RECOrdF O R T H E

Published by the Real Estate Council of Ontario • Spring 2010

Real estate registrants know theirnames and their reputations gohand-in-hand. Their identities are

linked to their success.

So lately, it’s come as a shock to some realestate registrants to learn their namesare being used to divert internet usersaway from their businesses, and in somecases, possibly to the competition. It’scalled brandjacking, and it’s happeningin many industries including real estate.

In simple terms, this means someone elsehas registered the name of a salesperson,broker or brokerage as a domain markeron the internet. It’s an attempt to drawinterest to a website using the notorietyof someone or something else. But it’snot so simple for the person or businessaffected.

Some registrants are reporting that theyhave been approached by companiesthat have already registered a websitedomain in their name or brokerage, or avariation of the name. They are offeredthe opportunity to purchase the domainor risk having potential clients directedaway from their business.

In one example, a website in aregistrant’s name actually sent internetusers to a home sellers club urgingpeople to consider alternatives to usingregistrants in real estate transactions. Theregistrant was told if they did notpurchase the domain name, they wouldbe reported for previously registeringtheir name incorrectly with RECO.Registrants should be wary of anycompany that demands money underthreat of reporting them to RECO.

Registrantstargeted bybrandjackers

MyWeb provides easy accessto relevant informationOnline renewal now available

RECO has launched a new, enhanced version of its registrant portal, MyWeb – toprovide easier access and more user friendly information for real estateprofessionals.

Whether you want to know more about industry issues or access visual examples ofadvertising guidelines, the new website portal is the place to go.

“We have heard from registrants that they want a website that is easier to navigate andprovides relevant information,” says Steve Fyfe, RECO’s Manager of Information Systems.The new MyWeb includes a fresh design, photographs, brightly coloured tabs and acalendar of events to make it more appealing for users.

“Online registration renewal is another reason to make sure you have signed up forMyWeb,” he added.

MyWeb, which is an exclusive, free service for real estate professionals, has a new featurethat allows you to renew your registration online. You can renew anytime of the daywithout relying on office staff, mail or fax to submit your application to RECO.

MyWeb also allows you to receive important reminders and updates from RECO. Thoseupdates can also be personalized to contain information that is specifically relevant tothe individual. continued... page 6 continued... page 4

Spring 2010Page 2

that the request is foremployment services; do notrequest a vulnerable sectorsearch. This should expediteprocessing of your report.

The Canadian criminal recordcheck must be dated withinsix months of submitting yourapplication. If you submityour RECO applicationwithout the record check,RECO will begin processingyour application, but you willneed to provide the originalCanadian criminal recordcheck before your applicationcan be completed.

Only original documents will be accepted. RECO will not acceptphotocopies of Canadian criminal record checks.

For more information on this process visit www.reco.on.ca andreview the notice posted in the How to Become a Registrantsection located under the Industry Information tab at the top ofthe page.

Broker of Record CornerNew process for criminal record checks

Please note the following information is relevant toindividuals who have a clear record or outstandingcharges. Anyone without a clear record should referto www.reco.on.ca for updated instructions.

Aprocedural change, recently put in place by the OntarioProvincial Police, now requires all individuals applying forregistration to RECO to submit an original Canadian

criminal record check.

In the past, RECO had the authority to verify the criminal recordhistory of any registrant or applicant directly from the OPP.However, the OPP has recently notified RECO that it will nolonger provide information about an individual’s record ofoffences or charges to organizations like RECO without theidentity of the applicant or registrant being confirmed in person.

As a result, all new applicants are now required to provide anoriginal Canadian criminal record check from their local policeservice upon submitting an application to RECO.

Those affected by the change include:• New salesperson or broker applicants

• Reinstating salespersons or brokers whose registrationhas been terminated for more than 60 days

• Registrants who undergo a category change (i.e. fromsalesperson to broker, or broker to sole proprietor)

• Applicants applying as new officers, directors andshareholders or changes in these positions

• New sole proprietor applicants

• New brokers of record and branch managers orchanges in these positions

• RECO may also require a criminal record check from anyregistrant or applicant the Registrar deems necessary

The Canadian criminal record check, which can vary in costamong police services in Ontario, is usually about $30 per person.The applications are available at local police stations. Forindividuals in Toronto, requests must be made in person at 40College Street between Monday and Friday from 8 a.m. to 7 p.m.All other registrants should contact their local police service toconfirm which detachments will be conducting the checks.

You are required to show two pieces of identification for identityverification. Both forms of identification must confirm name,date of birth and address, and one piece of identification mustinclude a photo. When making an application, it’s best to specify

Only originaldocuments willbe accepted.

RECO will not acceptphotocopies ofCanadian criminalrecord checks.

For the first time, RECO has published aconsumer brochure in seven languages.The new brochure – Buying or selling your

home? – is available in English, French, Spanish,Portuguese, Punjabi, Traditional and SimplifiedChinese, and educates buyers and sellers about RECO’s role and the value of using a registeredreal estate professional.

The commitment to translate a document thatprovides basic information about RECO in multiplelanguages has been an ongoing project to better servethe culturally diverse communities in Ontario. RECOconsulted with cultural organizations to providefeedback on the brochures. While RECO is not bound bythe French Language Services Act to make literatureavailable in French or other languages, it is committed tomeeting the spirit of the legislation. Depending on the demand,RECO is considering translating this document into otherlanguages.

Copies of the brochure are available in print at RECO’s office orcan be downloaded from RECO’s website. If you are interestedin obtaining copies, complete the literature order formavailable under the Publications and Resources section ofRECO’s website, or contact communications@reco.on.ca.

Spring 2010 Page 3

New ‘about RECO’ brochure offered in seven languages

Here’s what you do:1 Have your CE course completion and credit card information available

2 Log in to MyWebhttps://myweb.reco.on.ca

3 Click on the Online RegistrationRenewal icon

4 Complete the application to renew your registration

5 Carefully review your applicationbefore clicking “I CONFIRM”

Here’s what your brokerage does:1 Your brokerage will receive an e-mail notification stating that yourapplication is waiting for their verification

2 Your brokerage will log in to MyWeb to view your application andelectronically confirm that the information you disclosed is, to the best oftheir knowledge, true and request the Registrar to grant your registration

3 Should your brokerage require clarification of the information on yourapplication they will initially decline the application, at which point youwill be notified by RECO to contact your brokerage regarding yourapplication for registration renewal. Once the application has beenclarified, you will either simply resubmit or make agreed changes andresubmit the application

Last month RECO launched a new service that is available on MyWeb - online registration renewal. From the comfort ofyour home or office, you can submit your registration online, anytime, any day. You will no longer have to rely on fax ormail to ensure that your application reaches RECO’s office on time.

RECO will process your application and, upon approval, a new certificate willbe mailed to your brokerage.

Is your registration up for renewal? Renew it online!

Spring 2010Page 4

Education Corner Registrant education a priority for RECO

MyWeb, RECO’s exclusive portal for registrants, provides aconvenient catalogue of continuing education guidelines andopportunities for brokers and salespersons alike. Visithttps://myweb.reco.on.ca and log in to view an assortment ofpre-approved education providers, approved subject areas andcourse listings.

If you have any education-related questions, you may contactRECO by e-mailing education@reco.on.ca.

• Courses on using technology in real estate transactions

• Courses on client/customer services

• Courses on environmental issues and initiatives that affect real estate

• Courses on urban development

• Courses designed to educate you about new laws or changes to laws that affect the real estate industry

Real estate professionals who are well educated in their fieldcan only help to build confidence in the industry. That’swhy RECO puts such emphasis on education when it comes

to the registration process for its brokers and salespersons.

The education requirements for registrants in Ontario arerigorous. Just to get started, four pre-registration courses must becompleted within an 18-month period. There’s also an articlingperiod. Salespersons, once registered under REBBA 2002, enter atwo-year articling period at which point three additionaleducational courses must be completed. The Ontario Real EstateAssociation (OREA) administers these courses on behalf of RECO.For more information on these courses visit www.orea.com.

But as any long-term registrant knows, that’s only the beginning.It’s the continuing education requirements that are key tokeeping on top of ongoing changes in the industry.

Registrants must accumulate at least 24 credits in continuingeducation courses or seminars during each two-year registrationcycle to apply for renewal of registration under REBBA 2002.

RECO’s continuing education policy establishes the continuingeducation requirements brokers and salespersons must complywith in order to apply for renewal or reinstatement ofregistration under REBBA 2002. To view the continuing educationpolicy, visit the education section of MyWeb.

Continuing education credits, from a variety of subject areas,provide an excellent opportunity to position yourself –commercially or residentially – to meet your clients’ needs.Consider how these courses could help in your next transaction:

The Real Estate & Business Brokers Act, 2002 does notspecifically address issues such as brandjacking and RECO’sauthority over non-registrants is limited to non-registrants whoare trading in real estate.

There are some national or international agencies that may beable to assist. The Canadian Internet Registration Authority(CIRA), which manages the dot-ca domain space on behalf of allCanadians, says your domain name reflects your identity. Simplemanagement can protect you from losing it. According to CIRA,if you forget to renew your domain name and someone elseregisters it, you may be able to initiate proceedings through itsDispute Resolution Process, provided you have a registeredCanadian trademark that resembles the domain name.

For more information, check out www.cira.ca/cdrp/.

If your domain name ends in something other than “.ca”, theInternet Corporation for Assigned Names and Numbers(www.icann.org) may also be a source of information. Thisinternational organization is a not-for-profit public-benefitcorporation dedicated to keeping the internet secure, stable and interoperable.

Protect your domaincontinued from page 1

Spring 2010 Page 5

RECO’s Code of Ethics exists not just for consumer protection,but for the benefit of the registrant as well.

It gives registrants, intent ontrading in real estate, a clear set ofguidelines to follow. That, in turn,gives the public some reassurancethat they are being represented bya fair and knowledgeableregistrant, who will work in thebest interest of his or her client.

But what happens when yourefforts or ethics come intoquestion? Your reputation andyour career can be impacted by acomplaint that comes before adiscipline hearing so it is importantthat you understand the process.

A discipline hearing is a formalprocess. RECO, as the prosecutor, isrepresented by a lawyer orparalegal. You have the choice ofbeing represented by a lawyer,paralegal or an agent (incompliance with the requirementsof the Law Society Act), or youmay choose to represent yourself.RECO will not pay for yourrepresentation, and adjournmentswill not be granted due to your failure to obtain legalrepresentation.

Discipline hearings are similar toany court of law proceeding,however instead of presentingyour case to a judge or Justice ofthe Peace, you will be presentingto a discipline panel comprised ofthree to five members of a largerdiscipline committee. Thecommittee members, comprisedof both registrants and membersof the public, are experienced withthe hearings process andprocedures and have extensiveknowledge of real estate bestpractices and RECO’s Code ofEthics.

Before you are called to appear ata discipline hearing, you will becontacted in writing by RECO andgiven at least 45 days notice. RECO will provide you with anywritten or documentary evidence, the identity and anticipated

evidence of any witnesses or experts, and a copy of the expert’sreport. RECO will also provide you with a formal statement

containing a brief description ofthe allegation.

As the respondent, if you wish totender any evidence or call anywitness or experts, you must do soat least 15 days prior to the startof the hearing. Failure to providesuch evidence within the specifiedtime frame may result in theevidence being inadmissible atthe hearing.

On the day of the hearing, youwill attend 3250 Bloor Street Westin Toronto, which houses bothRECO’s corporate offices and thehearings room. If you fail toattend the hearing, it mayproceed without further notice toyou and a decision may be madein your absence. Once thetestimony of all witnesses hasbeen heard, the hearing willconclude and the discipline panelwill deliberate in private.

If the discipline panel decides youhave violated a provision of theCode of Ethics, you may beordered to take educationalcourses, pay a fine of up to$25,000, and/or costs can beimposed. The discipline decisionand reasons for the decision willbe sent to you along with a copyto your broker of record.

You have the right to appeal anydecision or penalty imposed bythe committee, but you must doso within 30 days of the hearing’sconclusion, with reasons for yourappeal. Once a decision has beenreached and all appeals havebeen exhausted, RECO willpublish the details of the decision,including any penalties, on itswebsite. The decision will bepublished on RECO’s website for60 months. Only the names of theregistrants found in violation willbe published.

If you have questions or would like more information about thediscipline hearing process contact hearings@reco.on.ca.

Make sure you understand the discipline hearing process

Spring 2010Page 6

In a recent cabinet shuffle by Ontario Premier DaltonMcGuinty, MPP Sophia Aggelonitis was appointed as the newMinister of Consumer Services. She replaces Minister

Ted McMeekin.The Ministry of Consumer Services is responsible for REBBA 2002and associated regulations, as well as general oversight of RECO.Minister Aggelonitis was first elected to the Ontario Legislatureto represent the people of Hamilton Mountain in October, 2007.She is a member of the Legislation and Regulations Committee,the Economic Environmental and Resources Policy Committee,the Treasury Board Working Group and was appointed by thePremier as the Chair of the Restaurant and Hospitality Caucus. She has also served on the Hamilton Chamber of Commerce forfour years before being elected president in 2007. In addition tobeing an active member of the Hamilton AM Rotary Club, shehas been involved in a variety of community organizations,serving on the boards of the Dr. Bob Kemp Hospice fundraisingcommittee, Theatre Aquarius, Canadian Club of Hamilton andPhoenix Place.

New Minister of Consumer Services

In order to assist brokerages in ensuring they are compliantwith the Real Estate and Business Brokers Act, 2002, RECOconducts regular inspections throughout the year.

A regular inspection of each registered brokerage also enablesRECO to ensure its mandate – to protect consumers through afair, safe and informed marketplace – is upheld.

Typically, inspectors randomly select a brokerage for aninspection. The brokerage is contacted by telephone and, in mostcases, a date is mutually agreed upon. On rare occasions, aninspection can be held without notice. A brokerage can alsorequest a courtesy inspection if it feels it can be beneficial. Theinspections process establishes one-to-one contact between eachbrokerage and RECO.

Recent statistics, pulled from a two-year period beginning inDecember 2007, indicates most inspection issues tend to focus ontrust accounts and bank reconciliations. The following is asampling of issues uncovered by RECO inspectors and the numberof deficiencies over that period:

If you have questions about inspection issues e-mail inspections@reco.on.ca.

Inspection issues

Trust Account Improper designation of Real Estate Trust Account 282Trust Bank Reconciliations No trust account reconciliation, or improper reconciliation 250Trust Account Unclaimed trust moneys 174Advertising Broker not using registered designation 156Representation No written buyer representation agreements 151Interest Bearing Deposits Improper handling of interest bearing deposits 149Trade Records No trust disbursement details 147Trust Bank Reconciliations Missing list of purchaser’s deposits 91Advertising Salesperson not using registered designation 86Trust Bank Reconciliations No authorized signature of broker 82

Heading Description Number of Deficiencies

Registrant portal has anew look continued from page 1

“We believe registrants will appreciate an electronic reminderof their registration renewal due date or when insurancerenewal is approaching,” he said.

“We also expect that new features such as the visual examplesof advertising guidelines will attract more registrants to thesite,” he added.

As RECO continues to promote its online presence, you areencouraged to make sure you keep your e-mail address onMyWeb up-to-date so you can access important news and utilizethe online features.

“More and more, RECO is communicating via e-mail and it’simportant we have correct e-mail addresses,” he said.

If you want to see what’s new or to sign up, log in tohttps://myweb.reco.on.ca.

Spring 2010 Page 7

In only a few short months, Ontario’s new Harmonized SalesTax (HST) will take effect and those changes will have an impacton home buyers and sellers.

As most members of the real estate industry already know,beginning July 1, 2010, home buyers and sellers will have to payextra tax on a range of services associated with real estatetransactions such as legal fees, moving costs, real estatecommissions and home inspection fees.

Currently, those services are exempt from Provincial Sales Tax(PST); only the five per cent Goods and Services Tax (GST) isapplied. But in last year’s provincial budget, the Ontariogovernment announced it would harmonize the PST with theGST on a number of items and services. The province of BritishColumbia will, at the same time, be making a similar move.

For more information about the new tax and any transitionalrules, log on to the following site:

http://www.rev.gov.on.ca/en/notices/hst/.

HST changes set for July 1

Early this year, the Federal Government announced thatbeginning January 1, 2011, self-employed Canadians willbe able to access Employment Insurance (EI) special

benefits. This change will also benefit certain real estateprofessionals who have opted into the program.

The Fairness for the Self-Employed Act (Bill C-56)will offer fourtypes of EI special benefits to individuals who are self-employed:

• Maternity benefits that extend to a maximum of 15 weeks

• Parental benefits that extend to a maximum of 35 weeks

• Sickness benefits that extend to a maximum of 15 weeks

• Compassionate care benefits that extend to a maximum of six weeks

To learn if you are eligible or to receive more information on this program, visit

http://www.servicecanada.gc.ca.

Employment Insuranceextends to self-employed

RECO News Briefs

Recently, RECO announced two fee changes that becameeffective April 1, 2010. The changes were necessary in orderfor RECO to continue to effectively meet its regulatory

obligations. These are the first fee increases for registrations andtransfers in 10 years.

The following changes took effect April 1, 2010:

• The registration fee for the salesperson category changedfrom $250 to $350 for a two-year registration cycle. Thisbrings the fee in line with all other registration categoriessuch as broker and brokerages which remain at $350 foreach two-year cycle.

• The fee for salespersons or brokers transferring from onebrokerage to another brokerage changed from $50 to $100.

These fee changes, set by RECO’s Board of Directors, come aftercareful consideration and a review of our administrative andenforcement activities and cost containment measures.

For information on RECO’s mandate, visit www.reco.on.ca.

Information concerning the fee changes was e-mailed toregistrants in January, a Registrar’s Bulletin concerning theannouncement is currently posted on RECO’s website and anotice will also be included in all renewal package mailings to registrants.

Reminder of fee changes

Afinal summary of the 2009Registrant Satisfaction Survey hasbeen received. The survey

focuses on identifying areas whereRECO is meeting the needs of registrantsand where there is a need forimprovement.

As mentioned in the winter 2010 editionof For the RECOrd, there were 9,128respondents. The survey results have amargin of error of 0.91 per cent.

The responses are generally positive and indicate a high levelof satisfaction with RECO’s services and performance. Some ofthe responses indicate there is still work to be done to raiseawareness about the communications products that RECOproduces as well as the need to make MyWeb more relevant toregistrants. Some of the responses also suggest there could bemore focus on raising awareness of RECO’s website andMyWeb.

Many registrants offered suggestions on topics for bulletins andthe newsletter which RECO will consider for future publications.An area of further focus was the need to minimize jargon ortechnical language in our publications to ensure the content iseasily understood by both registrants and consumers.

RECO thanks everyone who participated in the survey.

Satisfaction Survey Results

Spring 2010Page 8

Advertising MattersMyWeb brings advertising tools to your fingertips

Apicture may tell a thousand words and when it comes toexplaining guidelines RECO has decided to adopt thatphilosophy and help you with a new online section that

provides visual examples of common mistakes in advertising.

As part of the launch of our newly re-designed registrant portal– MyWeb – RECO has created a special section dedicated toadvertising. RECO has organized advertising information so thatyou can find the answers to your questions – fast! In the newadvertising section of MyWeb you’ll find everything you need tomake sure that your advertisements are compliant:

• Advertising Checklists• Advertising Guidelines• Visual examples of compliant and non-compliant advertisements

Recently, some members of the Ottawa Real Estate Board had achance to preview some of the new features of MyWeb. Onebroker comments…

“The more information available to registrants in order to help themcomply – the better! Useful examples as shown today are fantastic.Thank you.”

Here is a preview of one of the new advertising visuals you’ll see when you visit MyWeb:

Jane Walker Sales Representative

#1 in “Town”

Office: 705-739-1300 Cell: 705-738-1301

janewalker@emailit.com

Office: 705-739-1300 Cell: 705-738-1301

janewalker@emailit.com

* based on “Town” MLS® statistics for 2009

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INCORRECTAn advertising claim must be accurate and verifiable and must include appropriate disclosures to substantiate the validity of theclaim. If the advertising claim appears on awebsite, you may link the disclosure to anotherpage as long as it is clearly marked.

CORRECTYou must specify if the statistical achievement isreferring to an individual sales representative, group of representatives or combined performance of the entire brokerage.

ADVERTISING CLAIMS - “#1 Sales Representative in Anytown”Complaints related to advertising often involve claims and/or promises made in advertisements.A claim can be a great way to showcase your achievements and can be helpful as a marketing tool, but you must be careful that itis accurate, clearly worded and that you have disclosed the source and other details on which the claim is made.

You must specifically state the information the statistic is referring to (i.e. sales volume, units sold, number of representatives).

You must specify the date or the period of time to which the claim applies.

You must state the source or provider of thestatistics/information that relates to the claim (i.e. your local real estate board, private researchcompany, etc.)

Jane Walker Sales Representative

#1 Sales Representative for units sold* in “Town”

Brokerage and registrant names used in this advertisement are fictitious namesused for information purposes only and do not reflect current or potentialregistrants under REBBA 2002

The following advertisingexample is a suggestionof how a claim could

appear in advertising youcreate, including but notlimited to: personal websites,paid advertising on otherwebsites, banners,newspaper ads, Sold and ForSale signs and all signageposted on billboards,benches, buses or otherobjects. Business cards, e-mailsignatures, letterhead,postcards and any product orgood used for promotion andmarketing are also consideredforms of advertising.

To view more visual examples of common advertising mistakes, log in to MyWeb and click on the advertising tab located on theleft side of the screen.

If you have any advertising-related questions that you’d like to see featured in Advertising Matters please e-mailcommunications@reco.on.ca.

Spring 2010 Page 9

Ask the RegistrarBrokers of record responsible for misleading advertisements

In a competitive market, advertisements can be helpful inmaking you stand out among other real estate brokerages andsalespeople. Bold colours, catchy slogans and enticing offers

along with smart strategies for ad placement, all need to beconsidered when creating an ad. Unfortunately, some registrantsmay take the competition a little too far and theiradvertisements, containing flashy promises and inaccurateinformation, can be misleading.

Registrar Allan Johnston discusses the broker of record’s role asit relates to advertising.

“First and foremost, all real estate advertisements are brokerageadvertisements and it is the responsibility of the broker of recordto make sure that advertisements are accurate, clearly wordedand not misleading,” says Johnston.

Brokers of record must ensure that the actions carried out by thebrokerage and, by extension, its employees on behalf of thebrokerage, comply with REBBA 2002. They must ensure that allemployees operate within the contracts created between thebrokerage and buyers and sellers and everything involved withthat contract, including advertising.

“They may delegate various duties of the contract, such asadvertising, but overall, brokers of record, on behalf of theirbrokerages, are the ones who are responsible.”

RECO deals with advertising complaints and inquiries dailyalthough many registrants may not be aware of the extent dueto the fact that most cases are dealt with by remedies other thanhearings. There is no publication of this activity as only hearingsare reported in accordance with REBBA 2002.

To ensure your advertisements meet the REBBA 2002requirements, it is recommended that brokers of record have

procedures in place to check advertising before it is distributed tothe public. Depending on the size of the brokerage, brokers ofrecord could designate someone to deal with advertisementchecks and compliance. “One of the most common excuses wehear from brokers of record is ‘that there is too much advertising,I can’t possibly monitor them all!’ However, brokers of recordmust realize that ‘having too many advertisements’ doesn’tchange their obligation to comply with the REBBA 2002.”

RECO’s Legislation and Regulations Committee has beenreviewing the issue of advertising including more educationabout the guidelines, and has noted that several support toolsdesigned to help brokers of record adhere to advertisingrequirements are available. The advertising guidelines, checklistsand the new advertising visuals on MyWeb are excellentresources.

For more information on advertising compliance matters or toaccess RECO’s advertising support tools, log in to MyWeb,https://myweb.reco.on.ca, and visit the new advertising section.

RECO’s Board of Directors is pleased to invite you to RECO’sAnnual General Meeting, to be held on June 17, 2010 at the OldMill Inn in Toronto. The registration desk will be open at 9 a.m. and the meeting will begin at 10 a.m.

All registrants will receive a meeting package in early May.

Ask RECOAfter the formal business has been conducted, a Q&A session willtake place. This is an opportunity to ask RECO’s Board of Directorsand management questions about programs, services andindustry issues.Questions should be of general interest. Questions related to anindividual, a specific situation or regulatory actions against aspecific registrant cannot be addressed at a public meeting.Attendees will also have an opportunity to meet with RECO’sDirectors and management before and after the meeting. Wehope you can join us.

Unable to attend?If you are unable to attend, but would like to participate in theQ&A portion, please send us an e-mail with your question to:AGM@reco.on.ca. Be sure to include your full name and thename of your brokerage. While RECO will make every effort to respond to a variety ofquestions, due to time constraints, not all questions will be asked.Also, similar questions will not be repeated.

After the meetingThe Chair’s report, President/CEO’s report and the Registrar’sreport will be posted on our website and video segments will beprovided for viewing. The Q&A session will also be recorded forviewing. RECO’s Annual Report for the fiscal year ending March 31, 2010 will be available for download.

You’re invited to RECO’s Annual General Meeting

Spring 2010Page 10

IMAN SHAKERIAurora, ONJuly 22, 2009

On December 19, 2007, the Registrar issued a Notice of Proposalto revoke the registration of Mr. Shakeri. Mr. Shakeri requesteda hearing in front of the Licence Appeal Tribunal. After ahearing, the Licence Appeal Tribunal ordered the Registrar toput Mr. Shakeri on conditions.

ANDREW CHARLES TULLOCHParis, ONNovember 20, 2009

On June 17, 2009, the Registrar issued a Notice of Proposal torefuse to grant registration of Mr. Tulloch as a salesperson. Mr.Tulloch requested a hearing in front of the Licence AppealTribunal. After a hearing, the Licence Appeal Tribunal orderedthe Registrar to put Mr. Tulloch on conditions.

BRIDGE RAJ BAHADOORThornhill, ONNovember 23, 2009

On October 16, 2008, the Registrar issued a Notice of Proposal torefuse to renew the registration of Mr. Bahadoor as a broker.Mr. Bahadoor requested a hearing in front of the Licence AppealTribunal. After a hearing, the Licence Appeal Tribunal orderedthe Registrar to refuse to renew Mr. Bahadoor’s registration.

ACQUISITION REALTY LIMITEDThornhill, ONNovember 23, 2009

On March 4, 2009, the Registrar issued a Notice of Proposal torevoke the registration of Acquisition Realty Ltd. The saidbrokerage requested a hearing in front of the Licence AppealTribunal. After a hearing, the Licence Appeal Tribunal orderedthe Registrar to revoke the registration of Acquisition Realty Ltd.

KAMYAR GHATANRichmond Hill, ONNovember 27, 2009

On October 30, 2009, the Registrar issued a Notice of Proposal torevoke the registration of Mr. Ghatan. Mr. Ghatan did notappeal at the Licence Appeal Tribunal. His registration wasrevoked.

HOMELIFE FOREST HILL REALTY INC.Toronto, ONNovember 27, 2009

On October 30, 2009, the Registrar issued a Notice of Proposal torevoke the registration of Homelife Forest Hill Realty Inc. Thesaid brokerage did not appeal at the Licence Appeal Tribunal.Homelife Forest Hill Realty Inc.’s registration was revoked.

ANDREW S. NAGYArthur, ONNovember 30, 2009

On February 2, 2009, the Registrar issued a Notice of Proposal torevoke the registration of Mr. Nagy. Mr. Nagy requested ahearing in front of the Licence Appeal Tribunal. After a hearing,the Licence Appeal Tribunal ordered the Registrar to put Mr.Nagy on conditions. The Licence Appeal Tribunal Order is underAppeal at the Divisional Court.

ORVELL ALEXANDERMississauga, ONJanuary 12, 2010

On December 11, 2009, the Registrar issued a Notice of Proposalto refuse to renew the registration of Mr. Alexander. Mr.Alexander did not appeal at the Licence Appeal Tribunal. Hisregistration was revoked.

Under the Real Estate and Business Brokers Act, 2002, the Registrar is required to make certain information available to thepublic. The information required to be made publicly available includes Notices of Proposal, convictions, and charges. Inaddition, under REBBA 2002, the Discipline and Appeals Committees require that discipline and appeals decisions be made

publicly available. For detailed information about these matters, or to view RECO’s Public Notice Policy, please visit the Complaints& Enforcement section of RECO’s website.

Registrar’s ProposalsThe Registrar has the authority to refuse, refuse to renew, revoke, suspend, or apply conditions to registration. In such situations,the Registrar prepares a Notice of Proposal and notifies the applicant or registrant of that Proposal together with reasons for theRegistrar taking such action. A registrant who has received a Notice of Proposal has 15 days from the date the Proposal is servedto file a notice of appeal to the Licence Appeal Tribunal (LAT). If no appeal is received by LAT, the Registrar may carry out the Noticeof Proposal.

Regulatory Activities

Spring 2010 Page 11

JAMES CURRANBurlington, ONJanuary 26, 2010

On May 22, 2009, the Registrar issued a Notice of Proposal torevoke the registration of Mr. Curran. Mr. Curran requested ahearing in front of the Licence Appeal Tribunal. After a hearing,the Licence Appeal Tribunal ordered the Registrar to put Mr.Curran on conditions.

TIMOTHY BAXTERChatham, ONJanuary 25, 2010

On November 12, 2008, the Registrar issued a Notice of Proposalto revoke the registration of Mr. Baxter. Mr. Baxter requested ahearing in front of the Licence Appeal Tribunal. After a hearing,the Licence Appeal Tribunal ordered the Registrar to put Mr.Baxter on conditions. The Licence Appeal Tribunal Order is underAppeal at the Divisional Court.

T. BAXTER REAL ESTATE LIMITEDChatham, ONJanuary 25, 2010

On November 12, 2008, the Registrar issued a Notice of Proposalto revoke the registration of T. Baxter Real Estate Limited. Thesaid brokerage requested a hearing in front of the LicenceAppeal Tribunal. After a hearing, the Licence Appeal Tribunalordered their registration be revoked.

Convictions

The Ontario Provincial Offences Act (POA) governs how charges are processed and prosecuted in Ontario courts. The POA appliesto all Ontario statutes and regulations, including REBBA 2002. Individuals found guilty of offences under REBBA 2002 aresubject to fines up to $50,000 and a potential prison term of two years. Corporations found guilty of offences are subject to

fines up to $250,000. Courts have the power to order convicted persons to pay compensation and make restitution.

Individuals may also be subject to a victim fine surcharge, in addition to the specified fine, pursuant to section 60.1 of the POA. The surcharge is collected by the court and goes in to the province’s Victim Justice Fund account. For more information, please visitwww.ontariocourts.on.ca.

SCOTT REARDONLondon, ON

On December 1, 2009, Mr. Reardon pled guilty to one count ofproviding false information on an application form and wasfined $4,500.

ASHLEY REARDONLondon, ON

On December 1, 2009 Ms. Reardon pled guilty to one count offailing to deliver a copy of an agreement to her brokerage andwas fined $4,500.

RAFEEK JUMANToronto, ONOn January 11, 2010, Mr. Juman pled guilty to two counts ofFalse Advertising. He was fined $2,500 per count, being a totalfine of $5,000.

BRADLEY LOTZStratford, ON

On January 12, 2010, Mr. Lotz pled guilty to three counts offailing to deliver copies of agreements to his brokerage. He wasfined $3,000 per count, for a total of $9,000 plus a victim finesurcharge.

ASHOK KUMAR GERAToronto, ON

On September 3, 2009, Mr. Gera pled guilty to one count forfailing as the broker of record to ensure that the brokeragecomplied with the Act. On February 22, 2010, he was sentencedto a fine of $3,000. In addition to the monetary penalty he wasalso ordered to pay restitution of $10,000 to a consumercomplainant.

HOME A GAIN REALTY INC.Toronto, ON

On September 3, 2009 Mr. Gera, on behalf of Home A GainRealty Inc., pled guilty to one count for failing to deposit trustmonies into the real estate trust account. On February 22, 2010,the brokerage was sentenced to a fine of $4,000.

Spring 2010Page 12

2010 Election of Directors — Here are your candidates

This year the Election of Directors is conducted by online voting only. Online voting instructions were mailed to registrantsthe week of April 12, 2010. Online voting closes at 4:30 p.m. on Thursday, May 20, 2010. For more information aboutgeneral election procedures, please visit www.reco.on.ca.

Region 1WENDEL J. BONAIR; BROKERHomeLife/Cimerman Real Estate Ltd., Brokerage, Toronto

Years Registered: 18Area(s) of expertise, committee experience (RECO, real estate, other), additional comments:Along with relationship management, strategic planning/budgeting and business development, Wendel’s business acumenalso includes training, coaching and mentoring REALTORS for sales’ success within his current practice. He applies over 25years of consulting experience in problem recognition and forward-thinking resolution to bring strategic and tacticalleadership to offers and successful “Win-Win” negotiations for his clients’ benefit. Wendel has leveraged his expertise in theReal Estate, Land Surveying and Information Technology professions to have participated in a key consultant role for the re-design, re-development and implementation of the next generation of GeoWarehouse (2009); the “land registry” softwarethat over 90,000 real estate practitioners embrace in providing added-value services.Volunteering with many committees and organizations since 1978, including the BMO-The Learning Partnership’sEntrepreneurial Adventure Program (Mentor and “Business partner” to a number of schools), the Legacy CommunityRatepayers’ Association (past Director and past Vice-President) resolving community issues and concerns, the School Councilfor local Elementary and High Schools (PTA President and Past Chair) and others, has positioned Wendel to be the idealcandidate to help improve the value proposition of RECO, our valued members and the real estate industry.

MASOOD KHAN; MVA BROKERRe/Max Professionals Inc., Brokerage, Mississauga

Years Registered: 30Area(s) of expertise, committee experience (RECO, real estate, other), additional comments:Salesperson – 30 years, Broker – 21 years, Market Value Appraiser – 6 yearsMember RECO’s Discipline and Appeals Committee under REBBA 2002, Member RECO’s Discipline and Appeals Committeeunder By-Law No. 10, Member TREB’s Election, Task Force 2010, Former Vice-Chair TREB’s Discipline and Appeals Committee,Former Director Mississauga, Real Estate Board, Former Vice-Chair Public Vehicle Committee, City of Mississauga (6 years),Former Vice-Chair Trillium Health Centre’s Community Advisory, Mississauga, Chair, Canada Day Committee of South Asians,City of Mississauga honoured with a street name KHAN CRESCENT, Her Majesty the Queen’s Golden Jubilee Medal recipient,TREB’s 2007 Civic Award Recipient

CYNTHIA LAI; FRI BROKERGlobal Link Realty Group Inc., Brokerage, Toronto

Years Registered: 26Area(s) of expertise, committee experience (RECO, real estate, other), additional comments:Area of Expertise: Residential, Commercial and R.E. DevelopmentCommittee Experience: TREB President – 2003-2004; RECO Director – 2004-Present; TREB Commercial Council – 2005-Present;Vice Chair, Registrar’s Education Advisory Committee – 2009 – Present; Chair, RECO Commercial Advisory Group 2008; Chair,RECO Audit Committee – 2008; Chair, RECO Premium Stabilization Committee 2009; Member of RECO Governance Committeeand Finance Committee. Additional Comments – I believe that many challenges are on the horizon and our success dependsupon solid strategic directions, accountability and organizational efficiency. If given the opportunity I will continue to listen,communicate, be a strong voice and bring experience, knowledge, energy and diversity on your behalf to the RECO boardtable. It has been a pleasure serving on RECO for the past 6 years, I sincerely wish to continue that commitment and ask foryour support.

CECILIA LUU; BROKERGold Mountain Realty Inc. Brokerage, Toronto

Years Registered: 6Area(s) of expertise, committee experience (RECO, real estate, other), additional comments:TREB – Education Committee – Past, Davenport Liberal Association – Fundraising Committee - (Past) & Vice-President – (Past)Rotary Club of Toronto – Membership Committee – (Past), Queen’s Park Toastmasters International Club – Area Governor –(Past)

Spring 2010 Page 13

2010 Election of Directors — Here are your candidatescontinued from page 12

Region 1 Continued

BRIAN MADIGAN; LL.B. BROKERRoyal LePage Innovators Realty, Brokerage, Mississauga

Years Registered: 5Area(s) of expertise, committee experience (RECO, real estate, other), additional comments:Area(s) of expertise: real estate broker, real estate litigation advisor, venture capitalist and educator, approved RECO Educationprovider (Disclosure Laws), published over 1,200 articles on real estate for the consumer emphasizing ethical practice by realestate practitioners, developed independent comparative performance index for real estate; served as mediator and arbitratorin real estate matters; graduated Osgoode Hall Law School 1974, practiced law in Toronto for 25 years, commercial andnegligence litigation, professional discipline experience as advocate, prosecutor and chair, professional liability experience;over 1,000 court appearances; closed over 5,000 real estate transactions; served on Boards of Public Hospitals, Foundations andChairman of Investment Committees for publicly funded pension plans, advisor to Insurers underwriting corporate governancepolices, Speaker, Canadian Bar Association, Lecturer, Law Society of Upper Canada, Instructor Bar Admission Course, Director,numerous non-profit organizations.

SHIRLEY PORTER; BROKERRe/Max Professionals Inc., Brokerage, Mississauga

Years Registered: 34Area(s) of expertise, committee experience (RECO, real estate, other), additional comments:With over 30 years of real estate experience Shirley’s background represents all facets of the industry including real estatesales, brokerage management, consulting, franchising, mergers and acquisitions along with regional corporate experience. Asour industry undergoes significant transformation it’s more important than ever to have experienced local representation thatidentifies with membership issues. Shirley has a strong leadership background and has previous director and committeemember experience on real estate boards.

ARUN SAHNI; BROKER OF RECORDGreat Lakes Real Estate Inc., Brokerage, Mississauga

Years Registered: 7Area(s) of expertise, committee experience (RECO, real estate, other), additional comments:I am professional educated with Post graduate Degree in Cost and Works accounting & Diploma in Materials Management.Extensive 25 years experience in Real Estate Development, Management & Sales worldwide. Broker of Record for 3 years inOntario with total sales experience of 7 years in GTA Area. Maintaining market knowledge by selling Real Estate myself &guiding my sales staff.

CHRISTOPHER H. SEEPE; SALESPERSONThe Behar Group Realty Inc., Brokerage, Toronto

Years Registered: 1Area(s) of expertise, committee experience (RECO, real estate, other), additional comments:I promise to make myself available to, and represent the best interest of all RECO registrants. I have a fervent desire tocontribute to improving the public’s perception of Ontario’s real estate industry and community.Qualifications: 30+ years of strategic business and financial planning experience and expertise primarily sales and marketing inInformation technology (several years in geospatial – Teranet, Google Earth, aerial imagery, 3D buildings, etc.), 15 years seniorexecutive roles, CEO of public company, sat on the board of 2 public companies, served on board of non-profit “newcomer”agency, founded consumer software company and grew it to $10 million revenue in 6 years with IPO, winner of the CanadianGovernment’s 1996 Canada Export Award for outstanding achievement in export development, Notable Mention forCanadian Airlines’ Entrepreneur Award, 3.5 years with Hydro One as a senior IT architect, familiar with RECO regulatoryframework, married 31 years with 3 children.

ROBERT SOPRONEY; SALESPERSONRe/Max Realty Enterprises Inc., Brokerage, Mississauga

Years Registered: 35Area(s) of expertise, committee experience (RECO, real estate, other), additional comments:RECO - Member of Discipline and Appeals Committee (Since January 25, 2000), TREB - Hearing Panel since 1998, MREB -(Mississauga) Investigation/Hearing Panel 1995 – 2000, MREB – (Mississauga) Director 1998/99, MREB – (Mississauga) - Chair ofOperations/Social Events 1998/99, MREB (Mississauga) Member of Nomination Committee, City of Mississauga – Public Advisory – (9 years – Vice-Chair)

Spring 2010Page 14

2010 Election of Directors — Here are your candidatescontinued from page 13

NEIL DEVLIN; BROKERRe/Max Grey Bruce Realty Inc., Brokerage, Owen Sound

Years Registered: 26Area(s) of expertise, committee experience (RECO, real estate, other), additional comments:Residential/Commercial Real Estate Broker since 1984, Director of local Real Estate Board – (1993-2000) (2002–2010), Presidentof local Real Estate Board – 1996, 1999, 2009, Professional Standards Committee Chair – 1995, 1997, Discipline CommitteeChair - 1998, Member OREA Interconnectivity Task Force – 1999, Member OREA Finance Committee – 2001, 2002, 2003, 2007,Member OREA Leadership Development Committee – 2006, Member OREA Governance Review Task Force – 2008, MemberRECO-REALTOR Relations Task Force – 2009I feel that I can make a contribution to the RECO Board of Directors and respectfully ask for your vote. Thank You.

LEROY DAVID DIRCKX; BROKER OF RECORDAtlas World Real Estate Corporation, Brokerage, Lions Head

Years Registered: 18Area(s) of expertise, committee experience (RECO, real estate, other), additional comments:Licensed as a Realtor – 1992 with about 18 years as a realtor, Experience with commercial, residential and recreational realestate. Present position with Atlas World Real Estate Corporation, Brokerage as President and Broker of Record, Honorsdegree from York University in the discipline of Philosophy wherein my focus was morality and ethics. Experience publicspeaking in political elections locally and with nominations provincially at the party level.

PETER HOFFMAN; BROKER OF RECORDRoyal LePage Triland Realty, Brokerage, London

Years Registered: 33Area(s) of expertise, committee experience (RECO, real estate, other), additional comments:Broker of Record/Owner of Royal LePage Triland Realty – 5 branch offices – 230 salespeople, President of London & St. ThomasAssociation of Realtors – 1994, RECO – Discipline and Appeals Committee – 2008 – Present, OREA Instructor of Real EstateBrokerage & Management Courses, as well as Phase 1, 2, & 3 Courses – 1982 – 1997, OREA Finance Committee – 1998-2000Chaired the following London & St. Thomas Association Committees: Finance; Education; Data Management; in addition saton the following Committees – Brokers Issues; Key Box; Executive Committee; Vermiculite Task Force; PAC; Privacy Task Force;Community Relations; Land Registry/Assessment; Commercial; Technology; Membership; Rules & Reg Review

GARY HERRON; BROKERColdwell Banker Pinnacle Real Estate, Brokerage, Hamilton

Years Registered: 16Area(s) of expertise, committee experience (RECO, real estate, other), additional comments:Committee Experience:OREA – Member Services – REBBA 2002 Task Force, Realtors Association of Hamilton-Burlington – Former President,Committees – Communications – Professional Standards – Currently Chairperson, Finance, Executive and numerous TaskForcesI have been involved in organized real estate for the past 10 years and would like to continue to give back to our industry. It is important for our industry to ensure consumers are always protected and they are provided the best representationpossible when purchasing what may well be the largest investment of their lives.

Region 2

Spring 2010 Page 15

2010 Election of Directors — Here are your candidatescontinued from page 14

RICHARD A. KOLARI; BROKER OF RECORDNBR R.A. Kolari Realty Inc., Brokerage, Sudbury

Years Registered: 29Area(s) of expertise, committee experience (RECO, real estate, other), additional comments:Real Estate Registrant – 29 years, Broker for 25 years, Board of Directors – Sudbury Real Estate Board – 6 years, Past Presidentof the Sudbury Real Estate Board, Past Region 9 Director for OREA representing Northern Ontario – 2 years. Formerly an OREAInstructor for the Introductory Courses Phases 1,2,3 for approximately 10 years. Currently serving the sixth year as a Region 3Director for RECO. Chaired several RECO Committees, as well as Committee member on several. Currently serving RECO’sEducation Committee and Chair of the Discipline Committee.

JODY LAVOIE; BROKERRoyal LePage Team Realty, Brokerage, Ottawa

Years Registered: 5Area(s) of expertise, committee experience (RECO, real estate, other), additional comments:Arbitration Committee – 2008 + 2009, MLS Committee – 2009 + 2010, OREB Website Task Force – 2009 + 2010, Leadership 100Course 2008; Leadership 200 – 2010, Royal LePage Shelter Foundation Individual of the Year Award – 2008, Creator of the Renovation Challenge, Independent business person for over 10 years.

GEORGE WATSON; BROKERRoyal LePage In Touch Realty Inc., Brokerage, Wasaga Beach

Years Registered: 37Area(s) of expertise, committee experience (RECO, real estate, other), additional comments:RECO registrant since 1973 and a Broker since 1976. Appraiser through Canadian National Ass. Real Estate Appraisers(CNAREA). George Watson Mortgage Brokerage - Owner, Ontario Commercial Council Member (Director), Director GeorgianTriangle Real Estate Board – 1994 to 2009, Past President (2005) 1973 – 1995 – Manager of Real Estate Brokerage, 1995 to2008 – Broker/Owner Royal Lepage Beach & Beyond Realty. Member of RECO Discipline & Appeals Committee. MunicipalCouncillor Town of Wasaga Beach for 7 years.

Region 3

Spring 2010Page 16

Do you have any comments or inquiries about For the RECOrdnewsletter? Please send them to: communications@reco.on.ca.

Real Estate Council Of Ontario 3250 Bloor Street West, Suite 600, East Tower,Toronto, Ontario M8X 2X9 Tel: 416-207-4800 Toll-Free: 1-800-245-6910 Fax: 416-207-4820

Disclaimer: While RECO makes every effort to ensure that theinformation in this publication is current and accurate, RECO does notwarrant or guarantee that it will be free of errors. The informationcontained in this publication is not intended to cover all situations. It isgeneral information only and users/readers are encouraged to seek theirown independent advice for particular fact situations.

Return undeliverable Canadian addresses to: Real Estate Council Of Ontario 3250 Bloor Street West, Suite 600, East Tower, Toronto, Ontario, Canada M8X 2X9PM #40041338

Where to record EFT notations

Make sure that EFT notations are documented in thefollowing ways:• On the deposit section of the Agreement of Purchase • In the brokerage’s deposit book (on a separate page) • The Trade Record Sheet • Upon acceptance, written confirmation from the

brokerage’s financial institution should be obtained

Electronic funds transfers must have paper trail

Electronic banking services are allowing more and morebrokerages to transfer money for real estate transactions quicklyand easily. As a result, it is becoming more common for depositson real estate transactions to be transferred electronically usingElectronic Funds Transfers (EFT).

The use of EFT is a permissible and efficient way to transfermoney for real estate transactions.

Although the Real Estate and Business Brokers Act, 2002 (the Act)does not have rules that deal specifically with EFTs, there arerequirements related to the records that brokerages must keepwhen trust money is received or disbursed.

If a brokerage is contemplating using EFT it is important that thebrokerage be in a position to provide a proper audit trail for eachtransfer in and out of their accounts. This is not only importantfor the brokerage itself, but it is something that RECO inspectorswill review when attending a brokerage.

Required EFT Notations If a brokerage has agreed to receive an electronic deposit, thefollowing requirements must be met:

• It should be noted on the deposit section of theAgreement of Purchase and Sale that the payment willbe in the form of an EFT.

• When a brokerage accepts an EFT trust deposit, thebroker of record should obtain and maintain writtenconfirmation from the brokerage’s financial institution.

• Once the brokerage receives the details of the EFTdeposit they should be documented in the brokerage’sdeposit book (on a separate page) identifying the tradenumber and property address, along with a notation thatit is an EFT.

• The Trade Record Sheet should note the deposit as an EFTand record any bank reference numbers acknowledgingthe same deposit, in addition to the EFT date.

For a more detailed description of the records required for trustmoney transactions, please review section 12, Regulation 579/05of the Act.

The Registrar’s Bulletin on EFT can be found on RECO’s websitein the Publications and Resources section.