Royal Pacific Realty Privacy and Competition Seminar December 10, 2003.

Royal Pacific RealtyRoyal Pacific Realty

Privacy and Competition Privacy and Competition SeminarSeminar

December 10, 2003December 10, 2003

PrivacyPrivacy

The Purpose of Privacy LegislationThe Purpose of Privacy Legislation Who is affectedWho is affected What is personal information?What is personal information? Consent PrinciplesConsent Principles Collection, use and disclosure of Collection, use and disclosure of

personal informationpersonal information Reviews and Complaints for Privacy Reviews and Complaints for Privacy

ViolationsViolations

Purpose of PrivacyPurpose of Privacy

The purpose of the Privacy Act (PIPA) is The purpose of the Privacy Act (PIPA) is to govern the collection, use and to govern the collection, use and disclosure of personal information by disclosure of personal information by organizations in a manner that organizations in a manner that recognizes both the right of individuals recognizes both the right of individuals to protect their personal information to protect their personal information and the need of organizations to and the need of organizations to collect, use or disclose personal collect, use or disclose personal information for purposes that a information for purposes that a reasonable person would consider reasonable person would consider appropriate in the circumstances.appropriate in the circumstances.

Who Is AffectedWho Is Affected

Real Estate SalespeopleReal Estate Salespeople Real Estate CompaniesReal Estate Companies Real Estate Boards and AssociationsReal Estate Boards and Associations

What is Personal InformationWhat is Personal Information

Personal information is defined as Personal information is defined as “information about an identifiable “information about an identifiable individual”. This definition is, for all individual”. This definition is, for all intents and purposes, all encompassing intents and purposes, all encompassing and includes such things as a person’s and includes such things as a person’s race, age, marital status, education, race, age, marital status, education, medical, criminal, employment or medical, criminal, employment or financial history, address and financial history, address and telephone number and details about telephone number and details about real and personal property ownership.real and personal property ownership.

ExamplesExamples Name, address, phone numberName, address, phone number Age, weight, height, healthAge, weight, height, health Ethnic originEthnic origin Occupation, employment historyOccupation, employment history Income, asset, credit & financial informationIncome, asset, credit & financial information Education, educational historyEducation, educational history Marital status, family status, sexual orientationMarital status, family status, sexual orientation Personal views or opinionsPersonal views or opinions Fact that a person has listed his house for saleFact that a person has listed his house for sale Fact that a person has recently purchased a Fact that a person has recently purchased a

househouse

Consent PrinciplesConsent Principles

You can not collect, use or disclose You can not collect, use or disclose personal information unless you have personal information unless you have consentconsent

Consent can be “explicit” (i.e. you Consent can be “explicit” (i.e. you have their direct permission)have their direct permission)

Consent can be “implied” (i.e. you Consent can be “implied” (i.e. you have their implied permission)have their implied permission)

Implied ConsentImplied Consent

Consent is deemed to be given ifConsent is deemed to be given if- the purpose was obvious, and- the purpose was obvious, and- the individual provided the - the individual provided the

information voluntarilyinformation voluntarily Or, Consent is deemed to be given ifOr, Consent is deemed to be given if

- you gave notice- you gave notice- you gave a reasonable opportunity to - you gave a reasonable opportunity to decline consentdecline consent- the individual didn’t specifically - the individual didn’t specifically

declinedecline- there are reasonable circumstances- there are reasonable circumstances

Explicit ConsentExplicit Consent

Consent can be given by asking for it Consent can be given by asking for it and receiving it in writingand receiving it in writing

Examples:Examples: Mr. Smith, may I remain in Mr. Smith, may I remain in touch with you and provide you with touch with you and provide you with additional market information? Please additional market information? Please sign to subscribe to my newsletter list. sign to subscribe to my newsletter list.

The signed “Working with a Real Estate The signed “Working with a Real Estate Agent” Brochure will give Explicit Agent” Brochure will give Explicit ConsentConsent

Consent Not RequiredConsent Not Required

When the information is available to When the information is available to the public (this is expected to include the public (this is expected to include information at Land Titles Office and information at Land Titles Office and BC Assessment Authority Offices)BC Assessment Authority Offices)

When it is required by lawWhen it is required by law When the information has been When the information has been

collected prior to PIPA coming into collected prior to PIPA coming into force (this only applies to the force (this only applies to the collection, not the use).collection, not the use).

Okay, How do I disclose?Okay, How do I disclose?

The Working With a Real Estate Agent The Working With a Real Estate Agent BrochureBrochure

New language:New language:““I consent to the Boards, other I consent to the Boards, other

real estate boards, the Agent and the real estate boards, the Agent and the REALTOR collecting, using and REALTOR collecting, using and disclosing personal information for disclosing personal information for the purposes (and to the recipients) the purposes (and to the recipients) described in the brochure.”described in the brochure.”

What are those purposes?What are those purposes?

Some or all of the following:Some or all of the following: Appraisal purposesAppraisal purposes To list on MLS and to effectively market propertyTo list on MLS and to effectively market property To market through other media (Internet)To market through other media (Internet) To help locate suitable property to buyTo help locate suitable property to buy To facilitate a purchase process and to gather To facilitate a purchase process and to gather

information to do soinformation to do so To enable REBGV to maintain the MLS historic To enable REBGV to maintain the MLS historic

informationinformation To enforce codes of Professional ConductTo enforce codes of Professional Conduct To comply with legal requirementsTo comply with legal requirements

Are any purposes optional?Are any purposes optional?

These additional purposes are optional.These additional purposes are optional. To allow the Realtor to communicate with To allow the Realtor to communicate with

the client in the future to determine if they the client in the future to determine if they require additional real estate servicesrequire additional real estate services

To allow the Realtor to communicate with To allow the Realtor to communicate with the client in the future to determine if they the client in the future to determine if they are interested in other products and are interested in other products and servicesservices

To allow other Realtors to communicate To allow other Realtors to communicate with a client to determine if they require with a client to determine if they require additional real estate servicesadditional real estate services

What about Forms?What about Forms?

Harvey Exner will explain the new forms and how Harvey Exner will explain the new forms and how you can acquire them.you can acquire them.

New Forms to Remember:New Forms to Remember: Working with a Real Estate AgentWorking with a Real Estate Agent Contract of Purchase and SaleContract of Purchase and Sale Multiple Listing ContractMultiple Listing Contract Offer to LeaseOffer to Lease Authority to Lease (listing agreement)Authority to Lease (listing agreement) Exclusive Buyer’s Agency ContractExclusive Buyer’s Agency Contract Fee AgreementFee Agreement Limited Dual Agency AgreementLimited Dual Agency Agreement

Forms On-LineForms On-Line

WEBFORMS will have all new WEBFORMS will have all new document templates for use by the document templates for use by the end of the monthend of the month

www.realtorlink.orgwww.realtorlink.org www.royalpacific.com/intranetwww.royalpacific.com/intranet has all has all

forms in the new format along with forms in the new format along with standard clauses and phrases for most standard clauses and phrases for most contract situations (contract for strata, contract situations (contract for strata, contract for new construction etc.)contract for new construction etc.)

So, What Do I Have to Do?So, What Do I Have to Do?

Become familiar with new Brochure Become familiar with new Brochure and new formsand new forms

Send a letter to your clients and Send a letter to your clients and explain that unless you hear back explain that unless you hear back from them, you will continue to stay from them, you will continue to stay in touch.in touch.

This letter should give them an This letter should give them an option to “opt out”. option to “opt out”.

Complaints and PenaltiesComplaints and Penalties

What does a client do when they are What does a client do when they are unhappy with the use of their personal unhappy with the use of their personal information? What are the information? What are the consequences?consequences?

Discuss matter with company privacy Discuss matter with company privacy officer or the Board’s privacy officer.officer or the Board’s privacy officer.

Make complaint to Privacy CommissionerMake complaint to Privacy Commissioner

remedies – individual fine $10,000remedies – individual fine $10,000

remedies – corporate fine $100,000remedies – corporate fine $100,000

Frequently Asked QuestionsFrequently Asked Questions

Are PIPA and PIPEDA the same thing?Are PIPA and PIPEDA the same thing? What about the information that the Board What about the information that the Board

or my company already has? or my company already has? If I maintain a mailing list of former clients, If I maintain a mailing list of former clients,

and I didn’t get their consent at the time, and I didn’t get their consent at the time, do I have to contact each person and get do I have to contact each person and get them to give me permission to stay in them to give me permission to stay in touch?touch?

What about tenancy information being What about tenancy information being passed to a new owner?passed to a new owner?

Frequently Asked Questions…Frequently Asked Questions…

Does my Errors and Omissions Insurance Does my Errors and Omissions Insurance cover this?cover this?

How long can I or should I keep How long can I or should I keep information?information?

If a client cancels a listing, do I have to If a client cancels a listing, do I have to destroy all of their information?destroy all of their information?

Should I allow potential buyers to take Should I allow potential buyers to take pictures of the inside of one of my listings?pictures of the inside of one of my listings?

What about personal information that I What about personal information that I have in a file but the file is stolen or lost?have in a file but the file is stolen or lost?

Your QuestionsYour Questions

Competition ComplianceCompetition Compliance

Do’s and Don’ts For Do’s and Don’ts For Complying With Canadian Complying With Canadian

Competition LawCompetition Law

Why are We Talking About This Why are We Talking About This Now?Now?

New Business Models are emergingNew Business Models are emerging

The Internet has allowed customers greater The Internet has allowed customers greater access to information (VOW’s, MLS.ca etc)access to information (VOW’s, MLS.ca etc)

Active real estate markets bring hopeful Active real estate markets bring hopeful sellers looking to save moneysellers looking to save money

REALTOR’S HAVE FORGOTTEN REALTOR’S HAVE FORGOTTEN THE RULES AND PENALTIESTHE RULES AND PENALTIES

Material in Your PackageMaterial in Your Package

CREA Competition Video / CDCREA Competition Video / CD

CREA Competition Compliance GuideCREA Competition Compliance Guide

Information about REBGV Information about REBGV Competition ContestCompetition Contest

New Independent Contract with New Independent Contract with Royal Pacific RealtyRoyal Pacific Realty

The Basic PrinciplesThe Basic Principles

Don’t Collude. Make independent Don’t Collude. Make independent business decisions without discussion business decisions without discussion or consultation with competitors.or consultation with competitors.

Don’t discriminate against or refuse Don’t discriminate against or refuse to do business with competitors or to do business with competitors or other persons because of their other persons because of their pricing policiespricing policies

Don’t mislead the public in your Don’t mislead the public in your advertising.advertising.

Slippery SlopesSlippery Slopes

““I’d like to lower the commission but I’d like to lower the commission but most Realtors using the MLS will see the most Realtors using the MLS will see the lower amount and won’t show the listing”lower amount and won’t show the listing”

““Before you give your listing to Before you give your listing to ‘‘Discount Discount DaveDave’’ you should know that most people you should know that most people aren’t going to show his listings”aren’t going to show his listings”

Why should I pay them when they sell Why should I pay them when they sell my listing, when they are unwilling to my listing, when they are unwilling to pay me the same amount.pay me the same amount.

More Slippery SlopesMore Slippery Slopes

The best way to deal with ‘The best way to deal with ‘Discount Discount DaveDave’ is to not show or sell his listings.’ is to not show or sell his listings.

He’s an out of area Realtor, so we He’s an out of area Realtor, so we really don’t have to cooperate with really don’t have to cooperate with him…let’s just ignore his listing. him…let’s just ignore his listing. Eventually the seller will be forced to Eventually the seller will be forced to list with one of us.list with one of us.

The Board shouldn’t allow Realtors to The Board shouldn’t allow Realtors to list property on MLS without a fair list property on MLS without a fair remuneration to the selling Realtor.remuneration to the selling Realtor.

What Can Happen?What Can Happen?

The video showed how the The video showed how the Competition Bureau can be listening Competition Bureau can be listening to you in your everyday business. to you in your everyday business. They are calling you!They are calling you!

They can seize your documents, They can seize your documents, computers and cause you years of computers and cause you years of grief and legal cost.grief and legal cost.

They can send you to jail and fine you.They can send you to jail and fine you.

What Has Happened?What Has Happened?

Royal LePage, Alberta was fined, their Royal LePage, Alberta was fined, their regional manager was found guilty of regional manager was found guilty of conspiracy and was nearly sent to jail conspiracy and was nearly sent to jail for saying the following:for saying the following:

““We’ll pay you what you pay us.”We’ll pay you what you pay us.” Fraser Valley Real Estate Board was Fraser Valley Real Estate Board was

investigated at a cost of $3+ million to investigated at a cost of $3+ million to their members.their members.

So What’s Brewing?So What’s Brewing?

Alternate business models – companies Alternate business models – companies that place listings on MLS but offer little that place listings on MLS but offer little or no commission to buyer’s agents.or no commission to buyer’s agents.(company names shall remain nameless)(company names shall remain nameless)

VOW’s allow clients full access to MLS VOW’s allow clients full access to MLS data without having to ever meet the data without having to ever meet the RealtorRealtor

Inter-Board disputes (Vancouver Realtors Inter-Board disputes (Vancouver Realtors listing property on Vancouver Island and listing property on Vancouver Island and other areas)other areas)

Your Contract with Royal PacificYour Contract with Royal Pacific

New Section - #3New Section - #3Six Points you must agree with the companySix Points you must agree with the company

1.1. You will not price fix or try to price You will not price fix or try to price maintainmaintain

2.2. You will treat all competitor companies You will treat all competitor companies the samethe same

3.3. You will not discuss the prices that Royal You will not discuss the prices that Royal Pacific charges with other RealtorsPacific charges with other Realtors

Your Contract with Royal PacificYour Contract with Royal Pacific

4.4. You will not disparage our You will not disparage our competitors when competing for a competitors when competing for a listing - Royal Pacific’s fees are based listing - Royal Pacific’s fees are based solely on the value of services offeredsolely on the value of services offered

5.5. You will not pressure advertising You will not pressure advertising companies (newspapers etc.) to companies (newspapers etc.) to boycott or deny advertising by boycott or deny advertising by competitorscompetitors

6.6. You will immediately seek advice You will immediately seek advice from management, when in doubt.from management, when in doubt.

Your Contract with Royal PacificYour Contract with Royal Pacific

New Section 5New Section 5

You will not publicly advertise You will not publicly advertise discounted commission plans that discounted commission plans that you may offer your clients.you may offer your clients.

Frequently Asked QuestionsFrequently Asked Questions

Do I have to show my buyer-clients the Do I have to show my buyer-clients the listings of a discount broker if I am not listings of a discount broker if I am not going to be paid a fair commission?going to be paid a fair commission?

Can I ask for more money if the buyer’s Can I ask for more money if the buyer’s agent’s portion is not enough?agent’s portion is not enough?

Can I adjust the commission available to Can I adjust the commission available to selling brokers prior to the offer being selling brokers prior to the offer being presented?presented?

Frequently Asked QuestionsFrequently Asked Questions

Why does ‘Why does ‘Discount DaveDiscount Dave’ get away ’ get away with advertising that his rates are with advertising that his rates are lower than the rest of the real estate lower than the rest of the real estate companies, and that his clients save companies, and that his clients save thousands of dollars $$$?thousands of dollars $$$?

Your QuestionsYour Questions

Thank You’sThank You’s

Brian Taylor – Partner, Bull Houser and Brian Taylor – Partner, Bull Houser and TupperTupper

Harvey Exner – Manager, Member Service, Harvey Exner – Manager, Member Service, Real Estate Board of Greater VancouverReal Estate Board of Greater Vancouver

Bob Wallace – Executive Officer, Real Estate Bob Wallace – Executive Officer, Real Estate Board of Greater VancouverBoard of Greater Vancouver

Our Visiting Guests – Members of Board of Our Visiting Guests – Members of Board of Directors of REBGVDirectors of REBGV