REIC Exchange: Summer 2015

Real Estate Institute of Canada

EXCHANGE 2015 August

www.reic.ca

TAP INTO YOUR REIC NETWORK OF PEERS REIC Launches Member Networking Video

INSIDE REIC News Celebrating 60 Years of Professionalism Pursuit of Excellence Award Recipients REIC Membership Milestones Looking Beyond Local Markets Principles of Successful Investing My Path to an Engaging Career ...and more

INSIDE THIS ISSUE

INSIDE THIS ISSUE

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NOUVELLES DE L'ICI 4

MESSAGE FROM THE PRESIDENT 5 MESSAGE DE LA PRÉSIDENTE

CELEBRATING 60 YEARS 6 OF PROFESSIONALISM DE 60 ANS DE 8 CÉLÉBRATION PROFESSIONNALISME 12 REIC NATIONAL BOARD 14 LOOKING BEYOND LOCAL MARKETS PEER EXPERTISE 13 PRINCIPLES OF SUCCESSFUL INVESTING 16 THINK LIKE A LAWYER - ACT LIKE 17 A LEASING GURU REIC AWARD RECIPIENTS 19 CELEBRATED IN VANCOUVER RÉCIPIENDAIRES DES PRIX DE L'ICI HONORÉS À VANCOUVER REIC MEMBERSHIP MILESTONES 20 ÉTAPES DES MEMBRES DE L'ICI MY PATH TO AN ENGAGING CAREER 22 RESERVE FUND STUDIES 23 OPPORTUNITIES FOR REIC MEMBERS

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REIC NEWS

REIC Exchange, August 2015

PRESIDENT Candace Le Roux, CPM®, ARM® VICE PRESIDENT Don Kottick, FRI, CRES SECRETARY/TREASURER Winson Chan, FRI, CRES EXECUTIVE DIRECTOR AND CEO Maura McLaren, CAE EDITOR Pam Seran-Wallace, Manager Communications and Marketing ABOUT REIC

REIC is a provider of advanced education and designation programs to professionals in the real estate industry. With 11 Chapters across Canada, we have been educating and certifying professionals since 1955.

208-5407 Eglinton Avenue West Toronto, ON M9C 5K6 Tel: 416-695-9000 or 1-800-542-7342 Fax: 416-695-7230 www.reic.ca

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5255 Yonge St., Suite 1000 Toronto, Ontario M2N 6P4 E-mail: info@mediaedge.ca Tel: 416-512-8186 Fax: 416-512-8344

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VISIT US ONLINE /reicnational Real Estate Institute of Canada - REIC @reicnational

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REIC NEWS

REIC NEWS REIC’S CONSUMER AND BEHAVIOUR COURSE GOES ONLINE Online learning is ideal for busy professionals who find it hard to schedule time for classroom instruction. We are pleased to announce that REIC’s Consumer Behaviour and Negotiating course (REIC 2270) went online early in July. Offered in partnership with the University of Fredericton, the online course brings the same content and high value as the in-class session. Students can register for the course at any time and study at their convenience. REIC is committed to providing alternative and flexible learning options to REIC students and Members. REIC’s Ethics and Business Practice course (REIC 2600) has been offered online for over a year. Additional courses are scheduled to go online later in 2015 through to 2016.

REIC CELEBRATES 60 YEARS OF PROFESSIONALISM Did you know the Institute was initially called the Canadian Institute of Realtors (CIR) when it was founded in 1955? REIC has undergone many changes over the past 60 years, but has remained steadfast in its mission to advance professionalism in the real estate industry.

Visit the REIC website (www.reic.ca/About/History) for facts that touch on REIC’s 60-year journey.

REIC formally celebrated its 60th anniversary at the 2015 Annual Conference and AGM in Vancouver. In recognition of this diamond milestone, conference attendees received a 60th anniversary pin and a group picture in a silver frame embossed with the 60th anniversary logo.

REIC RELEASES NEW EDUCATION POLICY MANUAL As part of our effort to demonstrate consistency, fairness and transparency in our interaction with students and Members, REIC has formalized its education policies regarding registrations, accessibility, cancellations, grades, evaluations, faculty, and more.

The new Education Policy Manual serves as a single point of reference that outlines the Institute's policies and provides an explanation on the interpretation and implementation of these policies. Of greatest relevance, the manual formalizes the terms and conditions for student initiated course registration cancellations. The document sets out the administration fees for course cancellations from students according to the proximity to the date of the course.

The manual is posted on the REIC website under the Course main navigation menu. There is also a link to the manual from the course registration page.

REIC LAUNCHES MEMBER REFERRAL CAMPAIGN When it comes to real estate, REIC Members can sell it, lease it, manage it and finance it! REIC has created an entertaining video

that promotes the real estate speciality sectors REIC Members represent. The video shows how an REIC member is able to solve the various real estate challenges presented by his clients (and there are a lot!) when he taps into his vast network of REIC professionals.

REIC members received an email announcing the video and a link to the video which is housed on the REIC YouTube page.

Members are encouraged to link the video to their website and social media pages to promote their credentials and demonstrate their skills and expertise.

A slider on the REIC website reminds Members and visitors to use the Find a Member online directory to source and locate an REIC professional for their real estate needs.

The Find a Member directory feature has been enhanced to facilitate and encourage business referrals. A Member-Only discussion forum, REIC Connect, is also available for member networking, knowledge exchange, and business referrals.

REIC CREATES NEW PARTNERSHIP AGREEMENT WITH IRES REIC and IRES have signed a Memorandum of Understanding creating a new partnership agreement between the two organizations.

REIC is now responsible for all administrative aspects of the program.

Course material is being updated and reformatted to reflect current practices and adult education theories. Scott Fischer, CRP, will continue to instruct the courses as well as oversee course revisions.

The new agreement allows each partner to maximize their strengths and take the CRP designation to the next level.

HOME STUDY COURSE MATERIALS GO DIGITAL Students enrolling in home-study courses are now being provided with course materials on a USB flash drive. This is being done to address student requests to have the materials in a digital format.

Students can request to have a hard copy sent to them for $50 (includes shipping by Canada Post).

IREM COURSE EXAMS NOW CONDUCTED ONLINE The majority of IREM course exams are now completed online.

Students who register for in-class or home-study courses each receive email instructions on how to access and complete the test. Once a student logs in to the online exam, they have two hours to complete each exam. Exam results are provided to the student immediately after they have completed the course evaluation. The transition to the new online system has been well received. ...continued on page 12 www.reic.ca

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NOUVELLES DE L'ICI

NOUVELLES DE L'ICI LE COURS COMPORTEMENT DU CONSOMMATEUR DE L'ICI SERA DISPONIBLE EN LIGNE L'apprentissage en ligne est idéal pour les professionnels occupés qui ont de la difficulté à trouver du temps pour de la formation en classe. Nous avons le plaisir d'annoncer que le cours Comportement du consommateur et négociation (REIC 2270) de l'ICI est disponible en ligne depuis le début du mois de juillet. Offert en partenariat avec l'Université de Fredericton, le cours en ligne présente le même contenu et valeur élevée que la formation en classe. Les élèves peuvent s'inscrire au cours en tout temps et étudier quand cela leur convient. L'ICI s'engage à offrir des méthodes de formation différentes et flexibles aux étudiants et membres de l'ICI. Le cours Éthique et conduite professionnelle (REIC 2600) de l'ICI est offert en ligne depuis plus d'un an. D'autres cours devraient être offerts en ligne plus tard en 2015 et en 2016.

L'ICI CÉLÈBRE 60 ANS DE PROFESSIONNALISME Saviez-vous que l'Institut portait à l'origine le nom de Canadian Institute of Realtors (CIR) lorsqu'il a été fondé en 1955? L'ICI a connu de nombreux changements au cours des 60 dernières années, mais n'a jamais dérogé de sa mission de contribuer à l'évolution du professionnalisme dans l'industrie immobilière. Visitez le site Web de l'ICI (www.reic.ca/About/History) pour apprendre des faits touchant aux 60 ans d'histoire de l'ICI. L'ICI a célébré officiellement son 60e anniversaire lors de la conférence et l'assemblée générale annuelle 2015 de Vancouver. Pour témoigner de ce jubilé du diamant, les participants à la conférence ont reçu une épinglette du 60e anniversaire et une photo de groupe dans un cadre en argent avec logo du 60e anniversaire en relief.

L'ICI PUBLIE LE NOUVEAU MANUEL DE LA POLITIQUE EN MATIÈRE D’ÉDUCATION Dans le cadre de nos efforts visant à démontrer impartialité, transparence et conformité dans toutes nos interactions avec les étudiants et les membres, l'ICI a officialisé sa politique en matière d'éducation en ce qui a trait aux inscriptions, à l'accessibilité, aux annulations, aux diplômes, aux évaluations, aux formateurs, et plus.

Le nouveau Manuel de la politique en matière d’éducation sert de point de référence unique décrivant les politiques de l'Institut et fournit une explication sur l'interprétation et la mise en oeuvre de ces politiques. Le manuel officialise les modalités et conditions pour l'annulation des inscriptions aux cours à l'initiative des étudiants. Il énonce les frais d'administration pour une annulation de cours par l'étudiant en fonction de la proximité de la date du cours.

Le manuel est publié sur le site Web de l'ICI sous l'onglet « Cours » du menu de navigation principal. Un lien vers le manuel est également fourni dans la page d'inscription au cours.

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REIC Exchange, August 2015

L'ICI LANCE LA CAMPAGNE DE RÉFÉRENCES DE MEMBRES Dans le domaine de l'immobilier, les membres de l'ICI peuvent vendre, louer, gérer et obtenir le financement d'immeubles! L'ICI a créé une vidéo divertissante faisant la promotion des secteurs immobiliers spécialisés que représentent les membres de l'ICI. La vidéo illustre comment un membre de l'ICI peut résoudre les divers défis associés à ses clients (et il y en a beaucoup!) lorsqu'il fait appel à son vaste réseau de professionnels de l'ICI. Les membres de l'ICI ont reçu un courriel annonçant la vidéo et un lien vers celle-ci, disponible sur la page YouTube de l'ICI. Les membres sont invités à offrir un lien vers cette vidéo sur leur site Web et leurs pages de médias sociaux pour faire la promotion de leurs titres et démontrer leurs compétences et leur expertise.

Le site Web de l'ICI rappelle aux membres et aux visiteurs d'utiliser le répertoire en ligne Trouver un membre pour repérer un professionnel de l'ICI pouvant répondre à leurs besoins en immobilier.

Le répertoire Trouver un membre a été amélioré pour faciliter et favoriser les références professionnelles. Un forum de discussion destiné aux membres seulement, « Connect », permet aux membres de faire du réseautage, de partager des connaissances et des références professionnelles.

L'ICI SIGNE UN NOUVEL ACCORD DE PARTENARIAT AVEC L'IRES L'ICI et l'IRES ont signé un protocole d'entente créant un nouvel accord de partenariat entre les deux organisations. L'ICI est maintenant responsable de tous les aspects administratifs du programme. Le matériel du cours a été mis à jour et reformaté afin de refléter les pratiques et théories actuelles sur l'éducation des adultes. Scott Fischer, CRP, continuera d'offrir la formation et de superviser les révisions aux cours. Le nouvel accord permet à chaque partenaire de maximiser ses forces et de porter la désignation CRP au niveau suivant.

LE MATÉRIEL DE COURS À DOMICILE EST OFFERT EN FORMAT NUMÉRIQUE Les étudiants qui s'inscrivent aux cours à domicile reçoivent maintenant le matériel du cours sur une clé USB, afin de répondre à la demande des étudiants d'obtenir le matériel en format numérique.

Les étudiants peuvent demander qu'une copie papier leur soit envoyée pour une somme de 50 $ (comprend les coûts de l'expédition par Postes Canada).

EXAMENS DES COURS DE L'IREM MAINTENANT EN LIGNE La plupart des examens des cours de l'IREM sont maintenant effectués en ligne. Les étudiants qui s'inscrivent à un cours en classe ou à domicile reçoivent des instructions par courriel pour accéder à ...suite à la page 12

MESSAGE FROM THE PRESIDENT

PRESIDENT’S MESSAGE MESSAGE DE LA PRÉSIDENTE After serving on the National Board of Directors, I am honoured to be taking on the role of President of REIC. It gives me great pleasure to be representing such an incredible community of over 1800 members nationally. Our Past-President, Ron Penner, deserves an enormous thank you from all of us for guiding the Institute so astutely. He has been a terrific role model and his shoes will be hard to fill.

Après avoir fait partie du Conseil d’administration national, je suis honorée d'accepter le rôle de présidente de l'ICI. Cela me fait très plaisir de représenter cette belle communauté de plus de 1 800 membres à l'échelle nationale. Notre président sortant, Ron Penner, mérite toute notre reconnaissance pour avoir guidé l'Institut de manière aussi avisée. Il a été un excellent modèle à suivre et il ne sera pas facile à remplacer.

We had an incredibly successful Annual Conference and AGM in Vancouver in May. The new three-day format proved to be a busy, informative and fun-filled event. We were especially blessed with great weather during our excursion to Grouse Mountain. What an incredible time we had exploring the attractions and taking in the spectacular views.

La conférence et l'assemblée générale annuelle de Vancouver de mai ont obtenu un succès retentissant. Le nouveau format de trois jours a été bien rempli, intéressant et agréable. Nous avons été particulièrement choyés par la température lors de notre excursion à la montagne Grouse. Nous avons eu énormément de plaisir à explorer les attractions et apprécier les paysages spectaculaires.

We officially marked REIC’s 60th anniversary during the conference. While so much has changed over the years, our mission has remained the same – to advance professionalism in the real estate industry. Currently there is a strong focus on building partnerships with boards and associations across Canada that champion advanced education and professional development to increase our market presence.

Nous avons souligné officiellement le 60e anniversaire de l'ICI pendant la conférence. Si bien des choses ont changé au cours des soixante dernières années, notre mission demeure la même : contribuer à l'évolution du professionnalisme dans l'industrie immobilière.

Actuellement, nous tentons d'établir des partenariats avec des chambres et associations de partout au Canada, qui soutiennent l'éducation supérieure et le perfectionnement professionnel pour augmenter notre présence sur le marché.

Connecting within our internal networks is equally important.

Within the REIC membership we have a vast network of experts in all disciplines of real estate. When it comes to real estate, REIC members can sell it, lease it, manage it and finance it! Let’s use this network to share knowledge, discuss best practices, and network for business referrals!

Growing our networks is important to all of our best interests.

Happy networking!

Candace Le Roux, CPM®, ARM® REIC National President

Il est tout aussi important de rester en contact avec nos réseaux internes. Les membres de l'ICI regroupent un vaste réseau d'experts dans toutes les disciplines immobilières. Ils peuvent vendre, louer, gérer et obtenir le financement d'immeubles! Mettons à profit ce réseau pour partager des connaissances, discuter des pratiques exemplaires et réseauter pour obtenir des références de clients!

L'élargissement de nos réseaux est dans le meilleur intérêt de chacun. Bon réseautage!

Candace Le Roux, CPM®, ARM® Présidente nationale de l’ICI

www.reic.ca

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2015 REIC ANNUAL CONFERENCE

CELEBRATING 60 YEARS OF PROFESSIONALISM 2015 Annual Conference and AGM

By Eugene Korneluk, CPM®

Gorgeous Vancouver served as this year’s backdrop to REIC’s 2015 Annual Conference and AGM, Celebrating 60 Years of Professionalism. Streamlined into a new three-day format, the event was packed with workshops, speakers, networking, knowledge exchange, and fun.

Building strong chapters was the topic at the IREM Chapter Best Practices workshop led by IREM President-elect Chris Mellen, CPM®. The session included a panel discussion on successful chapter initiatives. We heard about the Saskatchewan Chapter’s use of webinar technology to overcome travel cost funding restrictions that have affected members and consequently chapter events; the Manitoba Chapter’s successful annual Forecast Luncheon which draws over 230 guests and generates $6,500 in profit; and the Toronto Chapter’s Industry Leader Series which brings in big-name industry executives to talk about their leadership and career successes.

Successful leaders are those that skillfully manage people, not tasks. The IREM Leadership workshop identified sixteen core leadership competencies and key behaviours that real estate industry professionals need to master to be effective leaders.

Workshop leader, IREM Past President Joe Greenblatt, CPM also provided insight into what it takes to be a good leader and how to get started on the leadership development journey.

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2015 REIC ANNUAL CONFERENCE

The conference provided attendees with opportunities to share information, and regional news and updates at a Sector Roundtable session (where members broke into groups by designation) and at Chapter Chat Live.

We were entertained, motivated and inspired by keynote speaker Ryan Walter. A former NHL player and coach for over 25 years, Ryan shared his secret to success. He described how channelling your emotional energy to fuel your passion can bring incredible results. Ryan encouraged us to frame-in what you want more of and frame out what you want less of. We were thrilled when Ryan let us try on his Stanley Cup ring. Of course it was too big for most of us!

Real estate investment forecaster, Ozzy Jurock, FRI, provided us with the ins and outs of real estate investing and market forecasts. Ozzie’s position is that the flow of foreign investors to Canada and rising immigration are pushing up demand, process and inflation. He also entertained us with stories of his own investment journey. Social media guru Rebecca Mountain covered the four pillars of social media for building your business. There’s no denying that social media has become an essential business tool.

At the Annual General Meeting the new 2015-2016 National Board of Directors was sworn in. We were given a preview of a new REIC video reminding REIC members that we are part of a trusted referral network that crosses geographic regions and all real estate sectors. We can use our network for information sharing and business referrals to advance our business / careers.

Everyone was encouraged to update their online profile at REIC with pictures and professional details.

The conference provided many opportunities to informally network with fellow attendees at breaks, dinners, and lunches.

The main social event included a trip to the top of Grouse Mountain and a ride on the gondola that gave us spectacular views of Vancouver. Delegates enjoyed free time to walk and tour the many attractions on this popular tourist destination.

We also marked REIC’s 60th anniversary at a reception atop the mountain with refreshments and a fun quiz on REIC’s history.

Winson Chan, FRI, won the prize for getting the most right answers!

We dressed up and put on the glitz for the REIC Pursuit of Excellence Awards gala on the last night of the conference. Formal attire and jewels complemented the diamond anniversary theme.

The awards gala was hosted by Kate Gajdosik of Global News TV who was both gracious and entertaining. Congratulations to all the award recipients. You make me proud to be an REIC member.

Vancouver and the conference may be miles away now but the learning and connections we made live on. I’ve already marked my calendar for next year’s annual conference taking place in Ottawa June 7-9, 2016. Mark your calendars too! 

Eugene Korneluk, CPM® is with the Asset and Facilities Management Services, Public Works and Government Services Canada - Ontario Region. Email: eugene.korneluk@pwgsc-tpsgc.gc.ca www.reic.ca

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CONFÉRENCE ANNUELLE 2015

CÉLÉBRATION DE 60 ANS DE PROFESSIONNALISME Par Eugene Korneluk, CPM®

Cette année, la magnifique ville de Vancouver a été le théâtre de la conférence et de l'assemblée générale annuelle 2015 de l'ICI, Célébration de 60 ans de professionnalisme. Écourté dans un nouveau format de trois jours, l'événement a offert des ateliers, des conférenciers, du réseautage, un partage de connaissances et du plaisir à profusion.

La consolidation des sections locales était le sujet de l'atelier sur les meilleures pratiques des sections locales animé par le président élu de l'IREM, Chris Mellen, CPM®. La séance a inclus des discussions portant sur les initiatives fructueuses des sections locales. Nous avons été informés que la section locale de la Saskatchewan utilise les webinaires pour surmonter les restrictions de coûts de déplacement ayant touché les membres et, par conséquent, les activités de la section locale; que la section locale du Manitoba organise un déjeuner-causerie des prévisions annuel qui attire plus de 230 invités et génère 6 500 $ de profits; et de la Série des chefs de file de l'industrie de la section locale de Toronto, qui regroupe des dirigeants de l'industrie qui discutent de leur leadership et leurs réussites professionnelles.

Les dirigeants qui réussissent sont ceux qui parviennent à gérer les personnes, et non les tâches. L'atelier de l'IREM à l'intention des dirigeants a identifié seize compétences et comportements clés en leadership que les professionnels de l'industrie immobilière doivent maîtriser pour être des leaders efficaces. L'animateur de l'atelier, l'ancien président de l'IREM, Joe Greenblatt, CPM, a aussi expliqué ce qui est nécessaire pour être un bon chef et comment amorcer le développement de son leadership.

La conférence a permis aux participants de partager de l'information et des nouvelles et mises à jour régionales lors d'une table ronde (pendant laquelle les membres se sont divisés en groupes par désignation) et d'un dialogue en ligne des sections locales. Les deux séances sont populaires auprès des délégués à la conférence.

Nous avons été divertis, motivés et inspirés par le conférencier principal Ryan Walter. Ancien joueur de la LNH et entraîneur depuis plus de 25 ans, Ryan a partagé le secret de sa réussite. Il a décrit comment le fait de canaliser votre énergie pour alimenter votre passion peut donner des résultats remarquables. Ryan nous a 8

REIC Exchange, August 2015

CONFÉRENCE ANNUELLE 2015

encouragés à déterminer ce que nous voulons le plus et éliminer ce que nous voulons le moins. Nous avons été enchantés que Ryan nous permette d'essayer sa bague de la Coupe Stanley. Évidemment, elle était trop grande pour la plupart d'entre nous!

Le prévisionniste des investissements immobiliers, Ozzy Jurock, FRI, nous a fourni les tenants et aboutissants de l'investissement immobilier et des prévisions du marché.

Ozzie croit que le flux d'investisseurs étrangers au Canada et l'immigration en hausse accroissent la demande, les processus et l'inflation. Il nous a également divertis avec le récit de ses propres investissements. La gourou des médias sociaux Rebecca Mountain a traité des quatre piliers des médias sociaux pour développer vos affaires. Il ne fait aucun doute que les médias sociaux sont devenus un outil commercial essentiel.

Lors de l'assemblée générale annuelle, le nouveau conseil d'administration national 2015-2016 a été assermenté. On nous a remis une nouvelle vidéo rappelant aux membres de l'ICI que nous faisons partie d'un réseau de référencement digne de confiance qui transcende les frontières géographiques et tous les secteurs de l'immobilier. Nous pouvons faire appel à notre réseau pour partager de l'information et des références professionnelles pour faire progresser notre carrière et développer nos affaires.

Chacun a été encouragé à mettre à jour son profil en ligne de l'ICI en ajoutant des photos et des détails professionnels.

La conférence a fourni de nombreuses occasions de réseauter de manière informelle avec d'autres participants lors des pauses, soupers et dîners. L'événement principal comprenait un voyage au sommet de la montagne Grouse et un trajet dans les gondoles qui nous a offert une vue spectaculaire de Vancouver.

Les délégués ont pu visiter les nombreuses attractions de cette destination touristique populaire. Nous avons aussi souligné le 60e anniversaire de l'ICI au cours d'une réception au sommet de la montagne avec des rafraîchissements et un questionnaire amusant sur l'histoire de l'ICI. Winson Chan, FRI, a gagné un prix pour avoir fourni le plus de bonnes réponses!

Nous nous sommes mis sur notre trente-et-un pour le gala des prix En quête de l'excellence de l'ICI le dernier soir de la conférence. Une tenue formelle et des bijoux complétaient le thème du 60e anniversaire. Le gala était animé par Kate Gajdosik de Global News TV, qui s'est montrée courtoise et divertissante.

Félicitations à tous les récipiendaires! Vous me rendez fier d'être membre de l'ICI. Vancouver et la conférence ne sont déjà qu'un souvenir, mais les apprentissages et les rencontres que nous y avons vécus persistent. J'ai déjà indiqué sur mon calendrier la date de la conférence de l'an prochain qui aura lieu à Ottawa, du 7 au 9 juin 2016. Notez-la aussi sur votre calendrier!  Eugene Korneluk, CPM®, travaille à Direction des services de gestion des biens et des installations de Travaux publics et Services gouvernementaux Canada - Région de l'Ontario. Courriel : eugene.korneluk@pwgsc-tpsgc.gc.ca www.reic.ca

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2015 REIC ANNUAL CONFERENCE

2015 ANNUAL CONFE

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CONFÉRENCE ANNUELLE 2015

REIC ERENCE & AGM

www.reic.ca

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MEET YOUR NEW BOARD

REIC NATIONAL

2014-2015 BOARD OF DIRECTORS

BACK ROW (L-R): Bruce Bassett , CRF; Steve Kincade, CPM®; Candace Le Roux, CPM® ARM®, President; Winson Chan, FRI CRES; Ron Penner, CPM® CRP; Johnmark Roberts, FRI.

FRONT ROW (L-R): Walter Lui, FRI, CPM® CRES; Joedi Pruden, FRI(E); Don Kottick, FRI CRES; Lindsay Carlson, FRI CRES.

...continued from page 3

...suite de la page 4

REIC COURSES UNDERGOING REVISIONS Successful courses require careful planning and continual revisions. REIC is committed to undertaking regular reviews and revisions of its courses. The Leasing Process & Negotiation (REIC 2360) and Documentation in Commercial Leasing (REIC 2361) courses are currently being reviewed for content update requirements. The Legal Issues course (REIC 2280) is being reviewed to determine if new content and structure is required and the Elements of Mortgage Management course (REIC 2351) will be reviewed later this year. All IREM courses are undergoing updates to reflect ongoing revisions by IREM.

l'examen et l'effectuer. Lorsqu'un étudiant accède à l'examen en ligne, il dispose de deux heures pour le terminer. Les résultats de l'examen sont communiqués à l'étudiant immédiatement après avoir répondu à l'évaluation du cours. La transition au nouveau système en ligne a été bien accueillie.

REIC FACULTY RATE HIGHLY REIC faculty consistently rank highly with students for their delivery, student engagement and knowledge base.

REIC courses scored an average of 95 percent in level of satisfaction, with IREM courses scoring an average of 97 percent. The high success average is due to the experience level of our instructors and their passion to share their knowledge with others. If you are interested in joining this elite group of instructors, please contact REIC Director of Education and Business Development Lesley Lucas, CAE at lesley.lucas@reic.com. 

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REIC Exchange, August 2015

RÉVISIONS AUX COURS DE L'ICI Des cours efficaces exigent une planification minutieuse et des révisions continues.

L'ICI s'engage à réviser régulièrement ses cours. Les cours Processus de location et négociation (REIC 2360) et Documentation de la location de locaux commerciaux (REIC 2361) sont en cours de révision pour répondre aux besoins de mise à jour du contenu. Le cours Questions juridiques (REIC 2280) est en cours de révision pour déterminer si un nouveau contenu et structure sont nécessaires et le cours Éléments de gestion des prêts immobiliers (REIC 2351) sera révisé cette année.

Tous les cours de l'IREM sont révisés pour refléter les révisions de l'IREM. LES FORMATEURS DE L'ICI OBTIENNENT UN TRÈS BON RÉSULTAT Les formateurs de l'ICI obtiennent régulièrement un classement très favorable des étudiants pour leur enseignement, leur capacité à stimuler l'intérêt des étudiants et leurs connaissances. Les formateurs des cours de l'ICI ont obtenu en moyenne 95 % au chapitre de la satisfaction, alors que les formateurs des cours de l'IREM ont obtenu 97 %. Ce taux de succès élevé est dû au niveau d'expérience de nos formateurs et à leur passion de partager leurs connaissances. Si vous souhaitez vous joindre à ce groupe sélect de formateurs, veuillez communiquer avec Lesley Lucas, Directeur de la formation et du développement des affaires, à l'adresse lesley.lucas@reic.com. 

PEER INTELLIGENCE

PEER EXPERTISE Who do you trust for real world advice?

Even the most experienced professional needs advice. When you need help in making a critical business decision or real estate transaction, you know you can tap into your REIC network of peers. REIC membership creates instant recognition and respect.

REIC represents one of the most experienced “been there, done that” network of professionals covering all disciplines of the real estate industry.

There are many ways to leverage REIC Member expertise: • REIC’s Find a Member online directory helps locate members by area of designation and expertise, as well as market region.

• REIC Connect - a secure Member-Only online forum for information sharing on our discussion boards.

• Face to face networking at Chapter and National events • Knowledge Now – online website resources

REIC’s video, Sam and Marie’s Big Move, promotes the benefits of leveraging member expertise. Visit the REIC YouTube Channel (REICNational) to view the video.

“

As a member of REIC, I have benefitted from professional fellowship and quality business referrals from coast to coast.

”

Saadat Kashavjee, CPM®, CMOC

Professional. Experienced. Networked.

Tap into your REIC network of peers.

Use the online Find a Member directory Update your personal Directory Profile Network online using REIC Connect

www.reic.ca www.reic.ca

13

LOCAL MARKETS

LOOKING BEYOND LOCAL MARKETS

By Don Kottick, FRI, CRES

When it comes to real estate, it is now almost impossible to live in vacuum and protect oneself from global events or influences. Real estate sales professionals who want to ride the wave of the future must now look beyond local and embrace global. This is not to say that local is not important — it is, and it always will be — but now is the time to look globally for opportunities.

Factors including the conservative Canadian banking system, universal healthcare, the solid international reputation, the abundance of water and resources, proximity to the United States, a stable political system, and the current weaker Canadian dollar, have positioned Canada as one of the safer havens for international buyers. The expanded marketplace might have resulted from the creation of international trade associations, shifting geopolitical barriers or even the advances of social media.

14

REIC Exchange, August 2015

REALTORS® have a number of ways to embrace the new global reality, one of which is through participation in localized international real estate trade associations such as AREAA (Asian Real Estate Association of America). Richard Silver was one of the early adopters when real estate started to expand globally. Silver recently became a director of AREAA’s Toronto Chapter “After more than 30 years working in one of the most diverse markets in the world, I decided to learn more to

attract international clients and also to help my existing clients in their investments offshore,” Silver says. “I went to their event in New York last year and was referred a $3.5 million condo that just sold.”

The International Real Estate Federation known as FIABCI (based in Paris, France) is one of the longest-standing international organizations. FIABCI-Canada’s secretarygeneral, Jerry England, in a recent conversation said: “Let’s face it, the real estate industry has become increasingly international in its

REALTORS® who want to expand their book of business can take the CIPS (Certified International Property Specialist) designation course offered by REIC through its partnership with NAR. This designation course deals with international buyers and sellers and the many nuances of operating in the global market place,” says REIC vice president of corporate development Gareth Jones, FRI, CRES, CRB, ABR, SRES. “When you combine this additional credential with a strong network of savvy professionals, you are well positioned to capture opportunities the global market provides.”

“Foreign buyers and investors are

LOCAL MARKETS

outlook — be it marketing to overseas buyers or acting on behalf of offshore vendors. If you don’t have international credibility it’s probably costing you business.”

In his opinion, FIABCI provides a direct way to ensure you and your business have an international perspective and stay on top of real estate trends around the globe.

“Membership in FIABCI positions you as one of the world’s leading property professionals by providing opportunities to network with members from overseas, as well as attending key international events and, by doing so, gain exposure to numerous sources of international referrals,” he notes.

attracted to the strength and stability of the Canadian real estate market, which is supported by a structurally sound banking system and a dynamic and global business environment,” says Dan Conn, the CEO of Christie’s International Real Estate.

“Canada’s major economic centers benefit from a diversity of economic activity and cultures, all of which add to the appeal of its real estate offering. These markets also boast world-class views, top skiing destinations, outstanding wine regions and other highly desirable amenities. All of this will make Canadian real estate increasingly attractive to foreign buyers over the coming years.” 

Don Kottick, FRI, CRES, is the Executive Vice President, Corporate Development, Peerage Realty Partners in Toronto, ON. Email: dkottick@peeragerealty.com

Proud Supporter of the REIC

www.bwalk.com www.reic.ca

15

SUCCESSFUL INVESTING

PRINCIPLES OF

SUCCESSFUL INVESTING

By Bruce Bassett, CRF I have the privilege of travelling across this great country and hearing directly from investors on a regular basis. Some of the most passionate investors I encounter are those who invest primarily in real estate and have had great success. When looking at appreciation of real estate versus Canadian equities you would be hard pressed to understand how this is possible. The main reasons that real estate investors have enjoyed success are also relevant to investors in all types of investments. First, they have a good plan and stick to it. I’ve lived in areas in which housing prices dropped and have yet to consider packing up and selling. I buy and hold for the long-term. Second, real estate often requires regular payments for mortgages, upkeep and improvements. This is a forced savings program akin to regular investing.

HAVE A PLAN As market volatility increases, investors have a natural tendency to want to move into safer investments, hoping to avoid further losses. However, this move can result in needlessly locking in losses on investments that, given time, are likely to recover. A key to overcoming this emotional reaction is to refrain from trying to time the market. Selling at the wrong time and missing just a few

days of a market recovery could have a significant long-term impact on your portfolio.

INVEST REGULARLY A regular investment plan allows you to choose when and how often you make contributions to ensure that investing remains a priority throughout the year, not just during certain periods – like the yearly RRSP contribution deadline. Contributing regularly enables you to apply a disciplined savings approach to help successfully build wealth over time. Investing regularly also allows you the opportunity to ease into any type of market (rising, falling or flat) and reduce long-term portfolio volatility. This is the case because regularly investing a fixed dollar amount gives you a chance to buy more investment units when prices are low and fewer units when prices are high, thereby potentially reducing the average cost of your investment over the long term.

I am a big believer in diversifying your investment portfolio.

Following the aforementioned principles with a strategic mix of bonds, equities, alternative investments and real estate should improve your risk and reward dynamic and can lead to better investment success over time. Happy investing! 

Bruce Bassett, CRF, PFP, FICB is the Regional Manager Eastern Canada, RBC Global Asset Management Inc., in Halifax, NS. Email: bruce.bassett@rbc.com

16

REIC Exchange, August 2015

THINK LIKE A LAWYER

THINK LIKE A LAWYER -

ACT LIKE A LEASING GURU

By Natalka Falcomer, B.A., JD

Leasing requires more than just a good eye for location. Your professional duties require that you provide competent services. This means you must understand the legal implications of standard lease terms and how these terms can make or break your client’s business.

While an MBA and law degree would be helpful (but who’s got the time!), the best solution is to learn and protect yourself against legal dangers lurking to destroy your deal, client and reputation: educate yourself, take leasing courses, tap into your network of professionals and become familiar with potential risks.

The following scenario illustrates one of the most common mistakes arising out of lease deals when it comes to per square foot rate.

THE SCENARIO Your client is an experienced restaurateur and needs a space that’s at least 3,000 sq. feet in a trendy Vancouver neighbourhood. The square footage is critical because anything smaller won’t fit the number of seats required for the restaurant to turn a profit. Losing even one table would destroy his business.

After months of searching and several deals falling through, you finally find the perfect location at a below market rate. The suite is in a busy strip mall with a gorgeous green space attached and large parking area. As you review the Offer to Lease you know that your client will be pleased because the Offer clearly states that the Rentable Area is approximately 3,020 sq. feet.

A month later, your client calls. He tells you that his contractor measured the suite and the space is actually 2,500 square feet – he won’t be able to make his business work. He says you and the landlord intentionally misrepresented the size of the unit and he wants out of the deal! If not, he’ll sue.

Is the square footage discrepancy between what your client measured versus what is written in the lease and what he’s paying rent on legal? You bet. May your client try and sue you? You bet.

WHAT HAPPENED? Your client assumed that the Rentable Area was the actual size of the unit and you didn’t explain the difference between Rentable and Useable Area.

WHAT IS THE DIFFERENCE AND WHY DOES THE LANDLORD DO THIS? Before signing an Offer it is imperative to always warn clients that there can be a big difference between the Useable Area and the Rentable Area. Understanding and telling your client about these differences is imperative because rental rates are almost always based on the basis of Rentable Area. I’ve seen many disgruntled tenants start lawsuits over failing to appreciate this difference and businesses fail because of the unexpected cost of rent.

Generally, Usable Area is the space that a tenant can actually occupy and can use, while Rentable Area includes a tenant’s share of space in the building deemed beneficial to the tenant. The tenant doesn’t necessarily have exclusive possession of such space: Rentable Area of the Premises means the area expressed in square feet […] as certified by the Architect or Land Surveyor of all floors of the Premises (including, without limitation, any Mezzanine Area, Basement Areas and Storage Areas), measured from: (a) the exterior face of all exterior wall, doors and windows […]. The Rentable Area of the Premises includes all interior space, whether or not occupied by any projections, structures, stairs elevators, escalators, shafts or other floor openings or columns, structural or non-structural and […] the area of such recess or entrance for all purpose lies within and forms part of the Rentable Area of the Premises. www.reic.ca

17

THINK LIKE A LAWYER

This clause essentially means that the Rentable Area, unlike the Useable Area, includes the tenant’s share of the building’s common spaces such as lobbies and other non-rentable space such as elevators, mechanical rooms and shared or public bathrooms. The measurements include spaces that no one can physically occupy, such as columns and rooms filled with laundry machines, boilers and HVAC systems.

Why does the Landlord make this distinction between Rentable and Useable Area? Because it costs money to run the entire facility, which is open for the tenant’s use and benefit. As such, the Landlord will want to recoup these costs and, sometimes, even make a profit for running the building.

WHAT SHOULD YOU DO? One method to protect your client and yourself from professional negligence claims is to advise your client to hire a professional to measure the space. They should not only measure the space, but also help your client determine if his space needs are met. Be sure that the consultant has the proper accreditation to provide a Letter of Area Certification and uses a generally accepted measurement standard such as the standard adopted by Building Owners and

Managers Association (BOMA). Although the BOMA standard isn’t a standard required by law, it is very well recognized and will enhance the legitimacy of your position during negotiations or if your client has a dispute with the landlord.

The second protective measure you should take is to figure out if the Landlord has added a “loss factor” to the Rentable Area calculation. Although not contained in our clause example, above, Landlords may also add an arbitrary “loss factor” which is used to “gross up” the Rentable Area’s size. A “loss factor” is perfectly legal as there is no measurement standard required by law.

Another protective measure is to walk through the entire premises. As outlined above, the Rentable Area also includes columns. By doing a walk-through, you may find that there are numerous columns within the premises that are not available for your client’s use. If that’s the case ask the Landlord to reduce the Rentable Area calculation by excluding a few of the columns.

The best defence against lawsuits, damaged reputations and failed deals is planning and information. With your own facts you’ll have a more informed basis for negotiation and you’ll protect your client from any business-destroying surprises. 

DISCLAIMER: This article offers general comments on legal issues and developments of concern to business organizations and individuals and is not intended to provide legal opinions. Readers should seek professional legal advice on the particular issues that concern.

Natalka Falconer is VP Corporate Developments & Communications of Groundworks in Toronto, ON. Email: natalka@groundworksfirm.com.

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REIC Exchange, August 2015

RÉCIPIENDAIRES DES PRIX DE L'ICI HONORÉS À VANCOUVER

A packed house celebrated the 2015 REIC Pursuit of Excellence Award recipients at REIC’s annual awards gala held during the annual conference in Vancouver.

“Congratulations to all our recipients,” said Executive Director and CEO Maura McLaren, CAE. “They bring credit and recognition to the real estate industry and to the Institute with their passion and dedication.

REIC is honoured to celebrate such outstanding individuals and organizations.”

C'est devant une salle comble qu'ont été honorés les récipiendaires des prix En quête de l'excellence 2015 lors du gala annuel de l'ICI qui s'est tenu dans le cadre de la conférence annuelle à Vancouver. « Félicitations à tous nos récipiendaires, a déclaré Maura McLaren, directrice générale de l'ICI. Ils apportent du crédit et de la reconnaissance à l'industrie immobilière et à l'Institut avec la passion et l'engagement qu'ils démontrent.

L'ICI est honoré de célébrer des personnes et des organisations aussi exceptionnelles. »

EMERITUS AWARD Suzanne LeValley, CPM®, CMOC, Longley Condominium Services Ltd.

DON HILL AWARD - SMALL CHAPTER REIC Nova Scotia Chapter Real Estate Institute of Saskatchewan

J.A. WEBER AWARD Aleksandar Riminchan, CPM®, CRP, BC Housing

DON HILL AWARD - LARGE CHAPTER REIC Toronto Chapter

MURRAY BOSLEY SALES AND LEASING MEMBER OF THE YEAR AWARD Carmela Corrado, FRI, CLO, Metrolinx

CHAPTER OF THE YEAR AWARD - LARGE CHAPTER REIC Toronto Chapter

LONGLEY CONDOMINIUM REAL ESTATE MANAGEMENT MEMBER OF THE YEAR AWARD Ken Finch, FRI, CPM®, Royal LePage Signature Realty Brokerage Ken Loeppky, CPM®, Innovation Place

REIC AWARD RECIPIENTS

REIC AWARD RECIPIENTS CELEBRATED IN VANCOUVER

The REIC Edmonton Chapter was presented with the IREM Chapter of the Year Award.

REAL ESTATE FINANCE MEMBER OF THE YEAR AWARD Don Myhre, CRP, Consultant COMMUNITY SERVICES AWARD Vijitha Bulathsinghala, FRI, CRES, Century 21 Leaders Realty W.P.J. MCCARTHY CORPORATE CITIZEN OF THE YEAR AWARD Innovation Place REIC ASSOCIATION OF THE YEAR AWARD City of Winnipeg Saskatchewan Housing Authorities Network BENTALL KENNEDY LITERARY AWARD Don Kottick, FRI, CRES, Peerage Realty Group BENTALL KENNEDY EXCELLENCE AWARD Jonathan Tkachuk, CPM®, ARM®, DTZ Winnipeg

www.reic.ca

19

MEMBERSHIP MILESTONES

REIC MEMBERSHIP MILESTONES

ÉTAPES DES MEMBRES DE L'ICI

On behalf of the REIC National Board of Directors, we would like to extend our congratulations to the following Members celebrating membership milestones in 2015*. We thank you for your loyalty, professionalism and commitment to the real estate industry!

Au nom du conseil d’administration national de l'ICI, nous aimerions féliciter les membres suivants qui célèbrent des étapes de leur adhésion en 2015*. Nous les remercions de leur loyauté, leur professionnalisme et leur engagement envers l'industrie immobilière!

10 YEARS / ANS

Chetram Singh, FRI, CRES

Daniel McElheron, FRI

Gilles Girard, FRI

Nekeisha Adams, CRU

Joan Sketchley, CLO

A. Derwyn Owen, FRI(E)

Glenn Grabove, FRI, CRF

Morley Barr, CPM®

Linda Smith, ARM®

Janet Hansen, CPM®

Sharon Bart, ARM®, CPM®

Dan Spicer, FRI

Richard Pearlstein CMOC, ARP

Ifzal Bhatti, CRES

Ryan Stone, CPM®, ARM®, ACoM

Darren Potter CPM®, CMOC Spencer Quon, FRI

Michael Holmes, CPM®, CMOC, ARM®

Charles Tyndall, CPM®

Stewart Rauch, FRI(E), CLO

Elizabeth Janssen, CPM®

Crystal Deley, ARM®, CMOC

Julie Vesuwalla, FRI, CRES

Karen Reynolds, CMOC, ARP

Albert Lam, CPM®

Frank Di Vona, CRU

Stephen Wall, FRI, CPM®

Arnold Sawh, CRF

Veronica Lam, CPM®, ARP

Tracey Dunn, FRI, CRES

Hazel-Ann Wells John, CRU

Richard Sieb, FRI(A)

Norman Laube, CPM®

Stephen Gascoine, CPM®

15 YEARS / ANS

Colin Sinclair, CPM®, ARP, CMOC

Curtis Loewen, CPM®, CMOC, CRP

Naila Hemraj, CRF

Karin Benedetti, CRF

Monica Sochaski, ARM®

Donna MacArthur, CPM®

Susan Howell-Jensen, FRI(E)

Martin Bonomo, CRP

Carol Spencer, ARP

Roger Jain, FRI

Isabelle Bougie, CRF

Brenda Jean MacKenzie, FRI(E)

Baldwin Johnney, CRU

Dan Brewer, CRP

Dundas Kwok, FRI, CRES

James Cannon, CPM®, ARM®

Douglas Larson, ARM®

David Choi, FRI(E)

Carl Lawrence, CPM® CRF

James Cosco, FRI

Todd Main, CPM® ARM®

Joanne Crichton, CRF

Rae Makarowski, ARM®

James Gajda, CRF

Judith Malone, ARM®

Ben Gauer, FRI(E)

Darryl McDonald, CRU

Catherina Gendall, CPM®

Andy McLean, FRI, CLO

Richard Glickman, FRI

Kenn Mukherjee, FRI, CRES

Alison Gravelle, CPM®

Mario Naccarato, FRI, CRES

Robert Herman CPM®

Roger Parenteau, CPM®

Kashmir Kang, FRI

William Patton, FRI, CRES

John Kirkpatrick, CRP

Joseph Pincin, CPM®

Eva Kotsopoulos, CRES

Linda Rigg, CPM®

Peter Kwan, CRES

Luanne Ruotsalainen, ARM®

Rocco Liscio, CRP

Sukhjeet Sekhon, FRI, CRES

Jim Londos, FRI(E)

Octavio Silveira, CPM®

John Losak, CRP

David Sin FRI, CRES

Laurie McDonald, FRI

Renaud Campbell, FRI(E), CLO

Philip Filipchuk, CRES

20

REIC Exchange, August 2015

Maureen Szeto, CRU Dyne Torgeson, FRI Luc Tran, CRES Michael Van Dusen, CRP Scott McGregor Veitch, FRI Ingo Viehweger, FRI Peter Webb, CMOC, CRP Trevor Welby-Solomon, CRP Edward Williams, FRI Cindy Wozney, FRI Ron Wratschko, FRI(E) John Zabudney, FRI(E), CLO

Larry Holmes, ARM®

Dorothy Mason, FRI Louis McCaffrey, FRI Brian O'Grady, CPM® John Smegal, CLO Frank Stollbert, CPM® Richard Thompson, CPM® Anthony Wagner, FRI(E), CPM®, CLO Ernest Wuebbolt, FRI

25 YEARS / ANS Daniel Archambault, CPM®

20 YEARS / ANS

Denis Archambault, FRI, CRF, ACoM

Susan Antoniali, CPM®

Richard Bachalo, FRI, CRF

Cheryl Borisenko, CPM®, CLO

Guy Belanger, FRI

Sawanie Choi, CPM® Patricia DeCarli, ARM® Mark Foley, CRF Rod Fram, CPM®

Myrton Bello, FRI Richard Bergeron, FRI Johannes Bos, CPM® Rebecca Carnegie, FRI

Michael Flack, FRI

John Cassan, FRI

Frank Gibson, FRI

Paul Chen, FRI

David Langill, FRI, CRF

Paul Cooper, FRI, CMR

Oswald Logozzo, FRI

Mary Di Felice, FRI

John McWilliam, CRF

Francesco Di Nardo, FRI

Dorothy Prong, FRI, CMR

Alice Glanville, FRI, CRES

Stig Rensfelt, FRI, CMR

Clarence Gomes, CPM®, ARP

John Rivington, FRI, CLP, CRP

Cheryl Gray, CPM® Shaun Hanif, FRI, CRES Brent Hughes, CPM®, CLO Nick Iannazzo, FRI, CLO Carl Knells, FRI, CRF Matthew LaFontaine, FRI

Bruce Simpson, CRF Larry Stewart, FRI, CRES J. Leonard Sussman, FRI Donald Taylor, FRI Suzan Trottier, FRI, CMR

Larry Lunseth, FRI

Danny Varaich, FRI

Brenda Lee MacCalder, FRI, CPM®, CLO

Leo Ziade, FRI

Brian Varner, FRI

Paul McCormick, CPM®

Donald Davies, FRI, CPM®, ARP Peter Feher, FRI Edward Gorski, FRI

David Thomson, FRI Stanley Turner, FRI Lawrence Vanlieshout, FRI, CMR

Jagdamba Joshi, FRI Edith Lipson, CPM®, CMOC, CMR

40 YEARS / ANS

Kris Markusson, FRI

Joseph Colussi, CPM®

William McDonald, FRI Stephen Moranis, FRI, CMR Douglas Munro, FRI Kenneth Niziol, FRI, CMR Charles Northup, FRI, CPM® John Oakes, ARM® Brian Padfield, FRI, CMR N. Jack Reid, CPM® Fredrick Ruzycki, FRI, CPM®, CMOC Terry Sanderson, FRI

Trevor Bennett, FRI, CMR Joseph Jekkel, FRI Barry Lebow, FRI, CRF Donald Stoutt, FRI

45 YEARS / ANS Peter Mason, FRI James Tutton, FRI

50+ YEARS / ANS Terry Barber, FRI, CMR

J. Allan McLaren, CLP, FRI(E), CLO

35 YEARS / ANS

Mona Murray, CPM®

Jack Biernaski, CPM®, ARP

W. (Bill) Schultz, FRI, CPM®, CMR

David Blumenthal, CPM®

David Shelswell, FRI

Fred Meyer, FRI, CLO

Timothy Callaghan, FRI, CRF

R. Eric Spurling, FRI, CPM®, CRF

Leonard Potechin, FRI, CPM®

William Nelson, FRI, CRF Walter Posner, CLO Frank Schuurmans, CLO Chrystal Skead, CPM®, ARM® Wayne Smithies, FRI, CPM® Christine Stanley, FRI, CPM®, CRF Donna Swanson, FRI Monica Tang, FRI Richard Toews, FRI, CLP Patrick Tung, FRI

Donna Allen, FRI

Gordon Campbell, FRI, CRF

MEMBERSHIP MILESTONES

Claude Carre, FRI, CRES

Joseph Scarfone, FRI, CMR

Barry Groberman, FRI Ronald Klombies, FRI, CMR Stanford Korsch, FRI

Roy Wilson, FRI

*REIC commemorates the following Membership milestones annually in the summer issue of Exchange: 10, 15, 20, 25, 30, 35, 40, 45, 50+ years. For further information, contact the Membership Department at: membership@reic.com. *L'ICI commémore chaque année les étapes d'adhésion suivantes : 10, 15, 20, 25, 30, 35, 40, 45, 50+ ans. Pour plus de renseignements, veuillez communiquer avec les services aux membres à l'adresse : membership@reic.com.

Michael Wan, FRI Richard Wood, FRI

30 YEARS / ANS Ermidio Alves, FRI, CPM®, CMR Andrew Bennett, CRF, FRI Richard Bernard, CPM® Georges Bohemier, FRI, CPM®, CRP Michael Bolahood, CPM® Armin Borgers, FRI Stephen Cobb, FRI, CPM® Peter Dardarian, CRF Mary Davidson, FRI, CMR Joanne Dawe, FRI, CMR Neil Eckman, CPM® www.reic.ca

21

ENGAGING CAREER

MY PATH TO AN

ENGAGING CAREER

By Suzanne LeValley, CPM®, CMOC, Emeritus

I like to think that my success as a businesswoman is due to my intellect, dedication and persistence, but I also know that my association with REIC and my CPM designation have played a big part. Bill McCarthy, a Past President of REIC and close friend, has told me many times that ‘my story’ is one worthy of sharing with my REIC colleagues.

To me it isn't anything special. I happened into a career in real estate in my early twenties, when I was hired as a secretary in a small real estate brokerage in Vancouver. It was a great job at the time. I worked for five men, and they became big brothers to me, a shy transplant from Ontario.

Because of my unique situation, I was nurtured, first into an accounting role, and then into property management. In 1985, I took the first course toward my CPM designation. I couldn't have found a better outlet for my restless nature. That led me to receive my designation in 1993, and long-term employment with a large national company.

I was encouraged by a friend in REIC to start my business managing condominiums, and I did. I found as much stimulation and challenge as I could handle, in the arenas of managing my portfolio in the early years, and my company as it grew. Time flew challenges were met, goals accomplished. Now I'm facing retirement.

The last decade has been the most challenging of my career.

Because of my designation, I constantly strive to innovate and change how we do our work. Many of those ideas sprang from REIC colleagues and conferences. That's a role I have no intention of relinquishing as I retire from the daily running of my company.

Property management encompasses what I believe are the essentials of success in any business: customer service, human resource management, financial management, and asset management, to name a few. Through my volunteer work with REIC, my life has been enriched even more. I've made friends and learned about governance and leadership.

I wouldn't change anything about my experience. I wish that everyone in my REIC ‘family’ could cherish similar memories of the value of their membership.  Suzanne LeValley, CPM®, CMOC, Emeritus, is President of Longley Condominium Services Ltd., in Calgary, AB. Email: suzanne@longleycondo.com 22

REIC Exchange, August 2015

RESERVE FUND STUDIES

RESERVE FUND STUDIES

Opportunities for REIC Members

By Michael LaPorte, CRP

As condominium ownership has surged throughout Canada over the past five decades, legislation and regulation over this period has been slow to respond fully to the needs of condominium and strata owners. In particular, the legislation pertaining to the reserve funding requirements for the proper repair, replacement, and renewal of the shared components of a condo or strata corporation have been neglected. However in several provinces in Canada, these regulations are beginning to have some teeth creating opportunities for REIC members.

A reserve fund study, put into layman terms, is a plan for the long term funding of the common components of a condominium or strata corporation. This leads to the question, what are the “common components”? Although this may be defined in different ways through various provincial legislation and regulation, the components are generally those which: “are collectively the condo or strata corporation’s responsibility, and which require repair, renewal, or replacement less often than annually, but before the end of life of the building(s).” Examples may include the roof, windows, exterior paint, interior common area finishes, elevators, mechanical/plumbing systems, and any other components which are the responsibility of the condo/strata corporation collectively, rather than the owners individually, to fund.

So one might ask, why is legislation and regulation important with respect to reserve fund studies, shouldn’t the owner’s be able

to make their own funding decisions without the government getting involved? The challenge for owners is that there is no easy way to know what the long term reserve requirements are for a condo/strata corporation without going through the detailed steps of conducting a reserve fund study.

Further, without the reserve fund study, there is a tendency for condo/strata corporations to minimize regular reserve fund contributions, which can dramatically increase the risk of special assessments, and/or significant increases in regular reserve fund contributions from the owners in the future.

Therefore, the reserve fund study provides one-part consumer protection and one-part valuable information with regards to risk to the current homeowners. Provincial governments have come to realize that legislation and regulation in this regard is not only in the public interest, but in the interest of condo/ strata homeowners as well.

In conclusion, condominium/strata legislation and regulation with respect to reserve fund studies has been moving towards greater compliance requirements, while the number of condo/ strata corporations continues to grow as a percentage of home ownership in Canada. This will increase the need for expertise in the preparation of these complex reports, and no other organization is as prepared to meet this need other than REIC and its Certified Reserve Planner (CRP) designated Members.  Michael LaPorte, CRP is with NLD Consulting, Reserve Fund Advisors.

Email: mlaporte@reserveadvisors.ca www.reic.ca

23

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