Sometimes the best lessons we learn from our mothers are not the things they try to teach us directly – like how to tie our shoes or how to ride a bike. We often learn the important ones when we ask, “Why did you do that?”

Here is a story I heard that reminded me of the important lessons we learn from moms:

One day, I asked my mom if she would cook my favorite dinner. She said, “Follow me,” and knocked on the neighbor’s door and asked to borrow a casserole dish.

I was confused because we had plenty of baking dishes at home, so I asked, “Why did you ask for something we don’t need?”

She told me, “They sometimes ask us for things and I wanted them to know we all need each other. So I asked them for something small that would not burden them. By giving us something, now it will be much easier for them to ask us for something again.”

Then she smiled and said, “We also never return a dish without something in it, so we get to share your favorite dinner with them.”

Mother is a verb. It’s something you do. Not just who you are. – Dorothy Canfield Fisher

Happy Mother’s Day!
Gino Pezzani

Every year, the month of May brings an almost instinctive call to clean up, rearrange and reinvent the space around us. So often, that looks like shifting furniture around inside or paring down closets, as worn-out coats get tossed aside in favor of lighter layers. However, our outside world could also use a bit of sprucing up at times, don’t you think?

May is the perfect month to rethink an approach to outdoor spaces, to garden with wildlife in mind, to create space for pollinators that keep the world’s plants thriving, and native plants to support symbiotic relationships.

Besides helping to support a sustainable habitat, the concept of symbiotic relationships is a powerful idea. That plants and animals rely on each other is ancient proof of how we are all connected on this great planet. There is a graceful balance to be found between self and earth, and I love knowing I’m part of that circle. Each time I water a plant I am building into the region and my local habitat, rather than taking away from it.

Try this: imagine the wall between your home and garden does not exist. How would you extend the presence of your indoor space into the world outside, respectfully? Are you organized, compatible with a formal garden, or more eclectic and likely to find joy in the rambling nature of climbing vines?

Whether you live in a small apartment with merely enough space for a window box or on acreage that extends deep into the horizon, reflect on how that same space exists for plants, animals and you. Recognizing and building into that symbiotic relationship, figuring out how we fit into the natural world, is powerful and best explored in a quiet moment of solitude.

Whether you do some deep soul diving into your outdoor space, or simply enjoy sniffing the roses along the way, I hope you enjoy your May in the garden, my friend. Best wishes to you!

Vancouver, BC – May, 2021. The British Columbia Real Estate Association (BCREA) reports that a total of 13,683 residential unit sales were recorded by the Multiple Listing Service® (MLS®) in April 2021, an increase of 312.3 per cent over April 2020 when the onset of the COVID-19 pandemic prompted a lockdown of the provincial economy. The average MLS® residential price in BC was $946,606, a 29.1 per cent increase from $733,330 recorded in April 2020. Total sales dollar volume was $12.9 billion, a 432.2 per cent increase from last year.

“Although provincial home sales were down slightly from an all-time high in March, sales activity was the highest on record for April,” said BCREA Chief Economist Brendon Ogmundson. “Home sales continue on a record pace, though we do see a calming environment compared to the frenzied activity of recent months.”

Total active residential listings were down 14.5 per cent year-over-year in April but did tick higher on a seasonally adjusted basis for the second consecutive month as new listings activity ramped up.

"We are starting to see very strong new listings activity in several markets,” said Ogmundson, “however, it will take quite some time for total listings to return to the level needed to balance out markets and temper growth in home prices.”

For more information, please contact: Gino Pezzani.

For the complete news release, including detailed statistics, click here.

How hot is the current hot market? Hot enough that earlier this month, the Real Estate Council of BC (RECBC) issued a caution to consumers and real estate professionals, reminding consumers of the importance of due diligence and reminding real estate professionals to have full and frank discussions with consumers, fully explaining the increased risks and consequences of making offers without the usual subject conditions and arming them with all the information needed to make fully informed decisions.

Great advice.

In this hot market, however, real estate professionals may struggle to protect clients when offers are mainly unconditional, or at least without the full subject conditions we typically see in a deal. It's hard to protect your client's interests when you often cannot use one of the best weapons - subject conditions.

Follow the usual advice in markets of any temperature

In this hot market, REALTORS^® must keep their cool and remember that some of the oft-repeated, time-tested and best advice to protect themselves and consumers still applies:

1. Remember who you act for and the rules of agency.
2. Know your client and ask questions. Have full discussions on their needs, wants, issues, firm budget and risk tolerance, and remember that every client is different.
3. Know the property you are dealing with and complete due diligence in advance where possible, such as title, property disclosure statement, strata documents, etc.
4. Document the advice you give and the decisions the clients make.
5. Do not practice outside your area of expertise. If your client wants advice on something outside of your area of expertise, advise them to seek independent professional and/or legal advice and document this recommendation.

How do risks and claims differ in a hot market?

When the market gets hot, things speed up. At the Real Estate Errors & Omissions Insurance Corporation, we are seeing an increase in claims of various types including valuation claims, negligent drafting claims, and claims arising from the imbalance in the market and the multitude of offers for some properties.

1. Valuation claims

In valuation claims, sellers say they undersold or buyers say they overpaid. In these scenarios, we are reminded that real estate professionals are not held to the standard of an appraiser and that appraisals are "an art, not a science." However, when advising on price, thoughtfulness, full discussions, and due diligence are needed.

How to avoid valuation claims

Realtors acting for sellers or buyers should have up-front discussions with their clients at the beginning of any relationship around market conditions, client expectations, the value of properties in the area and other comparable properties, and how offers may be presented, accepted and countered (and the pros and cons of any approach to presenting offers). It's important to set clear expectations during these conversations.

Particularly when acting for sellers and recommending a listing price, you should ideally discuss comparable properties, do a comparative market analysis (CMA) where applicable, and always discuss and document your advice and the client's decisions. Ensure you keep copies of all CMAs and comparable properties that were discussed and that helped to inform the client's decision on the list price.

2. Negligent drafting claims

We are also seeing more claims related to seller's or buyer's remorse when parties want out of a deal as values rise. To escape the deal, the parties and their legal counsel look to the contract for an escape valve. Remember, it is part of your job to draft an enforceable contract. Careful drafting, discussions, setting expectations and documenting advice are paramount and can help to prevent negligent drafting claims.

Some examples of recent negligent drafting claims include:

• questioning authority to enter into a contract and challenging whether the seller is the proper party on title or has a valid power of attorney (POA) to sell;
• raising problems with e-signatures - mainly an alleged lack of review of the contract terms and a failure to explain the terms of the contract properly or at all; and
• alleging improper or incorrect terms/wording of a contract such as parties, price or dates (what I call speed errors).

How to avoid negligent drafting claims

Slow down and proofread all offers and counter-offers, and recommend your clients do the same. Do not assume because the other party said they are only countering on dates, that they have not altered other terms as well.  Be careful in the use of e-signature software - encourage and support clients in reviewing the full document each time and not just the purported change, and recommend they read it on a larger screen than their phone.

Additionally, ensure title and company searches are done and you have full written authority to sell from the person on title or a valid POA. Always deal with the party on title and avoid dealing with the kind and/or domineering relative who is not.

Review prices, dates, parties to the contract and all terms carefully with each and every offer and counter-offer (no matter how many there may be).

3. Hot market/offer claims

As you can guess, hot markets are the home to all the usual stress-inducing suspects including bully offers, referential offers, multiple offers, and back-up offers. Offers are also being made in this market for properties sight unseen. Some examples of hot market issues include:

• buyers entering into a contract sight unseen and subject-free, then refusing to close after realizing the view is obstructed;
• buyers making a subject-free offer and claiming they were unaware of the risks and that they had no financing clause. The buyers with pre-approval are then unable to get financing when the property is appraised too low; and
• buyers trying to get out of a subject-free contract when they discover defects at the property in an unconditional deal.

Unfortunately, there is no silver bullet clause (sorry...) as each offer or multiple offer situation is unique. Back-up offers have their own challenges and must be made carefully. Changes to the original contract and extensions should also be made carefully (ideally with legal advice) to not open the contract, trigger the back-up offer and/or be accused of selling the property twice (see my Legally Speaking #519 from October 2019).

How to avoid tripping over offers

As a seller's agent with multiple offers, develop rules for review and offer presentation with your client, follow them, update them, and document and communicate any changes. Consider using an offer comparison chart to track all offers and key terms, and easily compare them.

As a buyer's agent with multiple offers, ask questions to ensure you know when you are in a multiple-offer situation and recommend your clients complete their due diligence in advance where possible. Ensure consumers are aware of the risks and consequences of not doing so, which are very serious and include having no financing to complete a deal or taking on a property that is riddled with expensive defects.

Consider using condition acknowledgment forms with buyers who are going subject-free or without the usual conditions. On that note, BCREA has created the Buyer's Acknowledgement of Information - Recommended Conditions form, which will help you discuss and document a buyer's acknowledgment that they have been advised of the increased risks of not including some or all of the recommended conditions in an offer.

Ideally, recommend clients have a legal professional on board at the beginning of your agency relationship. This enables your client to have a lawyer available, engaged and able to answer thorny questions and provide advice on contractual obligations and risks. Waiting too long to recommend legal advice, particularly in this hot market, may mean your client has no practical opportunity to do so, and neither you nor your client will be protected (see my Legally Speaking #531 from October 2020, my Risk Report article from December 2019, and the RECBC discipline decision of October 30, 2017, 14-431).  

Good luck, and remember to stay cool in this hot market!

For more information, please contact: Gino Pezzani.

A poor man once bought an old book at an open market for a few coppers. Between its pages he found something very interesting indeed: a thin strip of parchment on which was written the legend of the touchstone.

The touchstone, according to the document, was a small pebble that could turn any common metal into pure gold.

The writing explained that it was lying among thousands and thousands of other pebbles on a beach. The real stone would feel warm to the touch, while ordinary pebbles are cold.

The man sold his few belongings, set out for the seashore, and began testing pebbles. He realized if he picked up ordinary pebbles and threw them down again because they were cold, he might inadvertently pick up the same pebble hundreds of times. So, each time he felt one that was cold, he threw it far into the sea.

He spent days at his search, picking up a pebble— cold —then throwing it into the sea... then, picking up another... and throwing it into the sea...

One day, after months and months, the man picked up a pebble and threw it into the sea. As it left his hand, he realized that the pebble had been warm. It was the touchstone!

However, by then, he had formed such a strong habit of throwing each pebble into the sea that when the one he wanted came along, he still threw it away without taking time to feel its warmth.

Don’t let your habits trick you into throwing away your opportunities.

This month’s COVID-19 Recovery Dashboard shows record home sales across the province along with a jump in housing starts and a continued rise in new listings. Employment in some sectors, especially high-wage sectors is showing strong growth, but restrictions due to the third wave and hesitancy from the public is still keeping employment in the accommodation and food service sector depressed. Retail sales were flat in February, though from a high level in January and are up double digits compared to the same time last year.

Housing Markets

Name one thing you can’t live without. If you answered, “my cellphone,” you’ve got a lot in common with, well, everyone! A poll by Asurion found that Americans consider their cellphone to be their number one possession, more important than their car or refrigerator.

Much of what’s on our phones is often irreplaceable - 60% of people polled cited their contact list, 45% have documents and important notes, and 32% have their favorite music.

Staying in touch with loved ones we can’t visit seems to be a driving force— 82% of Americans have photos and videos they can’t stand the thought of losing.

"A rose by any other name," as Shakespeare wrote, "would smell as sweet." But that shouldn’t stop you from coming up with substitutions for common words to keep your conversation lively and unique. Here are some creative synonyms for everyday terms:

• Amazing. Awesome, spectacular, astounding, astonishing, confounding, breathtaking, extraordinary, dazzling, fabulous, eye-opening, miraculous, prodigious, overwhelming, remarkable, startling, staggering, stupendous, stunning, or wonderful.

• Fun. Merry, enjoyable, amusing, frolic, diversion, high jinks, jocularity, or blast.

• Said. Cried, demanded, blurted, wailed, yelped, agreed, barked, mumbled, pleaded, responded, retorted, answered, replied, or ordered.

• House. Abode, billet, cabin, digs, crib, domicile, dwelling, habitation, home, lodgings, pad, quarters, or residence.

Even as workplaces open up, many employers are seeing the benefits of a virtual workforce and a large number of new jobs may very well be remote positions. How can you make your mark, though, when you don’t have regular personal contact with your boss or your
co-workers? The Make It website tells you how:

• Set up your space. Take a look around the room where you do your work. What does it say about you? People who see you in virtual meetings will notice the pictures on your wall, the books on your shelves, the clutter on your desk, and more. Clean up before your first day to ensure you show a neat, professional profile.

• Communicate with your manager. During the first few days and weeks, make a point of communicating with your manager often. Don’t bug him or her, but talk
in depth about your role, the manager’s expectations, how you’ll be evaluated, and other crucial elements of doing your job well. Learn his or her priorities and get a solid idea of the organization’s big-picture goals.

• Learn how to communicate with everyone. You can’t peek over a cubicle or stroll down the hall to talk with a co-worker or manager, so you have to know how best to contact them. Does your boss prefer phone calls or emails? Are team meetings held via Zoom? How quickly do people expect responses to emails or texts? Figure out the best way to communicate with each person on your team to avoid misunderstandings.

• Get to know people. Your boss probably can’t take you to lunch on your first day to know your new team, so you’ve got to take a different approach. Reach out to team members one-by-one to introduce yourself and find out what makes them tick.

• Understand the pandemic’s impact on your organization. Chances are your employer has been through some big changes in the past year– layoffs, new products, shifting priorities, adjusting to remote work, and many other issues. As you talk to people, find out what’s changed and what has stayed intact. This will give you a good idea of the organization’s values and priorities.

Many years ago a young couple with three sons bought a house out in the country. The previous owner, who spoke only French, said something that made the couple think that gold could be found on the property. They told their sons, who began digging up the ground looking for wealth.

After a few weeks, much of the ground around the house had been turned over, and with no gold found, the father decided to plant some seeds: corn, tomatoes, potatoes, and onions. With his sons’ help, he grew so much that he went on to open a roadside stand to sell the extra produce for a little additional money.

The boys kept digging and turning over the soil as they went deeper and deeper, allowing the couple to plant even more crops.

This went on for several years. The vegetable stand prospered, and soon the couple had enough money to send all of their children to university.

One day the original owner came by for a visit. He had since learned English, and he asked the couple how they’d gotten started in the vegetable business. When the husband reminded him about the gold, the first owner laughed.

“I didn’t say there was gold in the soil,” he explained. “I said the soil was very rich.”

And as things turned out, it was.

Gino Pezzani
DIEN Realty
604-418-9366