BCREA Bulletin (March 2015) - British Columbia Real Estate

V o l u m e
3 8 ,
n u mb e r
1 M a r c h
Author Bruce Woolley
First Nations
Lands
I have been fortunate to have assisted
in acting for the Government of BC in its
implementation of three modern treaties:
the Nisga’a Final Agreement, the
Tsawwassen Final Agreement and the
Maa-nulth Final Agreement. Each of these
treaties is unique – and the way each treaty
deals with First Nations lands is different.
For non-treaty First Nations, most lands
are still reserves.
It is important that REALTORS® understand
that not all First Nations land transactions
are the same and can be accommodated by
one precedent.
When the Nisga’a treaty was implemented,
only a very small portion of the lands were
registered in the BC Land Title Survey
Authority’s Land Title Office (LTO), and
those were lands over which Nisga’a did
not have governance.
When the Tsawwassen treaty was implemented, all of the lands were registered
in the LTO, while in the Maa-nulth treaty
(which dealt with five First Nations), some
of the lands were registered in the LTO
and other lands were registered in new
First Nation land registry offices.
In addition to these modern comprehen-
sive treaties, some First Nations such as
Westbank have negotiated agreements
which confer extensive land use powers
on Westbank.
Westbank, through the Westbank First
Nation Self Government Act, exercises
control of the use and development of
Westbank lands, subject to the Westbank
Constitution. Westbank lands are not
governed under the Indian Act, unlike
the lands of most First Nations, other
than Nisga’a, Tsawwassen and Maa-nulth.
Transactions affecting Westbank lands
are registered in a registry in Ottawa
known as the Self Government First
Nations Lands Registry.
Other First Nations use the Indian Land
Registry (ILRS), or the First Nation Land
Registry (FNLRS), if they have certain
land use powers under the First Nations
Land Management Act.
Nisga’a, Tsawwassen and Maa-nulth
hold their lands in fee simple, but that
is generally not the case for other First
Nations, as the land is still reserve land.
on the effective date of the treaty, then
transferred estates in fee simple to its
members who previously held Certificates
of Possession. Those people may now
grant mortgages of their fee simples.
Transfers of those estates in fee simple
are subject to Tsawwassen laws which
basically prohibit transfer except to the
Tsawwassen First Nation or members of
the Tsawwassen First Nation.
(continued on page 3)
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President’s Report
Pg 2
Real Estate Sector
Pg 3
Government Relations
Pg 3
Education
Pg 4
Economics
Pg 5
Government Relations
Pg 5
Practical
Real
Estate
Points
Sector
Pg 6
Education
Pg 6
The Next Five Years
First Nations Lands
Clarification About Hazardous Materials
Launch of the New Residential Trading
Services Applied Practice Course
Winners and Losers of Cheap Crude
Drug Operations in Focus
Depreciation
Another
Successful
Reports:
Banff
Are
Western
You Qualified?
Connection!
In Tsawwassen, for example, the
Tsawwassen First Nation, which became
the owner in fee simple of the treaty lands
Legal Update 2015: Online and
Classroom Opportunities
The Bulletin • March 2015
2 0 1 5
President’s Report
The Next Five Years
Every day, REALTORS® provide expert
advice to add real value to the process of
marketing and selling real estate, helping
our clients realize their dreams.
The BCREA Board of Directors recently
approved an exciting and ambitious
strategic plan for 2015-2019 which puts
REALTORS® and consumers at its heart.
The strategic plan recognizes that
the future of the real estate profession
depends on our collective ability to
innovate in a changing world. Technology
is advancing. Consumer needs are shifting.
New competitors are emerging. We need
to continue to evolve, or else risk losing
clients to this changing landscape or
being left behind.
Innovation needs to be at the heart of
everything we do. Guided by the research
and discussion sparked by the Journey of
Discovery, BCREA identified nine projects
to drive REALTOR® value through
innovation and support the continued
relevance of REALTORS®.
to turn the focus on our own structures.
A key question for us at the board table
was whether the structure we’ve built
for organized real estate in BC delivers
the optimal results and values we want –
namely – a secure, prosperous future
for REALTORS® in our province.
Jake Moldowan
With our 2015-2019 Strategic Plan now
in place, we are working with member
boards to determine how to answer this
fundamental question.
There will be challenges ahead. But a
commitment to doing things differently
is a commitment to change – and change
can be difficult.
We will be engaging with member boards
and REALTORS® across the province over
the coming year to better understand
the challenges and work together to find
solutions.
Jake Moldowan
President
I’m excited about what the future holds for
our profession and look forward to sharing
our progress on this journey together.
However, in developing the strategic plan,
we realized that there is an opportunity
Board of Directors 2014-2015
Core Ideology
Officers
REALTOR® Directors
Core Purpose
Ensuring the continued value
of REALTORS ® to consumers.
President
Claudia Holland
250.992.7202 [email protected]
Deanna Horn
604.534.0667
[email protected]
Dick Pemberton
250.374.3331
[email protected]
James Palanio
250.492.2266
[email protected]
Jim Stewart
250.591.4601
[email protected]
Rosario Setticasi
604.986.9321
[email protected]
Core Values
• Member board vitality
• REALTOR® success
• REALTOR professionalism
®
• Quality of Life
- Ensuring economic vitality
- Providing housing opportunities
- Preserving the environment
- Protecting property owners
- Building better communities
Jake Moldowan
604.271.7288
[email protected]
Past President
Jennifer Lynch
250.247.2088
[email protected]
President-Elect
Scott Russell
604.273.3155
[email protected]
Chief Executive Officer
Robert Laing
604.742.2787
rlaing @bcrea.bc.ca
• Public trust
The Bulletin • March 2015
Public Directors
Anthony Ariganello
604.694.6937
[email protected]
Sharon Bryan
604.662.8085
[email protected]
Real Estate Sector
(continued from page 1)
The Tsatsu Shores development, at the land
end of the ferry causeway, was converted
from leasehold on reserve land pre-treaty,
to leasehold strata on fee simple land.
The Tsawwassen First Nation is currently
working with developers on a commercial
development and Tsawwassen First Nation
fee simple owners have entered into a joint
venture with a developer on a residential
subdivision. In both cases, long term
leases will be used and those leases
will be registered in the LTO.
Prior to the Tsawwassen treaty, Tsawwassen
created the Stahaken development on the
bluff above Tsatsu Shores, which was leasehold land, but still part of reserve land.
These lands, like the Salish and Musqueam
subdivisions near UBC, were registered in
the LTO. Stahaken is now Tsawwassen land,
not reserve land, and is subject to
Tsawwassen laws. Salish and Musqueam
subdivisions are still reserve lands.
So, when some REALTORS® ask why there
is no standard form document to deal with
all “purchases” of First Nation lands, those
REALTORS® may not recognize the complexity of arrangements that exist today, and
will continue to develop in the coming years.
There is no “one size fits all” agreement.
Some of the factors to consider include
whether the arrangement is fee simple,
leasehold or leasehold strata. Others
include whether the land is still reserve
land or whether it is treaty land, in which
case federal approvals are not required
but First Nation laws apply.
As well, the REALTOR® needs to determine
where the lands are registered – ILRS,
FNLRS, LTO or a First Nation registry – and
find out the various legislative foundations
and consequences of each.
The REALTOR® should also have some
understanding of the applicable First
Nation laws or refer the potential purchaser
to a professional who can advise on this.
Do not assume each transaction will be the
same – you will need to get information
from a variety of sources, including lawyers, First Nation representatives and
other REALTORS® who have concluded
transactions on the same lands with
which you will be dealing.
Bruce Woolley
Stikeman Elliott
Government Relations
Clarification About Hazardous Materials
REALTORS® are aware that, for buildings
constructed before 1990, provincial
legislation requires that hazardous
materials surveys be completed before
renovation, expansion or demolition,
to protect occupants and workers from
harmful exposures.
• specific hazardous materials continue
to be named (asbestos, lead and toxic,
flammable or explosive material),
though other hazards aren’t excluded;
In the past few years, WorkSafe BC has
worked with local governments around
the province to raise awareness of this
requirement, and to enforce it in their
communities. Recently, WorkSafe BC
approved amendments to s. 20.112 of
the Occupational Health and Safety
Regulation, which provides the framework for hazardous materials surveys.
• renovation work is now included in
the definition of “demolition;" and
The amendments mostly clarify the
provisions that have been in force
since 1998. For example:
New provisions include more clear
expectations about what is required in a
written inspection report, while allowing the
qualified person the flexibility not to collect
• a qualified person is defined by their
experience and knowledge, rather than
by specific designations or education;
• both the owner (or owner’s representative)
and all employers responsible for
demolition, salvage and renovation must
ensure that a qualified person inspects
and identifies hazardous materials that
may be disturbed during demolition or
renovation.
samples for testing, where it’s difficult
or unnecessary, as long as rationale is
provided. A qualified person must also
now provide written confirmation that
the hazardous materials identified in
the report have been safely contained
or removed before work can begin.
These amendments took effect
February 1, 2015, and details are available
at worksafebc.com/regulation_and_policy/
public_hearings/2014PublicHearing/law_
40_50.asp (look for Part 20, Construction,
Excavation and Demolition).
For more information about hazardous
materials surveys, see the Real Estate
Council of BC’s Professional Standards
Manual at recbc.ca/licensee/psm.html
(search for asbestos).
The Bulletin • March 2015
Education
Launch of the New Residential Trading
Services Applied Practice Course
On behalf of the Real Estate Council of
British Columbia, BCREA launched the
new Residential Trading Services Applied
Practice Course this January. Feedback to
date indicates that the new residential
Applied Practice Course (APC) will bring
a higher standard of knowledge, practical
skills and professionalism to BC licensees.
New Course Format
The new course offers more opportunities
for licensees to engage and practice regulatory compliance before and right after
receiving their licence. The course includes
four components, takes six months to
complete and the first two components are
completed before becoming licensed. In
Component One, students complete a twoweek online learning unit and in Component
Two, students attend a highly interactive
two-day classroom session.
After completing the first two components,
students can apply for a temporary licence,
and then complete Component Three,
which includes six practical field
assignments in their brokerage, over the
course of approximately four-and-a-half
months. The final element, Component
Four, is a capstone one-day in-class
session, which offers an opportunity to
review licensee strengths and challenges
as they look to further hone their skills and
understanding of their regulatory duties.
What Students and
Instructors Are Saying
“There is a very different dynamic among
online learners compared to the in-class
community. With assignments, interactive
discussions and deadlines to meet,
learners seem far more engaged and
committed to learning. With that, I
believe we are developing more
competent and confident licensees
better prepared to venture out into
the real world of real estate.”
–Deborah Spicer, APC Instructor
“In 2008, I [completed] the “old” Practice
Course in Kelowna. Getting relicensed
and doing the “new” online course
[component] now, I would like you to
know that in my opinion the new one is
awesome! The interactivity with other
students AND instructors works great
and doing the online [component]
whenever you want to do it is super.”
– January 2015 APC Student
Resources for Managing Brokers
BCREA's Managing Broker Toolkit has been
developed to provide managing brokers
with course materials and resources to
support new licensees as they enter the
profession of real estate. The Toolkit
Classroom Sessions
14 Days
2 Days
pre-licensing
The Bulletin is published quarterly by the British Columbia Real Estate Association. Real
estate boards, real estate associations and REALTORS® may reprint this content, provided
that credit is given to BCREA by including the following statement: “Copyright British
Columbia Real Estate Association. Reprinted with permission.”
BCREA makes no guarantees as to the accuracy or completeness of this information.
The Bulletin • March 2015
temporary licence
licence application
Online Modules (5)
New Applied Practice Course attendees completing the
second course component in-person and participating
in interactive group activities.
contains an Executive Summary which
highlights the changes in the course and
explains the objectives of each component.
Following the Executive Summary is the
content from each of the four course
components. To download the Toolkit, visit
bcrea.bc.ca/be-a-realtor-/new-appliedpractice-course/managing-broker-toolkit.
Changes to Course
PDP Accreditation
The new APC has been designed as part of
the licensing process for new licensees. The
goal of the course is to prepare learners to
become competent licensees. As of January
2015, in conjunction with the enhancements
to the the Professional Development
Program (PDP) Emerging Professional
learning path, the new APC no longer
affords six PDP credits to new licensees.
Online Field
Assignments
Classroom Sessions
4.5 Months
1 Day
post-licensing
Send questions and comments
about The Bulletin to:
Editor: Damian Stathonikos
Assistant: L indsay Macmillan
1420 - 701 Georgia Street West
PO Box 10123, Pacific Centre
Vancouver, BC V7Y 1C6
Phone: 604.683.7702
Fax: 604.683.8601
Email: [email protected]
www.bcrea.bc.ca
Printed on recycled paper.
ISSN: 1705-3307
Economics
Winners and Losers of Cheap Crude
Thanks to technology and a $100 per
barrel exploration incentive, there is now
oil everywhere. The glut has forced prices
below $50 per barrel and on the horizon,
triple digit prices are now years in the
distance. The extraordinary collapse in
the price of oil has changed the economic
landscape. However, there are both winners
and losers when it comes to cheap crude.
Canada’s economic engine is exports,
where oil is more than a big player. Its
importance was recently punctuated, to
the Bank of Canada’s surprise, with a slash
of its trend setting rate. In Alberta, new
investment and exploration is being
postponed, while the government is
scrambling to shore up a gigantic budget
sinkhole, and workers fear for their
livelihoods. At home in BC, the mood is
less morose. Our exposure to the downcycle is more limited and more nuanced.
Since oil production is minute in BC, the
negative impact is largely confined to our
ties with Alberta. The oil patch supply chain
of goods and services will suffer, as will
those households that earn their living in
the Alberta energy sector. In addition, BC's
recreation real estate markets, traditionally
favoured by Albertans, will see sales wane.
However, the slump may push some to
cash out now and retire to BC.
While disruptive and sometimes tragic to
those affected, the net result of lower oil
prices is positive for the province. The big
beneficiaries are consumers and retailers.
Lower gas prices are immediately felt by
consumers and all those extra loonies at
the end of the week will largely be spent
at BC stores. Lower oil prices mean a weaker
exchange rate and even more business for
BC retailers as cross-border shopping
makes much less sense. Tourism will also
get an unexpected boost as US households
get a 20 per cent currency discount and
British Columbians take more summer
staycations.
While these impacts aren’t exhaustive, they
do illustrate that there are both winners and
losers. On the whole, British Columbians
will be the beneficiaries of the supply glut,
with consumers and businesses benefiting
from cheap oil, increased consumption and
a lower cost of borrowing.
Government Relations
Drug Operations in Focus
Properties used in the production of
marijuana, methamphetamines and
other drugs can pose health and safety
risks to the people who live in and near
them. For several years, BCREA has
made recommendations to the provincial
government to improve disclosure and
remediation of these properties, building
on the work begun by the Fraser Valley
Real Estate Board.
Lobbying efforts will continue this
April 12 to 14 in Victoria, at this year's
Government Liaison Days conference.
BCREA's annual Government Liaison
Days event is a key provincial advocacy
opportunity for organized real estate,
during which REALTORS® from around
the province meet with MLAs for focused
discussions about one or two public
policy issues.
The issue of drug operations was the
Government Liaison Days focus in 2012,
and the issue will be revisited in 2015.
This is partly due to momentum in
Alberta, where the provincial government
has committed to a strategy called Grow
Op Free Alberta, designed to protect
communities against dangers from
residential marijuana grow-ops.
BCREA plans to put forward the following
recommendations to BC MLAs in April:
• Define a “drug operation” in a meaningful
way, ensuring that operations with little
to no impact on properties aren’t subject
to disproportionate requirements.
• Develop a centralized, consistent process
for disclosure of property history information. A consistent process is needed
for ensuring that information about the
use of properties for drug operations and
subsequent remediation is available to
potential buyers, potential tenants and
REALTORS®, in a timely, straightforward
manner.
•Describe a healthy building and then
develop a centralized, consistent process
for remediation of buildings used in drug
operations, to ensure these buildings are
safe for people. Knowing what is considered to be a healthy building will give
remediation specialists a clear objective,
and a consistent process should provide
a framework to determine what needs
to be tested and remediated, roles and
responsibilities and time frames.
For more information about BCREA's
role in government relations, public policy
positions and recommendations, visit
bcrea.bc.ca/government-relations.
The Bulletin • March 2015
Real Estate Sector
Another Successful Banff Western Connection!
From January 29 to 31, roughly 700 attendees gathered from across the country for the
2015 Banff Western Connection conference.
Once again, REALTORS®, staff, volunteers
and visionaries worked together to help
make this biennial event a great success.
The theme of this year's conference,
REALTOR® Toolkit for Tomorrow, was
carried throughout the program with a
look at how REALTORS® can best prepare
themselves for the years ahead.
Attendees participated in valuable
sessions including a Board Leaders’ Day
and CREA leadership courses. This year’s
event also included a real estate tech talk
open forum to assess existing technologies
available to Canadian REALTORS® and a
"hear it direct" consumer panel where
panelists discussed their property
purchase and sale experiences and fielded
enquiries from attendees. The REALTOR®
conference included exciting presentations
on out-caring the competition, social
media, fine tuning your listing presentation,
commercial real estate and client
communication strategies.
Hosted in partnership between BCREA, the
Association of Saskatchewan REALTORS®
and the Alberta, Manitoba and Canadian
Real Estate Associations, the event consisted of powerful speakers, a dynamic trade
show, unique networking opportunities
and first-class entertainment.
opportunities for women in abusive
relationships in the Bow Valley area.
Well done conference attendees!
Visit www.banffwesternconnection.com
for pictures and presentations from the
event, or to complete the conference
survey, if you attended. Be sure to plan
ahead and attend the next Banff Western
Connection conference at the end of
January 2017. We hope to see you there!
An important event highlight was the just
over $8,000 raised for the YWCA of Banff
through the conference’s 50/50 draw.
Funds raised will go towards the YWCA’s
project to provide safe housing
Education
Practical Points
Legal Update 2015: Online and Classroom Opportunities
In January, both the residential and commercial Real Estate E&O Insurance Legal
Update 2015 courses launched as online
and in-class sessions for BC REALTORS®.
Classroom course attendees have noted
that Legal Update 2015 is “very informative
and up-to-date,” provides “topics relevant to
day-to-day real estate” and “interesting scenarios, case examples and consent orders.”
This year’s online courses have been
designed in the Sauder School of Business'
Real Estate Division’s new learning management system and offer videos, linked
readings, pre-lesson test your knowledge
exercises and section quizzes.
Reviews of the online 2015 courses
have also been very positive:
“The online experience exceeded my
The Bulletin • March 2015
expectations in that the content was
direct and meaningful...Finding technology
challenging at times, I appreciated the
introduction video and write up on how to
navigate successfully through the course.
The video case studies and summaries
really helped bring the material together
and made it relatable. This is a very necessary course in keeping all real estate
representatives’ livelihood and
reputations in tack.”
“Today's course material was refreshing
from a commercial standpoint. Many [courses] never truly deliver material
that is applicable to my daily experience
as a commercial broker. Negotiating land
leases with the Crown and First Nations,
review of easements and detailed lists of
due diligence items, etc., are things I work
on in my day-to-day. I believe that other
commercial agents will find this enriching
and valuable course material.”
For more information, explore your Category
A Professional Development Program
Learning Path options at learningpaths.
bcrea.bc.ca/bcrea-lp/#home.