Category Archives: Real Estate Career Mentor

Thoughts on how to become a real estate professional in Ontario.

Consider getting your Ontario real estate license by taking courses from OREA before the transfer to Humber

Opinion Piece: What follows is nothing more than an “opinion piece”. That said, my “opinion” will make sense to some people

The real estate may be slowing but …

Canada’s real estate boom has been fueled by artificially low interest rates. The low interest rate environment has resulted in the following:

1. It has been harder to get a return from money and certain financial assets. This has been painful for people living on pensions and a small investment portfolio.

2. Low interest rates have lowered the cost of home ownership, which has increased the demand for real estate.

3. The increased demand for real estate has led to huge price increases.

4. The increase in prices has increased the cost differential between renting and owning.

5. Renting is now a comparatively better deal. This has increased the demand for rentals.

6. The ebb and flow (ups and downs) continues …

7. It is now harder to make a good living (the easy money is over) as a “real estate sales person”.

8. More and more “real estate agents” will seek other kinds of employment. Many of then will wish to reduce their costs by “Park their real estate license” with a broker who is NOT a member of “organized real estate“. Of course they will have to stop using the “trademarks owned by organized real estate”.

9. Some real estate agents will leave the profession completely. There will be less demand for “real estate as a career”.

10. Remember that your real estate license has economic value. You worked hard for it. You have invested lots of money in it. You have made lots of money from it.

The rules and procedures for getting an Ontario Real Estate license have changed in Ontario. Starting in 2019 “educational function” will not be handled by OREA but will be transferred to Humber College. I suspect that is will be more difficult and more expensive to earn an Ontario Real Estate license after Humber takes over the educational function!

My advice:

Invest in getting you real estate sales and/or brokers license NOW while the program is still being run by OREA!

For many the first step will be taking the OREA admissions test. Consider how to best prepare for and pass the OREA exams!

By beginning the process now you will acquire an asset with significant economic value at a time when it is easier to earn it!

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As goes the #Torontorealestate market, so goes the number of “real estate agents” working in the Toronto market

When the real estate market goes up…

But, what goes up goes, down. When the real estate market goes down …

Whether the “real estate boom” is over or not …

It’s clear that it will harder for Ontario real estate agents to make a decent living. Even if the “real estate market” continued it’ frenzied pace, there are more and more “real estate agents” chasing the supply of listings and the new buyers. More and more buyers are attempting to sell their properties outside the conventional model. They are attempting to sell themselves by using discount brokerages. In short, many sellers are are attempting to avoid the fees that they must pay to use the services of a “full service broker”. It’s time for Ontario real estate agents to consider carefully how real estate agents provide value to their clients.

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“Organized real estate” vs “non-Organized real estate”: Comparing the costs to maintain an Ontario real estate license

In order to maintain your Ontario real estate license you must:

  1. Maintain your registration with RECO (which has its mandatory fees); and
  2. Stay “employed” with an Ontario Real Estate Broker (which has its own set of fees)

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Should real estate sales agents use the “.realtor” domain name and other trademarks of “organized real estate”?

It’s important to note that:

1. The license to work as an Ontario sales agent or carry on business as an Ontario broker is governed by REBBA (“Real Estate and Business Brokers Act”). It is REBBA that prescribes the rules for getting the license and maintaining the license. RECO (the Real Estate Council of Ontario) is the organization that administers REBBA.

2. Membership in “organized real estate” is voluntary. If you are NOT part of “organized real estate” you may keep your real estate license as long as you are affiliated with a broker who is NOT a member of “organized real estate”.

Some real estate professionals may wish to temporarily cease employment as a real estate sales person but keep their real estate license active. This can be done by “parking”, “keeping” or “shelving their license” with a broker who is NOT affiliated with “organized real estate”. (The requirement to meet the REBBA requirements continues.)

You will find that it costs far less to maintain your real estate license with a broker who is NOT a member of “organized real estate”.

What if you cease to be a member of “organized real estate”? All you need do is “stop paying the fees”.

There is “good news” and there is “bad news”.

First, the “good news”: You will avoid all the fees required to be member of “organized real estate”.

Second, the “bad news”: You must cease using all the trademarks owned by “organized real estate”!

The trademarks owned by CREA “Canadian Real Estate Association” and “organized real estate” include:

– the word “realtor”. The word “realtor” is a trademark owned by “organized real estate”. Nobody can use the word “realtor” unless they are a member of “organized real estate”.

Examples of prohibited uses of the word “realtor” include:

– the word “MLS”. “MLS” is a “trademark” owned by “organized real estate”.

Conclusion

Those real estate sales and agents and brokers who wish to take a vacation or sabbatical from their real estate careers by “parking”, “shelving” or “keeping” their license with a broker who is NOT part of “organized real estate” should NOT use the CREA trademarks. In particular, they should NOT use the “.realtor” domain name as their email address! It would be unwise to be in a situation where the continued use of an email address would infringe the trademarks of “organized real estate”!

What is “organized real estate” and why you would consider becoming a voluntary member

In a previous post I discussed “The acronyms” of “organized real estate“. The purpose of that post was twofold:

1. to explain what is meant by the phrase “organized real estate”; and

2. to emphasize that one can be licensed as either a “sales person” or “broker” under the Ontario Real Estate and Business Brokers Act” (“REBBA”) and NOT be a member of “organized real estate”.

Who you are (a licensed broker under “REBBA”) is different from the organizations to which you may belong (“CREA”, “OREA”, “TREB”, etc.). As you consider how to best build your real estate career, you will certainly consider which of the many associations of “organized real estate” to which you wish to belong.
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New Ontario Real Estate Licensing fees from @RECOHelps – Effective January 1, 2017

The cost of becoming an Ontario real estate agent or broker and the cost of remaining an Ontario real estate agent or broker

The real estate industry in Ontario (and every where else) is a “licensed profession”. There are costs to becoming a licensed real estate agent. There are costs to maintaining your real estate license. That said, the costs are far less than the costs associated with other professions.

The licensing costs are subject to change. Effective January 1, 2017 the “Real Estate Council of Ontario” (“RECO”) has increased the “licensing fees”.

RECO’s announcement is here and a chart of the new fees is here.

Notice-of-Fee-Changes-and-New-Fees3

Taking a break from Real Estate? Don’t let your license lapse! Keep your license active!

You worked hard to earn your license. If you take a break from your real estate career you should keep your license active.

Here is how to both:

  1. Take a break from real estate; and
  2. Keep your Ontario Real Estate License active.

 

 

“Real Estate As A Career” – Workshop led by Real Estate Career Coach @ChillaRiddle

What: Real Estate As A Career Workshop

When: Saturday September 16, 2017 – 2:00 p.m. – 4:00 p.m.

Where: University of Toronto Downtown

Investment: $50 for those those who participate in the “Real Estate Math Workshop” and $100 for others

Who: Real Estate Career Coach Chilla Riddle

Everything you should know about a “Career In Real Estate”, but didn’t know to ask!


Course description:

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