Managing Broker Insights
Managing broker oversight is an important theme that runs through several of the recommendations from the Independent Advisory Group (IAG). The Superintendent of Real Estate has said that implementing these recommendations is a priority for his office.
In late 2017 and early 2018, BCREA worked with NRG Research Group Inc. to understand the realities of operating a real estate brokerage in BC, and learn more about broker reactions to specific IAG recommendations. The project included focus groups and an online survey.
These are the top five issues and concerns for brokers:
- increased compliance,
- increased liability and risk as new Rules take effect,
- overall profitability of the brokerage,
- prohibition of limited dual agency, and
- training and focus on professional standards of licensees.
While seven IAG recommendations relate directly to managing brokers, several of them have multiple aspects. These recommendations have the strongest support:
- #22: identify and implement ways to improve managing broker supervisory effectiveness, including a maximum ratio of licensees per supervising managing broker
- #24: identify industry practices that may be placing consumers at risk
- #22: strengthen the requirements for managing brokers to have active and direct oversight over licensees
- #22: undertake a thorough review of new business models to ensure appropriate governance and oversight of licensees and public protection
- #22: provide the Real Estate Council with authority to establish a custodianship of the brokerage for a limited time, to facilitate the orderly winding down or transfer of a business where the managing broker is not able to discharge their responsibilities
A summary of the research, including the recommendations managing brokers like least and the ones that are too vague to be supported or opposed, is available on REALTOR Link®.
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