Embracing Self-Regulation and Increasing Professionalism

Less than a year and a half into the Real Estate Council of Alberta’s (RECA) five-year strategic plan, and already, we are seeing evidence of industry professionals taking greater responsibility for their role in self-regulation.

Advancing the professionalism of the industry needs to include members taking ownership for and understanding of self-regulation. A priority for Council, and a way in which industry members can raise professionalism, is by “reinforcing the importance of consistency between the practices of real estate brokers and the type of representation relationships established through written or implied service arrangements with consumers” as a priority.

RECA is encouraging real estate brokers to review their brokerage’s chosen relationship model, the documentation used in the brokerage and the practice of the industry professionals registered with the brokerage to ensure consistency throughout all three elements. Many real estate brokers have responded to this challenge and, through their review, have determined relationship practices and documentation have not always aligned with their chosen model. In particular, when common law brokerages represent both parties in a trade in real estate, the practice of industry professionals has often been more closely aligned with designated agency. As a result, more and more brokers have transitioned their brokerage relationship model and their documentation to designated agency.

The number of industry professionals registered with designated agency brokerages has grown to almost 1,500 or slightly more than 13% of all real estate practitioners in Alberta. By the end of March 2013, we expect that number will have grown further, to more than 2,000, or roughly 17.5% of all Alberta real estate industry professionals.

This is just one example of how well self-regulation is working in Alberta’s real estate industry. Hats off to the industry professionals who have reviewed their relationship practices and have addressed inconsistencies.

RECA’s real estate practice advisor, Doug Dixon, is available to meet with brokers to discuss these issues and to assist, as the case may be, in implementing changes.

If you are one of the brokers – or industry professionals – who has recently started practicing within a designated agency model, what led you to make the switch?