A proposed restructuring of organized real estate in British Columbia would see the elimination of local real estate boards and the provincial association.
They would be replaced with a single entity called Realtors of BC, which would be responsible for back-office operations, MLS management, province wide education, professional standards, advocacy, government relations, economics, media, program development and standard forms.
Realtors of BC would have six branch offices throughout the province to provide member services such as education and training, lock boxes and technical support. There would also be an undetermined number of local chapters that could host training, member forums and social and networking events.
Realtors across the province will vote on whether their board will join the new association on June 28.
The location for the central service centre and the branch offices have yet to be determined. Paid staff would work at the central office and in the branch offices, while the chapters would be volunteer-run and staff supported but would not necessarily have a physical location.
A website (realtorsofbc.ca) that outlines the proposal says, “By eliminating duplication and inefficiencies, the new organization has identified more than $10 million in annual savings that can be re-invested into services that matter most to Realtors across B.C. and reduce administration burdens and costs. Simply put, you will not lose any of the services you currently enjoy, you will have access to enhanced services and you will have more flexibility in how you access them.”
The British Columbia Real Estate Association formed a working group more than a year ago to look into restructuring options for organized real estate. All boards took part in the meetings and early this year the boards endorsed a recommendation to move to one unified provincial association.
The Victoria Real Estate Board has opted out of the process. The remaining 10 boards are moving forward with the proposal.
“By voting YES on June 28, you will ensure that your president will become a member of the transitional Board of Directors and an active leader in Realtors of BC helping shape the direction of organized real estate in B.C.,” says the website. “If your board votes NO, the initiative may still move ahead across the province and your board will not be included and will continue to operate as it does now. Your board will not be included in the development or decisions made by Realtors of BC and your members will not have access to the enhanced services provided.”
The site says that if the Yes vote prevails, it will take at least a year to get the new organization up and running.
“No Realtor will see their board dues increase as a result of this transition and 30 per cent of Realtors will see a noticeable decrease in their fees,” says the website. It says that out of the $10 million of cost savings that will be gained annually, $3.25 million “will be returned to members to harmonize fees across the province and make certain that no member or board with low fees will be penalized for becoming part of the new organization.”
Proposed member fees are:
- CREA monthly dues: $26 (no change)
- Board monthly dues: $58 (this includes the current provincial dues, which will remain unchanged)
- Members will have an option of either:
- All-inclusive $70/month
- Per-transaction “success” fee of $200 (on both sides of the deal). Sales on properties valued at less than half of the provincial average (currently about $400,000 would be subject to a 50 per cent reduction in success fees (or $100 on both sides of the deal).
Watch REM for updates to this story.
