Merry Christmas!

Merry Christmas to all the sales staff, support staff, and your families. Have a great holiday season and a prosperous 2008.

Ontario Government to Rebate Land Transfer Tax for First Time Buyers

The provincial government has announced that it is expanding the PROVINCIAL land transfer tax rebate for first-time buyers to include re-sale housing, something which REALTORS have lobbied for. The letter that initially came out was a little confusing, so some realtors thought that legislation already passed, which is not the case.
If you haven't had a chance to read this news here is more details for you:

First-time buyers of BOTH re-sale, and newly constructed homes, will be eligible for a rebate of the provincial land transfer tax of up to $2,000.
Effective for first-time buyers who enter into Agreements of Purchase and Sale AFTER December 13, 2007.
This change is being implemented by provincial legislation introduced on December 13, 2007. The Ministry of Finance has indicated that, until the legislation is passed, first-time buyers of re-sale properties eligible for the rebate can submit their applications for the refund and they will be processed once the legislation has passed. It is not known when the legislation will be passed. Buyers can consult with their lawyers if they have concerns.
The provincial land transfer tax rebate applies in all Ontario municipalities. In Toronto, the provincial rebate is in addition to City rebates of the Toronto Land Transfer Tax

November 2007 MLS Statistics

Here are the November 2007 MLS statistics from our two real estate boards:

	K-W This Month	K-W Last Year	Cambridge This Month	Cambridge Last Year
Avg. Sale Price	$ 261,510	$227,642	$242,673	$228,580
Percentage Change	+14.9%		+6.2%
Properties Sold	503	439	196	212
New Listings/Sales Ratio	85.2%	67.2%	69.0%	59.6%
Properties For Sale Now	1117	1450	707	930

Welcome Robin Galt to our Cambridge office

Robin Galt has lived in Cambridge in her whole life except for the 4 years that she lived in Halton Hills.

Robin and her husband John have 3 children; Chris 26, Dave 19 and Michelle 16. Over the past 10 years Robin has been very busy with her children’s extra curricular activities including hockey, dance, swimming and music. Robin and her husband are extremely proud of their children’s accomplishments.

Robin has been an I.T. professional for 30 years in the manufacturing sector specializing in programming, EDI, RFID and Bar coding.

When Robin has some free time she enjoys playing golf, reading and taking Jazzercise classes.

October 07 MLS Statistics

Here are the Ovtober 2007 MLS statistics from our two real estate boards:

	K-W This Month	K-W Last Year	Cambridge This Month	Cambridge Last Year
Avg. Sale Price	$ 254,247	$242,127	$260,507	$235,634
Percentage Change	+5.0%		+10.6%
Properties Sold	521	470	237	215
New Listings/Sales Ratio	72.0%	63.3%	69.3%	51.9%
Properties For Sale Now	1665	2075	733	960

The US Credit Squeeze and the Canadian Market

The following is a copy of some comments by Benjamin Tal, an economist with CIBC> We often hear about the credit crisis in the United States. Here is Benjamin's take on how it affects us here in Canada and the effect on Canadian mortages.

Short Remarks on the Current Credit Squeeze and Its Impact on the Mortgage Market

It’s far from over. The news from the US subprime space will get much worse in the coming year, with default rates surging to unprecedented levels. But what really counts for the market is how much of this bad news is already reflected in current prices. It turns out that not only did the barrage of negative headlines of recent months raise the level of market immunity to adverse subprime news, but in fact, even after its recent improvement, the mortgage – backed market is currently pricing in a darker picture than the one likely to emerge when the smoke clears.

Based on this information and our main case macro scenario, we predict that the cumulative default rate on subprime mortgages for the 2006 and early 2007 vintages will reach 25% with the loss rate averaging just over 12%. To put things in perspective, this outcome is 35% worse that the losses seen in the 2000 vintage loans from Michigan, Indiana and Ohio – the worst performing vintage and geographic locations to date, and roughly in line with the performance of 99% percentile of regional default rates in the recessionary vintage of 2000-2001.

That’s what we believe to be the most likely scenario. But what does the market think? Based on information obtained from various sources we calculated the market implied default rate for US subprime debt. Current credit-default swap prices suggest cumulative default rates ranging between 28% for the BBB – rated tranche and 32% for the A rated tranche – for weighted average of close to 30%. Those implied default rates are roughly 20% higher than our projection – suggesting that the market is currently pricing in a much more draconian outcome than our main case scenario suggests.

So far the correction in the market is not an equity market story. It’s definitely a credit market story. Risk premiums on both high and low quality bonds rose notably over the past month. However, a closer look suggests that current premiums are consistent with their long-term average, and much lower than premiums seen in crisis such as the 1998 Long Term Capital Management crisis. In other words, the correction that we have seen in credit markets is a move from an abnormal situation to a normal situation. Until now the price on risk was simply much too low.

What does it mean for mortgage rates? The very important Prime-BA spread fell from its long-term average of around 160 basis points to 120 basis points. This is a direct 40 basis points hit to Banks’ profit margins on certain products. Note that the Bank of Canada did not cut rates despite a 50 basis points rate cut by the Fed.

And given that until a month ago the Bank was planning to raise interest rates by at least 25 basis points – the current tightening in monetary conditions can be seen as a substitute to a rate hike. Put differently, the market is doing the Bank of Canada’s job.

So Canadian banks, facing this squeeze in margins can either raise the prime rate (in the past, we have seen situations in which the rime rate moved independently of the Bank of Canada’s rate), adjust their discretionary rates, or do nothing – with the hope that the Prime-BA rate will return to normal soon.

In recent days, the Prime-BA spread improved to 140 basis points- a sign that the market is starting to return to normal. Clearly the market is reacting to the 50 basis points rate cut by the Fed, and to the possibility that the Fed will cut rates even further.

So given the possibility of a recession in the US (or a very sever slowdown), the likelihood is that Canadian rates will, at the minimum, remain relatively stable over the next 3-6 months with a possibility of some softening in rates. Beyond that, as the US economy recovers, it is possible that both the Bank of Canada and the Fed will start (resume) a cycle of rate increases. What does the crisis mean for the Canadian subprime business? There is little double that in the coming months we will see a significant slowing in originations (as of July originations were still rising by more than 30% a year). But from a longer term perspective, we believe that this segment of the market is still likely to rise strongly – but probably with more reasonable and accurate pricing.

Lois Aguas - Cambridge office

Please welcome to our office Lois Aguas.

Lois grew up in Sault Ste. Marie, Ontario and has lived in the area for 15 years. Lois and her husband Jacob have been married for 21 years and have 2 daughters, Emylee (20) and Alyssa (16).

Lois was a registered nurse for 20 years and followed that with 10 years as an unregistered New Home Sales rep.

Lois spends time volunteering with her church, including providing, preparing and serving a full course meal to approx. 150 homeless persons in Geulph Downtown core, 5 times a year.

In her spare time Lois enjoys listening to music and spending time with her pet Maltese “Enzo”.

September MLS Sales Statistics

Here are the September 2007 MLS statistics from our two real estate boards:

	K-W This Month	K-W Last Year	Cambridge This Month	Cambridge Last Year
Avg. Sale Price	$ 253,071	$237,131	$248,172	$227,223
Percentage Change	+6.7%		+9.2%
Properties Sold	473	471	221	238
New Listings/Sales Ratio	60.8%	51.8%	61.4%	50.5%
Properties For Sale Now	1717	2129	749	940

Brian Ashton - Cambridge office

Born and bred in Cambridge or Galt as it was known back in the old days, Brian is married to his high-school sweetheart Janet, (nee) Reid of Ayr, Ontario. They are proud parents of a daughter, Robin, son Matthew, daughter-in-law Amanda and two grand dogs, Milo and Stella.

He graduated from Southwood Secondary School and later earned a Bachelor of Science degree from McMaster University and a Master of Business Administration degree from Wilfred Laurier University.

His work experience has mainly been in manufacturing and distribution holding positions as an Industrial Chemist, Technical Sales Representative (automotive products), Director of Information Technology, National Sales and Marketing Manager for Canada and Vice President of Group Sales and Marketing for North America. He has had as accounts such customers as Ford Motor Company in Detroit, American Airlines, Delta Airlines, Westjet and the Canadian Military.

After several years of two to three hour daily commutes to and from his office, Brian broke away from the rat-race and gained his Real Estate license in April of 2007. His favourite hobbies include photography, videography and, as his wife puts it, playing with his computer! Brian is also active with his church and the Sunshine Kids.

Welcome to Marie Sargent

We welcome Marie to our Cambridge office.

Marie was born and raised in Brockville, Ontario, the youngest of 3.

She graduated from the Business and Commerce Course at the Local High school, Brockville Collegiate Institute. Further education was obtained from St. Lawrence College in Brockville where she received her Data Processing Degree and Computer Science Degree, with further studies in Business Management taken at Queens University, Kingston, Ontario and the American Management Association, Toronto, Ontario. In 2005 she completed her Small Business Management Program at Conestoga College, Kitchener, Ontario; and last year she became Cambridge Towel's ISO 9001:2000 QMS Lead Auditor obtaining certification of Individual Quality Management Systems Internal Auditors by RABQSA.

Marie and her husband Robert were high school sweethearts, having celebrated our 35th wedding anniversary last April. They have 2 adorable children; their youngest is Sheba, a 130+ pound, 8 year old Great Pyrenees canine and Sam, our 10 year old feline.

Marie started her 35+ years career in Information Technology teaching computer courses at St. Lawrence College in Brockville, moving into the Manufacturing sector in the late seventies, working for Black & Decker Canada for 15+ years, and finally relocating to Cambridge in 1995 to work for The Cambridge Towel Corporation.

Throughout her career in information technology she has been very active in the 'industry user groups' being an Active Board Member and co-founder of "COiN - Central Ontario I-series Networking User Group"; being Vice-President, Board of Directors, for 3 years and President, Board of Directors, for 3 years, she recently retired from the COiN board. Meanwhile, she was also President of the Eastern Canada User Group (ECRUG), a 2,000+ membership for PeopleSoft and J. D. Edwards software users. During her tenure as President of these 2 industry groups she Received an award of distinction at the Quest Global conference, for her contribution to J.D.Edward's user groups, and was inducted into the IBM Canada Hall of Fame upon receiving an award in recognition of my demonstrated dedication and enthusiasm for the IBM iSeries user industry groups.

She has many interests, but in particular, she is an Avid gardener who loves golfing, walking, swimming and reading.

Reflecting back at her past performance as an Information Technology professional she has experienced a fabulous career, having met and worked with many wonderful people. She looks forward to the years ahead as she has decided that today's Real Estate Professional and Marie have the same qualities in common: self-disciplined, organized, intelligent, knowledge of business and the real estate world from many perspectives, and a good negotiator. Marie accomplishes what she starts out to do with a very pleasant, positive outlook and
a 'can do' attitude.

Tips for Fighting Mold in the Home

Here's an article from RIS Media that would be great for your newsletter...

Tips for Fighting Mold

Without mold, we would find ourselves wading neck-deep in dead plant matter. And we wouldn’t have great foods and medicines, such as cheese and penicillin. However, problems arise when mold starts digesting organic materials we don’t want them to, like our homes.What are molds?

With more than 100,000 species in the world, it is no wonder molds can be found everywhere. Neither animal nor plant, molds are microscopic organisms that produce enzymes to digest organic matter and spores to reproduce. These organisms are part of the fungi kingdom, a realm shared with mushrooms, yeast, and mildews. In nature, mold plays a key role in the decomposition of leaves, wood, and other plant debris.

Where can I find mold?

Molds thrive in warm and humid conditions, but you can find them year-round in virtually every type of environment, both indoors and outdoors. You’ll find them outdoors in shady, damp areas and places where leaves or other vegetation is decomposing. Indoors you will find them in basements, showers and in other areas where humidity levels are high. It’s worth noting that you can use the terms “mold” and “mildew” interchangeably, although mildew is often applied to growth of fungi on fabrics, window sills or bathroom tiles.

How do molds grow in my home?

Once mold spores settle in your home, they need moisture to begin growing and digesting whatever they are growing on. There are molds that can grow on wood, ceiling tiles, wallpaper, paints, carpet, sheet rock, and insulation. When excess moisture or water builds up in your home from say, a leaky roof, high humidity, or flooding, conditions are often ideal for molds. Longstanding moisture or high humidity conditions and mold growth go together. Realistically, there is no way to rid all mold and mold spores from your home; the way to control mold growth is to control moisture.

How can I be exposed to mold?

When molds are disturbed, their spores may be released into the air. You then can be exposed to the spores through the air you breathe. Also, if you directly handle moldy materials, you can be exposed to mold and mold spores through contact with your skin. Eating moldy foods or hand-to-mouth contact after handling moldy materials is yet another way you may be exposed.

How do I know if I have a mold problem?

You may have seen white thread-like growths or clusters of small black specks along your damp bathroom or basement walls, or smelled a “musty” odor. Seeing and smelling mold is a good indication that you have a mold problem. However, you cannot always rely upon your senses to locate molds. Hidden mold can be growing behind wall coverings or ceiling tiles.

Common places to find mold are in areas where water has damaged building materials and furnishings perhaps from flooding or plumbing leaks. Mold can also be found growing along walls where warm moist air condenses on cooler wall surfaces, such as inside cold exterior walls, behind dressers, headboards, and in closets where articles are stored against walls. Rooms with both high water usage and humidity, such as kitchens, bathrooms, laundry rooms, and basements are often havens for mold. If you notice mold or know of water damaged areas in your home, it is time to take action to control its growth.

How can I control mold growth in my home?

Fix any moisture problems in your home:
Stop all water leaks first. Repair leaking roofs and plumbing fixtures. Move water away from concrete slabs and basement walls.

Increase air circulation within your home, especially along the inside of exterior walls, and ventilate with fresh air from outside. Provide warm air to all areas of the home. Move large objects away from the inside of exterior walls just a few inches to provide good air circulation.

Install and use exhaust fans in bathrooms, kitchens, and laundry rooms.

Ventilate and insulate attic and crawl spaces. Cover earth floors in crawl spaces with heavy plastic.

Clean and dry water damaged carpets, clothing, bedding, upholstered furniture within 24 to 48 hours, or consider removing and replacing damaged furnishings.

Vacuum and clean your home regularly.

How do I clean up mold?

The time you are most likely to stir up spores and be exposed is the very time you are trying to clean up your mold problem. That’s when you need to be the most careful. First, try to determine the extent of the mold infestation. If the area is small and well-defined, you can do the clean up, as long as you are free of any health symptoms or allergies. However, if the mold problem is extensive, such as between the walls or under the floors, you should leave clean up to a professional.

Large Areas:
1. Consider having a professional cleanup the area. To find a professional, check under “Fire and Water Damage Restoration” in your Yellow Pages. If you decide to clean up on your own, follow the guidance below.
2. Protect yourself by using goggles, gloves, and breathing protection while working in the area. For large consolidated areas of mold growth, you should use an OSHA (Occupational Safety & Health Administration) approved particle mask.
3. Seal off area from the rest of your home. Cover heat registers or ventilation ducts/grills. Open a window before you start to clean up.
4. Remove all your furnishings to a neutral area to be cleaned later. Follow cleaning directions below.
5. Bag all moldy materials, you will be discarding.
6. Scrub all affected hard surfaces: First with a mild detergent solution, such as laundry detergent and warm water. Then use a solution of 1/4 cup bleach to one quart of water. Wait 20 minutes and repeat. Wait another 20 minutes. Last, apply a borate-based detergent solution and do not rinse. This will help prevent mold from growing again. To find a borate-based detergent, read the ingredients listed on the package label for borates.
7. Give the entire area a good cleaning. Vacuum floors, and wash bedding and clothes if exposed.
Small Areas:
1. Protect yourself by using goggles, gloves, and breathing protection while working in the area. For small isolated areas of mold growth, a cotton dust mask should do.
2. Seal off area from the rest of your home. Cover heat registers or ventilation ducts/grills. Cover all your furniture. Open a window before you start clean up.
3. Bag all moldy materials, you will be discarding.
4. Scrub all affected hard surfaces: First with a mild detergent solution, such as laundry detergent and warm water. Then use a solution of 1/4 cup bleach to one quart of water. Wait 20 minutes and repeat. Wait another 20 minutes. Last, apply a borate-based detergent solution and do not rinse. This will help prevent mold from growing again. To find a borate-based detergent, read the ingredients listed on the package label for borates.
5. Give the entire area a good cleaning, vacuum floors, and wash bedding and clothes if exposed.

Clean all furnishings exposed to mold.

Permeable and washable: Such as clothing, bedding, and other washable articles. Simply run through the laundry.

Non-permeable and washable: Such as wood, metal, plastic, glass, and ceramics. Mix a solution of one cap bleach to one quart of water. Bleach may fade colors, so test your beach solution before using. If fine, wipe down your articles.

Permeable but not washable: Such as beds and furniture. If these furnishings are moldy, you should consider discarding and replacing them. If you decide it is a keeper, take the furnishing outside. Give it a good vacuuming, and let it air out. When finished, if you do not notice an odor it should be okay. However, watch for any mold growth or health problems.

How can I decrease exposure to mold?

If you know that you are particularly sensitive to mold, avoid compost piles, cut grass, wooded areas and other outdoor areas more conducive to high mold concentration. Inside your home, you can slow mold growth by keeping humidity levels between 40% and 60%, and ventilating showers and cooking areas. If there is mold growth in your home, you should clean up the mold and fix any leaks. You can remove mold growth from hard surfaces and minimize their allergenic effects by using commercial products, soap and water, or a weak bleach solution (1 cup of bleach in 1 gallon of water).

Specific recommendations:

Keep the humidity level in the house between 40% and 60%.
Use an air conditioner or a dehumidifier during humid months.
Be sure the home has adequate ventilation, including exhaust fans.
Add mold inhibitors to paints before application.
Clean bathrooms with mold-killing products.
Do not carpet bathrooms and basements.
Remove or replace wet carpets and upholstery.

Welcome Wayne Canning

We would like to welcome Wayne Canning to our team of sales agents in the Kitchener office.

Wayne grew up in Toronto and has lived in the Guelph area for 15 years. Wayne has been married to Diane for 28 years and they have 3 wonderful children, Ryan (26), Melissa (22) and Katy (19).

In recent years, Wayne and Diane have invested in student rental properties near the University of Waterloo, Wayne’s ability to work well with others has been instrumental in ensuring continued success in the operation of the properties. His experience in this area has been very helpful to his clients.

Wayne focuses in the needs of his clients and he takes pride in his ability to deliver more than what is expected. He believes that integrity, preparedness and an unwavering commitment to customer service and the key components to being successful as a real estate professional.

Outside of real estate and running student rental properties, Wayne enjoys relaxing by playing golf or getting in a game of hockey!

August 2007 Monthly MLS Statistics

Here are the August 2007 MLS statistics from our two real estate boards:

	K-W This Month	K-W Last Year	Cambridge This Month	Cambridge Last Year
Avg. Sale Price	$ 246,852	$240,256	$248,564	$223,349
Percentage Change	+2.7%		+7.7%
Properties Sold	592	529	260	241
New Listings/Sales Ratio	81.3%	61.9%	70.5%	54.9%
Properties For Sale Now	1647	2012	763	990

July 2007 MLS Statistics

Here are the July 2007 MLS statistics from our two real estate boards:

	K-W This Month	K-W Last Year	Cambridge This Month	Cambridge Last Year
Avg. Sale Price	$ 247,538	$238,700	$241.585	$224,658
Percentage Change	+3.7%		+7.5%
Properties Sold	854	523	298	195
New Listings/Sales Ratio	***%	70.1%	82.1%	52.1%
Properties For Sale Now	1825	2051	776	885

Sunshine Kids Garage Sale

Congratulations to all for the Prudential Garage Sale held at the Cambridge office on Saturday June 16th in support of Sunshine Kids. We had a great day, with a great turnout from the community and the weather was perfect!
We raised almost $ 1184.00 for Sunshine Kids Canada. Special thanks to all who worked hard to make the day a success. Special recognition should go to Marie Miller, Lucy Schito, and Rena Miller for organizing the event.
Here are a couple photos of the day:

OREA Exams going to closed book

The Ontario Real Estate Association has announced that they are going to a closed book format for their exams effective January 1, 2008. Of course, the format for the exams will change as well. You can read all about it in an OREA Memo posted on the bulletin board at the office.

June 2007 MLS Stats

Here are the June 2007 MLS statistics from our two real estate boards:

	K-W This Month	K-W Last Year	Cambridge This Month	Cambridge Last Year
Avg. Sale Price	$ 255,343	$232,221	$252,724	$229,564
Percentage Change	+10.0%		+10.1%
Properties Sold	752	585	311	254
New Listings/Sales Ratio	76.7%	64.0%	72.5%	57.6%
Properties For Sale Now	1931	1606	827	836

May, 2007 MLS Statistics

Here are the May 2007 MLS statistics from our two real estate boards:

	K-W This Month	K-W Last Year	Cambridge This Month	Cambridge Last Year
Avg. Sale Price	$ 244,706	$238,240	$235,133	$238,311
Percentage Change	+2.7%		-1.3%
Properties Sold	774	642	344	317
New Listings/Sales Ratio	73%	58.8%	69.0%	64.4%
Properties For Sale Now	1959	2063	848	812

Is the Hot Tub in good working order?

The following legal case was recently sent to us by Richard Cooper, Kitchener real estate lawyer:

A case has just come to my attention that I though would be of interest to you.

It involves a hot tub that was being sold along with the house. Although the agreement simply stated that the hot tub was to be in “good mechanical working order”, it did not specifically state that the purchasers could rely upon this warranty if a problem was discovered after closing.

As the purchasers’ luck would have it, right after closing, the purchasers attempted to “fire up” the hot tub, only to find that it did not work. Could be that the purchasers were looking forward to a relaxing moment in the hot tub after a difficult move. In any event, the buyers had to sue the seller in court.

After losing in Small Claims Court, the purchasers were able to get a higher court judge to agree that it was nearly impossible for the buyers to check out the hot tub before closing. Further, the judge believed the purchasers when the purchasers stated that at the time the agreement of purchase and sale was executed, the seller assured the buyers’ agent that the hot tub was in good working condition even though the seller admitted later that it had not been operated for a few years.

The purchaser was therefore awarded the sum of $4,500.00 plus legal costs. The interested point is that the judge made the seller and the real estate agent responsible to the purchaser on a 50/50 basis. The judge felt that the real estate agent had not drafted the agreement properly. I believe that since this “warranty” was important to the purchasers, it should have stated in the agreement that the warranty regarding the mechanical condition of the hot tub “survived closing” --- something to think about!

For further information conact Richard at 519-579-2250

April MLS Statistics

Here are April 2007 MLS statistics from our two real estate boards:

	K-W This Month	K-W Last Year	Cambridge This Month	Cambridge Last Year
Avg. Sale Price	$ 246,643	$240,770	$236,331	$234,119
Percentage Change	+2.4%		+.9%
Properties Sold	708	557	307	262
New Listings/Sales Ratio	67%	60.5%	68.8%	62.5%
Properties For Sale Now	1986	1578	825	752

Special Agreements and your Listings

The following article was circulated by the K-W Real Estate Board

What is a Special Agreement?
The term is defined in the Bylaw: “Special Agreement” means any arrangement or agreement between the Listing Brokerage and the Seller relating to the commission or other remuneration payable to the Co-operating brokerage other than the commission or other remuneration as published by the Board, and includes any circumstances under which the commission or other remuneration payable to the Co-operating Brokerage may be paid or mot paid, or that affect a Member’s or Co-operating Brokerage’s ability to complete the Trade or earn the commission or other remuneration. (Article 1.01 [u], MLS Rules and Regulations)

Does a Special Agreement have to be in writing?
Absolutely! A Special Agreement forms part of the listing agreement and must be documented. There can be no verbal agreements, or under-the-table arrangements. All of the seller’s “understandings” based on any discussions you have had with him/her must be in writing and must form part of the listing agreement.

Both the RECO Code of Ethics and the CREA Code of Ethics include requirements that all real estate agreements must be in writing. The Board’s listing agreement also speaks to the requirement to commit the entire agreement between the parties to writing: This Agreement constitutes the entire agreement between the parties to this Agreement and supersedes all prior and contemporaneous agreements, understandings, negotiations and discussions, whether oral or written, of the parties and there are no warranties, representations, terms or conditions in connection with the subject matter of this Agreement except as specifically set forth herein whether they be contained in any sales material, brochures, or alleges against any Brokerage, or otherwise. (Clause 21 – Entire Agreement)

Why does the Special Agreement rule exist?
The premise of the Multiple Listing Service is that the playing field is level for all members. You submit your listing to a shared database and every member has an equal opportunity to co-operate on the sale. When one member – unknown to all other members – has a potential advantage, the system is no longer fair to all. That’s why it has been a requirement for many years to disclose to other members the existence of any agreement made between the listing brokerage and the seller that could create a possible advantage for the listing brokerage or a disadvantage for another member or his/her client.

How is a Special Agreement disclosed?
Disclosure of the existence of a Special Agreement take the form or responding to the mandatory question on the date form: Seller and L/Br Have Special Agreement – Yes/No. If the listing member/brokerage has responded with Yes, it is the responsibility of other members to determine whether/how the Special Agreement may affect them or their buyers.

If a co-operating member or brokerage requests details of the Special Agreement, they much be provided: Special Agreements shall be disclosed on the MLS Listing, and the precise terms of a Special Agreement shall be provided in writing to other Members and Co-operating Brokerages immediately upon request. (MLS Rules and Regulations, Article 2.11). The co-operating agent may be willing to accept the information verbally, but he/she has an absolute right to require that full details of the Special Agreement be provided in writing.


Is every change to the listing agreement a Special Agreement?
Not necessarily. Striking a clause that is not applicable to that particular listing is not a Special Agreement. The Board’s standard listing agreement form is used for all types of listings, and there are clauses that may be required for a commercial transaction that would not apply to a residential listing. Striking a clause that relates to a lease provision when the property is only being offered for sale is not a Special Agreement. Attaching a rent schedule or a marketing plan also would not be considered a Special Agreement.

Special Agreements generally relate to circumstances where a co-operating brokerage’s commission or ability to complete the transaction could be affected, or where the seller might be inclined to favour an offer from the listing brokerage’s buyer over other offers.

The MLS ® system is based on trust. Members must be able to rely on the information submitted by the listing brokerage. They must be able to work with the confidence that their buyer’s offer will be viewed in the same light as any other offer, and if theirs is the accepted offer the commission or other remuneration published by the Board will be earned. The rule of thumb is that if the Special Agreement could have any effect whatsoever on another member or co-operating brokerage or his buyer, it must be disclosed. Far better to err on the side of caution than to have an undisclosed Special Agreement come to the attention of the Professional Standards Committee.


What are examples of Special Agreements?
While the following is not an exhaustive list, it represents the types of situations under which a Special Agreement must be documented and disclosed:

• An agreement is made with the seller to reduce commission under certain circumstances. This would ordinarily be a “double end” situation, where the commission might be reduced if no other brokerage were involved in the transaction. The existence of this type of agreement must be disclosed up front – by responding Yes to the Special Agreement question on the data form. It does not matter that at the time of the offer the listing brokerage’s offer may be the only one on the table. It does not matter that if there are competing offers the seller will pay the full commission. The agreement relating to commission must be in writing and forms part of the listing agreement, and is therefore a Special Agreement. As well, just fact that the listing brokerage indicated a willingness to reduce commission might lead the seller to believe that accepting his/her/its buyer’s offer could be to his.

• An agreement is made with the seller to cancel the listing at any time. When a listing agreement is cancelled using the Board’s cancellation form, both parties are fully released from any and all obligations and duties imposed on them under the agreement – including the holdover clause. Do other members have the right to know that this seller is just “test driving” the listing brokerage, just “dipping a toe” in the MLS®? If you’re the co-operating brokerage, do you think it’s important to know that this listing agreement might vaporize at any time? A promise to cancel must be in writing and forms part of the listing agreement, which makes it a Special Agreement.

• If a particular buyer with whom the seller has had a discussion prior to the listing makes an offer, no commission will be paid to the listing brokerage. Let’s say the seller has two offers in the same amount on the table – one from this special buyer, another from a different buyer. When the seller “does the math”, does the co-operating brokerage’s offer look as good? Would you as co-operating brokerage want to know in advance that not all buyers will be considered equal? Such an agreement must be in writing, naming the excluded buyers, and forms part of the listing agreement, which makes it a Special Agreement.

• If certain clauses in the Board’s standard listing agreement are modified, other members could be negatively affected. Two such clauses are the holdover clause (Clause 6), where commission would ordinarily be payable on offers accepted up to 60 days after expiry; and Clause 5 that reads: The Seller agrees that he shall pay the Listing Brokerage the commission or other remuneration set out in this Agreement regardless of whether or not the offer for Sale or Lease of the Property is completed. It does not matter that the non-completion is not owing or attributed to the default or neglect of the Seller.

Such clauses are included for the protection of other members; striking them affects the ability of other members to earn commission when they’ve done their job. If the seller signs a listing agreement that has been modified in ways that affect other members, this must be disclosed as a Special Agreement.

Can I create a Special Agreement by striking or modifying any clause in the listing agreement?

Not of the Special Agreement has the effect of contracting out of the terms and conditions of the MLS® system, or of releasing you from a continuous agency relationship and professional involvement with the seller throughout the entire term of the listing agreement, or of relieving you of the obligation of compliance with any rule or standard by which members must abide. You cannot accept an instruction from a seller that would put you in breach of any rule. Clause 19 C. of the Board’s listing agreement reads: The Seller acknowledges and agrees that the Listing Brokerage or any other Brokerage will comply with the Board’s MLS® Rules and Regulations and any applicable law, regulation, code or standard, and the Seller shall not give any contrary instructions.

In choosing the benefits of the MLS® a seller must also accept all the obligations. He/she is not entitled to enjoy the board exposure provided by the MLS® and its marketing adjuncts such as mls.ca/ICX.CA but decline to accept the requirements that make the system fair and equitable for all. Certain listings simply are not eligible to be MLS® listings. The MLS® system does not have to accommodate the listings of sellers who believe they can dictate the terms under which they will list their property.

Discuss…document…then disclose your Special Agreements

Although there are legal and ethical obligations associated with listing agreements, you can take no better guide that the Golden Rule: Do unto others as you would have them do unto you.

March MLS Statistics

Here are March 2007 MLS statistics from our two real estate boards:

	K-W This Month	K-W Last Year	Cambridge This Month	Cambridge Last Year
Avg. Sale Price	$ 246,817	$237,702	$244,465	$234,234
Percentage Change	+3.8%		+4.4%
Properties Sold	612	596	293	291
New Listings/Sales Ratio	64%	60%	68	62%
Properties For Sale Now	1859	1759	802	715

Congratulations, Mary McMurran

Mary McMurran has been selected by Quality Service as their Agent of the Month! You can check out her story and all about Quality Service at http://www.qualitycertified.org

Protecting Your Commission

The issue of a seller’s contractual obligation to pay commission has once again arisen in Ontario’s courts. In the recent case of Gidda v. Malik, the seller had signed a listing agreement with a real estate brokerage, but subsequently sold the home through a private sale. The private sale was singed and dated during the period listing agreement was in effect but did not close until after the expiry of the listing agreement.

The real estate agent who listen the property learned of the private sale, but what is unique is how she obtained details of the private sale. The agent contacted the law office that represented the seller and misrepresented that she was an agent acting for the seller in relation to the private sale. She then asking for a copy of the private agreement, and a secretary working at the law office forwarded a copy of the agreement to the real estate agent. Using this information the real estate agent successfully obtained a judgment against the seller for the commission owing of $10,000.

The seller did not learn from this court decision. He decided to sue his lawyer for the $10,000 on the basis the lawyer had improperly disclosed the private sale agreement. The court ultimately found that, while negligent for disclosing the agreement, the lawyer is not liable for the seller’s “loss”. It was found that even if the agreement had not been disclosed, the sale would have become a matter of public record and the real estate brokerage would have likely pursued the matter.

Most importantly for real estate brokerages, the court went on to note that the seller was the author of his own misfortune. It was found that the seller had entered into a binding agreement to pay commission, and he could not set out to deprive the brokerage of that commission, nor could the seller then blame his lawyer and pass the cost of paying the commission onto his lawyer.
An agent should never involve him or herself in any unscrupulous actions, such as misrepresenting his or her identity or the capacity in which the agent is involved in a transaction. Where a brokerage has a contractual right to a commission, a remedy against the seller can be obtained without engaging in such behavior. The seller and/or lawyer may have referred this matter to RECO. We do not know. The penalties, costs, losses and expenses as a result of a RECO complaint and decision could have been much more than the commission recovered from the seller.

Reprinted from K-W Real Estate Board Legal Update

February MLS Statistics

Here are February 2007 MLS statistics from our two real estate boards:

	K-W This Month	K-W Last Year	Cambridge This Month	Cambridge Last Year
Avg. Sale Price	$ 234,466	$230,863	$225,304	$233,978
Percentage Change	+1.6%		-1.2%
Properties Sold	511	487	212	244
New Listings/Sales Ratio	69.9%	71.5%	57.0	64.3%
Properties For Sale Now	1760	1569	802	649

January MLS Statistics

Here are January 2007 MLS statistics from our two real estate boards:

	K-W This Month	K-W Last Year	Cambridge This Month	Cambridge Last Year
Avg. Sale Price	$ 244,389	$221,292	$241,813	$232,735
Percentage Change	10.4%		3.9%
Properties Sold	379	406	196	193
New Listings/Sales Ratio	42%	48%	51%	96%
Properties For Sale Now	1763	1559	795	597

Blue Mountain Condo Sale Referrals

IntraWest has just opened its last phase in the Mosaic project in Collingwood. Condominium prices start in the low $ 200,000 range. If you have someone looking for a resort/year round second property, Blue Mountain certainly warrants a look.

They pay a 3% selling broker referral fee for sending the lead. Our contact is Scott MacKenzie, a former Prudential agent in Windsor. He can be reached at scmackenzie@playground.com. Their website is www.mosaicatblue.com

Our 2006 Award Winners

Congratulations to all our Award Winners, who excelled in production over the past year. All will be recognized at our annual Awards Breakfast on Thursday, April 5, 2007 at the Charcoal Steak House.

Chairman's Circle, Diamond Award
Jose Bairos

Chairman's Circle, Gold Award
Scott and Lisa Hube
Mike Milovick

President's Circle Award
Li Li
Fred MacMaster
Anurag Sharma

Leading Edge Society
Jade Ho
David Kivell
Mary McMurran
Marie Miller & Jerry Jarman

Honour Society
Janet Good
Tamara Martin
Ken Mohan
Dorinda Orser
Lucy Schito

Rookie of the Year
Paulet Biedermann, Cambridge
Christian Krieger, Kitchener

Royal Bank RECO Credit Seminar

Royal Bank Mortgages are hosting a free 2 credit RECO course on the topic "Airing Out The House" (Fraud Course). Keynote Speaker is Angela Baggio with Genworth Financial Canada.

It is being held on Thursday, February 22, 2007 at the Galt Curling Club on Dunbar Road, Cambridge. Registration and Continental Breakfast starts at 8:45. The workshop runs from 9 AM until 12 noon.

If you're interested in attending, please contact Karen Pankratz, Mortgage Specialist, at 519-584-1292.

"Prudential Cares" Volunteer Grants

If you volunteered for at least 40 hours with an organization in 2006, you may be eligible to receive a Prudential CARES Volunteer Grant. The grant recognizes active Prudential Real Estate Network members who volunteer in their communities. Winners receive cash grants for the organizations they serve in the amounts of $250 USD. Individuals and teams may apply for a grant. Those applying for a grant as part of a team may not submit an individual application. Applications are due by March 2, 2007.
You can get the application online on PREA Centre. Every year, several Prudential Grand Valley Realty staff have won this award.

December MLS Statistics

Here are December MLS statistics from our two real estate boards:

	K-W This Month	K-W Last Year	Cambridge This Month	Cambridge Last Year
Avg. Sale Price	$ 235,597	$220,547	$230,724	$223,870
Percentage Change	6.8%		3.1%
Properties Sold	307	298	152	144
New Listings/Sales Ratio	86%	93%	90%	96%
Properties For Sale Now	1440	1402	736	534