Blog – REIX: Real Estate Insurance Exchange - Alberta, Saskatchewan

Trading in Real Estate Outside of Your Area

January 3, 2024 by REIX

Trading in Real Estate Outside of Your Area

Information is power, and technology is giving licensees access to incredible amounts of information which helps them better meet their clients’ needs. Pillar9™ allows licensees to trade outside of their area and bring properties to clients from any jurisdiction in the province. But the question is, should you?

REIX recommends that you should NOT.

Your client is relying on your expertise and knowledge to help sell or purchase a property and the law imposes that duty on you.

Clients expect that you as their representative have awareness of any unique features of both the property and the area in which it is located. If you are hundreds of kilometers away and haven’t seen the property for yourself, these features can go unnoticed. Given that, being part of that listing’s transaction could risk your reputation and invite potential liability.

You have a fiduciary duty to your client and taking a listing or writing an offer on a property you’ve never seen or a residence you have not stepped foot in leaves you open to a claim and or litigation.

If a claim or lawsuit arises from a transaction where you have either listed or sold outside your area, a Court will most likely find that you failed in your fiduciary duties to your client and may assess liability and damages against you. Both you and your broker may be financially liable and responsible for payment of that Judgement.

Trading outside your area is risky, so what should you do if you find yourself in this position? Your best course of action is to refer the buyer or seller to a qualified agent in the area. To do otherwise just isn’t worth the risk.

If you have any questions, concerns or have been served with a lawsuit/demand letter contact REIX immediately at admin@reix.ca.

2022 Breaks Claims Records for REIX: Safeguard Yourself Against Future Claims!

November 28, 2023 by REIX

2022 Breaks Claims Records for REIX: Safeguard Yourself Against Future Claims

A substantial increase in claims during the 2022 Policy Year has led REIX to caution subscribers to take measures to minimize such occurrences to prevent a potential premium increase.

The most recent claims year, ending this September 30^th, was the highest in 11 years, with 103 claims total.

Key factors worth noting in the high number of claims is an increase in carelessness, miscommunication, and a lack of attention to detail when reviewing documentation.

Here are the top 5 actions subscribers can take to help reduce the number of claims:

Review all documents, offers, and contracts two or three times before distributing. This includes (but is not limited to) reviewing the Title, MLS Listings, and RPRs. If anything seems concerning, investigate and verify the information. Do your due diligence.
Review everything with clients to ensure they understand what they are signing, agreeing to, or offering. Ensure that your clients are aware of any risks they could face when they are giving instructions (such as risks with unconditional offers or risks of a deal collapsing).
Follow up on every verbal conversation with an email confirming the disclosures that were made, instructions that were given, and risks that were explained.
Do not make any representations or give advice on anything that is outside of your scope; encourage your clients to seek advice from a third-party professional.
Do not rely on a previous MLS listing. Verify everything and have your sellers sign off on all the information and details you are inputting on the MLS listing/feature sheet. Additionally, if you are using AI technology to create your listing (or any other documents), ensure you are reviewing and verifying all the information for accuracy prior to posting or submitting it.

As soon as you become aware of a claim or a potential claim:

DO talk to your broker immediately.
DO report this to REIX right away; whether you are served with a Demand Letter, Statement of Claim, or a Civil Claim, there are deadlines for REIX to file a defense on your behalf.
DO gather all relevant documents related to the claim and prepare a detailed chronological summary of the background events and discussions giving rise to the claim, as soon as possible and provide all of this to REIX.

As soon as you become aware of a claim or a potential claim:

DO NOT admit responsibility, offer to pay money, or provide additional services without REIX’s consent, even if you think you have made an error or omission, as this may jeopardize your coverage.
DO NOT communicate, correspond, or produce any documents to any other party named in a lawsuit. Doing so may prejudice your defense and coverage.
DO NOT wait to report a claim or potential claim to REIX as this is wasted time and could harm the outcome. The sooner you contact REIX when you feel a deal is starting to go sideways, the better chance there is of REIX being able to help secure a positive outcome.

The most effective course of action is to proactively prevent such claims from occurring in the first place and ensure that you are acting responsibly while consistently fulfilling your obligations as a subscriber.

To quickly report the incident, REIX recommends bookmarking the following claims or potential claim link: https://reix.ca/wp2024/wp2024/claims/how-to-report-a-claim-or-a-potential-claim/.

To find out more information about how to avoid claims related to mortgages and rising interest rates, check out our blog entitled The Effects of Mortgage Rate Hikes on Housing: Crucial Insights for Real Estate Professionals for some helpful tips.

When questions or concerns arise, reach out to REIX at admin@reix.ca for support.

The Effects of Mortgage Rate Hikes on Housing: Crucial Insights for Real Estate Professionals

October 18, 2023 by REIX

In recent years, the Canadian housing market has been exceptionally active, driven by a combination of factors.

The onset of COVID-19-induced lockdowns led to an economic slowdown, coinciding with historically low interest rates. These low rates allowed individuals who might not typically meet the Canada Mortgage and Housing Corporation’s (CMHC) stress test criteria to secure substantial, long-term mortgages.

However, the landscape is shifting dramatically.

Two significant challenges have emerged: escalating inflation rates and a series of interest rate hikes by the Bank of Canada. Variable interest rates have surged, and many homeowners who purchased properties above the list price with no conditions are now facing mortgage renewals. Roughly around 20% of mortgages reach their renewal dates every year, signaling a rising tide of homeowners potentially facing difficulty meeting their mortgage obligations.

REIX anticipates a substantial increase in foreclosures. With homeowners beginning to list their homes prior to the property being foreclosed upon, real estate professionals must do their due diligence and be well prepared for the risks they and their clients (both buyers and sellers) could face. Neglecting to do so may result in unfavorable consequences such as:

Insufficient funds from the sale of the property to cover commissions.
Deals that collapse because the proceeds from the property sale cannot satisfy the mortgage.
New registrations being registered on Title (such as a second or third mortgage) that were not previously disclosed or discovered.
Wasted time and effort on properties that struggle to find buyers.
Buyers losing out on a property they were interested in purchasing and spending money that they can no longer recover.

To sidestep these potential pitfalls, REIX recommends the following steps:

Always pull the Title, without exception. Even if it was pulled three months ago, revisit it and thoroughly review all registrations on Title and make sure you and your client understand them. Title should be pulled at the time of list, when an offer comes in/is being made, and prior to close (with the lawyers). It may also be useful to pull Title prior to conditions being waived.
Engage in extensive conversations with sellers, posing multiple questions concerning the property’s financial health: How many mortgages are involved? Have they exhausted a line of credit? If there’s a shortfall, where will the required funds come from? What is the property’s equity status, if any? Does the property need to be listed at a higher price or does the real estate professional need to negotiate a lower commission (because a lower commission is better than no commission at all).
Ensure that buyers are aware of what they are offering to purchase and that they are aware of and understand everything registered on Title. Ensure that Title is pulled and reviewed with buyers prior to them making any decisions or giving instructions relative to making an offer and/or waiving conditions.
Ensure that buyers are aware of the risks with unconditional offers and the risks they could face if they are unable to close on the property due to debt/mortgage issues the seller is facing with respect to the property.
Keep an eye out for warning signs. Real estate professionals have reported instances where their instincts suggested potential issues with a transaction, however they chose to overlook those issues to keep the deal moving forward, which then led to even bigger issues in the future. Pay attention to these indicators and investigate further when warranted.
Review all Transaction Documents and Representation Agreements (including conditions, terms, etc.) with your clients to ensure they understand what they are agreeing to and that they are aware of the potential risks they may face. Make sure that any verbal discussions are followed up with a confirming email.

It is imperative for real estate professionals to allocate the necessary time and due diligence to gather all the information required to make well-informed decisions and provide adequate advice to their clients.

With the anticipation of increasing foreclosures looming, this proactive approach can save both you and your clients from unnecessary turmoil in the long run.

As always, please contact REIX with any questions or concerns that may arise.

A Passion for Risk Management

Do you like what you have just read? Are you passionate about risk management in real estate and ready to challenge yourself in a new way? If so, we encourage you to apply for the REIX Risk Management Program Advisor role.

Join our dynamic team and make a meaningful impact in the world of real estate risk management. Your expertise and knowledge could be the perfect fit for our organization. Don’t miss out on this exciting opportunity to shape the future of risk management. Apply today and embark on a rewarding journey with us!

The Real Estate Insurance Exchange (REIX) provides mandatory errors and omissions insurance to over 17,000 Alberta and Saskatchewan real estate industry members and more than 1,250 brokerages. We’re dedicated to providing high value to our subscribers through exceptional claims, risk and financial management. Be sure to follow us on Facebook and LinkedIn!

Avoiding Defective Documentation Risks in Real Estate

September 28, 2023 by REIX

This is the second in a three-part series taking a closer look at the top three causes of loss – financial mishaps, defective documentation and property condition.

Defective documentation is one of the three top causes of claims against agents. To protect yourself from being sued, be mindful that accurate documentation is one of the keys to a successful, claims-free real estate practice. This is the second installment in a three-part series examining the top causes of lawsuits against licensees and registrants.

Whether you’re drafting an Offer to Purchase, reviewing a lease agreement, inserting the legal description of a section of land, or working on a condo deal that includes a parking spot, be aware that careless errors can trigger financial claims and lawsuits.

Steer clear of defective documentation pitfalls by being vigilant about:

Access Prior to Close: This is when agents allow buyers access to the property prior to possession date and those buyers begin storing belongings, or altering or renovating the property, even though that was not agreed upon in the Purchase Contract or any other documentation. REIX recommends that if sellers agree to having the buyers access the property early, that their intention and any work they want to do is agreed upon in writing and signed off by both parties.

Chattels/Appliances: This is where chattels/appliances are either removed by the seller on possession date, or are not in the same working order as the buyer thought they were in at the time the offer was made. REIX recommends that agents take the time to review the list of chattels/appliances with their clients so that they are well aware of what’s included in the purchase of the property. REIX also recommends that agents advise their buyers to have the items inspected or tested to ensure that they are in normal working order. It is also recommended that agents verify with the sellers if there is anything to disclose regarding the chattels/appliances with buyers, and if so, that disclosures are made upfront.

Incomplete Sale: This refers to transactions that were initially firm but later collapsed due to a variety of reasons, including financing or buyer/seller’s remorse. REIX recommends that agents verify all of their instructions in writing (via email) and they communicate effectively and promptly.

Lease Agreements: These refer to disputes arising from errors in lease agreements, such as disagreements over responsibilities for utilities, landlord-tenant duties, and lease terms. REIX recommends that agents verify instructions in writing (via email) and ensure that their client is well aware of what they are agreeing to. Misunderstanding and miscommunication can lead to financial claims and lawsuits.

Legal Land Description: This refers to inaccurate or misrepresented descriptions of the property, Title or Real Property Report (RPR) leading to buyer dissatisfaction or seller’s inadvertent misrepresentation. REIX recommends that agents review documentation with their client to ensure that both the agent and the client are aware of the descriptions and registrations on the documents; that both the agent and the client understand them; and that the parties address any potential errors, non-compliance or disclosures that need to be made.

Lot Size/Location: This refers to claims related to discrepancies in land size and boundaries, or the inclusion of unexpected features, such as waterways, affecting property dimensions. REIX recommends reviewing documentation with the client to ensure that both the agent and the client are aware of the descriptions and boundaries on the documents and understand them well. If something is unclear, it may need to be verified and disclosed.

Parking Arrangements: This refers to errors concerning titled parking stalls, including discrepancies between listing representations and actual inclusions or inadequate garage space. REIX recommends verifying the information with the seller and actually viewing the parking stall to ensure that it is the correct one and whether it is underground or a surface-level spot. The same applies for garage spaces.

Square Footage: This concerns disputes arising from inaccuracies or misrepresentations in property square footage. REIX recommends having properties measured by a third party professional measurement company. By doing so, any representation surrounding square footage is made by the third party professional measurement company and not the agent.

Subject Clauses: This refers to issues stemming from incorrectly drafted subject clauses in contracts, impacting the transaction’s conditions. REIX recommends that agents review all subject clauses with their clients to ensure they understand the clause. Additionally, the clause should be specific and clearly explained to both parties.

REIX emphasizes the importance of avoiding defective documentation. Real estate professionals must ensure their documents are error-free and accurately convey information to all parties involved. Failure to do so may result in legal liability.

To prevent defective documentation, REIX recommends the following proactive measures:

Review contracts and documents thoroughly with clients.
Double-check all work for accuracy.
Confirm verbal instructions and all conversations in writing via email.
Have clients initial every page, including MLS feature sheet and title.

Real estate agents facing uncertainty regarding documentation should seek assistance from their Broker and promptly contact REIX if legal issues arise.

A Passion for Risk Management

Safeguarding Against Lawsuits: Navigating the Financial Minefield

July 26, 2023 by REIX

This is the first in a three-part series taking a closer look at the top three causes of loss – financial mishaps, property condition and defective documentation.

In the high-stakes world of real estate, avoiding lawsuits is paramount. Understanding the top three causes of loss – property condition, defective documentation and financial mishaps – can help ensure a smooth path to success.

Financial claims are one of the most common reasons for legal battles in the industry. REIX, an expert in handling such claims, has identified several key areas that often lead to disputes. These include deposits, loss of income, mortgage issues, property value disagreements, tax concerns and condo fees disputes.

Let’s delve into some typical scenarios that may trigger financial claims:

Deposit Disputes: Often arising from issues with handling deposits, such as disputes over who should receive the deposit when a deal falls through.
Loss of Income: This category covers losses related to property income, such as potential rental income or commercial use income.
Mortgage Problems: Claims may arise when buyers are unable to secure financing, or subscribers recommend waiving the financing condition prematurely.
Property Value Disagreements: These claims occur when buyers or sellers feel that the property was overvalued or undervalued.
Tax (GST) Conflicts: Claims may be due to misinformation or misrepresentation regarding taxes related to the property.
Condo Fee/Special Assessment Discrepancies: Claims arise from misrepresentations of condo fees or special assessments.

To safeguard against financial losses, real estate professionals can take proactive measures:

Refer to Experts: When clients have specific questions or concerns, it’s best to direct them to relevant experts, such as accountants or tax professionals.
Direct Communication: Maintain clear and direct communication with clients only. Avoid engaging with third parties, like mortgage brokers, on behalf of the client.
Outline Risks: Ensure that clients fully understand the risks involved in failing to close a deal or breaching contract terms.
Understand Property Valuation: Educate clients that property value is determined by multiple factors and is ultimately dependent on a buyer’s willingness to pay and a seller’s willingness to sell.

By being cautious, well-informed and proactive, real estate professionals can minimize the risk of financial claims and steer clear of potential lawsuits.

Issues with DocuSign

May 16, 2023 by REIX

Real estate agents are used to racing from one listing to another or from meeting to meeting, but one thing they’re most likely not travelling for is to deliver contracts to be signed.

These days, document-signing software that allows clients to sign contracts online is a mainstay of the real estate business, eliminating the need to print, scan and personally deliver contracts.

But the technology is not without its issues.

While the use of electronic signatures (e-signatures) continues to grow, it may not be for everyone, especially clients who aren’t comfortable with the technology or who are resistant to change.

The Personal Touch

REIX Advisory Board Member Randy Plant says that REIX recommends all real estate agents take the time to fully explain to clients what it is that they are signing electronically (or in person).

“In previous practice, agents sat with the majority of clients face-to-face, which presented the opportunity to engage in meaningful dialogue, providing explanations of the clauses contained in the documents,” says Plant.

“Today’s practice has, in large part, shifted to a model using technology tools favouring convenience over face-to-face meetings when it comes to signing documents, therefore the explanations may be overlooked,” he says.

Given that one of a real estate agent’s most important duties is ensuring their clients understand the terms of a contract, along with the purchase and sale of property, those face-to-face meetings remain as critical as ever.

“Agents have a responsibility to assist clients in understanding the clauses contained in all documents that are being signed. One can’t be faulted for exercising too much diligence!”

Disclosing Suicides and Violent Crimes (UPDATED)

September 19, 2022 by REIX

REIX’s post Disclosing Suicides and Violent Crimes, dated September 15th, says that “while there is no law, or statute requirement, that requires disclosure, there is no question that you must disclose it.”

REIX would like to issue a clarification pertaining to the above. While it is not required that real estate agents must disclose whether a violent crime has been committed on a property, as your insurer, we recommend that it be disclosed to avoid potential lawsuits, and to make it easier for us to defend you in legal actions that arise from issues such as this.

Please see below for the updated blog post.

As real estate agents, you’re often faced with difficult decisions – least of all what you should and shouldn’t disclose.

So it’s no surprise that we’re often asked if suicides and violent crimes that occur on properties should be disclosed.

REIX recommends that best practice is to disclose it.

While there is no law, or statute requirement, that requires disclosure, REIX recommends that you disclose it to avoid any potential lawsuits. Without intending to be funny, if you don’t make the disclosure, the neighbours most assuredly will and likely on the day the buyer moves in.

It is advised that an industry member should handle situations like this with tact, sympathy and above all, diplomacy.

So how and when should the matter be disclosed and what do you do to protect both yourself and the other parties to the transaction?

How and When to Disclose

If you’re representing both the buyer and seller, then you should make the disclosure before you write the offer, adding a note in your file indicating the date, time and person(s) to whom you made the disclosure.

If you’re only representing the seller, then the disclosure is made to the buyer’s real estate agent, either before the offer is written (if you are aware in advance that an offer is coming) or before the offer is presented.

Again, ensure you have a note in your file that indicates the date, time and person(s) you made the disclosure to.

Addendum Recommended

Finally, we recommend an addendum be written up and included as part of the purchase contract. It should say something to the effect of “seller has disclosed and the buyer acknowledges that they have been informed of a suicide/violent crime on this property.”

By dealing with suicides and violent crimes in this way, you are being sensitive to the seller’s needs, informative to the buyer’s needs, and protecting both yourself and the parties to the contract from liability arising out of the failure to disclose.

The Real Estate Insurance Exchange (REIX) provides mandatory errors and omissions insurance to over 14,800 Alberta and Saskatchewan real estate industry members and nearly 1,200 brokerages. We’re dedicated to providing high value to our subscribers through exceptional claims, risk and financial management. Be sure to follow us on Facebook!

Importance of Stating Suites as ‘Legal’ or ‘Illegal’

August 18, 2022 by REIX

In the real estate industry, there are some terms that should not be used when it comes to advertising or describing suites.

Some of those terms include “mother-in-law suite”, “non-conforming suite”, “mortgage helper”, “income potential”, “regulation or regulated” and the list goes on. In the vast majority of cases, the suite in question is none of the above. In fact, the only terminology that can safely be applied to these suites is “illegal”.

In order to call a suite a “mother-in-law suite”, for example, it has to be exactly that…used for the mother-in-law to live in. We had a case where an industry member told a client that the term “mother-in-law suite” was a generally accepted term for an additional suite in a house.

Later, after the client had closed on the purchase and rented both suites, they could not understand why the City was giving them notice to vacate if the real estate agent thought it was “generally acceptable”. The client sued the industry member.

If the seller has their mother-in-law living in the suite, you can refer to it as such. However, you still have to inform any buyers that it is an illegal suite and cannot be rented. Conversely, if your buyer is really going to have their mother-in-law stay there then you can, again refer to it as such but still must disclose that the suite is in fact illegal.

Non-Conforming Suites

The same applies to the term “non-conforming suite”. In most municipalities this only applies to a building that was in compliance for the number of suites that it contained, but due to down zoning, was no longer in compliance. Many municipalities allow these to continue and refer to them as non-conforming. However, when an additional suite is created in an area not zoned for that, it is considered illegal, not non-conforming.

Even if the zoning allows for additional suites, there are a number of other criteria that must be met in order for a suite to be legal. Trying to gloss over criteria that has not been met by calling the suite “non-conforming” won’t work…it is still illegal!

Whether it is in a listing in the private or public remarks or in your advertising or websites, any time the word suite is used it must be accompanied with the word legal OR illegal.

Terms to Avoid

Other terms that should be mentioned here include “mortgage help”, “income potential”, “regulated or regulation suite”, “potential for sure”, “easy to suite”, among others. If you are enticing someone to purchase a property under false pretenses that is fraud, plain and simple.

Generally, the lawsuits we see on this issue (and there have been quite a few) are attempting to not only recover the loss in value for the property that is no longer an income property, but also recover the loss of income for however long they had planned to keep it.

When it comes to advertising, listings and disclosures, there is only one of two ways to describe a suite – legal or illegal.

If you knowingly misstate a material fact, you will more than likely have your insurance voided in the event of a claim or lawsuit.

The Calgary Real Estate Board had put out an article addressing this same issue in 2019.

When It’s Hot and When It’s Not

July 14, 2022 by REIX

We all know that what goes up, must come down.

But we seem to forget that truism when the real estate market is hot, leading us to another painful truth: mistakes made during a hot market come back to haunt you in a downturn.

The main culprits? Poor record-keeping and deals done with no conditions – both which can turn into lawsuits when the market turns.

At REIX, we’ve seen all sorts of scenarios that speak to the importance of calmer heads during hotter markets. Here are a few to consider:

Refusing Subject to Sale

As a buyer’s agent, you have a buyer that’s already lost out on several offers and is keen to secure this latest house, so much so that he refuses to add any conditions to the deal, despite your best advice. In the haste to make the deal, you fail to get the buyer to sign a waiver indicating they chose to close with no conditions.

In this scenario, the most important condition he refused was accepting the offer subject to the sale of his own property. The buyer thinks that, in such a hot market, his own home will be gone in a matter of days. Then the market cools.

The buyer won’t reduce his price because he needs every last dollar of equity to close on the property he’s just purchased. The next couple of months roll by and nothing happens. Eventually, the closing date arrives and he has to walk away from the deal and forfeit his deposit.

But his troubles – and yours – are just beginning. The seller is now stuck selling their property in a declining market. Months go by and they eventually sell, but for substantially less than they had on the first deal. The result? They sue the first buyer and the buyer’s agent, you.

No Home Inspection

In another, equally problematic scenario, a buyer refuses to get a property inspected, fearing she’ll lose the deal to other offers. Although you advise against this, warning of what surprises she may find after taking possession if she foregoes an inspection, she insists on proceeding.

Here’s where the problems arise: you fail to document your warnings and her instructions. You also fail to have the buyer sign a waiver that states that the buyer’s agent/brokerage has explained the implications of not completing a home inspection and the buyer has still chosen to proceed without it.

Later, after closing, the defects become apparent and you are included with the seller in the subsequent lawsuit.

Lost Deposits

In a third scenario, you’re working with a condo developer and experiencing good interest on the latest project, with deposits collected on 25% of the units. Then the market turns and the developer goes under. The buyers sue for the lost deposits that were processed through your brokerage and turned over to the developer to start construction – and you’re unable to recoup that money.

Take Time – and Notes

These are just a few of the common scenarios we see during a hot market, where haste and cutting corners have come back to haunt subscribers later on.

Here are a couple of suggestions that may help you prevent lawsuits in the future:

Slow down, at least long enough to double check your work. Are the terms and conditions worded properly and do they reflect the intention of the parties to the contract?
Take a minute to send an email to the buyer acknowledging their instructions to proceed with no conditions on the offer and have them sign a waiver. Reiterate why this is not your recommendation and what the consequences could be if their house does not sell on time or if they find defects in the house they are buying later on, and then keep a record of this communication.

Enjoy a hot market while it lasts, but make sure you’re careful at all times so that when the slowdown comes (and it will) you won’t look back on the good times with regret.

Paper Trail Plusses & Note Taking Know-How

June 1, 2022 by REIX

Note keeping, email confirming, file documenting.

We call it the paper trail to safety.

A lot gets said between a real estate agent and a client, from the moment they meet to the final transaction – and it should all be documented.

Whether it’s confirming elements of a contract or conversation regarding a home inspection, all it takes to protect yourself against a potential lawsuit is writing a short note to yourself in your phone or sending a quick email or text to the client outlining the conversation (and asking for them to acknowledge receipt).

Similarly, key points of contact, notes and communications regarding contact with lawyers, listing or selling agents, city/municipalities or any specialists you encounter during the transaction should also be documented.

Who, What, When

Discussions surrounding instructions or specific advice should clearly state what was said, by whom and when.

“Developing the self-discipline to regularly – and continually – file notes results in a more complete and organized file and could be critical evidence in your defence in a lawsuit,” says REIX Sr. Vice President of Claims and Litigation Dave de la Ronde.

“The chance of success in defending a claim for real estate malpractice rises dramatically with the level of note taking in the file. It frequently extinguishes claims by removing the element of creditability in the ‘my-word-versus-your-word’ argument raised by many claimants.”

De la Ronde says that even when the agent may have been negligent, a well documented file makes damage control and defense easier and more effective.

“Insurance programs have settled many cases where the practitioner acted appropriately but was unable to prove it; evidence is key. In many of the claims REIX deals with, the insured has not been diligent in keeping good records. We encourage everyone to review their note taking practices and discuss file practices with your broker.”

There are simple and effective methods that can be used that may end up saving you time trying to re-construct a transaction that took place years ago.

After all, isn’t time one of your most valuable assets?

Please contact REIX if you have any questions or would like to discuss this further.

Beating Risky Business Before It Begins

April 14, 2022 by REIX

The life of a real estate broker can sometimes feel like walking a tightrope while performing a juggling act. Lose your focus and it could result in a nasty spill.

Mary-Ann Mears knows all about that balancing act. As the Calgary-based managing broker for Sotheby’s International Realty Canada, she oversees 50 agents and three employees across three Alberta offices.

“My biggest challenges are ensuring my agents are current with policies and procedures at the office, that they have a clear understanding of CREB’s rules and regulations, and that all of their transactional activities adhere to the Real Estate Act,” says Mears.

In addition to providing one-on-one mentoring and business planning with her agents, Mears works hard to be proactive and keep her team informed on relevant news and hot-button issues, hosting regular training meetings and reviewing current market conditions.

So when she’s offered a ready-to-use presentation with pre-prepared notes as a learning opportunity for her team, she jumps at the chance.

Broker Series

REIX’s Broker Series offers resources specifically designed for brokers to help them tackle timely risk-related topics with their agents, including conflict of interest, risk hotspots, subject clauses and misrepresentation.

“The Broker Series presentations are tremendously helpful and welcomed. I found the first one, Know Your Client, to be precisely on point,” says Mears.

“The key benefit of being proactive is mitigating the risk of lawsuits for both the agents and the brokerage. It keeps agents sharp. Also, this kind of supporting information helps to minimize the recurrence of common and repeated errors by agents.”

In the end, says Mears, ensuring her agents stay informed is just good business.

“It reduces my risk exposure, their risk exposure and most importantly, our clients’ risk exposure.”

The Broker Series – part of REIX’s Risk Management Support Program (RMSP) – provides brokers with a new PowerPoint presentation and accompanying notes quarterly. Check out the link to view and take advantage of the other resources offered through REIX’s RMSP!

We Want YOU To Be a Board Member!

March 15, 2022 by REIX

Each year, we look for diverse, experienced Advisory Board members who can share their experience – and this year’s no different.

The REIX Nominating Committee is seeking licensees in all sectors of real estate from across Alberta and Saskatchewan to serve on our Advisory Board and Claims Committee.

“The decisions we make as an Advisory Board are so important to how REIX functions as an organization and in the real estate community,” says REIX CEO Lisa Sabo.

If you are keen to get involved, learn about your insurer from a unique perspective or gain experience as a board or committee member, you may just be the perfect fit.

We’re looking for candidates with knowledge, skills or interests in one or more areas of Board governance and leadership, including strategic planning, fiscal oversight, risk management and loss prevention.

Three Meetings a Year

Not only will you gain – and share – insights and knowledge, but the time commitment is manageable, with only three Advisory Board meetings each year (held in October, February and June).

All appointments will be made at our June 2022 meeting to begin service in October 2022. While Advisory Board appointments are two one-year terms, followed by two three-year terms, for a maximum of eight years, Claims Committee appointments are for a one-year term, for a maximum of eight years.

“We encourage everyone who is interested to apply. We thoughtfully consider all applications. Our goal is to have our Board reflect the diversity in our real estate community,” says Lisa.

If you would like to volunteer, please download the Nomination Information Form and submit it to REIX Admin at admin@reix.ca. All applications must be received by April 7, 2022.