in B.C. to follow.
He says he is unaware of any other
co-ordinated effort in Western
Canada to identify and register
IDO houses. REM
By Bradley Inman
ing property portals. Property swap
sites are becoming more popular in
the down housing market as home
sellers consider swapping property
as an alternative to selling. One is
PropertySwapShop.
Bloggers have also popped up in
the U.K., offering market insight
and analysis of the market and the
industry. TheRatandMouse Blog is
well read, and written in the spirit
of Curbed.com in the U.S., snarky
but factual with supporting pic-
tures. Blogs in the U.K. do not
have as many commenters as found
in the U.S., as posters are more dis-
creet and less hysterical than com-
menters stateside.
A popular item recently was
the sale of a mile-long underground
Cold War tunnel. It may be a good
place to hide out during Europe’s
economic travails.
– Inman News REM
 www.
Lea
der
sEdge
T r
aini
ng.
com

THESLOWINGMARKET
ISNOTAN
.
..
It
’sa
noppor
tunit
ytobui
ldyourbus
ine
ssther
ight
wayandt
akeyourcar
eert
othenextl
eve
l.
Areyour eadytoweathe
rthedryma rketahe
ad?I tpaystobe
pr
epareda ndhavethel
ead-ge
nerat
ings ys
temsinp l
acet onotonl
y
sur
vive,butthr
iveinthe
seult
ra-c
omp eti
ti
vetime s
.Th e
REVOLUTI ONi saFREE, 3-hourtr
aini
nge venthostedbythe
exper
tsofLe ader
’sEdgeTrai
ning.Thispowerfulseminarprovi
des
t
hek eystolast
ingsucc
ess,r
egardl
essofma rke
tc ondi
tions
.From
i
nnovativema r
keti
ngsyst
emstop rovenservi
cingstr
ategie
s,we’l
l
showy ouho wtogener
atemo r
eb usi
nessandkeeple a
d scomingin
FREECECREDI
TS noma t
terwh at
.Signuptoday!

Fe
b .
4 t
h,2009•Ital
ianCu l
turalCentre
, Vancouve
r,BC
REALESTATESALESTRAI
NING
HOSTEDBY: Ma r
.5th,2009•CenturionCentre,Ottawa,ON
Ap r.1s
t,2009•Inter
n at
ionalCentr
e,T oront
o,ON
Breakf
ast& Regis
tra
tionBegi
ns9 :00am
Seminar10:
00a m -1:
00pm
ABOUTYOURTRAI NER:
Overthepastde
c a
de,Chri
sLe ade
r,Foundera
nd
Maste
r Tr
ainerofLeade
r’sEdgeT r
aini
ng,has
I
t’
sYourTi
met
oShi
ne! he
lpedthousa
n d
so fr
ealest
ateprof
essi
onal
s
t
hroughoutNort
hAme ri
caa t
tra
ctmo r
eb us
ine
ss.

Re
gis
tert
oda
yfort
hisFREESemi
nar
! www.
Lea
der
sEdge
T r
aini
ng.
com (
866)607-
7999
10 REM DECEMBER 2008
Colour Tech would like to
thank all our friends and
clients for a wonderful 2008.
We are proud you have
trusted us with all your
marketing and promotional
needs and are looking
forward to another happy,
healthy and prosperous
New Year!
Happy Holidays
The Colour Tech Team
MARGARET’S LITTLE
KNOWN FACT
Colour Tech is a Canadian owned company
and has been serving Real Estate
professionals since 1991.
Margaret Campbell
Colour Tech Founder
Colour Tech Marketing Inc. Phone: 905.820.6566
1-4160 Sladeview Crescent Toll Free: 1.800.410.4510
Mississauga, Ontario L5L 0A1 E-Mail: print@colourtech.com
Building better business...with Colour Tech Marketing Inc.
www.colourtech.com
Brookfield fund
royalties up 3.8%
he Brookfield Real Estate
T Services Fund announced
that royalties for the quar-
ter ended September 30 were up
3.8 per cent over the third quarter
of 2007 to $9.6 million.
Distributable cash for the third
quarter increased 1.4 per cent to
$6.9 million ($0.52 per unit), up
from $6.8 million ($0.51 per unit)
in the third quarter of 2007. The
fund generates cash flow from fran-
chise royalties and service fees
derived from the network of real
estate brokers and agents in
Canada operating under the Royal
LePage, La Capitale and Johnston
& Daniel brand names.
President and chief executive
Phil Soper says, “The fund per-
formed well in the third quarter, in
spite of a drop in overall industry
transactional volumes, which high-
lights the business’s structural fea-
ture that places an emphasis on
fixed royalty fees driven by the
number of Realtors in our network.
In 2007, 66 per cent of our annual
royalties were fixed. That propor-
tion is expected to increase in
2008, as 77 per cent of La Capitale’s
royalties are expected to fall into
the fixed category.”
While fixed franchise fees
increased 18.2 per cent in the quar-
ter, variable franchise fees
decreased by 6.1 per cent, the com-
pany reported. Premium franchise
fees, which are derived from 24
franchises in the Greater Toronto
Area, declined 20.3 per cent.
During the third quarter of
2008, the fund had a net decrease
of five Realtors from January 1,
2008, but it had total “organic”
growth of 322 Realtors during the
first nine months of 2008. This,
along with the 1,272 Realtors ser-
vicing the 60 franchise agreements
acquired by the fund on January 1,
2008, combined for a total increase
of 1,594 Realtors for the nine
months ended September 30, 2008,
up 12.1 per cent from December
31, 2007. As of September 30 this
year, the fund network was com-
prised of 338 independently owned
and operated franchises operating
from 644 locations serviced by
14,766 Realtors.
Soper says real estate resale
markets in Canada are being affect-
ed by a drop in consumer confi-
dence resulting from widespread
economic concerns, originating
largely from the U.S. credit market
crisis.
“While we anticipate further
softening of Canadian real estate
markets until consumer confidence
improves, we do not foresee a U.S.-
type correction as our markets are
supported by markedly different
and stronger economic fundamen-
tals than those that American
homeowners have been wrestling
with since late 2005,” says Soper.
“The reduction in unit sales from
record levels and decline in trans-
action dollar volume in Canada in
recent quarters may reduce the
number of agents entering the
industry. When markets slow,
established brands can gain market
share as their reputation and sup-
port services make them a preferred
franchisor or employer. The fund’s
three leading brands are well posi-
tioned for a market slowdown.”
The company says that “agent
loss may occur with less productive
agents who are unable to generate
sufficient income to meet their
needs during a market correction.
The fund’s agents on average as at
December 2007 were 67 per cent
more productive than the rest of
the industry, and therefore manage-
ment believes are better able to
withstand a significant reduction in
the market.”
“Early in the year, we set an
objective to grow fund revenue by
10 per cent in 2008,” says Soper.
“While we had anticipated and
planned for a softening in the mar-
ket, the reduction in industry trans-
actional dollar volume has been
greater than expected.”
Last month, the fund’s parent
company, Brookfield Real Estate
Services Ltd., announced it has
signed an agreement to acquire
U.S.-based GMAC Home
Services, which includes GMAC
Real Estate, GMAC Relocation
Services and the GMAC Home
Services Mortgage brokerage. That
deal was scheduled to close in
November. REM