Every so often, as managers, we get inundated with agents who foolishly insist on selling properties that they have no expertise in selling.
As one of a few examples (our editor only allows 700 words!), I was consulted on the sale of a rural property, a cottage in the Haliburton Region of Ontario. The first thing the agent asked was, “What are riparian rights?” The next was: “What do I need to have for a water test? and then, “What the heck is a septic tank and why do I need to have it inspected?”
Other questions I have been asked:
– I have a client who’s looking to buy a store with an apartment above. “What percentage of the property is HST applicable to?”
– There’s a piece of acreage with a building on it. “If the building was used for a business at any time, what is the HST or CRA impact on it?”
– I have a buyer who’s looking to rent/build a church, temple or mosque in the area that does not have the designated zoning. “What do I have to do to get the zoning changed?” and, “Why does it take so long?”
– I showed a building that had a machine shop in it. “Why do I have to have an environmental assessment done?”
These are just a few of the questions that we field on a regular basis. Now, I have no issues with answering these questions to the best of my abilities after so many years in the business – as most fellow managers do.
I am mystified as to why agents would venture into areas of real estate that they have no experience in. Our provincial watchdog states that we should exercise “duty of care” and that if we have no experience in that field of endeavour, we should stay away from it – I’m basically paraphrasing the Act.
What usually happens is the agent confronts us with the issues after the fact. And that’s where the problems start.
In glancing through the recent Real Estate Council of Ontario Annual Report on activities and fines/penalties, I see an alarming number of cases like this.
I recommend that, in addition to the regular articling courses that are required in most provinces, agents should consider investing time and money learning about these specialized fields. Alternatively, agents should seek a mentor to assist in real estate activities that are beyond his normal area of experience.
The result of testing the waters in areas other than regular residential real estate can be financially burdensome. Just check out some of the fines and penalties that RECO or other provincial authorities mete out. Errors and omissions insurance will only cover the agent so far, and in most cases will not cover the agent or the brokerage in cases like this.
I’ve always been an advocate for learning and furthering our education. The most expensive lessons come when you practice real estate in areas beyond your current knowledge.
All one has to do is look at the stats and determine not to become one of those who has earned fines and penalties.
Wishing you all a successful fall sales campaign, until next time, from my desk as I see it.
Stan Albert, broker/manager, ABR, ASA at Re/Max Premier in Vaughan, Ont. can be reached for consultation at stanalb@rogers.com. Stan is now celebrating 40 years as an active real estate professional.
Stan Albert, ABR, ASA is a consultant with Re/Max Premier in Vaughan, Ont. He can be reached for consultation by email. Stan is now celebrating his 45th year as an active real estate professional.
