Canadian Real Estate Associati Lyrics

Canadian Real Estate a__ociation

Ultimate contact is the member, primarily through local boards and provincial a__ociations.
*

Advice and support to provincial a__ociations, local boards, and members.
*

Maintain role as a facilitator in the provision of services to boards and provincial a__ociations as requested.
*

Maintenance, protection, licensing, and standards for MLS (certification, including MLS rules and regulations).
*

Arbitration between provincial a__ociations and for brokerages from different provinces.
*

Develop and monitor national Code of Ethics and Standards of Business Practice.
*

Industry representation on national and international relations to public and private bodies.
*

Member products and services best co-ordinated from the national a__ociation.
*

Co-ordinate national internet web site and MLS.
*

Establish board corporate jurisdiction, jointly with board and provinces.
*

Trademark compliance a__istance, jointly with boards and provinces.
*

MLS (research and development).
Canadian Real Estate a__ociation

Acronym: CREA

The Canadian Real Estate a__ociation (CREA) is the national organization for REALTORS throughout Canada, with offices located in Ottawa. CREA focuses on national and international representation of the profession (a growing function that will prove invaluable as the scope of organized real estate expands in both size and complexity), with liaison to such organizations as the Appraisal Institute of Canada, the National a__ociation of REALTORS, the Canadian Construction a__ociation, the Urban Development Institute, and Canada Mortgage and Housing Corporation. CREA is the owner of the trademarks REALTOR and MLS in Canada.
Reference

The Canadian Real Estate a__ociation publishes an informative booklet with particular emphasis on false and misleading advertising, deceptive marketing practices, and enforcement of applicable portions of the Competition Act by the Marketing Practices Branch of the Bureau of Competition Policy. The publication t__led Guidelines for Real Estate Advertising, Marketing and Promotion Practices (CREA, 2000) also provides useful guidance for advertising by CREA for the purpose of trading in real estate.

An excerpt from this publication has been reprinted in Figure A.20 for information purposes only. Individual brokerage policies and procedures vary by provincial jurisdiction. This material was developed based upon publications, interpretations, and opinions current at time of publication and is subject to change. Individuals are advised to access current information from appropriate authorities, the broker, and/or legal counsel, prior to the development of any marketing materials. Various provinces are either self-regulated or co-regulated and may have established appropriate standards concerning advertising practices.

General Parameters

The issues of accuracy and clarity are fundamental to all advertising. Selected topics are discussed for guidance.

Abbreviations

The cost of classified advertising is a primary rationale for the use of abbreviations. Also, a host of codes and contractions are used when completing MLS listing forms. Consequently, abbreviations are becoming more widespread in advertising. As a general rule, those found in local trading areas are acceptable provided that they do not confuse or mislead.

Advertised Price

Subsection 58(3) of the Competition Act does permit sales above the advertised price in the case of private real estate transactions. Specifically, the actual reference in the Act excludes the sale of a product by or on behalf of the person who is not engaged in the business of dealing in that product (e.g., private real estate sales).

However, other representations concerning price come under scrutiny. Any reduction or other alteration of price should be clearly identified and not be materially misleading. Further, the suggestion of a bargain that is not substantiated can have legal ramifications. Consider the following case involving a property listed below market value.

Human Rights Code

Provincial jurisdictions have passed human rights legislation that impacts advertising. A salesperson, in advertising a property, cannot set out preferences for a specific class or group of individuals that are specifically forbidden under provincial legislation, e.g., colour, race, ethnic origin, or religion. The issue of preferences also extends into the area of commercial and residential tenancies.
Provincial

See applicable reference materials.

Contests

The Competition Act outlines basic rules for the operation of contests. Section 59 focuses primarily on adequate and fair disclosure of certain key facts:

Approximate number and value of prizes included in the contest.
*

Allocation of prizes by region, if applicable.
*

Chances of winning (if it is within the knowledge of the advertiser).
*

Whether or not a skill testing question is required to win the contest.
*

Place where the contest rules may be obtained.
*

The closing date of the contest.
*

Any unusual restrictions or conditions relating to the promotional contest.

Practitioners are strongly encouraged to seek expert advice in the development of contests, particularly those involving games of chance, to ensure compliance with the lottery provisions of the Criminal Code, and other applicable provincial and federal statutes.

Coupons/Market Evaluation Certificates

Certificates and coupons, must clearly identify the service being provided. Disclaimers and limiting conditions should be consistent with the overall impression conveyed.

Distribution

During the past few years, considerable discussion has centered on the issues of interference, solicitation, and the distribution of promotional materials in the marketplace with a particular focus on the mailing and/or delivery of promotional materials to listed properties. During 1995, The Canadian Real Estate a__ociation provided Solicitation Guidelines to all real estate boards for their consideration and possible adoption. A direct quote from the overall guidelines specifically addresses the distribution of materials:

Reference

See Boards/a__ociations Dispatch 95-15 issued by The Canadian Real Estate a__ociation.

Fine Print/Disclaimers

Classified advertising and other types of promotional material often contain additional information in small print that either qualifies or otherwise expands the message being conveyed. Real estate practitioners, in order to save s___e, may relegate certain information to the fine print.

Generally, this text will not arouse concern if it is additive and complementary to the main message. However, if the fine print in any way contradicts or otherwise limits the general impression conveyed by the main message, then a violation under the Competition Act may arise.

Disclaimers are frequently found in fine print. As a rule, such disclaimers should not contain information that materially limits or contradicts the main text or have any significant effect on the general impression being conveyed in the ad. The Canadian Code of Advertising Standards, Clause 1(d) provides guidance on the issues of disclaimers and asterisked fine print information.

Source: November, 1990, revision to The Canadian Code of Advertising Standards as quoted in Misleading Advertising Bulletin, Issue 4, 1990 published by Industry Canada.

The size of the fine print has also come under scrutiny by the Director of Investigation and Research of the Competition Bureau. Fine print should be clearly visible, readable, and relative to the print size used throughout other portions of the advertisement, and take into account the needs of the targeted audience (e.g., age of reader and ability to read). While general impression remains the ultimate test, the Director has indicated the acceptability of 7 point print size as a minimum.

This sentence is printed in 7 point Formata Regular.

However, such a minimum measurement is subject to the qualifiers mentioned above.

Free Offerings

If a product or service is advertised as free, then such an offering shall not include any condition or other requirement that the prospective customer would be unable to comply with. The Director of Investigation and Research also addresses the two for one offerings by citing the following example as a false representation: Buy one real estate lot receive your next choice absolutely free, where the price of the first lot is inflated to cover the cost of the free lot.

Multiple Listing Agreements

All MLS listings are viewed as advertisements and consequently fall under the Competition Act. All members must ensure that listing information is accurate and correct.

As a rule, real estate practitioners are advised to include nothing on a listing agreement that cannot be verified by source documentation. Information concerning items such as lot size, legal description, mortgage financing, taxes, chattels and fixtures, current zoning, and rentals, to mention a few, come under scrutiny. In fact, inaccurate representations are normally not only actionable under the federal statute but also under common law as either innocent or fraudulent misrepresentation.

The importance of accurate listing information and representations relating thereto is obviously a major factor in broker liability in the marketplace. Although lacking definitive Canadian research at this time, statistical information from the United States underscores the legal entanglements between buyers and brokers that undoubtedly arise from matters pertaining to the accuracy and adequacy of listing information. In fact, the majority of claims involve the buyer as claimant.

Personal Identification

Guidelines, procedures, and specific wordings within applicable legislation will vary concerning personal identification of salespeople and brokers (agents) in relation to promotional materials.

Provincial legislation or trading practices set out by regulatory bodies require that salespeople clearly be identified as the employee and that the broker is the employer. Practitioners should be careful not to falsely identify services, position, or areas of specialty. Provincial requirements will vary.

Pictures/Illustrations

No erroneous impression can be conveyed when a picture or illustration accompanies and forms part of an overall advertisement. For example, if homes are being sold in the $100,000-$150,000 price range, and the house pictured in the advertisement is a model other than that offered, an offence could arise under the Competition Act. Further, the fine print in such advertisements requires careful wording.

In the case of illustrations, it is common to see various asterisked statements in new home sales.

If a complaint is lodged under provisions of the Competition Act, the content of such statements including the respective sizes, and locations in relation to other advertised information would all be taken into consideration by the Director of Investigation and Research.

Promotional Claims

Real estate practitioners must be careful to correctly represent any claims concerning personal performance levels. As with many other areas of advertising, the general impression of the marketing piece and the actual text must agree, and the statement must be accurate and not misleading.

Caution is strongly advised when contemplating claim statements.

While such claims may be substantiated, the Director of Investigation and Research will regard each case on its own merits. Ensure that performance claims are correct and accurate. Consider the following decision under the Competition Act:

The accused, in promoting a real estate service, made the following representation in newspaper advertisements: For maximum exposure and results...over 90% of [Name of Broker (Agent)] Realty team listings have sold in 12 days or less. Investigation revealed that the representation was untrue. Fine: $500.

If testimonials are utilized in promotional material, ensure that any statements printed are accurate, not taken out of context from a larger statement, and that the person providing such statement has in fact received the services outlined in the testimonial. As a matter of policy, the signed statements of individuals should be kept on file in case their authenticity is ever questioned.

Summary

Advertising has become an increasingly complicated facet of real estate trading. Salespeople must consider legal issues and statutory regulations that surround the presentation of property and the provision of services in the marketplace. In the future, the industry will undoubtedly develop additional guidelines and utilize more complex disclosure forms to address the needs of an expanding, sophisticated consumer market.

A conscious move toward more definition in all stages of real estate negotiations has also appeared, be it the listing process, promotion of property, representations made to both buyer and seller during negotiations, and the drafting of complete terms to fully document agreements between parties. This demand for accuracy is neither isolated to real estate sales nor solely directed to salespersons' activities. Many brokerages have introduced seller disclosure forms to ensure accurate information when obtaining listing information from a principal. Listing forms, once a half-page document, now consume two pages or more. Proper disclaimers and qualifiers, once the exception, are now commonplace in all types of print advertising.

The future undoubtedly will demand even clearer delineation of facts, responsibilities, and representations in the interest of fair marketing practices and consumer protection. Regulatory bodies are already confronting new issues surrounding private versus public information, direct mail and telephone canvassing procedures, increasingly detailed disclosure forms, and precise statements of agency responsibilities and duties. Ironically, for all the complexities of modern laws, be they decreed by parliament or declared in courts, the practitioner looking to the future will be best served by following the simple, unencumbered guidelines already established in codes of ethics designed by organized real estate and provincial regulatory bodies.