Broker - COURSE 3 - HUMAN RESOURCES

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COURSE 3: HUMAN RESOURCES – ELEARNING

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Module 1: Establishing Staff Requirements for a Brokerage Disclaimer: This is a reference document which contains pages from the Accessible eLearning module. You should complete the eLearning module to proceed to the next step. Please note that the accessible module on the LMS only contains the interactive pages and you need to go through the content of this document thoroughly to attempt the interactive activities in the module. Please use Adobe Acrobat Reader (Recommended version 9 or above) to navigate through this PDF. Real Estate Broker Program © 2021 Real Estate Council of Ontario. All Rights Reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or in any means – by electronic, mechanical, photocopying, recording or otherwise without prior written permission, except for the personal use of the Real Estate Broker Program learner.

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Module 1: Establishing Staff Requirements for a Brokerage For a brokerage looking to gain a competitive advantage, it is crucial to define staffing requirements that meet the brokerage’s vision and goals. Staffing is an ongoing process. It requires planning, and understanding the current and future needs of the brokerage. Knowing this information will shape your recruitment, selection, and performance management. In this module, you will learn about staffing, a key responsibility as a broker of record. You will also learn about legislation as it relates to differences in employment status types and how it affects the brokerage’s obligation with respect to source deductions. As a broker of record, you will also be responsible for supervising your brokerage’s staff and managing performance, which entails setting expectations and performance-based indicators to drive your brokerage’s goals. To check your understanding of this module, you must complete all the activities in the online module. While navigating through the online module, click the Legislation button to view laws and regulations related to this module. The contents of the thumbnails Accessible PDF.

and References from the module are added to support your learning throughout this

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Menu: Establishing Staff Requirements for a Brokerage

Number of Lessons

Lesson Number

5 Lessons

Lesson Name

Lesson 1

Staffing Requirements

Lesson 2

Employment Relationships

Lesson 3

Key Performance Drivers and Standards

Lesson 4

Summary Practice Activities Module Summary

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Lesson 1 | Page 1 of 6

Lesson 1: Staffing Requirements

This lesson identifies key considerations for defining a brokerage’s staffing requirements for prospecting, sourcing, and recruiting.

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Lesson 1 | Page 2 of 6

As a broker of record, you will be responsible for ensuring that your staff is made up of talented individuals with the necessary skillsets and expertise to best represent your brokerage. Every brokerage’s staffing requirements will be different, depending on their brokerage’s vision and goals. Determining the staffing requirements for your brokerage is a fundamental first step in the recruiting process. Upon completion of this lesson, you will be able to: • Identify staffing requirements for a new brokerage

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Lesson 1 | Page 3 of 6

Every new staff member has the potential to contribute to your brokerage’s growth and profitability. As a broker of record, you should ensure that the staffing requirements align with your brokerage’s vision and goals. This will help guide you in prospecting, sourcing, interviewing, hiring, and the eventual orientation of talented individuals to your brokerage who can contribute to achieving the brokerage’s objectives. You will learn more about vision and goals in the next course.

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Lesson 1 | Page 4 of 6

Staffing Requirements When defining a new brokerage’s staffing requirements, the broker of record must consider what their brokerage needs to meet its vision and goals. If acquiring an existing brokerage that already has staff in place, the broker of record will be responsible for reviewing the staffing requirements to make sure that they align with the brokerage’s current and anticipated future needs. Determining the necessary staffing requirements for a brokerage will help guide the broker of record in all areas of the staffing process, such as creating job descriptions, prospecting, sourcing, and recruiting individuals, conducting interviews, and assessing candidates. Having clear staffing requirements in place can also improve a broker of record’s recruiting efficiency by helping them narrow down the candidate pool to talented individuals with the necessary skills and experience. These requirements must include fair and equal treatment of all candidates and applicant confidentiality.

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Lesson 1 | Page 5 of 6

Defining Staffing Requirements for a Brokerage A broker of record must consider several factors when defining staffing requirements for their brokerage. The following five sections contain information about key factors in defining a brokerage’s staffing requirements. Vision and goals A brokerage’s staffing requirements should always align with its vision and goals. These may be adapted from time to time as the brokerage grows, market demands change with the economy, or technology advances. As such, a broker of record should periodically review the brokerage’s staffing requirements to ensure that they continue to align with the current real estate environment. For example, a broker of record can narrow down their recruitment process by targeting specific individuals who have complementary experience and interests to the brokerage. If a brokerage’s target market consists of high-end properties, the broker of record may seek brokers and salespersons who have experience of selling luxury homes. Alternatively, the brokerage may be open to hiring individuals who are new to the industry and training them to trade in luxury homes, or a brokerage may choose to hire brokers and salespersons with a mix of selling experience. Again, this will all depend on the brokerage’s vision and goals.

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Business model For an appropriate assessment of a brokerage’s staffing requirements, a broker of record should consider their brokerage’s business model. The individuals needed will depend on the type of services the brokerage provides to clients and customers, and whether it is a full-service or limited-service brokerage. You learned about business models in a previous course. For example, if a brokerage is operating a full-service model, potential brokers and salespersons must have the knowledge, skills, and/or experience to provide all available services. This means that they must be versed in everything from forming an initial relationship with a seller or a buyer to the closing and follow-up stages of a transaction. However, if the brokerage is operating a limited service model, potential brokers and salespersons need only to have the knowledge, skills, and/or experience to provide the specified services. For example, if a brokerage only offers services associated with listing a property, then there would be no need for the brokers and the salespersons to have expertise in other areas of the transaction. The brokerage’s staffing requirements will also depend on the support that the sales staff will require to fulfill their job duties and obligations. The brokerage may require a specific ratio of administrative staff to sales staff. A broker of record should consider whether their brokerage’s administrative staff will be responsible for

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providing services on behalf of brokers and salespersons, such as: • Arranging and confirming appointment requests for listings • Designing feature sheets for listings • Designing social media posts • Maintaining their contact database • Preparing offers and subsequent documents If so, the brokerage may need to hire administrative staff who are able to perform these services. Brokerage operation A broker of record must determine whether their brokerage will require administrative staff for the following positions: • Front-desk reception • Trade processing • Bookkeeping or accounting • Marketing • Support services for brokers and salespersons • Information technology A broker of record must consider their brokerage’s hours of operation with respect to how many administrative staff members will be needed throughout the day and when. Will they all be full-time or a mix of full-time and part-time employees? If the brokerage tends to be busier during the summer but

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slower during the winter, part-time employee hours may vary to accommodate this. There should be enough brokers and salespersons to support the amount of work that a brokerage commits to at any given time. For example, if a brokerage commits to a builder for a new home site, a broker or a salesperson will be expected at the site during the hours that it is open to the public each day. Market conditions A brokerage’s market share (number of transactions) and type of market will impact their staffing needs. A brokerage that has a high number of transactions will likely need a larger administrative staff to support the sales staff. Additionally, whether a brokerage is servicing a seller’s market or a buyer’s market will impact the type of administrative work required, which will then determine staffing requirements.

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Legislation A brokerage’s staffing requirements must align with the following legislation: • The Real Estate and Business Brokers Act (REBBA): The broker of record must ensure that all staffing requirements comply with REBBA. Registration is required for any individual who trades on behalf of the brokerage. You will learn more about REBBA requirements in a later module. • The Ontario Human Rights Code: The broker of record must ensure that their brokerage complies with the Ontario Human Rights Code, which protects the individual by guaranteeing ethical and fair staffing practices and prohibiting discrimination. You will learn more about the Ontario Human Rights Code in a later module.

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Lesson 1 | Page 6 of 6

Congratulations, you have completed the lesson! Completion of this lesson has enabled you to: • Identify staffing requirements for a new brokerage Here is a summary of the key topics that were discussed in this lesson: As a broker of record, you must ensure that your staffing requirements align with your brokerage’s vision and goals. This will help you recruit, hire, and retain talented individuals who will both serve your brokerage and benefit from working there. Remember that staffing requirements must adhere to REBBA and the Ontario Human Rights Code. As a broker of record, you will need to consider several factors when determining the staffing requirements for your brokerage. The key factors to consider are your brokerage’s: • Vision and goals © 2021 Real Estate Council of Ontario

• Business model • Business operations • Response to market conditions • Compliance with legislation

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Lesson 2 | Page 1 of 13

Lesson 2: Employment Relationships This lesson identifies REBBA requirements for a brokerage, and the Canada Revenue Agency (CRA) guidelines for determining the employment relationships and the status of different roles (that is, brokers, salespersons, brokers of record, branch managers, and administrative staff) in a brokerage.

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Lesson 2 | Page 2 of 13

As a broker of record, it will be important for you to understand the types of employment relationships that can exist within a brokerage. This will help you determine the rights and responsibilities related to differing employment relationships of individuals working in your brokerage, as well as your obligations owed to each of those individuals. Upon completion of this lesson, you will be able to: • Identify key employment relationships within a brokerage • Identify employment status for staff in a brokerage • Identify Canada Revenue Agency (CRA) guidelines for employment (source) deductions Throughout this lesson, you will participate in decision points to test your knowledge on the topics presented.

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Lesson 2 | Page 3 of 13

A brokerage may choose to hire their brokers and salespersons as either employees or independent contractors. Having brokers and salespersons as independent contractors ultimately benefits the brokerage, since the brokerage does not have to make employer contributions for source deductions. This arrangement is also financially beneficial for the individual, since they will have more tax deductions available to them. However, all brokers and salespersons are considered to be employees of the brokerage for the purposes of the Real Estate and Business Brokers Act (REBBA). The choice of whether to hire a broker or a salesperson as an employee or an independent contractor will affect the brokerage’s relationship with the individual and how internal processes and brokerage activities are structured.

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Lesson 2 | Page 4 of 13

Employment Relationships A brokerage can hire an individual as either an employee or an independent contractor. Administrative staff are usually hired as employees (either full-time or part-time), whereas brokers and salespersons can be hired as either employees or independent contractors. It is worth noting, however, that most brokers and salespersons are hired as independent contractors, as this tends to be more beneficial for both the brokerage and the individual. By hiring an individual as an independent contractor instead of an employee, the brokerage will not make payments toward employer contributions to source deductions or have to pay administrative costs for statutory remittances. The individual will have more tax deductions available to them as well as more flexible contract terms. You will learn more about tax deductions and contract terms later in this lesson. The differences between these two types of employment statuses (employee or independent contractor) are mostly related to taxation and the amount of supervisory control over the work of the individual. A broker of record must understand these differences so that they know what they and their staff can and cannot do, and whether the brokerage or the individual is responsible for making certain remittances to the Canada Revenue Agency (CRA). You © 2021 Real Estate Council of Ontario

will learn more about the specific differences between the two employment statuses, as well as the CRA, later in this lesson. For now, the key thing to understand is that – regardless of an individual’s employment status – for the purposes of REBBA, all brokers and salespersons are considered to be employees of their brokerage and must comply with the following requirements under REBBA: • All commissions are paid directly to the brokerage, who then pays the broker or the salesperson. • If a broker or a salesperson enters into a written agreement that deals with a conveyance of interest in real estate, they must use their best efforts to deliver a copy of the agreement to the brokerage at the earliest practicable opportunity. • All representation agreements or service agreements are in the name of the brokerage, not the individual. Therefore, if a broker or a salesperson leaves the brokerage, they are not permitted to take their listings or buyer representation agreements with them (unless given explicit permission from the brokerage).

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Lesson 2 | Page 5 of 13

Employment Relationships: CRA Guidelines For taxation purposes, all employment relationships must align with CRA guidelines. The CRA has established criteria to determine the employment status of brokers and salespersons. According to the CRA, a broker or a salesperson is considered an independent contractor if, under their employment contract, they are: • Legally entitled to the full amount of their gross commissions • Required to pay a realistic, fixed amount to a brokerage on a monthly, annual, or other basis for administrative and operating costs Or they: • Are legally entitled to the full amount of their gross commissions

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• Are required to pay a realistic, fixed percentage of their gross commission to cover operating costs • Set their own commission rate for the sale of their listings If these criteria are not met, the CRA will likely consider the broker or the salesperson to be working under an employment relationship with the brokerage. Validating employee status involves examination of the employment contract using common law principles to determine the evidence of the employment relationship. You will learn more about employment contracts later. An employment contract between a broker or a salesperson and a brokerage should outline the nature and the purpose of the employment, method of remuneration, duties to be performed, and provisions for termination. As a leading practice, the broker of record is encouraged to work with a lawyer when preparing an employment contract. They should not rely on their own employment contract as a model, as it may not necessarily be suitable or meet specific requirements for current legislation. The broker of record is also encouraged to send an independent contractor’s employment contract to the CRA for an individualized ruling. Without this written evidence, the consequences for the brokerage could be severe. Should the CRA conduct a random assessment of an individual’s income taxes and determine that they are actually working under an employment relationship, both the brokerage and the individual could face penalties. The individual would be reassessed and required to return any tax benefits claimed as an independent contractor, plus interest. For the brokerage, the CRA could roll back the time period of the employment and demand the employer contributions to the source deductions, plus interest. The brokerage could also be fined.

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Lesson 2 | Page 6 of 13

Determining Employment Status In order to determine whether a broker or a salesperson is an employee or an independent contractor, the CRA analyzes the terms and conditions of an individual’s employment as they relate to four common law principles: control test, ownership of tools, chance of profit and/or risk of loss, and integration. One factor alone is not enough to decide; therefore, the CRA takes all four principles into consideration. If a brokerage decides to have brokers and salespersons as independent contractors, they should be familiar with how the CRA makes this determination, and how this would impact the brokerage financially. Since the broker of record will be responsible for having an independent contractor agreement in place, it is important for them to understand the common law principles for reference, and how those principles may impact the terms of the agreement. The broker of record should also consult a third-party professional to ensure that the agreement is legally accurate. The following four sections contain information about the four common law principles. Control test The control test is used to determine whether a person is in a position to order or to require not only what work is done, but also how it is done. In an employeremployee relationship, the employer assigns specific tasks that define the real framework within which the work is to be done; they also have the right to hire or fire. If such is the case, then the hirer clearly exercises control over the worker. It is not necessary that the control be exercised, only that it can be exercised. Relevant questions to evaluate control include: • Does the brokerage require a minimum commitment from the broker or the salesperson in terms of hours devoted to the business?

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• Is the broker or the salesperson provided with any training by the brokerage? • Does the brokerage reserve the right to reject any listing deemed unsatisfactory? • Do commission rates below a certain threshold have to be authorized by the brokerage? • Does the broker or the salesperson receive advances on commissions earned? • If the salesperson is absent from work (for example, on holiday), are their listings redistributed to other brokers or salespersons in their absence? • Does the brokerage set the guidelines regarding work redistribution in a broker’s or a salesperson’s absence? • If another broker or salesperson covers for the absent broker or salesperson, does the brokerage determine how the compensation with the other broker or salesperson will be effected? • If the brokerage severs their relationship with the broker or the salesperson, are there any legal consequences?

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Ownership of tools When considering ownership of tools, the main factors are: • Amount invested • Value of equipment and tools • Rental and maintenance of equipment and tools In an employer-employee relationship, the employer generally supplies the resources and tools that the employee requires. In addition, the employer covers the following costs related to their use: repairs, insurance, transport, rental, and operation. Relevant questions to evaluate ownership of tools include: • Does the brokerage reimburse the broker or the salesperson for their expenses (for example, automobile and advertising costs)? • Does the brokerage provide such items as office space, administrative services, and stationery at a cost to the broker or the salesperson that is below market value? • Is the broker or the salesperson a shareholder of the brokerage?

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Chance of profit and risk of loss Generally, if an employer-employee relationship exists, the employer alone assumes the risk of loss and covers operating costs, which may include office expenses, employee wages and benefits, insurance premiums, and delivery and shipping. The employee assumes little or no financial risk and is entitled to their full salary or wages, regardless of the financial health of the business. Relevant questions to evaluate change of profit and risk of loss include: • Is the broker or the salesperson paid a combination of salary/wage and commission? • Is there a guaranteed wage minimum? Integration or organization The integration or organization test examines whether the tasks performed by a broker or a salesperson form an integral part of the business (that is, if an employeremployee relationship exists). Integration has to be considered from the point of view of the broker or the salesperson, not the brokerage. Where the broker or the salesperson integrates their activities with the commercial activities of the employer, an employer-employee relationship probably exists. The employee is acting on behalf of the employer, is connected with the employer’s business, and is dependent on it.

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Relevant questions to evaluate integration or organization include: • Is the broker or the salesperson economically dependent on the organization? • Is the broker or the salesperson also acting in the capacity of a registered brokerage? • Is there any additional remuneration (for example, vacation pay, sick pay, and/or bonus for high performance)? • Does the broker or the salesperson receive any fringe benefits? • Does the broker or the salesperson receive severance pay on termination of the contract? • Is the brokerage required to carry insurance coverage to protect against such items as losses, costs, and damages attributable to wrongful or negligent act(s) of the broker or the salesperson? • Does the broker or the salesperson manage the operations of the brokerage? • Does the broker or the salesperson have the chance to profit from sound management of the brokerage?

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Lesson 2 | Page 7 of 13

Key Differences Between Employee Status and Independent Contractor Status Regardless of what the CRA determines the employment relationship to be, a broker of record should be familiar with the differences between the two statuses so that they fully understand how each relationship impacts the brokerage. The key differences between an employee and an independent contractor are: 1) An employee carries out tasks as directed by the employer (the brokerage), while an independent contractor uses their own methods and judgement for conducting tasks, rather than relying on direction from the brokerage. 2) Without brokerage consent, an employee cannot deviate from commission rates that are set by employing brokerage. On the other hand, an independent contractor sets their own commission rate, without the need for brokerage approval. 3) In case of an employee, employment agreement remains in effect but is subject to termination provisions pursuant to the Employment Standards Act (ESA); resigning of contracts is not required. In case of an independent contractor, contract defines the exact terms and conditions of employment; the contract is signed annually by the brokerage and the individual. 4) Brokerage may require an employee’s attendance for training sessions, sales meetings, floor duty time, and so on, as stipulated in the employment agreement and/or policy manual. On the other hand, brokerage is not permitted to require an independent contractor’s attendance for training sessions, sales meetings, floor duty time, and so on, but may encourage attendance and communicate its benefits to the individual. 5) Brokerage does not need to seek employment status determination from the CRA, as employee status is deemed to exist, unless proven otherwise. On the other hand, brokerage should send independent contractor agreement to the CRA for individualized ruling on status, prior to its use. This ruling will relieve the brokerage from obligations to make source deductions and employer contributions.

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Lesson 2 | Page 8 of 13

The CRA also describes the brokerage’s requirements for making employment deductions. Employment deductions are different for employees and independent contractors in a brokerage. As a broker of record, you must understand that your brokerage is required to make source deductions and remittances in accordance with the Income Tax Act. You will be responsible for ensuring that your brokerage follows through with these requirements.

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Lesson 2 | Page 9 of 13

Employment: Source Deductions The employee status requires specific source deductions from the employee, as well as employer contributions, to comply with CRA criteria. These source deductions do not apply to independent contractors, as they have a different status and must make any remittances on their own to the CRA. The broker of record must understand what the brokerage’s obligations are regarding source deductions and contributions. The independent contractor status must meet CRA requirements for the brokerage to be relieved of having to make source deductions and employer contributions, and for the individual to obtain preferential taxation treatment. The key differences in how source deductions are made for employees versus independent contractors are: Employee: • Brokerage is required to make source deductions from the individual’s earnings, including: o Income tax

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•

• • •

o Canada Pension Plan (CPP) o Employment Insurance (EI) Brokerage is required to make contributions toward the individual’s: o CPP o EI Brokerage is responsible for Employer Health Tax (EHT). Brokerage reports all these amounts on an information return by the end of February of the following calendar year. Remittance of all deductions are due on the fifteenth day of the month following the month of deduction and more frequently if a large corporation. This means that the remittance must be paid at the bank or be in the possession of the CRA on that date. Compounding interest applies, including penalties, if further remittances are delayed.

Independent contractor: • Brokerage is not permitted to make any source deductions on behalf of the individual • Brokerage is only responsible for paying out commission to individual, plus the Harmonized Sales Tax (HST) • Individual is responsible for making their own remittances for: o Income tax o CPP (employer and employee portions) o EI (employer and employee portions), should they choose to participate. o EHT, if applicable o HST (and maintaining registration)

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Lesson 2 | Page 10 of 13

The CRA Guidelines for Employment (Source) Deductions The CRA outlines the guidelines for source deductions for employees. A broker of record must understand these requirements and ensure that their brokerage complies with them. The following four sections contain information about CRA guidelines for types of employment deductions and how they affect the brokerage, employees, and independent contractors. Canada Pension Plan The CRA sets out requirements for the Canada Pension Plan (CPP), which is a contributory, earnings-related pension plan, and complements the Old Age Security and private pensions that are either employer-driven or funded through tax deferred, individually registered retirement savings plans. The employee contribution is calculated as a percentage of pensionable earnings to a maximum, which is set each year. Eligibility for CPP participation includes individuals who are: • Between 18 and 69 years old • Employed in pensionable employment during the year • Not presently receiving a Canadian retirement or disability pension Brokerage: The brokerage calculates both the employee and the employer contributions for an individual through a software system. The brokerage as

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the employer must deduct and make contributions regardless of prior employers’ deductions and make remittances to the CRA. Independent contractors: The independent contractor is responsible to submit both the employer and the employee contributions to the CRA. These contributions would be calculated at the time of filing the income tax return. Employment Insurance The Employment Insurance (EI) program in Canada is authorized under the Employment Insurance Act and provides temporary income support to those who are between jobs; cannot work for reasons of sickness, childbirth, or parenting; or who are providing care or support to a family member who is gravely ill with a significant risk of death. Brokerage: The brokerage calculates both the employee and the employer contributions for an individual through a software system. The calculations are based on a percentage of insurable earnings subject to a maximum as set by the CRA on a yearly basis. Currently, the employer contribution is 1.4 times the employee contribution. The brokerage is required to make remittances to the CRA. Independent contractors: Independent contractors can register for the EI program, which will extend to them maternity, parental, sickness, and compassionate care benefits, collectively called special benefits.

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The independent contractor is responsible to submit both the employer and the employee contributions to the CRA. These contributions would be calculated at the time of filing the income tax return.

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Employer Health Tax The Employer Health Tax (EHT) is a tax imposed by the Ministry of Finance on employers within Ontario, pursuant to the Employer Health Tax Act. The EHT applies to employees, such as administrative staff, but not to independent contractors. Brokerage: The brokerage is required to pay the EHT and must file an annual return. Employers filing annually use the return to calculate their total tax due for the year. Employers filing quarterly or monthly use the annual return to ensure that their total yearly tax due agrees with the installment payments already made. Independent contractors: Independent contractors may be required to submit their EHT as self-employed individuals. Income Tax An employer is required to make income tax deductions in relation to remuneration paid to employees. The amount to be deducted is determined using either of the following forms: • TD1 for most employees • TD1X for employees who are paid commission Based on calculations using these forms, the CRA provides payroll deduction tables for weekly, bi-weekly, semi-monthly, and monthly pay periods, and for commission earnings. There are now separate tables © 2021 Real Estate Council of Ontario

for federal withholdings and for certain provinces, including Ontario. T4s and T4As must be issued to all employees by the last day of February following the calendar year reported. The T4 summary (with copies of all T4 and T4A slips) must also be forwarded to the federal government. The value of various benefits is taxable as income over and above commissions and wages. Examples include employer provided vehicle, gifts (over $100, which the employer claims the cost as an expense), tuition fees (if employer pays or for employee’s benefit), and interestfree or low-interest loans (difference between rate charged and market rate). Brokerage: The brokerage is required to make source deductions for income tax for all employees and remit to the CRA. Independent contractors: Independent contractors will be responsible for their own income tax remittances to the CRA. These contributions would be calculated at the time of filing the income tax return.

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Lesson 2 | Page 11 of 13

A brokerage has decided to employ all of their brokers and salespersons as independent contractors. Which of the following apply to the brokers and the salespersons? There are four options. There are multiple correct answers.

1

They will work according to their own methods and judgement.

2

Their employment agreements must be approved by RECO.

3

They will set their own commission rate for their services.

4

They will be responsible for their own administrative and operating expenses, as billed by the brokerage.

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Lesson 2 | Page 12 of 13

A brokerage has decided to employ all of their administrative staff as employees. Which of the following apply to the administrative staff? There are five options. There are multiple correct answers.

1

The brokerage is required to make deductions for the CPP.

2

The brokerage is required to make deductions for EI.

3

The brokerage is responsible for paying the HST for the individual’s services.

4

The brokerage is responsible for the EHT.

5

The brokerage is required to make source deductions from the individual’s earnings for income tax.

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Lesson 2 | Page 13 of 13

Congratulations, you have completed the lesson! Completion of this lesson has enabled you to: • Identify key employment relationships within a brokerage • Identify employment status for staff in a brokerage • Identify the Canada Revenue Agency (CRA) guidelines for employment (source) deductions There are three sections on this page with a summary of the key topics that were discussed in this lesson.

Employment relationships

A brokerage can hire an individual as either an employee or an independent contractor. The brokerage’s employment relationship with an individual will impact its processes and activities. Although these statuses exist primarily to distinguish taxation requirements, it is important to understand that for the purposes of REBBA, all brokers and salespersons are considered as employees of the brokerage. Therefore, they must comply with all REBBA regulations related to trading activities. An employment contract between a broker or a salesperson is used to define the relationship between the brokerage and the independent contractor. You are encouraged to work with a lawyer when preparing an employment contract and submit the contract for independent contractors to the CRA for an individualized ruling.

CRA guidelines for determining employment status

Employment status is important for taxation purposes and can benefit a brokerage financially. Independent contractor status relieves the brokerage from having to make source deductions and employer contributions. Because independent contractors receive preferential tax treatment, their status must be agreed upon by the CRA. The CRA determines an individual’s employment status based on four common law principles: • Control test • Ownership of tools • Chance of profit and risk of loss

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• Integration As a leading practice, a brokerage should get an individualized ruling from the CRA on the status of their independent contractors’ employment. Doing so will ensure that the broker of record understands their brokerage’s obligations in making certain source deductions for individuals. Employment status determination is not required for employees.

CRA guidelines for employment deductions

The CRA provides the guidelines for a brokerage to remit deductions from employee remunerations. Brokerages are liable for deductions and remittance for employees. Independent contractors, however, must submit their own source deductions to the CRA. As a broker of record, you will be responsible for ensuring that your brokerage makes the following deductions and contributions for employees: • CPP and EI source deductions and employer contributions, as well as remittances • Income tax source deductions and remittances • EHT employer contributions

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Lesson 3 | Page 1 of 15

Lesson 3: Key Performance Drivers and Standards

This lesson identifies key considerations for defining job descriptions and performance standards for different roles in a brokerage (that is, brokers of record, branch managers, brokers, salespersons, and administrative staff).

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Lesson 3 | Page 2 of 15

Brokerages can establish standards as performance drivers to measure and define their employees’ success over a period of time. Performance standards can help brokerages determine their own progress and compare their business against competitors. These performance standards can be a critical reference point for a brokerage to create job descriptions that are used during the recruitment process, when defining the training needs, and during performance reviews. Upon completion of this lesson, you will be able to: • Identify key performance drivers by role within a brokerage • Describe performance standards for all staff in a brokerage Throughout this lesson, you will participate in decision points to test your knowledge on the topics presented.

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Lesson 3 | Page 3 of 15

As a broker of record, you will be responsible for managing your brokerage to meet its vision and goals. To do this efficiently, you should identify, formally document, and communicate performance drivers for brokers, salespersons, and administrative staff. Performance drivers describe the brokerage’s expectations for each position and are included in the respective job description.

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Lesson 3 | Page 4 of 15

Key Drivers for Performance A broker of record is responsible for identifying, formally documenting, and communicating performance drivers for each role within their brokerage. Performance drivers are the day-to-day activities that are required to meet certain goals. For example, performance drivers for a salesperson may include the following: • Abiding by the brokerage’s policies and procedures and all regulatory requirements (the Real Estate and Business Brokers Act [REBBA], the Proceeds of Crime (Money Laundering) and Terrorist Financing Act [PCMLTFA], the Personal Information Protection and Electronic Documents Act [PIPEDA], and Real Estate Board rules and regulations) Note: Compliance with REBBA, PCMLTFA, and PIPEDA is mandatory regardless of whether it is established as a performance driver. • Pursuing ongoing education requirements and training on a continuous basis • Prospecting for potential sellers and buyers • Seeking out representation agreements with sellers and buyers • Showing properties to prospective buyers • Verifying all information and documentation pertaining to trade activities to avoid misrepresentation • Submitting all trading documents to the brokerage in a timely manner • Delivering consumer deposits in accordance with agreements • Preparing customer service agreements and representation agreements • Creating and using marketing and promotional materials The following points explain how establishing key performance drivers can benefit both the brokerage and its staff: • Sets job expectations: Setting job expectations for a position can help the brokerage narrow down the necessary skills and experience for a position. It also helps the individual clearly understand the duties and responsibilities that are expected of the position.

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• Provides direction: The brokerage can use performance drivers to identify any necessary training that an individual needs to do their job successfully and comply with legislation to ensure consumer protection. The broker of record must ensure that the individual is provided with that training. The individual can use performance drivers to gain a better understanding of how and when to complete their work and meet their objectives. • Can be used as an assessment tool: The brokerage may rely on performance drivers when reviewing an individual’s performance. The individual can use performance drivers to self-assess their performance by comparing their progress to the established parameters. • Establishes market share goals: The brokerage can establish market share goals to ensure that they are meeting their financial obligations. Brokers and salespersons can also use these goals to assess whether they have met their financial targets for a given period of time. This does not apply to administrative staff. • Helps to ensure consumer protection: The brokerage can specify performance drivers to ensure consumer protection through compliance with legislation, such as REBBA, FINTRAC, and PIPEDA. The individual must comply with any legislation set out in the performance drivers to uphold the brokerage’s commitment to consumer protection.

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Lesson 3 | Page 5 of 15

Job Descriptions Defining the performance drivers for each job role helps to identify important tasks and outcomes. Performance drivers should be included in job descriptions so that the individual fulfilling the role understands what specific duties, responsibilities, and expectations the position entails. A brokerage uses job descriptions to define position duties and responsibilities that support the brokerage’s vision and goals. The broker of record will use the job description to guide them throughout the recruiting process. You will learn more about this in a later module. In addition to performance drivers, a proper job description should include the following in clear language: the position title, a description of the role, its purpose, duties and responsibilities, required skills and qualifications, and special considerations or work requirements.

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A detailed job description can help a broker of record with the following: • Advertising a position: Posting a detailed description of the role will set clear expectations for applicants and help to narrow down the search to those who believe they may be qualified for the position. • Screening applicants for ideal candidates: A broker of record can use the description and duties and responsibilities listed on the job description as specific qualifiers when assessing applicants. • Asking targeted interview questions: A clearly written job description can help to guide the broker of record in asking pointed questions during an interview and ensuring that the applicant has all the necessary skills and knowledge required for the position. • Identifying training areas: Once an individual has been hired, a broker of record can use the job description as a reference point to identify any gaps in their skillset. • Evaluating an individual’s performance: Similar to identifying training areas, a broker of record can also use a job description to evaluate an individual’s performance by comparing their performance to the established duties and expectations. As with staffing requirements, job descriptions will vary based on a brokerage’s business model, size, and organization of staff.

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Lesson 3 | Page 6 of 15

Job Descriptions for Specific Roles Job descriptions will vary depending on the brokerage’s expectations and needs, and their staffing requirements. The following key considerations for creating job descriptions are broken down by position, but keep in mind that many of these considerations can overlap across all roles. The following three sections contain information about considerations for each job description. Sales staff (brokers and salespersons) When creating a job description for brokers and salespersons, a broker of record should consider the following: • Target market: A brokerage’s target market may influence the skillset and experience required for their sales staff. If the brokerage has a specific field of concentration (for example, new home sales), brokers and salespersons may require specialized skills or experience. • Target demographic: It is helpful for a broker or salesperson to be able to relate to their customers and clients, and the community they serve. The brokerage’s target demographic can impact the brokers and salespersons you choose to hire. For example, if a brokerage caters to first-time homebuyers, they may seek brokers and salespersons who are efficient in communicating through newer technology, since first-time homebuyers tend to be younger.

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• Special qualifications: A brokerage may require specific qualifications based on their field of concentration. For example, if a brokerage concentrates in listing and selling commercial real estate, they may want brokers and salespersons to have a business degree. • Services available to consumers: Broker and salesperson duties and responsibilities will depend largely on the services that your brokerage offers its clients and customers. A brokerage may require potential candidates to already have experience offering certain services. At the very least, they will want to be sure that they are capable of learning how to meet consumer demands for those services. Alternate broker of record or branch manager As you learned in a previous course, partnerships and corporations require an alternate broker of record to be named. When establishing a job description for an alternate broker of record or branch manager, a broker of record should consider the following: • Travel requirements: Brokers of record and branch managers are often required to travel to different branch offices and site locations. If this is a requirement for the role, the job description should clearly state this expectation. • Industry knowledge and experience: Brokers of record and branch managers should have a diverse knowledge and experience base, especially

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regarding a particular brokerage’s field of concentration and target market. • Management experience: Setting management expectations in the job description is essential, as brokers of record and branch managers will oversee various roles in a brokerage. • Involvement in the real estate industry: It is often beneficial to have a broker of record or branch manager who serves on a committee or task force with their local real estate board or who serves on a RECO committee. A broker of record should consider what kind of additional knowledge and exposure could contribute to the brokerage as a result of the individual’s involvement. • Other experience: Depending on the duties ascribed to the various roles within the brokerage, a broker of record or branch manager may be expected to have a background in other areas, such as accounting or human resources. Note that although many of these duties overlap for both positions, the broker of record is ultimately responsible for all aspects of the entire brokerage, regardless of how many locations they have. If a brokerage has only one physical location, a broker of record may hire a manager to assist with specific duties. If a brokerage has multiple locations, a branch manager may only be responsible for their branch office. You learned about brokerages with multiple locations in a previous course.

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Administrative staff When establishing a job description for administrative staff, a broker of record should consider the following: • Software systems and technology: A brokerage may require its administrative staff to have a working knowledge of specific software or technology. At the very least, they may want them to be comfortable with a certain level of technology. • Hours of operation: A broker of record will need to consider their brokerage’s hours of operation when outlining administrative staff’s availability requirements. • Real estate knowledge and experience: Perhaps more crucial for certain administrative roles over others, staff members with a background in real estate can benefit their brokerage with their expertise and immediate application.

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Lesson 3 | Page 7 of 15

Job Description for Administrative Staff Although job descriptions will vary depending on the specific role, a job description for an administrative staff position will typically include the following: • Position title • Who the individual would report to • Job purpose • Duties and responsibilities • Qualifications

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• Working conditions Typically, standardized job descriptions are not developed for brokers and salespersons. However, job-related tasks should be detailed in employment or independent contractor agreements and then can be reinforced through the brokerage policy manual.

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Lesson 3 | Page 8 of 15

A brokerage has recently opened a new branch office and is currently recruiting brokers and salespersons. The brokerage concentrates on selling luxury homes in an area with a significant French-speaking population. What should the broker of record add to the job description for brokers and salespersons? There are four options. There are multiple correct answers.

1

Brokers and salespersons must direct inquiries, messages, and documentation for other brokers and salespersons in the office.

2

Experience in working with luxury properties is preferred.

3

Brokers and salespersons must be proficient in both French and English.

4

Brokers and salespersons must be registered with RECO and have fully paid Professional Liability Insurance.

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Lesson 3 | Page 9 of 15

A broker of record is writing a job description for a front-desk receptionist for their new brokerage. The brokerage will concentrate on the condominium market, and their main demographic will be young professionals who are first-time homebuyers. Their target market will be an area with a large French-speaking population. The brokerage has also acquired a communication system with a new software package (the most current technology). The front-desk receptionist will not be involved in providing any trade services to the brokerage’s sales staff and will be mainly coordinating meetings, booking appointments, and directing messages. What should the broker of record include in the job description? There are four options. There are multiple correct answers.

1

Administration staff must be proficient in French.

2

Experience with navigating the local listing board is required.

3

Applicant must be proficient with current communication technology.

4

Registration with RECO is required.

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Lesson 3 | Page 10 of 15

As a broker of record, you will use your performance standards to evaluate brokers, salespersons, and administrative staff. Therefore, well-designed performance standards are essential, and should be included in a job description, as they help individuals understand how they will be assessed on their job performance and how they can improve.

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Lesson 3 | Page 11 of 15

Performance Standards As a leading practice, a broker of record should add performance standards to the job descriptions for all positions where warranted. Standards should clearly describe performance expectations for tasks, in terms of quantity, quality, timelines, cost outcomes, and any health and safety considerations for the individual filling the role and/or consumers. While the job description describes the key performance drivers, the performance standards are intended to provide additional context and set expectations on how to accomplish these tasks. Establishing performance standards can benefit both the brokerage and individuals in the following ways: • Sets clear and measurable expectations for each task • Serves as a benchmark for training • Focuses and motivates individuals • Serves as a self-assessment tool for individuals

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• Serves as an assessment tool for the broker of record • Identifies areas that an individual can improve upon • Identifies opportunities for an individual’s growth • Determines any necessary corrective actions Well-designed performance standards are essential to a brokerage’s success, as they create a bar by which the individual can measure their performance in a job role compared to its expectations. These standards set the foundation for the individual in terms of ongoing performance management.

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Lesson 3 | Page 12 of 15

Performance Standards for Sales and Administrative Staff A broker of record (or branch manager where applicable) is responsible for evaluating the performance of their sales and administrative staff by establishing performance standards for each position. Performance standards are a set of assessment criteria, which will vary from brokerage to brokerage. Regardless of the position, the broker of record should consider their brokerage’s needs and their expectations for each role to ensure that these expectations properly align with their brokerage’s vision and goals. Performance standards should be objective, measurable, realistic, and stated clearly in writing. The following four sections contain information about different staff performance standards. Sales staff (brokers and salespersons) Performance standards for salespersons are linked to the brokerage’s vision and goals. Predominantly, assessing performance levels for sales staff will be tied to income and volume. Considerations for performance standards for sales staff may include the following: • How many transactions did the salesperson complete? • How many of these transactions were from their listings? • How many were buyer transactions? Additional performance standards can centre on areas of importance to the brokerage, including: • Compliance with various legislation, such as REBBA, to ensure consumer protection

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• Maintaining client relationships Example: Brokers and salespersons must follow up with previous clients once every six months after a transaction has been completed (either with a phone call, email, or letter) to maintain their relationship for potential future business. Administrative positions Considerations for performance standards for administrative positions may include the following: • Performance expectations for each major duty • Observable behaviours and actions to get the job done • Expected results for satisfactory job performance Example: Administrative staff must coordinate appointment requests for brokerage listings with the appropriate parties within four hours of receiving the request to ensure that all parties have sufficient time to confirm and prepare for the arrangement. They must provide written confirmation of appointment details to the listing broker or salesperson.

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Broker of record Considerations for performance standards for a broker of record may include the following: • Performance expectations for each major duty, such as responsibilities towards the real estate trust account, the real estate trust ledger, monthly reconciliations, trade files and trade record sheets, registration certificates (effective June 2022, RECO will only be issuing electronic registration certificates). • Observable behaviours and actions to get the job done, such as review of trade files and proper entries into the real estate trust ledger, review of trade record sheets, approval and signing if complete and accurate, and so on • Expected results for satisfactory job performance, such as a favourable report from a routine RECO inspection, good standing with RECO, ability to cope with any staff disputes and consumer complaints, and recruitment and management of others Example: The broker of record must review the accuracy of the real estate trust account reconciliation, and sign and date within seven days of receipt of bank statement, to ensure compliance with REBBA in a timely manner.

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Branch manager Considerations for performance standards for a branch manager may include the following: • Performance expectations for each major duty, such as responsibilities around recruiting and retaining of staff, training and supervision of staff, reporting to the broker of record, and so on • Observable behaviours and actions to get the job done, such as recruiting and retaining brokers, salespersons, and administrative staff, developing and presenting training programs, and so on • Expected results for satisfactory job performance, such as successfully recruiting additional staff for the branch, existing staff helping with recruitment as a result of their satisfaction with the brokerage’s management, and so on Example: The branch manager must host 1 recruiting event each month and recruit 10 brokers and/or salespersons to the brokerage by the end of the year to meet the brokerage’s vision and goals for growth.

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Lesson 3 | Page 13 of 15

The duties and responsibilities of a front-desk receptionist in a job description are as follows: • Coordinate appointment bookings for listed properties • File agreements and trade-related documents in accordance with established brokerage policy • Update selected databases maintained by the brokerage What performance standards can be inferred from these criteria? There are four options. There are multiple correct answers.

1

Ensure that appointment requests for showing the brokerage’s listings are acted upon and confirmed in a timely manner.

2

Ensure that amendments are filed together with the appropriate listing agreement.

3

Ensure that they are adhering to the National Do Not Call List (DNCL) and that the internal do not call list is kept up to date.

4

Ensure that brokers’ and salespersons’ client databases are maintained properly.

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Lesson 3 | Page 14 of 15

ABC Real Estate Inc. has established performance standards for the broker of record role. The duties and responsibilities for the broker of record include the following: • Supervise brokers and salespersons • Maintain real estate trust account • Oversee the documentation of all trading activity • Defining staffing requirements What performance standards can be inferred from these criteria? There are four options. There are multiple correct answers.

1

Review monthly bank statements for the brokerage’s real estate trust account to confirm its accuracy.

2

Ensure that accepted agreements of purchase and sale are filed with their corresponding trade documents.

3

Ensure the brokerage’s staffing requirements align with the real estate board rules.

4

Ensure that all individuals who work at the brokerage comply with REBBA.

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Lesson 3 | Page 15 of 15

Congratulations, you have completed the lesson! Completion of this lesson has enabled you to: • Identify key performance drivers by role within a brokerage • Describe performance standards for all staff in a brokerage There are three sections on this page with a summary of the key topics that were discussed in this lesson.

Key performance drivers

As a broker of record, you will need to manage your staff’s performance to meet your brokerage’s vision and goals. You can establish key performance drivers for optimal performance management. Key performance drivers will be specific to the position. Establishing key performance drivers can benefit both the brokerage and its staff in the following ways: • Sets clear and measurable expectations for each task • Serves as a benchmark for training • Focuses and motivates individuals • Serves as a self-assessment tool for individuals • Serves as an assessment tool for the broker of record • Identifies areas that an individual can improve upon • Identifies opportunities for an individual’s growth • Determines any necessary corrective actions

Job descriptions

Job descriptions must be properly drafted and include all necessary information about the expected performance from an individual. They should also outline the required qualifications for the job position. Every position in the brokerage will have different duties and responsibilities.

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As a broker of record, you will need to consider the specific skill requirements and duties and responsibilities for each position when drafting a job description.

Performance standards

As the broker of record, you should develop performance standards for each position. These performance standards can be included in a job description to set expectations for an individual’s day-to-day activities. Like key performance drivers, the performance standards will be specific to the position.

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Lesson 4 | Page 1 of 8

Lesson 4: Summary Practice Activities

This lesson provides a series of activities that will test your knowledge on the entire module.

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Lesson 4 | Page 2 of 8

This lesson provides summary practice activities. Throughout this lesson, you will participate in decision points to test your knowledge on the topics presented.

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Lesson 4 | Page 3 of 8

A broker of record is opening a new full-service brokerage and plans to concentrate on new home sales, as they have established a relationship with a builder in a large development in the north end of the city. The builder is in the process of constructing three different floor plans that will be used as model homes. The broker of record is creating the brokerage’s staffing requirements. What should the broker of record consider when establishing the brokerage’s staffing requirements? There are four options. There are multiple correct answers.

1

Alignment with the Employment Standards Act

2

Experience required for working in new home sales

3

Expected dates for completion of the model homes and staffing the site

4

Types of services offered related to residential transactions

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Lesson 4 | Page 4 of 8

A brokerage has brokers and salespersons as both employees and independent contractors. Which of the following statements represent correct employment consideration with respect to both employee and independent contractor employment status? There are six options. There are multiple correct answers.

1

The brokers and the salespersons are required to comply with REBBA.

2

The brokerage is required to make source deductions from brokers and salespersons.

3

The brokers and the salespersons are required to attend brokerage training meetings.

4

The brokers and the salespersons are not required to attend training sessions.

5

All service agreements secured by brokers and salespersons will be in the brokerage’s name.

6

The brokers and the salespersons are free to set their own commission rates for services provided.

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Lesson 4 | Page 5 of 8

A brokerage is required to make source deductions and remit all deductions based on the CRA guidelines. Which of the following statements are accurate regarding source deductions for employees? There are four options. There are multiple correct answers.

1

The brokerage could incur penalties for failure to submit employee source deductions in a timely manner.

2

The brokerage must calculate and submit the deductions for employees, as well as the employer portion of the Canada Pension Plan (CPP) and Employment Insurance (EI) premiums.

3

The brokerage will report all employee source deductions to REBBA on an annual basis.

4

The brokerage must remit all source deductions 60 days after making the deductions.

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Lesson 4 | Page 6 of 8

A non-registered owner has just opened a brokerage and is establishing performance standards for their staff. Which of the following performance standards match the job position of administration staff in the brokerage. There are four options. There are multiple correct answers.

1

Complete 20 sales transactions per year.

2

Prepare routine sales reports on a monthly basis.

3

Secure three listings per month.

4

Input listing details into the brokerage software system within four business hours of receipt to the brokerage.

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Lesson 4 | Page 7 of 8

A non-registered owner has just opened a brokerage and is establishing performance standards for their staff. Which of the following performance standards match the job position of only broker of records in the brokerage. There are four options. There are multiple correct answers.

1

Review monthly reconciliation for real estate trust account for accuracy, and sign and date it.

2

Recruit 12 brokers and/or salespersons to their branch per year.

3

Review trade record sheets for accuracy and completeness, and sign and date them.

4

Oversee sales activities of brokers and salespersons at branch office to ensure they meet monthly targets.

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Lesson 4 | Page 8 of 8

Congratulations, you have completed the lesson!

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Module Summary | Page 1 of 3

Module Summary

This lesson contains a summary of the entire module.

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Module Summary | Page 2 of 3

Congratulations, you have completed this module! The next screen will present a summary of the lessons in this module.

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Module Summary | Page 3 of 3

There are three sections on this page with a summary of the key topics that were discussed in this module.

Staffing Requirements

To accomplish the target objectives, as a broker of record, you will need to create effective staffing requirements that align with your brokerage’s vision. Remember that the staffing requirements must comply with provincial and federal legislation. Completion of this lesson has enabled you to: • Identify staffing requirements for a new brokerage

Employment Relationships

The employment relationship between the brokerage and its workers can be distinguished into two types: • Employees • Self-employed or independent contractors The rules and regulations are specifically different for each type of employment relationship. Completion of this lesson has enabled you to: • Identify key employment relationships within a brokerage • Identify employment status for staff in a brokerage • Identify the Canada Revenue Agency (CRA) guidelines for employment (source) deductions

Key Performance Drivers and Standards

To successfully manage and assess the performance of your brokerage’s staff, as a broker of record, you will need to identify performance standards. These standards will be based on the specific role as outlined in its job description. Establishing key performance drivers can benefit both the brokerage and its staff in the following ways: • Sets job expectations • Provides direction • Can be used by the broker of record to manage and assess staff

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• Can be used by staff to manage and assess individual goals • Establishes market share goals to meet financial obligations • Helps to ensure consumer protection Completion of this lesson has enabled you to: • Identify key performance drivers by role in a brokerage • Describe performance standards for all staff in a brokerage

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V6

Module 2: Hiring Salespersons, Brokers, and Administrative Staff for a Brokerage Disclaimer: This is a reference document which contains pages from the Accessible eLearning module. You should complete the eLearning module to proceed to the next step. Please note that the accessible module on the LMS only contains the interactive pages and you need to go through the content of this document thoroughly to attempt the interactive activities in the module. Please use Adobe Acrobat Reader (Recommended version 9 or above) to navigate through this PDF. Real Estate Broker Program © 2021 Real Estate Council of Ontario. All Rights Reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or in any means – by electronic, mechanical, photocopying, recording or otherwise without prior written permission, except for the personal use of the Real Estate Broker Program learner.

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Module 2: Hiring Salespersons, Brokers, and Administrative Staff for a Brokerage As a broker of record, you will need to create a recruiting strategy to fulfill your brokerage’s staffing needs. A good recruiting strategy focuses on everything from communicating the necessary skills, education, and experience for a position to onboarding new recruits. The goal should be to recruit, hire, and retain talented individuals. In this module, you will learn about methods for prospecting, sourcing, and recruiting potential candidates, as well as approaches for screening them. You will learn about the differences between independent contractor agreements and employment agreements. You will also learn about the basic components commonly used in the screening and selection process. Finally, you will learn about key considerations for establishing performancebased orientation programs to help successfully onboard new recruits to your brokerage. To check your understanding of this module, you must complete all the activities in the online module. While navigating through the online module, click the Legislation button to view laws and regulations related to this module. The contents of the thumbnails Accessible PDF.

and References from the module are added to support your learning throughout this

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Menu: Hiring Salespersons, Brokers, and Administrative Staff for a Brokerage Number of Lessons

Lesson Number

7 Lessons

Lesson Name

Lesson 1

Recruiting Plans for a Brokerage

Lesson 2

Agreements for Independent Contractors and Employees

Lesson 3

Employee Application Forms

Lesson 4

Selection Process for Roles Within a Brokerage

Lesson 5

Orientation Programs for the Staff

Lesson 6

Summary Practice Activities Module Summary

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Lesson 1 | Page 1 of 12

Lesson 1: Recruiting Plans for a Brokerage

This lesson introduces the methods that a broker of record can use when prospecting, sourcing, and recruiting brokers, salespersons, and administrative staff. In addition, the lesson also describes the benefits and drawbacks of recruiting incentives.

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Lesson 1 | Page 2 of 12

Successful brokerages grow and prosper based on the people they attract, hire, and retain. Recruiting is a vital aspect of the leadership and ongoing management of a brokerage. Many factors interplay in the ability to attract brokers, salespersons, and administrative staff. As a broker of record, you should develop a basic recruiting plan, which can be expanded or modified over time to align with current and anticipated future market conditions. An effective recruiting plan generally includes daily activities directed to specific individuals and is accomplished through two primary methods. The first method is prospecting and sourcing, and the second is recruiting. Prospecting and sourcing involves talking to many people and listening for indications that they have needs that your brokerage can satisfy. Recruiting, on the other hand, involves talking to individuals who you have heard express a need and communicating a benefit or solution that the brokerage can deliver to address the need.

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This lesson will introduce you to common prospecting, sourcing, and recruiting methods. You will also learn about recruiting incentives that you can use when recruiting staff for your brokerage. Upon completion of this lesson, you will be able to: • Describe key components of a recruiting plan for a brokerage • Identify recruiting incentives typically used by a brokerage Throughout this lesson, you will participate in decision points to test your knowledge on the topics presented.

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Lesson 1 | Page 3 of 12

Recruiting is a continuous process in a brokerage requiring preparation, planning, and a commitment to finding the right people. Depending on the business model and targeted market for your brokerage, as a broker of record, you will need to identify your staffing needs and then define appropriate recruiting plans. Prospecting, sourcing, and recruiting are key elements of all recruiting plans. Recruiting plans may vary depending on whether the brokerage is targeting brokers and salespersons or administrative staff. They may also vary depending on whether the brokerage is targeting experienced brokers and salespersons or those who are new to the industry. As a broker of record, you will need to consider factors like the level of supervision required for new salespersons before they become productive or the clientele that experienced brokers and salespersons will bring with them upon joining the brokerage and the impact of this on the brokerage. The recruiting plan will affect both short and long-term goals and decision making by management. Whether you would like to hire inexperienced salespersons, experienced brokers and salespersons, or a mix of both is a personal choice that will be influenced by the objectives of your brokerage.

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Lesson 1 | Page 4 of 12

Attracting and Retaining Brokers, Salespersons, and Administrative Staff Before initiating a recruiting plan, a brokerage should differentiate themselves from other brokerages in the marketplace to attract, hire, and retain knowledgeable, capable, and talented individuals who complement the brokerage’s vision and goals. Depending on resources available, a brokerage can highlight one or multiple competitive advantages to differentiate themselves from others in the marketplace. The following five sections contain information about the competitive advantages that a brokerage can use to differentiate themselves and aid in recruitment.

Physical environment and overall impression The presence of professionalism in the brokerage’s physical surroundings can significantly impact recruiting. A brokerage can attract talented individuals by ensuring a professional environment. This includes ensuring that business necessities, such as computers, software, and up-to-date communication systems, are available to individuals working at the brokerage. The broker of record should know how to demonstrate ways in which these necessities could benefit individuals.

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Brokerage reputation Developing and maintaining a good reputation in the community is essential in attracting talented individuals. Brokers, salespersons, and administrative staff often prefer to work with brokerages and management teams that are known, respected, and trusted within the marketplace.

Distinctive brokerage image and marketing strategy Every successful enterprise requires a unique advantage or defining competitive edge. Advantages that a brokerage may have could include alignment with a well-known franchise, a good reputation in the marketplace, a popular website, or a good location. A brokerage should have something that sets it apart from other brokerages, which brokers, salespersons, and administrative staff can relate to, use, and benefit from in their day-to-day activities.

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Competitive compensation package A brokerage’s remuneration plan should be competitive, easy to understand, and equitable. It should fairly align effort to reward.

Clear and consistent message A brokerage’s vision plays a very important role in attracting suitable candidates. Successful brokerages deliver concise, attractive, and appealing messages in the marketplace, based on a known and wellcommunicated vision. Promotional packages, particularly recruiting materials, should be carefully developed to advance that vision. You will learn more about vision in a later course.

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Lesson 1 | Page 5 of 12

Prospecting to Locate Brokers, Salespersons, and Administrative Staff Recruiting plans for a brokerage are implemented after considering the competitive advantages of the brokerage. As you learned earlier, an effective recruiting plan is made possible through prospecting, sourcing, and recruiting suitable candidates. Prospecting and sourcing is an ongoing and proactive approach to actively search, research, and then create a roster of potential candidates with a goal to recruit them in the future. When prospecting and sourcing, a broker of record should establish contact with potential candidates, learn about them, and listen for indications of a need. The focus of the conversation should be about them. Recruiting, on the other hand, involves various strategies to entice potential candidates to join the brokerage. When recruiting, a broker of record should have conversations with the potential candidate about what the brokerage has to offer and how it can satisfy their expressed needs. As a broker of record, prospecting, sourcing, and recruiting for new and experienced brokers and salespersons should be a daily activity. Brokerages are typically always looking for the right sales staff to propel their brokerage forward. However, prospecting, sourcing, and recruiting for administrative staff tends only to be considered when the need arises. The following three sections contain information about some approaches that a broker of record can use to search for prospective brokers, salespersons, and administrative staff.

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Salespersons – new to the industry Prospecting for individuals who are new to the industry involves searching for potential candidates who could be a good fit for the brokerage. A broker of record can search for potential candidates by: • Creating posts on the brokerage website and social media platforms stating they are looking to add to their sales staff • Hosting career seminars • Participating in home shows • Participating in job fairs • Posting advertisements on career websites After identifying potential candidates (which is referred to as sourcing), a broker of record may engage with them by: • Establishing contact with them on social media platforms and liking, commenting, and sharing content • Staying in contact through phone calls and sending text messages • Sending videos or messages on real estate topics on a regular basis • Sending a card or making a phone call to acknowledge an achievement • Inviting them to educational seminars

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Brokers and salespersons – experienced Prospecting for experienced individuals involves researching to learn who the competition is and identifying potential candidates, specifically top performers. This will help a broker of record have an awareness of future recruitment opportunities should the potential candidate be considering a change of brokerage. A broker of record can identify potential candidates by monitoring real estate board activity to look for top performers in the marketplace. They can also ask their own brokerage staff about any recommendations regarding brokers and salespersons they may have worked with and who may be looking for a change. These forms of prospecting is an opportunity to build a list of potential candidates, which is also referred to as sourcing. Prospecting and sourcing for experienced brokers and salespersons is essentially about building relationships with the goal of being the brokerage of choice should they ever consider leaving their current brokerage. It is important for a broker of record to gather information about potential candidates and look for opportunities to interact with them. After identifying potential candidates (also referred to as sourcing), a broker of record may engage with them © 2021 Real Estate Council of Ontario

using the approaches applied for individuals new to the industry. In addition, they may also invite them to appreciation events organized by the brokerage.

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Administrative staff Prospecting for administrative staff involves searching for potential candidates who could be a good fit for the brokerage. A broker of record can search for administrative staff by: • Creating posts on the brokerage website and social media platforms stating they are looking to fill an administrative staff position • Participating in job fairs at local colleges or training institutions • Posting advertisements on career websites and college career boards • Asking current staff if they know of individuals from competing brokerages who may be looking for a change in employer • Engaging an employment agency to search for and pre-qualify potential candidates for the brokerage (most often used when there is an urgent need for specific skills) Note: A brokerage may save time by engaging an employment agency. However, there are additional costs associated with this. Before engaging an employment agency, the broker of record should consider the brokerage budget for recruitment. The brokerage will need to pay an upfront finder’s fee and/or a portion of the individual’s salary for a defined period of time.

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Lesson 1 | Page 6 of 12

Recruiting Brokers, Salespersons, and Administrative Staff As you learned earlier, the purpose of a recruiting conversation is to entice a potential candidate to join the brokerage when the brokerage is able satisfy a predetermined need. The lines between prospecting, sourcing, and recruiting are often blurred as these conversations can sometimes happen together. For example, existing brokers and salespersons working with the brokerage interact with top performers from other brokerages and are in a unique position to highlight potential benefits that may satisfy a need. Existing brokers and salespersons are ambassadors for the brokerage and often offer the best referrals that support the recruitment of potential candidates. They can provide insight into the day-to-day experiences of the brokerage. Clients and business acquaintances, as well as third-party recruiting agencies, may also be sources for potential candidates. Regardless of who helps with recruiting, the broker of record will meet the potential candidate and highlight the benefits of working for the brokerage. The benefits discussed should satisfy the specific needs of the candidate. The broker of record is ultimately responsible for making the final selection. The following three sections contain information about some approaches that a broker of record can use to engage with a potential candidate.

Salespersons – new to the industry Individuals who are new to the industry are usually eager to learn and are looking for brokerages that can help them gain experience and grow their careers. They may seek opportunities at a brokerage that is willing to invest in helping to launch their career. When recruiting prospective new salespersons, a broker of record can make use of the following: • Highlighting the training and mentoring programs that the brokerage offers and how the programs can benefit them in their new career

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• Demonstrating the technology and infrastructure available at the brokerage and how it would assist them in performing their tasks • Showcasing resource materials and job aids that the brokerage provides to support salespersons on the job • Highlighting how they can leverage ongoing support from the broker of record and the administrative staff • Showcasing the business premises

Brokers and salespersons – experienced When switching brokerages, experienced brokers and salespersons with good performance records are usually looking for new or additional opportunities that they do not have at their present brokerage. They may also be looking for a better commission split or better services. Before initiating a recruiting conversation, a broker of record should study the information gathered about the potential candidate and align the conversation to address the wants and needs of the candidate. When recruiting experienced brokers and salespersons, a broker of record can make use of the following: • Communicating how the brokerage could better assist them with their career as compared to their current brokerage

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• Demonstrating the brokerage’s systems, resources, technology, and how these would benefit them • Providing facts, such as market share, that may reflect the brokerage’s success

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Administrative staff Individuals seeking administrative staff positions with a brokerage are usually looking for an employer who offers career development and growth opportunities as well as a positive work environment. For an experienced individual, a broker of record can make use of the following: • Matching compensation and employee benefits to the experience and skills they offer • Communicating career advancement options • Demonstrating procedural systems, technology, and software programs that the brokerage uses • Highlighting the benefits of working with the brokerage, focusing on the culture and work environment For individuals without experience, the broker of record should highlight the training programs that the brokerage provides.

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Lesson 1 | Page 7 of 12

A broker of record is preparing suitable prospecting methods to attract potential recruits. Identify which of the following methods will be suitable for prospective recruits who are new to the industry. There are four options. There are multiple correct answers.

1

Holding appreciation events

2

Conducting competitor analysis

3

Conducting career seminars at the brokerage

4

Participating in home shows

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Lesson 1 | Page 8 of 12

Incentives can play a significant role in fast-tracking the recruitment process for brokers and salespersons and improving the probability of finding suitable recruits for the brokerage. Recruiting incentives can be paid to existing brokers and salespersons for their help in recruiting, should the prospective candidate join the brokerage. Incentives can also be offered to brokers and salespersons new to the brokerage to offset costs associated with getting started. Incentives are not typically used to attract candidates for administrative roles. When exploring options for recruiting incentives for your brokerage, you should consider both benefits and drawbacks associated with offering incentives.

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Lesson 1 | Page 9 of 12

Recruiting Incentives Recruiting incentives are sometimes used to attract brokers and salespersons to a brokerage, and they fall under two broad categories: incentives for existing brokerage staff who assist in successful recruitment and incentives for new recruits joining the brokerage. The first involves financial or other benefits for staff who bring new recruits to the brokerage. The second typically involves a financial benefit for the recruit upon joining the brokerage. The nature of these incentives can vary depending on whether the recruit is new to the industry or experienced. The decision to provide recruiting incentives rests with the owner and/or broker of record and is driven by underlying market conditions and local practices. Any terms related to incentives should be documented in the employment contract. Examples of recruiting incentives that a brokerage can offer its existing brokerage staff typically include: • Pay a specified amount of monetary compensation when the new recruit signs their employment contract. • Pay a specified amount of recruiting incentive based on the new recruit’s closing of trades for a defined period. • Pay a specified percentage (from the brokerage portion) based on the new recruit’s commission earned. • Provide brokerage services or supplies at low or no cost for a defined period. • Waive desk fees for a defined period. • Credit a specified amount to the individual’s account with the brokerage. Examples of recruiting incentives that a brokerage can offer its new recruits typically include: • Provide a signing bonus when the new recruit signs an employment contract. Typically, this is used for experienced recruits and is usually accompanied by a clause in the employment contract that requires the new recruit to stay with the brokerage for a defined period, such as two years. The clause also specifies the penalty for breaching the terms. • Provide a specified amount of monetary compensation at completion of various milestones (for example, at closing of trades) and link incentives to sales results. • Waive desk fees or franchise fees (if applicable) for a defined period. • Credit a specified amount to the individual’s account with the brokerage.

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• Offer a better commission split than the transferring broker’s or salesperson’s current brokerage. • Provide a welcome package, which may include supplies, such as business cards and “for sale” and “open house” signs, and may cover the RECO transfer fee or application fee. • Reimburse specified amounts of the Pre-Registration program fees (applicable only to newly registered salespersons) at completion of various milestones.

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Lesson 1 | Page 10 of 12

Benefits and Drawbacks of Recruiting Incentives Incentives, though helpful in attracting brokers and salespersons to a brokerage, can have negative impacts if not implemented properly. If not subject to certain conditions, some new recruits can decide to leave the brokerage once the incentive has been received. A broker of record should carefully research local practices, evaluate the impact of offering such incentives, and ensure that incentives comply with Real Estate and Business Brokers Act (REBBA) requirements. The following two sections contain information about benefits and drawbacks of recruiting incentives.

Benefits Incentives can help maintain the momentum behind recruiting in the following ways: • Providing incentives to existing staff members can encourage them to refer potential recruits, which may speed up the recruiting process. Existing staff understand their brokerage’s vision and goals, as well as their brokerage’s needs, and can help to find sales staff that fit into the brokerage culture. • Offering incentives to new recruits can help them in making the transition to your brokerage. Top performers in the industry expect certain benefits when transferring, and their knowledge, experience, skills, and reputation can be worth the investment. Additionally, experienced brokers and salespersons who join a new brokerage may draw other colleagues to do so as well.

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Drawbacks Offering incentives may not always be ideal for a brokerage: • There is no guarantee of recovery on the investment if payment is made to new recruits before they complete any trades for the brokerage. • New recruits may question the sincerity of the recruiting staff when they discover that the staff members receive incentives on referring potential recruits to the brokerage. • If incentives are only offered to new recruits, existing staff could become upset upon finding no such benefit is available to them when they are contributing to the profit of the brokerage. • If it becomes known that incentives vary from one salesperson to another, it can hamper recruiting efforts. • It can give the impression that the brokerage can only attract people by offering incentives and that they are not confident in their own image.

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Lesson 1 | Page 11 of 12

A broker of record is executing a recruiting plan targeting salespersons. The brokerage has just renovated their office and updated it with new state-of-the-art equipment. The broker of record wants to ensure that the best talent is hired to contribute to their brokerage’s growing reputation. Which of the following approaches can be mutually beneficial for both the salesperson and the brokerage and can attract salespersons to the brokerage? There are four options. There are multiple correct answers.

1

Offering a competitive commission split

2

Providing tours of the office

3

Promoting the brokerage’s reputation

4

Offering incentives to the new recruit upon the individual joining the brokerage

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Lesson 1 | Page 12 of 12

Congratulations, you have completed the lesson! Completion of this lesson has enabled you to: • Describe key components of a recruiting plan for a brokerage • Identify recruiting incentives typically used by a brokerage There are three sections on this page to view a summary of the key topics that were discussed in this lesson.

Prospecting to locate brokers, salespersons, and administrative staff

Prospecting and sourcing is an ongoing and proactive approach to actively search, research, and then create a roster of potential candidates with the goal to recruit them in the future. When prospecting and sourcing, a broker of record should establish contact with potential candidates, learn about them, and listen for indications of a need. A broker of record can search for potential candidates by: • Creating posts on the brokerage website and social media platforms • Hosting career seminars and/or educational seminars • Participating in home shows and/or job fairs • Posting advertising on career websites • Holding appreciation events • Asking for referrals from their existing staff Prospecting methods can vary based on the position and the experience level of the candidate being sought.

Recruiting brokers, salespersons, and administrative staff

Recruiting involves various strategies to entice potential candidates to join the brokerage. When recruiting, a broker of record should have conversations with the potential candidate about what the brokerage has to offer and how it can satisfy their need. When recruiting, a broker of record can make use of the following: • Highlighting the training and mentoring programs that the brokerage offers

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Recruiting incentives

• Showcasing the business premises, technology, infrastructure, and resources available at the brokerage • Matching compensation and employee benefits to the experience and skills a candidate offers • Highlighting the benefits of working with the brokerage, focusing on the culture and work environment Recruiting conversations may vary depending on whether the brokerage is targeting brokers and salespersons or administrative staff. They may also vary depending on whether the brokerage is targeting experienced brokers and salespersons or those who are new to the industry. Incentives can play a significant role in fast-tracking the recruitment process for brokers and salespersons and improving the probability of finding suitable recruits for the brokerage. Recruiting incentives fall under two broad categories: incentives for existing staff that assist in successful recruitment and incentives for new recruits joining the brokerage. The first involves financial or other benefits for staff who bring new recruits to the brokerage. The second typically involves a financial benefit to the new recruit to join the brokerage. The nature of this incentive can vary depending on whether the recruit is new to the industry or experienced. The decision to provide recruiting incentives rests with the owner and/or broker of record and is driven by underlying market conditions and local practices. When exploring options for recruiting incentives for the brokerage, the broker of record should consider both benefits and drawbacks associated with offering recruiting incentives. Recruiting incentives encourage people to join a brokerage but can also give the impression that the brokerage is unable to attract suitable candidates. Some new recruits can also take undue advantage of the situation. If not subject to certain conditions, they can decide to leave the brokerage once the incentive has been received.

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Lesson 2 | Page 1 of 11

Lesson 2: Agreements for Independent Contractors and Employees

This lesson describes the differences between an independent contractor agreement and an employment agreement. It also discusses the key components of each type of agreement.

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Lesson 2 | Page 2 of 11

As you learned in a previous module, all brokers and salespersons registered with a brokerage are considered employees of the brokerage under REBBA. As such, their actions are regulated by REBBA, and the brokerage is responsible for ensuring they abide by the Act. Even though they are considered employees of the brokerage under REBBA, brokerages may choose to have brokers and salespersons as independent contractors or employees. If a broker or salesperson is recruited as an independent contractor, the brokerage must have a written independent contractor agreement. Alternatively, if the broker or salesperson is recruited as an employee, it is recommended to have a written employment agreement that states the details of the employment relationship, including responsibilities, duties, expectations of the employee, entitlements upon termination of employment, and the rights of both the brokerage and the broker or salesperson. These agreements are used as part of the recruiting process to explain and formalize the employment relationship. Always consult with a lawyer in drafting independent contractor or employee agreements. © 2021 Real Estate Council of Ontario

Upon completion of this lesson, you will be able to: • Identify the key requirements of independent contractor agreements within a brokerage • Identify the key requirements of employment agreements within a brokerage Throughout this lesson, you will participate in decision points to test your knowledge on the topics presented.

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Lesson 2 | Page 3 of 11

You learned about types of employment relationships and Canada Revenue Agency (CRA) guidelines in a previous module. A vast majority of brokerages choose to offer independent contractor status to potential recruits (brokers and salespersons). By having brokers and salespersons as independent contractors, a brokerage is not required to make source deductions from their commissions, nor are they required to make an employer contribution towards Canada Pension Plan, Employment Insurance, and the Employer Health Tax. The independent contractor also has the benefit of preferential tax treatment, as they can claim more deductions against their income. When recruiting brokers and salespersons as independent contractors, the brokerage needs to create an independent contractor agreement that defines the terms of the working relationship between the brokerage and the independent contractor. The agreement must meet the defined CRA guidelines, the Employment Standards Act, and common law principles. It must also outline that the contractor is not an employee of the brokerage (with respect to the Income Tax Act).

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Lesson 2 | Page 4 of 11

Purpose of an Independent Contractor Agreement An independent contractor agreement is a written contract used to define the working relationship with the brokerage and detail the terms of the independent contractor relationship between the brokerage and the broker or salesperson who is the independent contractor. A well-written agreement acts as a point of reference and may provide protection against liability, loss, damages, costs, and expenses sustained, suffered, or incurred by the brokerage as a result of the broker’s or salesperson’s real estate business activities. The independent contractor agreement must include provisions stating that the broker or salesperson will indemnify the brokerage against all liability. An independent contractor agreement must be drafted to fulfill the following purposes: © 2021 Real Estate Council of Ontario

• It acknowledges that the broker or salesperson is an independent contractor and is trading on behalf of the brokerage. However, they shall not represent themselves to be an employee of the brokerage. • It defines the responsibilities of the independent contractor. • It establishes the independent contractor’s remuneration in return for their services. • It identifies the services, facilities, and equipment the brokerage will make available to the independent contractor. • It addresses general conditions of the working relationship. For example, the independent contractor must be registered to trade with RECO and must govern themselves in accordance with REBBA, furnish their own automobile, have satisfactory automobile insurance for liability, obtain and maintain harmonized sales tax registration, and so on. An independent contractor agreement is a complex agreement containing multiple terms and conditions. Therefore, it is important for the broker of record to consult third-party professionals, such as lawyers, to help develop the agreement before they submit the agreement to the CRA for individualized ruling.

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Lesson 2 | Page 5 of 11

Key Elements of an Independent Contractor Agreement An independent contractor agreement defines the terms and conditions of work that an independent contractor must abide by and the duties they need to perform. These terms and conditions should be guided and defined by the four common law principles you learned about in a previous module: control test, ownership of tools, chance of profit and/or risk of loss, and integration. An independent contractor agreement normally includes details related to the following aspects: • Contract parties and general agreement terms: The contract would identify the parties involved (the brokerage and the broker or salesperson), the effective start date of the contract, the duration of the contract, conditions for terminating an agreement (that is, termination by the brokerage for cause or by either party without cause), and the responsibilities of each party if the contract is terminated. The contract would also specify the general terms of the agreement. For example, if either party defaults on a term, the other party may waive the default and continue with the agreement, but this does not mean that a future default will be waived. • General working conditions and facilities: The contract would describe and include the services, facilities, and equipment that the brokerage would provide to the independent contractor during the tenure of the

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•

•

•

•

•

agreement. The contract would also specify the general requirements under REBBA that the independent contractor must comply with while working for the brokerage, such as maintaining coverage under the Professional Liability Insurance Program administered by RECO. Contractor’s responsibilities: The contract would provide a description of the responsibilities of the contractor (broker or salesperson). These may include listings and other contracts; copyrights in photographs, listing descriptions, or other media; authority to establish and advertise commissions; co-operation with other brokers and salespersons; and adhering to the confidentiality clause. Financial arrangements or obligations: The contract would specify the commission split with the brokerage and the fees payable to the brokerage for administrative services, use of equipment and facilities, and any supplies provided by the brokerage. The contract would also include a clause stating how all monies earned by the independent contractor would be delivered to the brokerage and disbursed to the independent contractor as per the independent contractor agreement with the brokerage. Additional clauses related to litigation, dispute, and arbitration: The contract would include clauses, such as the requirement to co-operate with the brokerage in case of a dispute, arbitration, litigation, or legal expenses. The brokerage would reserve the right to decide if any dispute will be prosecuted, defended, or settled. The contract would also include a clause holding the contractor responsible for compensating any loss, harm, and additional expenses incurred as a result of a breach of the agreement or their real estate activity while working for the brokerage. The indemnity will survive the termination of the agreement. Correspondence: The contract would include a clause stating all correspondence pertaining to the business of the brokerage shall be turned over to the brokerage for its records and shall be the property of the brokerage. Use and distribution of personal information: The contract would include a clause stating that the independent contractor consents to the collection, use, and disclosure of their personal information by the brokerage if required in connection with managing or carrying out the affairs of the business and privacy policy.

As mentioned earlier, an independent contractor agreement is a complex agreement, and therefore, it is important for the broker of record to consult third-party professionals to help develop the agreement.

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Lesson 2 | Page 6 of 11

Just as an independent contractor agreement establishes the working relationship with an independent broker or salesperson, an employment contract or agreement is used to define the working relationship of a broker or salesperson with the brokerage when the brokerage chooses to have an employee relationship with them. An employment agreement defines the rights and obligations of a brokerage and their employee. It also outlines the benefits that the brokerage offers to their employee. Although it is recommended to have an employment agreement between the brokerage and an administrative employee, it is not a common practice. The employment relationship between the brokerage and an administrative employee is largely governed by the Employment Standards Act and, in some cases, common law.

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Lesson 2 | Page 7 of 11

Purpose of an Employment Agreement An employment agreement is a legally binding document that establishes the expectations and responsibilities of the brokerage and the broker or salesperson who has an employee relationship with the brokerage. It also specifies the general terms of employment for the employee. A written employment agreement acts as a point of reference in case a dispute arises. It allows either party to take legal action if the other breaches the agreement. An employment agreement is a complex contract, and it is important to consult third-party professionals, such as lawyers, to help develop the agreement.

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Lesson 2 | Page 8 of 11

Key Elements of an Employment Agreement It is important for a broker of record to understand the key elements required in an employment agreement. The agreement must outline the rights and responsibilities of both parties for the duration of employment. An employment agreement normally includes details related to the following aspects: • Parties to the agreement: The agreement would identify the parties involved, that is, the brokerage and the employee (broker or salesperson), the effective start date of the employment, and conditions for terminating the agreement (with cause or without cause). • General working conditions and facilities: The agreement would specify the services, facilities, and equipment that the brokerage would provide to the individual. The agreement would also specify the general requirements under REBBA that the employee must comply with while working for the brokerage.

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• Responsibilities and prohibitions: The agreement would provide a description of the responsibilities of the individual. It would explain what the individual is required to do in accordance with the brokerage’s office policies and practices (for example, maintain registration to trade with RECO, maintain their coverage under the Professional Liability Insurance Program, and adhere to attendance requirements for scheduled office duty, training sessions, and office meetings). The agreement would also specify what the individual cannot do in accordance with the brokerage’s office policies and practices, such as reduce the amount of commission or minimum number of days on any representation agreement or customer service agreement without prior written authorization of the brokerage. • Compensation: The agreement would specify the commission and compensation schedule for the individual and deductions, if any. Note that if the brokerage has paid any fees on behalf of the individual, such as registration and renewal fees, the brokerage can deduct said amount from commissions payable, provided the employee has signed a written statement authorizing the deduction. • Confidentiality and non-solicitation: The agreement would include a non-disclosure clause prohibiting the individual from sharing their commission structures, client lists, and sensitive information while or after working for the brokerage. The agreement may include a clause prohibiting the individual (for a limited period of time) to recruit other co-workers from the brokerage or ask the brokerage’s clients to follow them if they establish a new brokerage or join a competitor’s brokerage. • Use and distribution of personal information: The agreement would include a clause stating that the individual consents to the collection, use, and disclosure of their personal information by the brokerage if required in connection with managing or carrying on the affairs of the business and privacy policy. As mentioned earlier, it is important to consult third-party professionals to help develop the agreement.

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Lesson 2 | Page 9 of 11

A broker of record is preparing to open a new brokerage and plans to have all brokers and salespersons as independent contractors. They are reviewing the template for the independent contractor agreement drafted by their lawyer. Which clauses should the broker of record ensure are included in the independent contractor agreement? There are five options. There are multiple correct answers. 1

A clause stating that the broker or salesperson can determine commission to be charged for any real estate transaction

2

A clause stating the number of hours the broker or salesperson will be required to work for the brokerage on a daily basis

3

A clause holding the broker or salesperson responsible for any loss or harm they incur by their actions while working for the brokerage

4

A clause holding the broker or salesperson responsible for any additional expenses they incur while working for the brokerage

5

A clause stating that the broker or salesperson must maintain the Professional Liability Insurance Program

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Lesson 2 | Page 10 of 11

The broker of record for a brokerage prefers to hire brokers and salespersons as employees. This way, they can maintain greater control over commissions charged, length of representation agreements, and training than would be the case with independent contractors. Which clauses should the broker of record ensure are included in the employment agreement drafted by their lawyer? There are four options. There are multiple correct answers.

1

The broker or salesperson is required to be in the office for scheduled office duty.

2

The broker or salesperson is prohibited from sharing commission structures and client lists while or after working for the brokerage.

3

The broker or salesperson consents to the brokerage deducting fees owed to the brokerage from their commission.

4

The broker or salesperson is allowed to solely make decisions related to the amount of commission to be charged for any transaction.

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Lesson 2 | Page 11 of 11

Congratulations, you have completed the lesson! Completion of this lesson has enabled you to: • Identify the key requirements of independent contractor agreements within a brokerage • Identify the key requirements of employment agreements within a brokerage There are two sections on this page with a summary of the key topics that were discussed in this lesson.

Independent contractor agreement

When recruiting brokers and salespersons as independent contractors, a brokerage needs to create an independent contractor agreement that defines the terms of the working relationship between the brokerage and the independent contractor. The agreement must meet defined CRA guidelines, the Employment Standards Act, and common law principles. It must also outline that the contractor is not an employee of the brokerage (with respect to the Income Tax Act). An independent contractor agreement acts as a point of reference and may provide protection against liability, loss, damages, costs, and expenses sustained, suffered, or incurred by the brokerage as a result of the broker’s or salesperson’s real estate business activities.

Employee agreement

An employment contract or agreement is a legally binding document that establishes the expectations and responsibilities of the brokerage and the broker or salesperson who has an employee relationship with the brokerage. An employment agreement is used to define the working relationship of a broker or salesperson with the brokerage when the brokerage chooses to have an employee relationship with them. It defines the rights and obligations of a brokerage and their employee. It also specifies the benefits that the brokerage offers to their employee.

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Just as with an independent contractor agreement, an employment agreement acts as a point of reference in case a dispute arises. It allows either party to take legal action if the other breaches the agreement. Although an employment agreement can be used for administrative staff, it is not a common practice to have a written employment agreement between the brokerage and the administrative employee.

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Lesson 3 | Page 1 of 7

Lesson 3: Employee Application Forms

This lesson explains what an employee application form is and the information that can be requested on the application form. This lesson also includes details of what information cannot be requested on an application form.

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Lesson 3 | Page 2 of 7

Employee application forms are typically used as part of a screening process to gather initial information about candidates applying for administrative staff positions and to narrow down the search for appropriate candidates. You will learn about the screening process in detail in a later lesson. No standard employee application form exists for administrative staff positions in brokerages. A broker of record can create an employee application form to gather basic information (such as contact details, educational qualifications, and skills) that will help the broker of record assess the alignment of the candidate with the job description. Upon completion of this lesson, you will be able to: • Identify key considerations when developing employee application forms Throughout this lesson, you will participate in decision points to test your knowledge on the topics presented.

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Lesson 3 | Page 3 of 7

An employee application form can be used to obtain a quick snapshot of a candidate’s background, their educational and professional qualifications, and their career aspirations. Employee application forms are primarily used for administrative staff positions and can also be used to obtain basic information from someone who is new to the industry and wants to be a salesperson with the brokerage. The structure of the employee application form must adhere to provincial legislation. Employee application forms are not typically used for experienced brokers and salespersons, as the broker of record can obtain information about these individuals through researching their website and the real estate board or association they belong to. If the broker of record requires more information about these individuals, in addition to what they discovered during prospecting, sourcing, and recruiting conversations, they can ask questions during the interview. You will learn more about the interview process later in this module.

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Lesson 3 | Page 4 of 7

Employee Application Form for Administrative Staff A thoughtfully crafted employee application form can help a broker of record identify suitable candidates for administrative staff positions during the initial stage of the screening process. A broker of record can use the information shared on the application form to steer the discussion during the interview process. You will learn about the screening process in detail in a later lesson. Most application forms consist of the following components: • The candidate’s background: Details regarding their education, qualifications, relevant skills and attributes, interest areas, language proficiencies, and any additional expertise the brokerage may require • The candidate’s work experience: Details regarding employment history • References: A list of professional references A broker of record can customize the application form according to their needs, subject to it being compliant with the Ontario Human Rights Code. Note that indirectly soliciting information that is related to a prohibited ground is a violation. You will learn more about compliance requirements pertaining to the Ontario Human Rights Code later in this lesson. © 2021 Real Estate Council of Ontario

Lesson 3 | Page 5 of 7

Information That CANNOT Be Included in an Employee Application Form The Ontario Human Rights Code is provincial law that prohibits discrimination in specific social areas, including employment. The scope of information that can be asked on an employee application form is therefore limited based on the Ontario Human Rights Code. Brokers of record are strongly advised to review information provided by the Ontario Human Rights Commission for precise rules before developing an employee application form. The Ontario Human Rights Code does not permit collection of information on an employee application form that relates directly or indirectly to the following prohibited grounds of discrimination: age, ancestry, colour, race, citizenship, ethnic origin, place of origin, creed, disability, family status, marital status (including single status), gender identity, gender expression, record of offences (for which a formal pardon has been received), sex

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(including pregnancy and breastfeeding), or sexual orientation. You will learn more about the Ontario Human Rights Code in a later module. After developing an employee application form, a broker of record should seek approval from a third-party professional, such as a lawyer, to ensure the employee application form does not contravene the Ontario Human Rights Code.

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Lesson 3 | Page 6 of 7

A broker of record plans to hire college graduates for administrative staff positions at their brokerage. The broker of record is developing an application form for applicants applying for these positions. What questions can be included on the application form? There are five options. There are multiple correct answers. 1

What is your date of birth?

2

Are you eligible to work in Canada?

3

What is your gender?

4

What skills do you have that will contribute to the position you are applying for?

5

What are your contact details?

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Lesson 3 | Page 7 of 7

Congratulations, you have completed the lesson! Completion of this lesson has enabled you to: • Identify key considerations when developing employee application forms There are three sections on this page with a summary of the key topics that were discussed in this lesson.

Purpose of an application form

Employee application forms are typically used as part of a screening process to gather initial information about candidates applying for administrative staff positions and to narrow down the search for appropriate candidates. It can also be used to obtain similar information for someone who is new to the industry and wants to be a salesperson with the brokerage. Employee application forms are not typically used for experienced brokers and salespersons, as the broker of record can obtain information about these individuals through researching their website and the real estate board or association they belong to.

No standard employee application form exists. Most application forms consist of the Information that can be included in following components: • The candidate’s background: Details regarding their education, qualifications, an application relevant skills and attributes, interest areas, language proficiencies, and any form additional expertise the brokerage may require • The candidate’s work experience: Details regarding employment history • References: A list of professional references

Information that cannot be included in an application form

The scope of information that can be asked on an employee application form is limited. The Ontario Human Rights Code does not permit collection of information on an employee application form that relates directly or indirectly to the following prohibited grounds of discrimination: age, ancestry, colour, race, citizenship, ethnic origin, place of origin, creed, disability, family status, marital status (including single status), gender identity, gender

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expression, receipt of public assistance (in housing only), record of offences (in employment only), sex (including pregnancy and breastfeeding), or sexual orientation.

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Lesson 4 | Page 1 of 10

Lesson 4: Selection Process for Roles Within a Brokerage

This lesson identifies key considerations related to the activities in the screening and selection process.

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Once candidates for a specific position have been identified, the screening and selection process is initiated. Screening narrows down the field of potential candidates to a smaller pool. As a broker of record, you will need to ensure that screening is completed to identify candidates who are a good fit for your brokerage’s requirements and who can move forward into the selection process. The approach and process to screen or select candidates varies depending on whether the broker of record is recruiting for a broker, a salesperson, or an administrative staff position. It also varies based on whether the candidate is new to the industry or experienced. For example, an employee application form or resume may be

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used to screen candidates for administrative staff positions and new-to-the-industry salespersons, whereas only an interview may be used when screening experienced brokers and salespersons. Candidate screening and selection is most effective when following a structured process. Upon completion of this lesson, you will be able to: • Define the selection process for roles within a brokerage Throughout this lesson, you will participate in decision points to test your knowledge on the topics presented.

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As you learned earlier, screening narrows down a list of potential candidates to a smaller pool. As a broker of record, this will enable you to make better use of your time and resources for the selection process.

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Elements in the Screening and Selection Process Careful screening can help a broker of record narrow the list of talented individuals with the necessary skillset, education, and professionalism to meet their brokerage’s goals. Having an effective screening and selection process in place will save the brokerage time and effort in hiring and bringing brokers, salespersons, and administrative staff onboard who will be a good fit. Brokerages tend to rely on four elements in their screening and selection process. You already learned about some screening elements earlier in the module. The following four sections contain information about elements used in the screening and selection process.

Pre-screening conversation During prospecting, sourcing, and recruiting, a broker of record has an opportunity to learn more about potential candidates, obtain basic information, and establish an initial impression. Pre-screening naturally takes place when prospecting, sourcing, and recruiting and allows for a narrowing down of a list of potential candidates. You learned about prospecting, sourcing, and recruiting activities in an earlier lesson.

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Employee application form or resume and cover letter An employee application form or a resume and cover letter can be used to determine whether the candidate meets the requirements for the position. The information found within these documents can be used to narrow down a list of potential candidates for selection. An employee application form or a resume and cover letter are mostly used for candidates applying for administrative staff positions. These could also be used to screen candidates who are new to the industry and want to be a salesperson with the brokerage. You learned about the information that can be requested in an employee application form in an earlier lesson. An employee application form or resume provides a source of basic information, which the broker of record may want to validate or clarify during the interview.

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Interview An interview is conducted with the potential candidates who are included in the narrowed down list for selection. Interviews are used to evaluate candidates through competency-based or behavioralbased questioning and to identify candidates who are a right fit for the brokerage. An interview is often a two-way communication between the potential candidate and the broker of record, where the candidate also has an opportunity to ask questions. A broker of record uses an interview to: • Clarify any inconsistencies in the individual’s application form (if they completed one), resume, or pre-screening conversation with the brokerage. • Ascertain whether the individual has the appropriate education, experience, and skillset for the position. • Assess traits like punctuality, demeanour, professionalism, and technical competence by providing situation-based (reality-based) questions and asking the candidate for their reaction or response. A great deal can be learned about an individual’s competence and personality from how they answer these interview questions. When the broker of record interviews a broker, salesperson, or candidate aspiring to be a salesperson with the brokerage, the broker of record should be © 2021 Real Estate Council of Ontario

prepared with questions related to the following disclosures: • Any ownership interest they have in another brokerage • Any charges pending, found guilty of, or pled guilty to, or convictions of offence of any criminal law • Any personal bankruptcy or insolvency proceedings filed by a consumer proposal • Any unpaid judgments and/or unpaid debts, including but not limited to CRA requirements to pay and garnishments • Any registration, license, and/or professional status that has been refused, suspended, revoked, or cancelled • Any proceedings (including pending proceedings) during which the candidate resigned registration, license, or professional status of any kind • Any insurance claims with the Professional Liability Insurance Program These disclosures are required on a RECO application and are also disclosure obligations when a broker or salesperson communicates with a brokerage for possible employment. Answers to these questions may affect the selection of a candidate.

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Reference and credit check Reference and credit checks are conducted after the interview for selected candidates. A basic reference check consists of verifying the details furnished in the application form or resume. A more in-depth reference check can involve talking to references to gain insight into a candidate’s skills, qualifications, and work ethic. A credit check is carried out through a credit reporting agency to check if the candidate has had problems paying their bills. Often credit checks are carried out for brokers and salespersons, as they are required to reimburse the brokerage for expenses, typically on a monthly basis. A broker of record may choose not to invest in a reference and credit check.

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Lesson 4 | Page 5 of 10

Leading Practices for Conducting Interviews As you learned earlier, the questions that can be asked on an employee application form must comply with the Ontario Human Rights Code. This requirement also applies to the interview process. A broker of record must ensure that they do not ask any questions that relate directly or indirectly to the prohibited grounds of discrimination defined in the Ontario Human Rights Code. Bona fide job requirements such as the questions on the RECO registration application form are not violations of the Ontario Human Rights Code. You will learn more about the Ontario Human Rights Code in a later module.

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The following are leading practices that a broker of record can use for conducting effective interviews: • • • • • • • • • • •

Drive the conversation with prepared key questions Do not rush the candidate; listen carefully and take notes Be attentive to any signs of positive or negative qualities and body language Obtain exact dates and information to verify employment history Clearly explain the brokerage’s standards and performance expectations Be realistic with the individual regarding job challenges (For a salesperson interview, range of expenses and realities of generating income through commission sales may be mentioned) Use open-ended questions to gain an understanding of the individual’s opinion of real estate sales and its challenges, opportunities, and demands Get to know the candidate’s perspective by portraying a situation and asking for a response; scenarios can help describe the challenges of the job and prompt interesting discussions Provide the candidate an opportunity to ask questions Conclude the interview on a positive note Defer any decision until there has been time to reflect on all information gathered. If any doubts, conduct a second interview

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Sample Interview Questions for a New Prospective Salesperson As you learned earlier, a broker of record is consistently seeking out talented individuals to add to their sales staff through activities starting with prospecting, sourcing, recruiting, and pre-screening, moving right up to the interview phase. A broker of record has opportunities outside of the interview to gather insights about an experienced broker or salesperson. However, for individuals who are new to the industry, an interview provides the broker of record an opportunity to learn more about the individual and ensure they have the required traits to work in their brokerage. Some questions that a broker of record can ask a new prospective salesperson in an interview are: •

What do you like about the real estate profession?

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•

• • • • •

•

• •

•

What do you believe are the major responsibilities that you owe to sellers or buyers when listing or selling real estate? What do you think will be your greatest challenge in this new career? If a buyer told you that selling houses is an easy job, what would you say? If a seller said that commissions are too high, how would you justify the fees that are charged? What obstacles do you see, if any, to being successful in real estate sales? Commission sales can be unpredictable. Have you prepared by having adequate financial resources available should commission income fall short of your expectations? Are you willing to actively prospect, including canvassing sellers and making cold or warm calls (in compliance with the National Do Not Call List)? Are you willing to commit the time necessary to make this career a success? Have you ever won any awards or received recognition for achieving personal goals, attaining sales performance levels, or acquiring technical skills? If you join our brokerage, what would be the single most important achievement that you could make during the next year, over and above a reasonable income?

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Assessing Candidates When interviewing candidates, it is important to take into account the individual’s positive, negative, and jobrelated qualities and traits, as this is the main focus of the selection process. It is important to be mindful of the fact that the presence of a negative quality does not necessarily make an individual unfit for a position. A broker of record should consider specific qualities they are looking for prior to the assessment and focus on asking relevant questions about these qualities during the interview. The following qualities and traits relate primarily to salespersons new to the industry but also have relevance when assessing experienced brokers and salespersons. The following three sections contain information about these qualities and traits.

Positive qualities Positive qualities to look for in a candidate include: • Knowledge of the local market area • Ability to communicate easily with people • Previous experience involving sales (or other experience that has involved working with the public) • Real estate sales performance results (for experienced brokers and salespersons) • Understanding of real estate transactions and/or real estate investments • Technical knowledge and skills involving computers and software common to a sales career • Persistence and the ability to handle rejection • Average or above-average education • Personal organization and clearly defined goals

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• Self-motivation and being a self-starter • Ego, drive, and the need to achieve, tempered with empathy for the needs of others • People-oriented hobbies and interests • Self-determination and a belief in the importance of sales in the economy • History of low transiency in the workplace • Clarity or direction in career moves over the years • Personal and financial stability

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Negative qualities Certain qualities, sometimes referred to as red flags, may forewarn of difficulties. This does not mean that a negative quality translates into failure in real estate sales. Rather, a combination of more than one of these negative qualities should be duly considered when making a selection decision. Possible red flags include: • High job mobility with an erratic career pattern • Lack of sales knowledge, experience, or enthusiasm • Pursuit of fill-in employment until the right job comes along Some of these qualities might be difficult to assess, as specific questions cannot always be asked in an interview. A broker of record should do the necessary research, plan interview questions, and listen carefully in the pre-screening and selection interviews to help identify any issues that may make a candidate an unsuitable fit for their brokerage. Any questions being asked must not violate the rights of the candidate under the Ontario Human Rights Code either directly or indirectly. For example, asking a question about family or an individual’s single status is not allowed.

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Traits associated with real estate sales success A broker of record should look for traits that are typically associated with real estate sales success. Brokers and salespersons are usually successful if they: • Are independent learners who intuitively know the value of using mentors and pursue work situations that advance their needs • Have healthy self-esteem, which in turn permits objective assessments of situations, along with realistic solutions • See patterns in work activities and use time effectively • Understand the need to set limits to job tasks with prospects in a friendly manner • Perceive real estate sales as a people business, not a house business, and understand the vital need for effective interpersonal skills • Demonstrate integrity inspired by ethics • Tell clients the truth (even the bad news) Other positive characteristics related to success in the real estate industry include: • Pursuing self-promotion in creative ways • Setting realistic goals and working diligently toward them • Prioritizing work for better productivity • Developing meaningful dialogue with each client • Converting calls and encounters into selling opportunities

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• Developing interpersonal abilities supported by strong technical skills • Demonstrating effective presentations • Learning from mistakes • Overcoming inevitable disappointments effectively

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Lesson 4 | Page 8 of 10

Candidate Selection and Job Offer If a candidate is selected at the end of the selection process, a job offer is made to the candidate. The job offer can be made verbally or in writing. For brokers and salespersons, a job offer is followed up with an independent contractor agreement or employment agreement (whichever is applicable). For administrative staff positions, a job offer is typically followed up with a letter specifying the terms of employment. If a candidate is not selected, it is important to communicate the result of the selection process to the candidate. The broker of record should follow industry (human resources) leading practices to identify how they will retain application forms, resumes, interview notes, and any other documentation related to the selection process. You already learned about retention of documents in an earlier course.

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Lesson 4 | Page 9 of 10

A broker of record wants to hire salespersons with experience in trading in commercial real estate in their target market in AnyCity2. The broker of record has gathered the following information about three candidates during pre-screening conversations. Details for Candidate 1: • Place of residence: AnyCity1 • Educational background: Bachelor’s degree in business administration • Experience: Five years of experience working with the same brokerage (first three years in residential, past two years in both residential and commercial) • Reason for considering leaving current brokerage: Lack of growth opportunities in the brokerage and a desire for a better commission structure • Additional qualities: Good communication skills and sound knowledge of commercial real estate in Anycity1 Details for Candidate 2: • Place of residence: AnyCity2 • Educational background: Bachelor’s degree in accounting • Experience: Two years of experience working in a competing commercial real estate brokerage in Anycity2 • Reason for considering leaving current brokerage: Brokerage not making much profit in recent years and began laying off administrative employees • Additional qualities: Good communication skills and sound knowledge of commercial real estate in Anycity2

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Details for Candidate 3: • Place of residence: AnyCity2 • Educational background: Bachelor’s degree in finance • Experience: One year as a sales associate in a bank; Two years in a residential brokerage in Anycity3; Two years in a commercial real estate brokerage in Anycity3; One year working in a competing commercial real estate brokerage in Anycity2 • Reason for considering leaving current brokerage: Left first job as a sales associate to start a career in real estate; Switched from the first brokerage, as it was not making much profit and did not offer a good commission; Considering changing their current brokerage due to wanting a better commission structure and career growth opportunities • Additional qualities: Enthusiastic with good communication skills and sound knowledge of commercial real estate in Anycity2 In addition to the information gathered about the candidates, what other aspects should the broker of record consider when deciding which candidates may be suitable for the brokerage? There are five options. There are multiple correct answers.

1

Real estate sales performance

2

Knowledge of the local market area

3

Clarity of direction in career moves

4

Commission plan with their current brokerage

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5

Proficiency using computers

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Lesson 4 | Page 10 of 10

Congratulations, you have completed the lesson! Completion of this lesson has enabled you to: • Define the selection process for roles within a brokerage There are three sections on this page with a summary of the key topics that were discussed in this lesson.

Elements in the screening and selection process

The approach and process to screen or select candidates varies depending on whether the broker of record is recruiting for a broker, a salesperson, or an administrative staff position. An employee application form or resume may be used to screen candidates for administrative staff positions and new-to-the-industry salespersons, whereas only an interview may be used when screening experienced brokers and salespersons. Candidate screening and selection is most effective when following a structured process, which includes the following elements: • Pre-screening conversation • Employee application form or resume and cover letter • Interview • Reference and credit check Pre-screening naturally takes place when prospecting, sourcing, and recruiting. It allows for a narrowing down of the list of potential candidates. An employee application form or a resume and cover letter can be used to determine whether the candidate meets the requirements for the position. An interview is then conducted with each potential candidate who is included in the narrowed down list for selection. Interviews are used to evaluate candidates through competency-based or behavioral-based questioning and to identify candidates who are a right fit for the brokerage. Reference and credit checks are conducted after the interview for selected candidates. A broker of record may choose not to invest in reference and credit checks.

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An effective interview can help determine an individual’s skills, experience, and personality traits.

Leading practices for conducting interviews

When interviewing a candidate, some leading practices include: • Driving the conversation with prepared key questions • Being attentive to any signs of positive or negative qualities and body language • Deferring any decision until there has been time to reflect on all information gathered

Assessing candidates

When assessing candidates, it is important to take into account the individual’s positive, negative, and job-related qualities and traits, as this is the main focus of the selection process. It is important to be mindful of the fact that the presence of a negative quality does not necessarily make an individual unfit for a position. A broker of record should consider specific qualities they are looking for prior to the assessment and focus on asking relevant questions about these qualities during the interview.

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Lesson 5 | Page 1 of 13

Lesson 5: Orientation Programs for the Staff

This lesson identifies the key considerations for developing orientation programs for brokers, salespersons, and administrative staff within a brokerage.

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Orientation programs are an important part of integrating new recruits to a brokerage and helping them adjust to their new positions. As a broker of record, you will be responsible for identifying the training topics that are needed and ensuring that training is provided to your staff. You may choose to develop and deliver the training program yourself, to purchase training resources, and/or to have others (experienced brokers and salespersons) deliver the training. Upon completion of this lesson, you will be able to: • Identify an orientation program for new brokers and salespersons joining a brokerage • Identify the considerations for developing an orientation program for new administrative staff joining a brokerage Throughout this lesson, you will participate in decision points to test your knowledge on the topics presented.

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As a broker of record, you will be responsible for developing and/or organizing orientation programs (also known as onboarding) to provide new recruits with the information and training required to contribute to the brokerage’s success. Orientation programs provide an opportunity to introduce new staff to the brokerage’s policies and procedures. You will need to identify areas where new recruits require training and plan their orientation accordingly.

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Two-Part Orientation Program An orientation program for a brokerage is typically structured into two parts: • General orientation • Performance-based orientation The general orientation is related to brokerage policies and procedures and should take place on the first day of work for new recruits. The performance-based orientation is intended to train brokers, salespersons, and administrative staff on specific skills they will require while on the job. The performance-based orientation sessions are often conducted separately for brokers and salespersons and for administrative staff. However, there can be instances where all staff members are required to be trained on a certain topic. For example, if OREA has updated or added to their forms, all staff members must know this information.

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General Orientation for All New Staff In the general orientation, each new recruit is asked to acknowledge in writing that they have reviewed the brokerage’s policies and procedures and that they agree to abide by them. As a leading practice, this acknowledgement is included in the employment agreement or independent contractor agreement. The general orientation program typically includes the following topics: • General requirements: As related to the brokerage’s code of conduct • On-the-job rules: Carrying a photo ID and card entry for certain areas • Business premises: General information about the premises • Security system: How to activate and deactivate the security system

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• Emergency numbers: Emergency contact details for any on-the-job emergency • Safety protocol: Personal safety measures for brokerage staff (may also include sellers and buyers) • Emergency exits: Emergency exit gates and evacuation plan • Office facilities: Usage of washrooms, lunchrooms, and coffee stations • First aid kit: Where to find it and whom to approach for assistance • Fire extinguishers: Where they are located and how to use them • Office equipment: Different equipment available for different purposes and how to use them; access codes for photocopier, phones, and other equipment; and keys or access cards for using mailbox, office, and desk • Parking: Rules and restrictions for parking vehicles in the on-site parking or a nearby parking area • Office hours: Normal hours of operation and administrative services provided • Cleaning staff: Days and hours of operation of the cleaning staff • Office policy: Other specific office policy of the brokerage related to dress code, use of name tags and access cards, how to handle unsolicited inquiries from websites, walk-ins, and calls, and more You will learn about brokerage safety protocols in a later module.

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Performance-Based Orientation for Sales Staff A performance-based orientation program for sales staff extends beyond an introduction to office systems into needed skills training. The program should build skills directly related to job tasks. It should complement preregistration education for inexperienced salespersons and provide specific skills training to aid both new and experienced brokers and salespersons joining the brokerage. A structured performance-based orientation program can potentially provide: • A smoother transition: Skills-based training can help streamline the overall orientation process. Such programs provide a faster start-up for new and experienced brokers and salespersons, help integrate them into the brokerage, and allow for familiarization with in-house procedures and standards.

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• Higher retention: Performance-based training may aid the sales staff in improving their skills and success in their job, thereby increasing job satisfaction and potentially resulting in reduced turnover for the brokerage. • A more structured career development plan: A real estate career, like any sales position, develops through various skill levels. As people grow in their careers, they seek further knowledge to complement their activities. The brokerage can provide opportunities for growth by channeling efforts into performance-based training.

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Examples of Performance-Based Orientation To be effective, a performance-based orientation program should relate directly to real-world problems and opportunities. The orientation for inexperienced salespersons should be built based on the premise that a real estate sales career begins with building relationships and connections in the marketplace. The broker of record may consider having other experienced brokers and salespersons assist in coaching and mentoring new salespersons to complement the performance-based orientation. You will learn more about coaching and mentoring in a later module. A performance-based orientation should focus on training activities to build essential skills gradually. These may include the following:

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• Developing a contact list made up of the salesperson’s sphere of influence (friends, family, acquaintances, and business associates) • Organizing a list of benefits the salesperson can use when describing the brokerage services for a better, more organized listing presentation • Setting up a canvassing schedule for a designated area to practice sales prospecting techniques • Assembling the materials for a structured listing presentation • Preparing and presenting a market analysis to arrive at an estimate of value • Preparing and presenting a listing agreement • Preparing and presenting an agreement of purchase and sale • Preparing and distributing marketing materials in compliance with appropriate legislation • Observing how to conduct a successful open house • Scheduling open houses for an upcoming period • Identifying types of activity that will improve business performance (for example, time management, showing properties, and canvassing) • Applying technology trends to relationship marketing • Reviewing REBBA disclosure procedure requirements based on common marketplace situations

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Performance-Based Training Training does not end with performance-based orientation. It should be an ongoing process in a brokerage for all brokers and salespersons, new and existing. A broker of record should invest in training brokers and salespersons to ensure that they remain current in terms of their knowledge and skills in providing conscientious services to clients. A broker of record should organize regular training sessions related to any aspects that can impact real estate trading activities. Some examples for the training may include: • Advanced clause writing • Business promotion and marketing

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Presenting competing offers Disclosure of commission reduction Obtaining consent for lockbox use Proceeds of Crime (Money Laundering) and Terrorist Financing Act (PCMLTFA) obligations Privacy of information and compliance with the Personal Information Protection and Electronic Documents Act (PIPEDA) • Digital Privacy Act • Electronic signatures • • • • •

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Lesson 5 | Page 9 of 13

Accountability Program It is important that accountability be integrated into everyday operations of the brokerage, specifically for brokers and salespersons, regardless of their experience. An accountability program ensures that brokers and salespersons understand what they are responsible for, what results are required, and that they are accountable for their actions. It links the goals of brokers and salespersons with the brokerage and provides an opportunity for the broker of record to assess results, build their brokers’ and salespersons’ skills, and help them make adjustments that positively impact their results. Accountability is crucial to the efficiency and accuracy of the work produced by brokers and salespersons. The broker of record should define an accountability program for their brokers and salespersons in collaboration with them.

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A sample five-step plan to encourage performance accountability for a salesperson new to the industry is provided here for illustrative purposes. A broker of record can adapt this plan for experienced brokers and salespersons. The broker of record should ensure that the goals in the accountability program are realistic and measurable. Step 1 – Goals: The new salesperson together with the broker of record estimates commission goals for every three-month period. Personal goals and performance indicators should be specific (for example, number of contacts, listings, and transactions). Step 2 – Activities: The new salesperson should record all daily activities and maintain a log for review at coaching sessions. Step 3 – Coaching: The broker of record should plan bi-weekly coaching sessions to review progress to date and problems solved. You will learn about how to provide effective coaching in a later module. Step 4 – Tracking: The broker of record together with the new salesperson should track performance and adjust goals as needed. Step 5 – Review: The broker of record should complete performance reviews and take appropriate actions. A leading practice is for the broker of record to complete performance reviews every six months, identify strengths and weaknesses in reference to results, possibly reset goals up or down, alter the salesperson’s focus from sellers to buyers or vice versa, and discuss if more training is needed. It is recommended to keep a record of the session in case future corrective action is required. You will learn more about performance reviews, coaching, and mentoring later.

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Lesson 5 | Page 10 of 13

Similar to the sales staff, performance-based orientation sessions are also conducted for administrative staff. As you learned earlier, the performance-based orientation sessions are conducted separately for administrative staff. The administrative staff plays a vital role in facilitating activities in a brokerage. Given the diverse tasks they perform, they should have a wide range of technical skills plus strong communication and organizational skills. A brokerage should provide proper training that can help them perform the assigned duties.

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Lesson 5 | Page 11 of 13

Performance-Based Orientation for Administrative Staff Besides providing general orientation, a broker of record should organize performance-based orientation training for the administrative staff to help them understand their duties and responsibilities. The training topics may be related to administrative activities and trade-processing activities and may include the following: • Listing inventory management, including input of property details, integration of photos, and uploading, as applicable, to the local listing service system • Operating all email, word processing, and custom reporting systems in the front office administration software • Preparing custom reports related to transaction closings, listing expirations, and other reports as required by the broker of record

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• Maintaining selected contact databases for clients • Maintaining inventories of office supplies and ordering replacement materials, subject to management approval • Making and confirming appointments on listings and possibly creating agreements of purchase and sale for sales staff • Answering the phone (what is the initial greeting?), answering phone calls from the public, and determining who they should be directed to (based on the brokerage’s office policy for unsolicited calls) You will learn more about performance-based training for administrative staff in a later course. Once performance-based training has been completed, the typical management practice is to conduct informal performance discussions on an ongoing basis to ensure performance is meeting standards. A broker of record may conduct one formal performance review at the end of a probationary period and one at the end of the year. Sometimes employers also opt to have a performance review in the middle of the probationary period so there are no surprises if the employer chooses not to continue the employment relationship prior to the end of the probationary term. You will learn more about performance reviews for administrative staff in a later module.

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Lesson 5 | Page 12 of 13

A brokerage has hired two new salespersons and a front-desk receptionist. All the three individuals are joining the brokerage on the same day and attending the orientation program together. Which office policies and procedures should be addressed in the general orientation program? There are four options. There are multiple correct answers. 1

Policy and procedure for processing inquiries

2

Procedure for listing properties

3

Policies on personal safety

4

Policy and procedure for preparing brokerage marketing pieces

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Lesson 5 | Page 13 of 13

Congratulations, you have completed the lesson! Completion of this lesson has enabled you to: • Identify an orientation program for new brokers and salespersons joining a brokerage • Identify the considerations for developing an orientation program for new administrative staff joining a brokerage There are two sections on this page with a summary of the key topics that were discussed in this lesson.

Two-part orientation program

Orientation programs are an important part of integrating new recruits to a brokerage and helping them adjust to their new positions. An orientation program for a brokerage is typically structured into two parts: general orientation and performance-based orientation. The general orientation is related to brokerage policies and procedures and should take place on the first day of work for new recruits. The performance-based orientation is intended to train brokers, salespersons, and administrative staff on specific skills they will require while on the job. A performance-based orientation program for sales staff extends beyond an introduction to office systems into needed skills training. The program should build skills directly related to job tasks.

Considerations for developing a performancebased orientation program

The program should complement pre-registration education for inexperienced salespersons and provide specific skills training to aid both new and experienced brokers and salespersons joining the brokerage. The performance-based orientation program should relate directly to real-world problems and opportunities. Performance-based orientation training for administrative staff is intended to help them understand their duties and responsibilities. The training topics may be related to administrative activities and trade-processing activities.

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Lesson 6 | Page 1 of 8

Lesson 6: Summary Practice Activities

This lesson provides a series of activities that will test your knowledge on the entire module.

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Lesson 6 | Page 2 of 8

This lesson provides summary practice activities. Throughout this lesson, you will participate in decision points to test your knowledge on the topics presented.

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Lesson 6 | Page 3 of 8

A broker has recently set up a corporation and has submitted their application for brokerage registration to RECO. The broker has acquired business premises in an upscale locality with impressive facilities. While they are awaiting their registration, they want to create a recruiting plan for their brokerage. The broker plans to hire experienced brokers and salespersons, as well as new salespersons and administrative staff. The broker has engaged a marketing firm to build marketing materials to promote the brokerage and to market properties. The marketing materials have been completed and delivered to the broker. What practices can the broker use for the brokerage’s prospecting, sourcing, and recruiting activities? There are four options. There are multiple correct answers. 1

Showcase the competitive edge that the brokerage has with the marketing materials

2

Showcase the brokerage’s reputation in its recruiting advertisements

3

Showcase the brokerage’s commission split of 60-40 to all brokers and salespersons, regardless of their experience, in their recruiting advertisements

4

Showcase the new business premises and the infrastructure the brokerage has in all its recruiting advertisements

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Lesson 6 | Page 4 of 8

A broker of record wants to offer incentives to new recruits to attract salespersons who are new to the industry. Which incentives can the broker of record use to attract salespersons who are new to the industry? There are four options. There are multiple correct answers. 1

A welcome package that includes business cards and “for sale” and “open house” signs

2

A specified amount of monetary compensation offered at completion of various milestones

3

A signing bonus when the new recruit signs an employment contract

4

Reimbursement of specified amounts of the Pre-Registration program fees at completion of various milestones

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Lesson 6 | Page 5 of 8

A broker of record is conducting an interview for the position of a salesperson in their brokerage. Which practices should the broker of record follow in order to conduct the interview effectively? There are four options. There are multiple correct answers. 1

Obtain exact dates and information from the candidate about previous employment

2

Provide limited time for responding to questions

3

Portray a real-life sales situation and ask for a response

4

Be realistic regarding job challenges

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Lesson 6 | Page 6 of 8

A broker of record has hired an administrative staff person and is now planning their performance-based orientation program. What could the broker of record include in the performance-based orientation program for the administrative staff person? There are four options. There are multiple correct answers. 1

Preparing and presenting a listing agreement

2

Observing how to conduct an open house

3

Preparing custom reports related to transaction closings and listing expirations

4

Maintaining inventories of office supplies

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Lesson 6 | Page 7 of 8

The broker of record for a new brokerage is considering all the elements that should be included for training salespersons who are new to the industry when joining their brokerage. What are some of the training elements that the broker of record should include in the performance-based orientation program for new salespersons? There are four options. There are multiple correct answers. 1

Developing a contact list

2

Assembling a listing presentation

3

Handling unsolicited inquiries

4

Using sales prospecting techniques

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Lesson 6 | Page 8 of 8

Congratulations, you have completed the lesson!

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Module Summary | Page 1 of 3

Module Summary

This lesson contains a summary of the entire module.

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Module Summary | Page 2 of 3

Congratulations, you have completed this module! The next screen will present a summary of the lessons in this module.

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Module Summary | Page 3 of 3

There are five sections on this page with a summary of the key topics that were discussed in this module.

Recruiting Plans for a Brokerage

Recruiting is an ongoing process, and it requires preparation, planning, and commitment to find the right people to staff a brokerage. Recruiting plans may vary depending on whether the brokerage is targeting brokers and salespersons or administrative staff. They may also vary depending on whether the brokerage is targeting experienced brokers and salespersons or those who are new to the industry. Before initiating a recruiting plan, a new brokerage should differentiate themselves from other brokerages in the marketplace to attract, hire, and retain knowledgeable, capable, and talented individuals to align with the brokerage’s vision and goals. Depending on resources available, they can highlight one or more of the following competitive advantages to differentiate themselves: • Physical environment and overall impression • Brokerage reputation • Distinctive brokerage image and marketing strategy • Competitive compensation package • Clear and consistent message An effective recruiting plan can be accomplished through two primary methods: • Prospecting and sourcing • Recruiting Prospecting and sourcing is an ongoing and proactive approach to actively search, research, and then create a roster of potential candidates with the goal to recruit them in the future. When prospecting and sourcing, a broker of record should establish contact with potential candidates, learn about them, and listen for indications of a need.

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Recruiting involves various strategies to entice potential candidates to join the brokerage. When recruiting, a broker of record should have conversations with the potential candidate about what the brokerage has to offer and how it can satisfy their need. Incentives can play a significant role in fast-tracking the recruitment process for brokers and salespersons and improving the probability of finding suitable recruits for the brokerage. When exploring options for recruiting incentives for the brokerage, both benefits and drawbacks associated with offering recruiting incentives should be considered. Completion of this lesson has enabled you to: • Describe key components of a recruiting plan for a brokerage • Identify recruiting incentives typically used by a brokerage

Agreements for Independent Contractors and Employees

Brokerages may choose to have brokers and salespersons as independent contractors or employees. If a broker or salesperson is recruited as an independent contractor, the brokerage must have a written independent contractor agreement. Alternatively, if the broker or salesperson is recruited as an employee, it is recommended to have a written employment agreement. When recruiting brokers and salespersons as independent contractors, a brokerage needs to create an independent contractor agreement that defines the terms of the working relationship between the brokerage and the independent contractor. The agreement must meet the defined CRA guidelines, the Employment Standards Act, and common law principles. It must also outline that the contractor is not an employee of the brokerage (with respect to the Income Tax Act). An employment agreement is used to define the employment relationship of an employee with the brokerage when the brokerage chooses to have an employee relationship with them. It defines the rights and obligations of a brokerage and their employee. It also outlines the benefits that the brokerage offers to their employee.

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Completion of this lesson has enabled you to: • Identify the key requirements of independent contractor agreements within a brokerage • Identify the key requirements of employment agreements within a brokerage Employee application forms are typically used as part of a screening process to gather

Employee initial information about candidates applying for administrative staff positions and to Application Forms

narrow down the search for appropriate candidates. An employee application form can be used to gather basic information such as contact details, educational qualifications, and skills that will help the broker of record assess the alignment of the candidate with the job description. No standard employee application form exists for administrative staff positions in brokerages. A broker of record can create and/or customize the employee application according to their needs, subject to it being compliant with the Ontario Human Rights Code. Employee application forms are not typically used for experienced brokers and salespersons, as the broker of record can obtain information about these individuals through researching their website and the real estate board or association they belong to. Completion of this lesson has enabled you to: • Identify key considerations when developing employee application forms

Selection Process for Roles Within a Brokerage

Once candidates for a specific position have been identified, the screening and selection process is initiated. The approach and process to screen or select candidates varies depending on whether the broker of record is recruiting a broker, a salesperson, or an administrative staff position. It also varies based on whether the candidate is new to the industry or experienced. For example, an employee application form or resume may be used to screen candidates for administrative staff positions and new-to-the-industry salespersons, whereas only an interview may be used when screening experienced brokers and salespersons.

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Candidate screening and selection is most effective when following a structured process, which includes the following elements: • Pre-screening conversation • Application form • Interview • Reference and credit check Pre-screening naturally takes place when prospecting, sourcing, and recruiting and allows for narrowing down of the list of potential candidates. An employee application form or a resume and cover letter are mostly used for candidates applying for administrative staff positions. Interviews are conducted with potential candidates who are included in the narrowed-down list for selection. Interviews are used to evaluate candidates through competency-based or behavioral-based questioning and to identify candidates who are a right fit for the brokerage. Reference and credit checks are conducted after the interview for selected candidates. A broker of record may choose not to invest in reference and credit checks. Completion of this lesson has enabled you to: • Define the selection process for roles within a brokerage

Orientation Programs for the Staff

Orientation programs are an important part of integrating new recruits to a brokerage and helping them adjust to their new positions. An orientation program for a brokerage is typically structured into two parts: general orientation and performance-based orientation. The general orientation is related to brokerage policies and procedures and should take place on the first day of work for new recruits. The performance-based orientation is intended to train brokers, salespersons, and administrative staff on specific skills they will require while on the job.

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Completion of this lesson has enabled you to: • Identify an orientation program for new brokers and salespersons joining a brokerage • Identify the considerations for developing an orientation program for new administrative staff joining a brokerage

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V6.3

Module 3: Complying with Employment Standards and Statutory Requirements in a Brokerage Disclaimer: This is a reference document which contains pages from the Accessible eLearning module. You should complete the eLearning module to proceed to the next step. Please note that the accessible module on the LMS only contains the interactive pages and you need to go through the content of this document thoroughly to attempt the interactive activities in the module. Please use Adobe Acrobat Reader (Recommended version 9 or above) to navigate through this PDF. Real Estate Broker Program © 2021 Real Estate Council of Ontario. All Rights Reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or in any means – by electronic, mechanical, photocopying, recording or otherwise without prior written permission, except for the personal use of the Real Estate Broker Program learner.

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Module 3: Complying with Employment Standards and Statutory Requirements in a Brokerage This module details Real Estate and Business Brokers Act (REBBA) requirements for registrations, renewals, reinstatements, terminations, and transfers of brokers and salespersons. In addition, this module describes REBBA requirements related to teams working within a brokerage. This module also explores employment-related legislation, such as the Employment Standards Act, the Occupational Health and Safety Act, the Accessibility for Ontarians with Disabilities Act, and the Ontario Human Rights Code. As a broker of record, you will need to have a thorough understanding of the sections of these acts that relate to brokers, salespersons, and administrative staff to ensure brokerage compliance. To check your understanding of this module, you must complete all the activities in the online module. While navigating through the online module, click the Legislation button to view laws and regulations related to this module. The contents of the thumbnails Accessible PDF.

and References from the module are added to support your learning throughout this

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Menu: Complying with Employment Standards and Statutory Requirements in a Brokerage Number of Lessons

Lesson Number

9 Lessons

Lesson Name

Lesson 1

REBBA Requirements: Registrations, Renewals, Reinstatements, Terminations, and Transfers

Lesson 2

REBBA Requirements: Teams in a Brokerage

Lesson 3

Employment Standards Act

Lesson 4

Occupational Health and Safety Act

Lesson 5

Ontario Human Rights Code

Lesson 6

Accessibility for Ontarians with Disabilities Act

Lesson 7

Brokerage Policy Manual and Safety Policies

Lesson 8

Summary Practice Activities Module Summary

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Lesson 1 | Page 1 of 20

Lesson 1: REBBA Requirements: Registrations, Renewals, Reinstatements, Terminations, and Transfers This lesson identifies REBBA compliance requirements related to new registrations, renewals, reinstatements, terminations, and transfers of registration for brokers and salespersons. This lesson also identifies issues that could result in delay or refusal of new registrations and renewal of existing registrations by RECO.

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Lesson 1 | Page 2 of 20

As a broker of record, it is important to have a thorough understanding of REBBA registration requirements because you will be reviewing, approving, and submitting various types of applications to RECO regarding registrations, renewals, and reinstatements for your brokerage, brokers, and salespersons. Failing to understand these requirements may result in delays in obtaining registration. In cases of renewals, if a broker’s or salesperson’s registration expires, they will not be permitted to trade. Upon completion of this lesson, you will be able to: • Identify the compliance requirements under REBBA related to registration, renewals, reinstatements, terminations, and transfers • Identify issues that could result in refusal of or delay in processing a registrant’s application by RECO Throughout this lesson, you will participate in decision points to test your knowledge on the topics presented.

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Lesson 1 | Page 3 of 20

As a broker of record, you will be responsible for ensuring that new registrations, renewals, and reinstatements applicable to brokers and salespersons employed by your brokerage comply with REBBA. You will need to ensure that processes used in the brokerage for termination and transfer of registration also comply with REBBA. In addition, you will need to ensure that all applications to RECO, regardless of type, are complete and accurate in order to avoid processing delays or refusals.

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Lesson 1 | Page 4 of 20

Registration Requirements for New Salespersons A broker of record may decide to hire individuals who are new to the industry to trade on behalf of their brokerage. The broker of record should be familiar with the requirements that these individuals must fulfill to first obtain RECO registration and then to renew their registration. This way, the broker of record can provide appropriate guidance to the individuals with whom they interact. The registration requirements can be categorized into three phases: 1) Pre-registration: An individual aspiring to be a salesperson is first required to complete Pre-Registration courses: Real Estate Salesperson Program from Humber College.

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Note that the Salesperson Registration Education Program offered by OREA Real Estate College is no longer in place. Humber College is the sole provider of the Real Estate Salesperson Program, offering direct entry into the industry, meeting the educational requirements needed when applying to RECO for registration. An individual completing the Real Estate Salesperson Program from Humber College will have 12 months from completion of the program to obtain employment with a brokerage and apply for salesperson registration with RECO. 2) Articling: After the individual obtains their registration, their two-year articling period (or phase) begins. In this period, the new salesperson must complete a selection of Post-Registration courses. You will learn more about this later in the lesson. Once the articling period (or phase) is complete, the new salesperson must apply for renewal of their registration. This renewal is subject to completion of the applicable courses within the articling period. 3) Mandatory continuing education: Every registration has a two-year cycle. In each registration cycle after the articling period (or phase), the salesperson must complete the mandatory continuing education courses that RECO specifies on their website. Inability to complete the courses within the specified timelines can result in a lapse (termination) of registration and affect an individual’s ability to trade in real estate. A broker of record may also choose to hire an individual who is registered in another jurisdiction with equivalent status to a broker or salesperson in Ontario. RECO may exempt that individual from educational courses. An individual from another jurisdiction should contact RECO for more information.

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Lesson 1 | Page 5 of 20

Pre-Registration: Real Estate Salesperson Program

The courses that form the Pre-Registration phase of the Salesperson Registration Education Program from OREA Real Estate College and those of the Real Estate Salesperson Program from Humber College vary in structure. A broker of record may hire individuals who have completed either one of these programs depending on specific timelines. If an individual was enrolled in the Salesperson Registration Education Program with OREA Real Estate College they had to be completed by March 13, 2021, and they have 12 months from completion of the program to

© 2021 Real Estate Council of Ontario

obtain employment with a brokerage and apply for salesperson registration with RECO. A broker of record may also receive inquiries from individuals who want to start a career in real estate. A broker of record should be aware of the specific details of educational requirements to provide appropriate guidance to these individuals. The following two sections contain information on courses in the Pre-Registration phase of the two programs for new salespersons.

The Salesperson Registration Education Program from OREA Real Estate College: Pre-Registration phase

The program is no longer in place.

© 2021 Real Estate Council of Ontario

Real Estate Salesperson Program from Humber College: Pre-Registration phase

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Lesson 1 | Page 6 of 20

New Registration: Key Process Steps A broker of record should be aware of the specific process steps involved in obtaining new salesperson registration so they can provide appropriate guidance to individuals when prospecting, sourcing and/or recruiting for their brokerage. They also need this information to understand their role in the registration process. As you learned earlier, any individual aspiring to be a salesperson is first required to complete their Pre-Registration courses from one of the following programs, again depending on specific timelines: • Salesperson Registration Education Program from OREA Real Estate College • Real Estate Salesperson Program from Humber College The Salesperson Registration Education Program that was offered by the OREA Real Estate College is no longer in place. Any individual wanting to register as a salesperson is required to enrol in the Real Estate Salesperson Program offered by Humber College. The remainder of this lesson will concentrate on obtaining registration, assuming the individual is completing their educational requirements as per the Real Estate Salesperson Program. The following five sections contain information on the typical process for obtaining new registration.

© 2021 Real Estate Council of Ontario

Enrol in the Real Estate Salesperson Program The first step to obtaining registration as a salesperson is to enroll in the Real Estate Salesperson Program on Humber College’s website. To qualify for admission, an applicant is required to have a Canadian secondary school diploma or a General Education Development (GED) certificate. Applicants who do not have a Canadian secondary school diploma or GED certificate may provide acceptable equivalency credentials. Alternatively, the Real Estate Education Program office at Humber College offers a Salesperson Program Admission Exam to applicants without a secondary school diploma or equivalent. This exam assesses a learner’s knowledge in three key areas: reading, writing, and arithmetic. Successful completion of the Salesperson Program Admission Exam is an acceptable equivalent for admission to the Real Estate Salesperson Program. Learners can visit the Humber College website for more details (https://humber.ca/realestate/becominga-salesperson/program-admissions/salespersonprogram-admission-exam.html).

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Complete the courses in the Pre-Registration phase The Pre-Registration phase starts when the applicant enrols in the Real Estate Salesperson Program. The applicant must complete the courses, examinations, and simulation sessions sequentially within 24 months of initial enrolment. You already learned about the courses that form part of the PreRegistration phase earlier in the lesson.

Apply for registration with RECO Upon completing the Pre-Registration phase of the Real Estate Salesperson Program, an applicant becomes eligible to register with RECO. To obtain registration, the applicant must obtain employment with a brokerage and then complete a registration application that includes the following: • Real Estate Salesperson Program course transcripts • Current and original Canadian Criminal Record and Judicial Matters Check (dated within six months of submitting the application) • Registration fees for a new salesperson The applicant must submit the registration application within 12 months of completing the Pre-Registration phase.

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RECO application review Upon receiving the application, RECO will do the following: • Review the application for completeness and accuracy • Complete a name search to determine if the application is a new registration or a reinstatement • Review the Canadian Criminal Record and Judicial Matters Check for past instances of misconduct RECO, under the authority of the Registrar, has three options when reviewing new applications: • Process the application and approve the new registration • Process the application and approve the registration with voluntary conditions applied to the individual’s registration for the purposes of monitoring their financial position or concerns related to their past or present conduct • Propose to refuse the registration if the Registrar believes the applicant has made false statements or non-disclosures on the application or is viewed as unsuitable given criminal charges, professional conduct, financial position, and/or alternate employment You will learn more about refusal of applications later in this module.

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Pay for RECO’s Professional Liability Insurance Program administered by RECO After an application for registration is reviewed and accepted, RECO issues an insurance invoice. The applicant is required to pay for the Professional Liability Insurance Program invoice. Once the applicant makes the payment, RECO provides them with a notification of their registration as a salesperson. The RECO registration is applicable for two years. During this time, the new salesperson is in an articling period and is required to complete the PostRegistration phase of the Real Estate Salesperson Program.

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Lesson 1 | Page 7 of 20

Articling: Real Estate Education Programs for New Salespersons After a salesperson obtains their registration from RECO, a two-year articling period (or phase) begins, where they are provided supervision and ongoing training by their brokerage. In this period, the new salesperson is able to trade on behalf of their brokerage. In their articling period (or phase), the new salesperson is required to complete the Post-Registration courses. If the salesperson was enrolled and completed the Pre-Registration courses with OREA Real Estate College, it is possible they also completed the Post-Registration courses prior to the closure of the college. If a salesperson was unable to complete the Post-Registration courses from the OREA Real Estate College prior to the closure, the salesperson is required to complete the courses offered by Humber College. A broker of record should be aware of these educational requirements so they can guide the new salesperson on the best times to schedule and complete the requirements. As you learned earlier, RECO registration is valid for two years. Renewal of registration is subject to completion of educational requirements in the two-year articling period (or phase). You will learn about the renewal process later in the lesson. The following two sections contain information on the educational requirements in the articling period (or phase) of the two programs for new salespersons.

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The Salesperson Registration Education Program from OREA Real Estate College: Articling phase

Courses no longer in place.

Real Estate Salesperson Program from Humber College: Post-Registration phase

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Lesson 1 | Page 8 of 20

Process for Registration Renewal As you learned in a previous course, every brokerage, branch office, broker, or salesperson has a two-year registration cycle. Registration renewals are completed online and can be initiated only within 60 days of the registration expiry date. The online registration renewal process involves the following steps: 1. The broker or salesperson logs onto MyWeb, completes the online registration renewal application, and pays the applicable renewal fee 2. RECO sends the broker of record an email notification indicating that the application is pending broker of record review 3. The broker of record logs onto MyWeb, where the employee’s application is waiting for review 4. Once the broker of record reviews the application and deems that the information the employee has provided is, to the best of their knowledge, correct, they can confirm the information electronically 5. RECO reviews the application. Once approved, a registration certificate is provided

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Lesson 1 | Page 9 of 20

Continuing Education After completion of the articling period (or phase) and renewal of registration, a salesperson is required to complete RECO’s Mandatory Continuing Education program, which presently consists of residential and commercial updates and a selection of elective courses. These courses are completed online through MyWeb, a members-only portal on the RECO website. RECO will transition from launching one update course every two years to releasing shorter update courses annually every January. The two annual update courses will come into effect when the new MCE program is introduced on January 1, 2023. The first group of salespersons and brokers who will need to complete two annual update courses will be those who have a registration cycle that starts after January 1, 2023 and expires after January 1, 2025. For example, if your registration cycle starts on May 10, 2023 and expires on May 10, 2025, you will need to complete two annual update courses. The first annual update course will be available January 1, 2023 and the second annual update course will be available January 1, 2024. © 2021 Real Estate Council of Ontario

Salespersons and brokers will no longer have the option to choose between the residential update course and the commercial update course. The new annual update course will contain content of interest to all salespersons and brokers. RECO will continue to develop MCE electives that focus on either residential or commercial topics. Mandatory Continuing Education program requirements must be completed for each two-year registration cycle. The requirement of mandatory continuing education applies to brokers as well as salespersons. Renewal of registration is subject to completion of the applicable courses in each registration cycle. If a broker or salesperson fails to comply with the educational requirements within the two-year registration cycle, they will not be eligible to renew their registration and will not be permitted to trade. It is important for a broker of record to know the educational requirements that their brokers and salespersons must complete to renew their registration so that they can provide them with early reminders. A broker of record can view the registration expiry dates for their brokers and salespersons under the Employees tab on the MyWeb portal. They should review the registration expiry dates on an ongoing basis so they can provide general reminders to the brokers and salespersons about their requirements to complete courses and renew their registration on time.

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Lesson 1 | Page 10 of 20

Process for Reinstatement A broker or salesperson who decides they do not want to trade for an extended period of time (between 60 days and two years) has the option of terminating their registration and then applying for reinstatement when they are ready to rejoin the profession. The same applies in cases where a broker or salesperson is terminated by their brokerage and they do not want to trade for an extended period of time (between 60 days and two years). Once the registration has been terminated, the broker or salesperson cannot engage in any activity that may be considered as trading unless they have successfully reinstated their registration. The requirements for reinstatement vary, depending on how much time has passed since the termination. The following three sections contain information on the process for reinstatement.

Between 60 days and two years after termination For a period between 60 days and two years after the effective date of termination, the individual must do the following: • Complete the Mandatory Continuing Education program requirements • Complete an application for reinstatement • Submit the reinstatement fee • Submit a current, original Canadian Criminal Record and Judicial Matters Check After RECO has processed the reinstatement application, they may issue an invoice for the Professional Liability Insurance Program premium, if applicable. Payment of the Insurance Program premium must be made within the specified time period.

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Between two and five years after termination For a period between two and five years after the effective date of termination, the individual: • May require enrollment and completion of the Pre-Registration phase of the Real Estate Salesperson Program and/or may apply for either a full or partial exemption from the requirement • Must complete the required courses and/or exams by the given timeline, if only partial exemption is granted • Must complete an application for reinstatement, which includes the required fee and a current Canadian Criminal Record and Judicial Matters Check • Must purchase insurance coverage once their reinstatement application has been processed

Over five years after termination Beyond five years after the effective date of termination, the individual must complete the PreRegistration phase of the Real Estate Salesperson Program again before they can apply to re-enter the profession.

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Lesson 1 | Page 11 of 20

Due to some health-related issues, a salesperson has terminated their employment with their brokerage two months after renewing their registration with RECO. Four months later, the individual would like to return to the brokerage. The broker of record asks the individual to complete the RECO Application for Reinstatement. What requirements must the individual fulfill before the broker of record can review the Application for Reinstatement, confirm its content, and send it to RECO? There are four options. There are multiple correct answers.

1

Obtain a Canadian Criminal Record and Judicial Matters Check.

2

Complete courses in the Pre-Registration phase again.

3

Include the RECO Professional Liability Insurance Program payment with the Application for Reinstatement.

4

Complete the Mandatory Continuing Education program requirements.

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Lesson 1 | Page 12 of 20

Process for Terminating and Transferring Registrations As with any other profession, turnover is a natural occurrence in real estate. REBBA sets out requirements for termination from one brokerage and transfer to another brokerage for brokers and salespersons. A broker of record or manager must ensure that the brokerage processes used to terminate or transfer registrations for brokers and salespersons comply with REBBA requirements. The processes for termination and transfer are completed electronically by a broker of record or manager on the MyWeb portal. The following three sections contain information on processes for registration termination and transfer.

Termination notice initiated by a brokerage A brokerage terminating the employment of a broker or salesperson must provide them with written notice of termination, including the effective termination date. Within five days of termination, the brokerage must provide RECO with the following: • A copy of the written notice, including the effective termination date, to be provided via the online termination process • Completed online termination application through MyWeb

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Termination notice initiated by a broker or salesperson When a broker or salesperson initiates the termination, they must provide the brokerage with written notice of termination, including the effective termination date. Within five days of the effective termination date, the brokerage must provide RECO with the following: • Completed online termination application through MyWeb, including any documentation

Transfer of registration Within 60 days of the effective termination date, the broker of record and/or manager of the hiring brokerage must: • Complete the online transfer application through MyWeb • Submit a copy of the written notice of termination from the former employing brokerage (received from the individual) • Submit the transfer fee If the transfer is not completed within 60 days, a new application for reinstatement must be completed, and other requirements must be met, as previously stated.

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Lesson 1 | Page 13 of 20

Notification of Change to RECO A broker of record will need to ensure that RECO is notified in writing of any information change relating to the brokerage and/or the brokers and salespersons employed by the brokerage. They should also ensure that the brokers and salespersons employed by the brokerage are aware and fulfil their obligations to notify RECO of any changes. Notification of changes must be in writing and submitted to RECO within five days of the change. The brokerage should retain a copy of any notification sent to RECO. While this is not an exhaustive list, changes that must be reported to RECO to comply with REBBA requirements include: • Change of address for the brokerage • Appointment of a new broker of record • Status change to broker from salesperson • Transfer or termination of a broker and/or salesperson © 2021 Real Estate Council of Ontario

• Change of contact information for a broker and/or salesperson, such as address for service in Ontario, telephone, and email (Please note: Address must be a physical address; numbered post office boxes are not acceptable) • Criminal charge and/or judgement against a broker and/or salesperson • Bankruptcy and/or trustee proposal for a broker, salesperson, partner, officer, director, or shareholder • Broker and/or salesperson initiating any other employment in addition to maintaining registration • Individual acquiring an interest in the brokerage

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Lesson 1 | Page 14 of 20

A salesperson is moving to a different town next month and plans to transfer to a brokerage immediately upon arrival. What requirements are necessary for the transfer to take place? There are four options. There are multiple correct answers. 1

The salesperson must submit a letter of termination to their current brokerage.

2

The salesperson’s current brokerage must complete a transfer application through MyWeb.

3

The salesperson must submit a copy of their letter of termination to their new brokerage.

4

The salesperson’s new brokerage must complete a transfer application through MyWeb.

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Lesson 1 | Page 15 of 20

RECO has provided a notification of registration for a new salesperson. The broker of record meets with the salesperson to remind them of their obligation to notify RECO of any changes to the information they have included on their registration application within five days of the change and to explain the nature of the change that may require reporting. What types of changes would a salesperson need to report to RECO? There are four options. There are multiple correct answers. 1

The salesperson has moved and has a new mailing address.

2

The salesperson finds themselves involved in a personal bankruptcy.

3

The salesperson has married.

4

The salesperson has accepted part-time employment as a piano teacher.

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Lesson 1 | Page 16 of 20

RECO may refuse to process a registration application for several reasons. As a broker of record, when reviewing applications, you should be able to identify issues that could result in a delay or a refusal. You should be able to direct individuals on how to resolve issues related to their applications so that the individuals can trade on behalf of your brokerage without delay or interruption.

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Lesson 1 | Page 17 of 20

Application Issues That May Delay Registration As you learned earlier, a broker of record ensures that the brokerage complies with REBBA and associated regulations. As such, they play an important role in upholding the integrity of the real estate profession. A broker of record is required to review an application of registration and verify the accuracy of the information. Specifically, the broker of record must work with the individual to ensure that the applicant has answered all questions correctly and completely. Issues that may cause a delay in obtaining registration include, but are not limited to, the following: • Not answering questions completely or correctly • Failure to include the following information: o Additional information related to bankruptcies or insolvency proceedings o Additional information related to unpaid judgements and/or unpaid debts outstanding, including Canada Revenue Agency (CRA) Requirements to Pay and garnishments o Additional information related to any charges pending or conviction of any offence under any law

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o Additional information regarding a record suspension (formerly a pardon), including a copy of the record suspension o Details if the applicant has other employment (including other business interests) o Details of prior refusal, suspension, revocation, or cancellation of any licence, registration, or professional status o Course transcripts in the case of a new application • Failure to complete articling requirements for salespersons - this is the initial two-year articling period (or phase) that requires completion of Post-Registration courses discussed earlier in the module • Failure to complete RECO’s requirements for Mandatory Continuing Education • Failure to submit a current, original Canadian Criminal Record and Judicial Matters Check • Failure to submit payment for the applicable fee

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Lesson 1 | Page 18 of 20

Application Issues That May Result in Refusal of Registration When completing an application, an applicant is required to answer several disclosure questions. If information is not disclosed, or is incomplete or incorrect, the Registrar may consider it as grounds for refusal of registration. For a registration renewal, the Registrar may also consider registration revocation. As a broker of record, you will need to work with the applicant to ensure that all disclosure questions are answered fully and completely, and that additional information is submitted where necessary. If disclosure questions are asked during the recruiting process, and any issues are discovered during the interview, direct all questions to RECO. The following four sections contain information on issues that may result in a refusal of registration.

Other employment and business interests RECO will assess if the applicant has any other employment or interest in another business or company that would conflict with their ability to trade in real estate in accordance with REBBA. Specifically, the following questions will be considered: • Does the applicant have an interest in a company that invests in or administers a real estate or business portfolio? • Does the applicant have an interest in a company that is an extension of real estate, such as real estate development? • Does the applicant already trade in real estate through an organization and/or an entity exempt from registration?

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Bankruptcy, insolvency, and outstanding judgements An applicant must provide RECO with detailed information if they: • Have unpaid judgements or debts outstanding • Have been involved in a bankruptcy or insolvency (whether personal; as an officer, director, and/or majority shareholder of a corporation that has been declared bankrupt or insolvent; or as a party to bankruptcy or insolvency proceedings) The above issues will not necessarily result in denial of registration, but RECO will need full disclosure and detailed documentation to make a decision about the application.

Licence or registration suspensions or terminations An applicant must provide RECO with detailed information if they: • Have had any previous registration, licence, or professional status refused, suspended, revoked, or cancelled • Have resigned a registration, licence, or professional status • Are currently involved in any pending proceedings

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Criminal charges As you learned earlier in this lesson, all applicants must submit a current and original Canadian Criminal Record and Judicial Matters Check with their registration application. RECO may consider pending charges, pleading guilty, being found guilty, or being convicted of an offence under any law as grounds for refusal or revocation of registration, particularly if a risk to consumers is demonstrated. • Applicants must also disclose any additional information regarding a record suspension (formerly a pardon), including a copy of the record suspension.

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Lesson 1 | Page 19 of 20

A broker of record is reviewing and confirming content of a RECO application for a new salesperson prior to sending it to RECO. Which factors could delay RECO in their processing of the application? There are four options. There are multiple correct answers. 1

The applicant did not attach a Canadian Criminal Record and Judicial Matters Check.

2

The applicant did not attach their educational course transcripts.

3

The applicant did not include the payment for the Professional Liability Insurance Program premium.

4

The applicant did not include the RECO registration fees.

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Lesson 1 | Page 20 of 20

Congratulations, you have completed the lesson! Completion of this lesson has enabled you to: • Identify the compliance requirements under REBBA related to registration, renewals, reinstatements, terminations, and transfers • Identify issues that could result in refusal of or delay in processing a registrant’s application by RECO There are six sections on this page with a summary of the key topics that were discussed in this lesson.

New registration

An individual aspiring to be a salesperson is first required to complete Pre-Registration courses: Real Estate Salesperson Program from Humber College. Note that the Salesperson Registration Education Program offered by OREA Real Estate College is no longer in place. Next, they must obtain employment with a brokerage, complete the application for registration with RECO, and submit the required documents and registration fee. After the application is reviewed and accepted, RECO issues an insurance invoice. Then, the applicant must pay the Professional Liability Insurance Program invoice. Once the applicant makes the payment, RECO provides them with a notification of their registration as a salesperson. The RECO registration is applicable for two years and is referred to as the articling period. In this period, the new salesperson must complete a selection of Post-Registration courses. Once the articling period (or phase) is complete, the new salesperson must apply for renewal of their registration.

Renewal of registration

In each registration cycle after the articling period, the salesperson must complete the mandatory continuing education courses that RECO specifies on their website. Inability to complete the courses within the specified timelines can result in a lapse (termination) of registration and affect an individual’s ability to trade in real estate.

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A broker or salesperson registered with RECO must renew their registration on or before their two-year anniversary date if they wish to continue to trade. A broker or salesperson must complete educational requirements that apply to them, renew their registration online through MyWeb, and pay the applicable renewal fee.

Reinstatement

A broker or salesperson who decides they do not want to trade for an extended period of time (between 60 days and two years) has the option of terminating their registration and then applying for reinstatement when they are ready to rejoin the profession. When applying for reinstatement, an individual must gain employment with a brokerage and do the following: • Complete Mandatory Continuing Education program requirements • Complete an application for reinstatement • Submit a current, original Canadian Criminal Record and Judicial Matters Check • Submit the reinstatement fee • Pay for the Professional Liability Insurance Program (if applicable)

Termination and transfer

REBBA sets out requirements for brokers and salespersons regarding termination from one brokerage and transfer to another. A broker of record or manager completes the processes for termination and transfer electronically through the MyWeb portal. The processes for termination and transfer of registration are as follows: • Termination: The termination notice can be issued by the brokerage, broker, or salesperson. Regardless of who initiates the process of termination, they are required to give the other party a written notice that includes the date the termination takes effect. The broker of record or manager must complete the online termination application through MyWeb and attach the letter of termination within five days after the termination takes effect. • Transfer: When a broker or salesperson transfers to another brokerage, they must provide a copy of the letter of termination from the previous brokerage to the hiring brokerage. The broker of record or manager from the hiring brokerage will complete

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the online transfer application through MyWeb, attach a copy of the letter of termination from the previous brokerage, and submit the transfer fee.

Application issues As a broker of record, you are required to review and verify the accuracy of the information in an application of registration. Specifically, you must ensure that the that may delay applicant has answered all questions correctly and completely. registration Some issues that may cause a delay in registration include the following: • Not answering questions completely or correctly • Failure to provide the required additional information related to: o Bankruptcies or insolvency proceedings o Unpaid judgements and/or unpaid debts outstanding, including CRA Requirements to Pay and garnishments o Any charges pending or conviction of any offence under any law

Application issues that may result in refusal of registration

When completing an application, an applicant must answer several disclosure questions. If information is not disclosed or is incomplete or incorrect, RECO acting under the authority of the Registrar may consider it as grounds for refusal of registration. For a registration renewal, RECO acting under the authority of the Registrar may also consider registration revocation. As a broker of record, you will need to work with the applicant to ensure that all disclosure questions are answered fully and completely, and that additional information is submitted where necessary. Some issues that may result in the refusal of a registration include the following: • Other employment or business interests • Bankruptcy, insolvency, and outstanding judgements • Licence or registration suspensions or terminations • Criminal charges

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Lesson 2 | Page 1 of 7

Lesson 2: REBBA Requirements: Teams in a Brokerage This lesson identifies REBBA requirements related to teams working within a brokerage. This lesson also identifies key team-related issues a broker of record must consider, such as employment policies for unregistered assistants and what unregistered assistants are permitted and not permitted to do, as set out in REBBA.

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Lesson 2 | Page 2 of 7

Real estate teams operating within brokerages are an increasingly common sight and continue to grow in popularity. A wide range of team structures are typically found in brokerages ranging from husband-and-wife teams to larger operations consisting of five or more brokers and salespersons together with unregistered assistants. As a broker of record, you will need to ensure that teams in your brokerage comply with REBBA requirements. Upon completion of this lesson, you will be able to: • Identify the compliance requirements under REBBA related to teams working within a brokerage Throughout this lesson, you will participate in decision points to test your knowledge on the topics presented.

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Lesson 2 | Page 3 of 7

A broker or salesperson in a brokerage may decide to set up a team of brokers and salespersons to leverage different areas of expertise and experience. As a broker of record, if your brokerage includes real estate teams, you will need to ensure all teams and team members comply with REBBA requirements.

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Lesson 2 | Page 4 of 7

Key Team-Related Requirements The broker of record determines whether teams can be created within the brokerage and under what terms. If a brokerage has teams, the broker of record will need to identify key requirements related to teams, create applicable policies, and meet with the team leader and members regularly to discuss and monitor team activity to ensure compliance with REBBA. If the team creates its own manual, the broker of record will need to review their manual to ensure it is consistent with brokerage policies and complies with REBBA. The following four sections contain information on some key team-related requirements as per REBBA.

Advertising a team Brokers and/or salespersons working together can be described using the term “team”, “group”, “crew”, or any other term that does not imply that the team is a separate business entity from the brokerage; for example, “The Jake Thompson Crew” is appropriate, but “The Jake Thompson Company” is not appropriate. If advertising for a team includes a statement about business volumes, trading activity, comparative claims, or awards, then the size of the team must be indicated, or all team members must be identified using their names and category of registration exactly as registered with RECO, for example, The Jake Thompson Team—Jake Thompson, Salesperson; Anna Thompson, Broker; Heather Andrews, Salesperson. You will learn more about team advertising in a later course.

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Agreements between team members A team leader may enter into one or more agreements with brokers and/or salespersons, assign specific responsibilities to these individuals, and establish certain administrative structures. The broker of record should ensure the brokerage is a party to any such agreement, and all such matters are subject to the broker of record’s approval. A broker of record should keep a copy of each agreement between team members on file at the brokerage.

Off-premise location Teams may conduct certain activities (such as preparation of source documents and advertisements, maintenance of website and social media platforms, and making calls) from locations beyond the registered brokerage. The broker of record must ensure the following: • All records located on such sites are readily accessible by the brokerage. • All activities can be monitored in accordance with REBBA. • All recordkeeping requirements comply with REBBA. If the public is invited to the off-premises location, then it must be registered as a branch office. Registration is not required for a home office with no public access.

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Registered and unregistered assistants A team may consist of registered and unregistered assistants. A registered assistant may only be compensated by the brokerage with whom they are employed for any trading activity. For any activity that does not fall under the definition of trading, an assistant (whether registered or unregistered) may be paid by the team leader (broker or salesperson) in compliance with all laws and regulations regarding employer-employee relationships.

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Lesson 2 | Page 5 of 7

Employment Policies for Unregistered Assistants As a broker of record, you may encounter situations in which both registered and unregistered assistants work with brokers and/or salespersons in a brokerage and perform specific duties. An unregistered assistant cannot participate in any activity considered as trading. REBBA states that no one may trade in real estate unless registered and prohibits brokerages from employing, paying, or compensating an unregistered individual for fulfilling duties for which registration is required. RECO has created the following guidelines regarding activities that an unregistered assistant can do: • Answer and forward telephone calls to brokers, salespersons, and other employees in the brokerage • Submit listings and changes to the local listing service • Receive and coordinate documents • Have keys made for the brokerage’s listings • Prepare and produce advertisements and promotional materials • Type contract forms • Place signs on property on behalf of a broker or salesperson • Act as a courier service to deliver documents and pick up keys • Schedule appointments for brokers or salespersons to show listed properties • Retrieve information from a real estate board or association for the use of a broker or salesperson (if the brokerage is a member of organized real estate) • Set up listing files, take photos of listings, complete fact sheets, and deliver them to properties • Provide access to a brokerage’s listing for an appraiser, inspector, and so on • Install lockboxes • Distribute listing information to the public

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RECO has created the following guidelines regarding activities that an unregistered assistant cannot do: • Represent themselves, at any time, as a broker or a salesperson • Show properties • Preview homes or listings, unless accompanied by a broker or salesperson • Attend a listing or sales presentation, unless accompanied by a broker or salesperson • Negotiate purchase contracts, listing contracts, rental agreements, or leases • Negotiate or agree to any commission, commission split, management fee, or referral fee on behalf of a broker or salesperson • Hold open houses

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Lesson 2 | Page 6 of 7

Jake Truman and his team have just joined ABC Real Estate Inc. Jake is the team’s leader, and his team includes two salespersons and one unregistered assistant. The broker of record meets with the new team members to review their obligations for compliance with REBBA. Which of the following instances are compliant with REBBA? There are four options. There are multiple correct answers.

1

Jake wants to compensate his unregistered assistant directly and wants his salespersons to be compensated through ABC Real Estate Inc.

2

Jake wants to use the following advertisement for his team: “The Truman Team: Top Producing Team in 2019, according to real estate board statistics.”

3

Jake wants to secure a private office premises for his team to work from off site. The office would not be open to the public.

4

Jake wants his unregistered assistant to preview homes on his behalf and collect listing details from the property owner.

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Lesson 2 | Page 7 of 7

Congratulations, you have completed the lesson! Completion of this lesson has enabled you to: • Identify the compliance requirements under REBBA related to teams working within a brokerage There are two sections on this page with a summary of the key topics that were discussed in this lesson.

Team-related requirements

If a brokerage includes real estate teams, the broker of record must ensure all teams and team members comply with REBBA requirements. The broker of record should consider the following key requirements: • Advertising a team: Brokers and/or salespersons working together can be described using the term “team”, “group”, “crew”, or any other term that does not imply the team is a separate business entity from the brokerage. • Agreements between team members: A team leader may enter into one or more agreements with brokers and/or salespersons. The broker of record should ensure the brokerage is a party to any such agreement, and all such matters are subject to the broker of record’s approval. • Off-premise location: Teams may conduct certain activities from locations beyond the registered brokerage. If the public is invited to the off-premises location, then it must be registered as a branch office. • Registered and unregistered assistants: A team may consist of registered and unregistered assistants. A registered assistant may only be compensated by the brokerage with whom they are employed for any trading activity. For any activity that does not fall under the definition of trading, an assistant (whether registered or unregistered) may be paid by the team leader (broker and/or salesperson) in compliance with all laws and regulations regarding employer-employee relationships.

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Employment policies for unregistered assistants

An unregistered assistant cannot participate in any activity considered as trading. REBBA states that no one may trade in real estate unless registered. REBBA also prohibits brokerages from employing, paying, or compensating an unregistered individual for fulfilling duties for which registration is required.

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Lesson 3 | Page 1 of 14

Lesson 3: Employment Standards Act

This lesson describes key provisions and obligations of the Employment Standards Act and how provisions such as termination influence operations within a brokerage.

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Lesson 3 | Page 2 of 14

The Employment Standards Act regulates employment in Ontario including wages, maximum work hours, overtime, vacation, and different forms of leaves of absence and applies to all individuals employed by all organizations in the province regardless of the industry. However, it is important to note that the Employment Standards Act does not apply to brokers and salespersons who are independent contractors. This lesson identifies the key provisions in this legislation that will affect the operations of a brokerage, such as continuity of employment, payment of wages, employee records, equal pay for equal work, benefit plans, and termination and severance of employment. As a broker of record, you will be responsible for ensuring your brokerage complies with all provisions of this legislation. You should seek advice from third-party professionals for any questions about these matters. Upon completion of this lesson, you will be able to: • Describe key provisions and obligations of the Employment Standards Act and how they influence operations within a brokerage • Identify legal considerations regarding terminations under the Employment Standards Act Throughout this lesson, you will participate in decision points to test your knowledge on the topics presented.

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Lesson 3 | Page 3 of 14

The Employment Standards Act consists of several parts. As a broker of record, you will need to have a thorough understanding of the overall legislation, sections of the legislation applicable to brokers, salespersons, and administrative staff who are employees of the brokerage, and sections of the legislation applicable only to administrative staff. You will also need to ensure your brokerage complies with all sections of this legislation.

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Lesson 3 | Page 4 of 14

Employment Standards Act and Brokerage Operations I The Employment Standards Act is comprehensive and addresses all types of employment. However, real estate is a specialized field. There are parts of the legislation that apply to brokers, salespersons, and administrative staff who are employed by the brokerage, and there are other parts that apply only to the administrative staff and not the brokers and salespersons. The following four sections contain information on the parts of the Employment Standards Act that apply to brokers, salespersons, and administrative staff who are employed by the brokerage. Selected portions of this legislation are summarized for learning purposes only.

Continuity of employment The Employment Standards Act contains an important provision to ensure that an employee's past employment is recognized when: • The business the employee works for is sold or transferred to a new owner; and • The employee continues to work at the business for the new owner. In this case, the employee’s employment is not considered terminated or severed. • Where there has been a sale of a business, an exception to the continuity of employment provision occurs if there is a 13-week gap in employment. An individual's employment with a previous employer is not deemed as employment with the new owner if the employee is hired by the new owner more than 13 weeks

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after the employee's last day of employment with the previous owner or more than 13 weeks after the date of the sale, whichever is earlier.

Payment of wages Employers must establish a recurring pay period and pay day. The place of payment can be at the workplace or at another location agreed to by the employee. Direct deposit of employee wages is permitted under the Employment Standards Act, subject to certain requirements. Payment of wages must adhere to the following requirements: • Termination: Wages must be paid no later than the later of seven days after termination or the day that would have been the employee’s next pay day. • Statement of wages: A statement of wages must be provided on or before an employee’s pay day. The statement may be provided via electronic mail. It must include the period of time for which wages are being paid, the wage rate (if applicable), and how the wages are calculated (unless furnished to the employee in some other manner). • Vacation pay: The employer is required to provide the employee with both vacation pay and vacation time. If vacation pay is selected and one or more vacation days are taken during a pay period, the Employment Standards Act requires that details concerning the vacation pay be included in the statement of wages for that pay period.

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Employee records Employee records must be maintained by the brokerage as follows: • Employee’s name and address (and date of birth, if a student and under 18 years of age) • Date on which the employee began employment • Number of hours worked in each day and each week • Information contained in each statement of wages and vacation pay • All vacation time taken by the employee Employment records must be retained either by the employer or another individual so designated by the employer. Regardless, all records must be readily available for inspection. The Employment Standards Act also sets out detailed time limits for retention of employee records. The accuracy of employment records can be vital in a dispute. In the absence of correct records, employment standards officers investigating a complaint will give greater credence to the employee’s position if the employer fails to properly maintain relevant documentation.

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Equal pay for equal work No employer or personnel acting on behalf of an employer can pay one employee at a rate of pay less than another employee on the basis of sex when: 1. They perform substantially the same kind of work, 2. Their work requires substantially the same skill, effort, and responsibility, and 3. Their work is performed under similar working conditions. The Employment Standards Act does permit exceptions (for example, a difference in rate of pay according to seniority, internal merit systems, pay systems based on quality or quantity of production, or a differential based on any other factor besides gender).

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Lesson 3 | Page 5 of 14

Employment Standards Act and Brokerage Operations II The Employment Standards Act is comprehensive and addresses all types of employment. However, real estate is a specialized field. There are parts of the legislation that apply to brokers, salespersons, and administrative staff who are employed by the brokerage, and there are other parts that apply only to the administrative staff and not the brokers and salespersons. The following three sections contain information on the additional parts of the Employment Standards Act that apply to brokers, salespersons, and administrative staff who are employed by the brokerage. Selected portions of this legislation are summarized for learning purposes only.

Benefit plans Regulatory requirements apply to a pension plan, life insurance plan, disability insurance plan, disability benefit plan, health insurance plan, or health benefit plan. No employer or individual acting on behalf of an employer can provide, offer, or arrange for a benefit plan that treats individuals (that is, employees, beneficiaries, survivors, and dependents) differently because of age, sex, or marital status.

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Leaves of absence The broker of record should refer to the Employment Standards Act for detailed matters concerning the various forms of leaves of absence. Leaves of absence can include the following: pregnancy, parental, family medical, organ donor, family caregiver, critical illness, child death, crime-related child disappearance, domestic or sexual violence, sick leave, family responsibility, bereavement, declared emergencies, infectious disease emergencies, and reservist leaves of absence.

Termination and severance of employment Termination provisions are complex and require careful review. As a general guideline, an employer may terminate at any time subject to proper notice or, in lieu of notice, termination pay. Note that an employee may be entitled to receive termination pay under common law (law developed and applied in the courts) reasonable notice in excess of the minimum termination entitlements under the Employment Standards Act in lieu of reasonable notice. Brokers of record should seek professional advice from a lawyer before issuing employment agreements. • Termination notice: Employees with three months or more employment require specific notice periods as outlined below:

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o Three months or more but less than one year: One week o One year or more but less than three: Two weeks o Three years or more but less than four: Three weeks o Four years or more but less than five: Four weeks o Five years or more but less than six: Five weeks o Six years or more but less than seven: Six weeks o Seven years or more but less than eight: Seven weeks o Eight years or more: Eight weeks Note: Employees with less than three months employment does not require any specific notice period. Termination notices should not be confused with temporary layoffs, where an employee can be laid off without notice provided that various statutory requirements are met. A layoff is temporary and occurs when an employer cuts back or stops the employee's work without ending their employment. Severance pay is different from termination pay. The Employment Standards Act outlines specific employees and situations where severance pay is required. Under

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the Employment Standards Act, an employee will qualify for severance pay upon termination if: a) The period of employment was five years or more (regardless of whether this time was continuous or active employment); and b) The employer has a payroll in Ontario of at least $2.5 million or terminated the employment of 50 or more employees in a six-month period because all or part of the business permanently closed. As with all termination matters, legal advice is strongly recommended.

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Lesson 3 | Page 6 of 14

Provisions Applicable to the Administrative Staff of a Brokerage There are some parts of the Employment Standards Act that are not applicable to brokers and salespersons employed by the brokerage but do apply to administrative staff employed by the brokerage. Learners can visit the Government of Ontario website for more information (https://www.ontario.ca/document/your-guide-employment-standards-act-0). The following five sections contain information on the parts of the legislation that do apply specifically to administrative staff and not to brokers and salespersons. Selected portions of this legislation are summarized for learning purposes only.

Hours of work and eating periods The hours of work for an employee cannot exceed eight hours in one day (unless a regular workday is established as more than eight hours) and 48 hours in a work week. These limits can be extended by mutual agreement (either written or electronic) between employer and employee, provided this does not extend beyond 60 hours in a work week. The Employment Standards Act provides for extensions under exceptional circumstances, such as emergencies or unforeseen events. Examples of this include work necessary to ensure the continued delivery of essential public services (regardless of who actually delivers the services) to ensure that continual processes or seasonal operations are not interrupted and work for urgent repairs due to equipment breakdown.

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Overtime pay If an employee works for a period of more than 44 hours in any week, the individual is paid for each hour worked in excess of the 44 hours at one and one-half times the regular rate. The Employment Standards Act does provide for averaging agreements (if the employee and employer agree to do so) so that hours of work can be averaged over a period of not more than four weeks to determine an employee’s entitlement to overtime. The legislation also provides for time off (one and one-half hours for each overtime hour) in lieu of overtime pay but only if the employer and employee agree to it either in writing or electronically.

Minimum wage Every employer must comply with minimum wage requirements as established from time to time under the Employment Standards Act. The general minimum wage rate and the student minimum wage rate are revised periodically. The legislation also details provisions and qualifications concerning minimum wages for various occupations, including situations in which room or board is provided.

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Public holidays Ontario currently has nine paid public holidays, and employees who qualify are paid regular wages for the day. These holidays are as follows: New Year’s Day, Family Day, Good Friday, Victoria Day, Canada Day, Labour Day, Thanksgiving Day, Christmas Day, and Boxing Day. The civic holiday in August is not a public holiday. The legislation details situations involving public holidays where premium pay (one and one-half times the regular rate) must be paid. Details are also provided concerning employee entitlement issues and restrictions concerning work on a public holiday.

Vacation with pay The Employment Standards Act sets out various rules concerning vacation time and vacation pay: • Vacation time: Employees with less than five years of service are entitled to at least two weeks of vacation after each 12-month vacation entitlement year. Employees with five or more years of service are entitled to receive at least three weeks of vacation after each 12-month vacation entitlement year. Under the Employment Standards Act, vacation time earned for a vacation entitlement year or a stub period must be taken within 10 months after completing that year. The employer has a right to schedule vacation, as well as an obligation to ensure that vacation time is

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scheduled and taken before the end of the 10month period. • Vacation pay: Vacation pay is a separate entitlement to vacation time. Vacation pay must not be less than four per cent of gross wages earned in the 12-month vacation entitlement year for employees who have less than five years of service with the company. Employees with five or more years of employment are entitled to receive six per cent of gross wages for the 12month vacation entitlement year.

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Lesson 3 | Page 7 of 14

A broker of record has hired a new manager and wants to ensure the new manager understands the brokerage’s obligations under the Employment Standards Act. What provision would be included in the brokerage’s policy manual to ensure compliance with the Employment Standards Act? There are four options. There is only one correct answer. 1

Brokers and salespersons are required to work a minimum of 36 onsite hours per week.

2

Brokers and salespersons must be compensated for any additional hours worked beyond 44 per week.

3

Brokers and salespersons are permitted to take sick leave if needed.

4

Brokers and salespersons will be compensated for public holidays, during which the brokerage is closed.

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Lesson 3 | Page 8 of 14

Termination of employment occurs in real estate brokerages just like it does in any other business. In a previous module, you learned that an independent contractor is terminated by ending their contract. For brokerage employees, termination procedures must comply with the Employment Standards Act. As a broker of record, you will need to understand the legal considerations related to termination of brokerage employees and ensure your brokerage’s termination procedures are in compliance.

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Lesson 3 | Page 9 of 14

Leading Practices Related to Documentation of Performance From a legal perspective, a brokerage should retain proper documentation if a performance problem ultimately leads to an employee’s termination. To manage performance problems, a brokerage should consider the following leading practices: • Ensure that proper documentation is retained concerning transgressions, misconduct, or other circumstances in violation of brokerage policies and/or written employment agreements. • Address misconduct or performance problems immediately at the time of their occurrence. • Provide written warnings identifying the performance problem at the time of its occurrence. • Ensure (if applicable) that the brokerage’s employment agreement establishes the terms for termination (pay in lieu of notice of termination) and standards (that is, specific, defined activities) that can result in termination with cause. • Ensure a proper paper trail is maintained (regardless of the outcome), recording corrective actions so that both the employee and employer clearly understand the improvement or change required to address the performance problem. The paper trail should include the following: © 2021 Real Estate Council of Ontario

o Detailed records of employee performance, performance problems, and all attempts at corrective actions o Documentation related to steps taken to correct a performance problem, which may include reviews, coaching, training, and any warnings that were provided Note that maintaining a paper trail for performance management does not apply in cases of a serious breach of contract or actions where termination is immediate (for example, financial malfeasance).

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Lesson 3 | Page 10 of 14

Decision to Terminate Once a decision regarding termination is made, a brokerage must abide by the following legal requirements: • Inform the employee of the effective termination date. • Prepare all paperwork, including record of employment and termination and severance payments (if applicable). As leading practices, a brokerage should: • Review any brokerage security issues (for example, return of keys, brokerage materials, passcodes, emails, internal files, and any confidential information). • Arrange for any subsequent documents to be forwarded by mail to the individual. • Ensure immediate collection of personal items.

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• Conduct an exit interview and end the meeting on a positive note of well wishes for future endeavours. You will learn more about exit interviews later in the lesson. At the point of termination, a brokerage may choose for the termination to be effective immediately, or a notice may be provided to the individual in advance of the effective date of termination.

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Lesson 3 | Page 11 of 14

Termination Considerations The Employment Standards Act sets out minimum standards concerning levels of notice or termination pay in lieu of notice. When terminating an employee, a broker of record must ensure that their brokerage complies with the requirements as set out in the Employment Standards Act. Failure to comply with these requirements may result in litigation against the brokerage. Any termination involves judgement, experience, and prudence. Brokers of record should seek advice from third-party professionals before drafting employment agreements to ensure that minimum standards of the Employment Standards Act are enforceable in case of a termination. The following five sections contain information on the considerations for terminations in detail.

Reasonable notice As you learned earlier, the Employment Standards Act provides the minimum entitlement to notice and severance. Termination pay is given in place of required notice of termination of employment. Severance pay is compensation for a qualified longterm employee for losses (for example, seniority) when they lose their job. When the payment is contested by the employee, the employee is usually presumed by the courts to be entitled to a longer period of reasonable notice. The courts base their assessment on the following four factors: • Character or nature of employment • Length of service • Age of employee • Availability of similar employment

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A broker of record should do the following: • Seek legal advice for review of the termination clause in the employment agreement and determine legal entitlements upon termination of employment. • Review employment agreements and ensure they provide adequate options for the employer and proper provisions for termination. Note that special rules may apply for notice of termination when 50 or more employees are terminated at an employer's establishment within a four-week period. Furthermore, more senior employees may be entitled to more than three months’ notice, particularly if they are owed severance under the Employment Standards Act or if they are entitled to common law reasonable notice.

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Termination without cause Termination without cause is the most common type of termination. A brokerage has the right to terminate an employee’s employment without cause at any time and for any legal reason (that is, not based on a discriminatory reason). However, they must provide the employee reasonable notice of dismissal or pay in lieu of notice. If termination is not tied to severe workplace misconduct, it is considered “without cause”; for example, a performance problem that is not satisfactorily resolved and is not serious misconduct may end in termination without cause. If termination occurs without cause, the employee is entitled to reasonable notice or pay in lieu of such notice. Brokerages may also choose to pay a bit above the minimum standard to ensure the employee is satisfied.

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Termination with cause The standards for termination with cause are complicated. There is a with-cause termination test under the Employment Standards Act and a separate one for the common law. The Employment Standards Act states that an employer is not required to provide statutory notice or severance pay to an employee who has been guilty of willful misconduct, disobedience, or willful neglect of duty that is not trivial and has not been condoned by the employer. Under the common law, an employer will have cause if the employee is guilty of serious misconduct, habitual neglect of duty, incompetence, conduct incompatible with their duties or prejudicial to the employer’s business, or willful disobedience to the employer’s orders in a matter of substance. The employer is not obligated to pay the employee in such cases. Regardless of the type of termination (that is, with cause or without cause), before terminating an employee, a broker of record should ensure the brokerage has all required documentation in case the termination is contested. You have learned about leading practices to be followed when terminating an individual’s employment earlier in the lesson.

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Wrongful dismissal Wrongful dismissal occurs when an employer terminates an employee without providing adequate notice of termination or appropriate termination pay in lieu of notice or severance pay. Wrongful dismissal can occur even when the employer complies with the Employment Standards Act but the employee claims that they are entitled to receive common law reasonable notice instead. It does not refer to violations of the Ontario Human Rights Code. Brokers of record should be cautious and seek legal advice when terminating brokers or salespersons because of the complexity in determining commissions and providing a reasonable notice period.

Constructive dismissal Constructive dismissal (another version of wrongful dismissal) may occur when an employer unilaterally makes a significant change to a fundamental term of the employee’s employment without the employee’s actual or implied consent. For example, an owner and/or broker of record of a large brokerage (without consulting the individual): • Takes away significant responsibilities from the general manager of a brokerage, • Alters the individual’s stature in the organization (demoted to assistant), or • Downgrades the compensation package

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In some instances, the individual is simply given the choice of leaving the brokerage or accepting the altered position. Assuming the individual quits, they could take legal action based on the employer’s failure to meet its contractual obligations. Note that an employee does not need to quit in order for it to be a constructive dismissal. Sometimes, the employee will provide notice that they are not accepting the change but continue to work to mitigate the damages. This may provide challenges in dealing with the employee if their relationship with the employer has been tainted. However, not every change to an employee’s terms and conditions of employment results in grounds for constructive dismissal. You have learned about the leading practices and legal considerations related to termination earlier in the lesson. This information will help you ensure that your brokerage is not involved in constructive dismissal when making changes to an individual’s terms of employment.

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Lesson 3 | Page 12 of 14

Exit Interviews The Employment Standards Act does not require an employer to provide exit interviews to terminated employees. However, an exit interview may provide a brokerage with the opportunity to obtain honest feedback and insight for immediate action or future improvements. The interview can benefit both parties. The individual exiting has an opportunity to express concerns and be heard; the broker of record has the chance for introspection that may result in positive changes. If a broker of record decides to conduct exit interviews, they should do the following: • Ensure the terminated employee understands that such interviews are not required. • Allow the terminated employee who wants to exit without an interview to do so. • If a terminated employee agrees to the exit interview, keep it positive, short, and to the point. Do not argue if you do not agree with the exiting person’s perceptions. • If valid comments are made during an exit interview, take appropriate action by addressing the concerns.

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Lesson 3 | Page 13 of 14

N/A Which of the following scenarios of employment terminations are either wrongful dismissal or a termination without cause under the Employment Standards Act? There are four options. There are multiple correct answers.

1

A brokerage terminates their front desk receptionist, telling them that they are not busy enough to keep the position. The termination takes effect immediately, and the brokerage does not provide any payment in lieu of notice.

2

A brokerage with 20 staff members is closing at the end of the year and decides to terminate all brokers, salespersons, and administrative staff. The brokerage provides them with three months’ notice.

3

A brokerage unilaterally decides to reduce their administrative manager’s salary without consent due to a severe decrease in business over the past year. The administrative manager provides notice that they do not accept the change but will continue to work under the conditions to satisfy their duty.

4

A branch manager has been employed by a brokerage for two years. The brokerage gives the branch manager their two weeks’ notice of termination without providing them with an explanation. The termination aligns with the terms of the employment agreement.

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Lesson 3 | Page 14 of 14

Congratulations, you have completed the lesson! Completion of this lesson has enabled you to: • Identify key provisions and obligations of the Employment Standards Act and how they influence operations within a brokerage •

Identify legal considerations regarding terminations under the Employment Standards Act

There are three sections on this page with a summary of the key topics that were discussed in this lesson.

Provisions and obligations of the Employment Standards Act

The Employment Standards Act is comprehensive and addresses all types of employment. However, real estate is a specialized field. There are parts of the legislation that apply to brokers, salespersons, and administrative staff who are employed by the brokerage, and there are some parts that apply only to the administrative staff and not the brokers and salespersons. The parts that apply to brokers, salespersons, and administrative staff employed by the brokerage are: • • • • • • •

Continuity of employment Payment of wages Employee records Equal pay for equal work Benefit plans Leaves of absence Termination and severance of employment

The parts of the legislation that are not applicable to brokers and salespersons employed by the brokerage but do apply to administrative staff employed by the brokerage: • Hours of work and eating periods • Overtime pay • Minimum wage

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• Public holidays • Vacation with pay

Leading practices From a legal perspective, a brokerage should have a proper paper trail if a performance problem leads to an employee’s termination. related to documentation of To manage a performance problem, a brokerage should: performance • Ensure that proper documentation is retained concerning transgressions,

• • • •

Decision to terminate

misconduct, or other circumstances in violation of brokerage policies and/or written employment agreements. Address misconduct or performance problems immediately at the time of occurrence. Provide written warnings identifying the performance problem at the time of occurrence. Ensure (if applicable) the brokerage’s employment agreement establishes the terms of termination. Ensure a proper paper trail is maintained (regardless of the outcome), recording corrective actions so that both the employee and employer clearly understand the improvement or change required.

Once a decision regarding termination is made, a brokerage must abide by the following legal requirements: • Inform the employee of the effective termination date. • Prepare all paperwork, including record of employment and termination and severance payments. Also, as leading practices, a brokerage should: • Review any brokerage security issues (for example, return of keys, brokerage materials, passcodes, emails, internal files, and any confidential information). • Arrange for any subsequent documents to be forwarded by mail to the individual. • Ensure immediate collection of personal items.

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• Conduct an exit interview and end the meeting on a positive note of well wishes for future endeavours.

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Lesson 4 | Page 1 of 13

Lesson 4: Occupational Health and Safety Act

This lesson describes key provisions and obligations of the Occupational Health and Safety Act and how they influence operations within a brokerage, including provisions to address workplace violence and harassment.

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Lesson 4 | Page 2 of 13

The Occupational Health and Safety Act sets out the rights and duties of all parties in the workplace, procedures for addressing workplace hazards, and procedures for enforcement, as needed. This lesson describes these and other key provisions and their effect on brokerage operations, such as the requirement to establish a joint health and safety committee (based on the number of employees) and policies that address workplace violence and harassment. As a broker of record, you will be responsible for ensuring your brokerage complies with key provisions and obligations as set out in the legislation. Upon completion of this lesson, you will be able to: • Describe key provisions and obligations of the Occupational Health and Safety Act and how they influence operations within a brokerage Throughout this lesson, you will participate in decision points to test your knowledge on the topics presented.

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Lesson 4 | Page 3 of 13

A brokerage must ensure the well-being of all employees, including independent contractors, which means compliance with key provisions in the Occupational Health and Safety Act. Depending on the number of employees, these key provisions include setting up a joint occupational health and safety committee to investigate workplace issues, and creating and implementing an occupational health and safety policy that includes procedures to address workplace violence and harassment.

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Lesson 4 | Page 4 of 13

Occupational Health and Safety Act: Overview The Occupational Health and Safety Act is built on an internal responsibility system where employers and employees share the responsibility for occupational health and safety. This internal system is based on the premise that individuals in the actual workplace are in the best position to identify associated problems and develop solutions. A brokerage is classified as a category one workplace, which means that selected health and safety committee members or representatives must attend a one-week course at an approved training facility. The course consists of two parts. Part one is basic certification that provides an overall knowledge of health and safety that applies to all workplaces. Part two deals with workplace-specific hazard training. The employer is responsible for paying various costs associated with training and certification. In addition, the employer must provide committee members time for meetings, safety inventories, and other procedures, as set out in the legislation.

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Lesson 4 | Page 5 of 13

Joint Health and Safety Committee The Occupational Health and Safety Act sets out provisions for creating a joint health and safety committee based on the number of employees. For brokerages, the number of employees includes independent contractors. This legislation also sets out requirements for composition of a joint health and safety committee, which must comply with the Workplace Safety and Insurance Act. As a broker of record, you will need to know when a joint health and safety committee is required to comply with your regulatory obligations. The following four sections contain information on the requirements for a joint health and safety committee.

Number of employees The number of employees in the brokerage (including independent contractors) will determine if a committee needs to be established. The Occupational Health and Safety Act sets out the following requirements for establishing a joint health and safety committee: • Brokerages with five or less employees (including independent contractors) are not required to have a joint health and safety committee or a health and safety representative. • Brokerages with 6 to 19 employees (including independent contractors) are not required to set up a joint health and safety committee. However, employees must choose one employee as their health and safety representative. • Brokerages with 20 to 49 employees (including independent contractors) are required to set up

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a joint health and safety committee that consists of at least two members. • Brokerages with 50 or more employees (including independent contractors) are required to set up a joint health and safety committee that consists of at least four members.

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Committee composition The Occupational Health and Safety Act sets out the following requirements for the composition of a joint health and safety committee: • At least half of the committee members must be worker members (brokers, salespersons, and administrative staff) who are selected by the workers. • The employer (brokerage) chooses the remaining members from persons in the workplace who exercise managerial functions. • The names and work locations of members are posted in the workplace. • The Ministry of Labour recommends that members serve a minimum term of one year on the committee and meet at least once every three months. • Committees must be co-chaired by two members. One of the co-chairs is chosen by the members who represent workers and the other by members who exercise managerial functions. It is recommended that the chairs alternate the chairing of each meeting. • At least two members (one representing employees and one representing the employer) must attend specialized training.

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Committee duties and responsibilities The composition, full duties, and responsibilities of a joint health and safety committee are detailed in the legislation and materials provided by the Ministry of Labour, Training and Skills Development. Note: If the brokerage has only one health and safety representative (6 to 19 employees), this individual has the same basic responsibilities as the committee. Responsibilities can be broadly grouped under four general topics: • Identification of potential hazards • Evaluation of potential hazards • Recommendations for corrective steps • Follow-up The Occupational Health and Safety Act also sets out the employer’s general responsibilities to the committee or the health and safety representative to advance legislated objectives, procedures, and policies.

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Ministry of Labour, Training and Skills Development For brokerages with 20 or more employees (including independent contractors), the Occupational Health and Safety Act requires that the employer and employees each be represented by at least one certified committee member on the joint health and safety committee. The Ministry of Labour, Training and Skills Development’s Chief Prevention Officer has been authorized to develop standards for certification of committee members, to approve certification training programs, and to certify individuals who meet these standards.

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Lesson 4 | Page 6 of 13

Occupational Health and Safety Policy Implementation Program An employer must have an implementation program that supports health and safety policies. The Ministry of Labour, Training and Skills Development provides examples of elements to consider when creating an implementation program. Elements for brokerage consideration include the following: • Worker training (for example, new employees and/or procedures) • Workplace inspections and hazard analysis

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• Analysis of workplace accidents and illnesses • Health and safety budget • Formal means of communication to promptly address concerns of employees • Maintenance and repairs • Housekeeping • Protective equipment • Emergency procedures • First aid and rescue procedures • Fire prevention

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Lesson 4 | Page 7 of 13

Occupational Health and Safety Policy Template An employer must prepare a written occupational health and safety policy and develop a program for implementation. They should review the policy and the program on an annual basis. A policy statement by the brokerage is an effective way to communicate the brokerage’s commitment to worker health and safety. Brokerages must post a copy of the occupational health and safety policy at a conspicuous location in the office. The Ministry of Labour, Training and Skills Development provides a sample health and safety policy template, which can be modified for real estate brokerage purposes. The occupational health and safety policy template provided by the Ministry of Labour, Training and Skills Development is included as a reference.

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Lesson 4 | Page 8 of 13

Workplace Violence and Harassment: Definitions The Occupational Health and Safety Act includes provisions that address workplace violence and harassment. Brokerages must develop policies, develop and maintain relevant programs, and provide information and instructional materials to employees. When violence or harassment occurs in the workplace, the program must include methods to report such matters, investigate them, and seek remedies. The legislation defines “workplace violence” as follows: • The exercise of physical force by an individual against a worker, in a workplace, that causes or could cause physical injury to the worker

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• An attempt to exercise physical force against a worker, in a workplace, that could cause physical injury to the worker • A statement or behaviour that is reasonable for a worker to interpret as a threat to exercise physical force against the worker, in a workplace, that could cause physical injury to the worker Note that workplace violence definitions are broad enough to include actions that are offences under the Criminal Code. The legislation defines “workplace harassment” as engaging in a course of vexatious comment or conduct against a worker in a workplace that is known or ought reasonably to be known to be unwelcome. It is important to note that workplace harassment definitions are broad enough to include harassments prohibited under the Ontario Human Rights Code, including sexual harassment. The legislation defines “workplace sexual harassment” as follows: • Engaging in a course of unwelcome comment or conduct against a worker in a workplace because of sex, sexual orientation, gender identity, or gender expression, where the course of comment or conduct is known or ought reasonably to be known to be unwelcome • Making a sexual solicitation or advance where the person making the solicitation or advance is in a position to confer, grant, or deny a benefit or advancement to the worker, and the person knows or ought reasonably to know that the solicitation or advance is unwelcome

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Lesson 4 | Page 9 of 13

Forms of Workplace Harassment Workplace harassment can take many forms, such as the following behaviours: • Offensive or intimidating comments or jokes • Bullying or aggressive behaviour • Displaying or circulating offensive pictures or materials • Inappropriate staring • Isolating or making fun of an employee because of gender identity • Workplace sexual harassment

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Workplace sexual harassment may occur where there is a pattern of behaviour or with respect to a single substantial incident of inappropriate behaviour. It can take many forms, such as unwelcome sexual advances, requests for sexual favours, and other words, acts, or gestures of a sexual nature: • When such conduct might reasonably be expected to cause insecurity, discomfort, offence, or humiliation to another person or group • When submission to such conduct is made implicitly or explicitly a condition of employment • When submission to or refusal to accept such conduct is used as a basis for any employment decision (including, but not limited to, promotion, career progression, the type of work given, salary increase, job security, and benefits affecting the employee) • When such conduct has the purpose or the effect of interfering with a person’s work performance or creating an intimidating, hostile, or offensive work environment Workplace sexual harassment can involve a range of subtle and not-so-subtle behaviors that may involve individuals of the same or different gender. Depending on the circumstances, these behaviors may include, but are not limited to, the following: • Unwanted sexual advances or requests for sexual favours • Sexual jokes and innuendos • Verbal abuse of a sexual nature • Commentary about an individual’s body, sexual prowess, or sexual deficiencies • Leering, catcalls, or inappropriate touching • Insulting or obscene comments or gestures • Display or circulation in the workplace of sexually suggestive objects or pictures (including through email) • Other physical, verbal, or visual conduct of a sexual nature

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Lesson 4 | Page 10 of 13

Workplace Violence and Harassment Policies To comply with the Occupational Health and Safety Act workplace violence and harassment provisions: • A brokerage is required to prepare and review policies on workplace violence and workplace harassment at least annually. These policies are required regardless of the size of the workplace or number of employees. • A brokerage with six or more employees (including independent contractors) is required to do the following: o Prepare written policies on workplace violence and workplace harassment. o Post the written policies in a conspicuous place. The policies do not have to be in writing if the brokerage has fewer than six employees. However, an inspector from the Ministry of Labour, Training and Skills Development may still ask the brokerage to put the policies in writing.

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When joining a brokerage, brokers, salespersons, and administrative staff should be asked to sign an acknowledgment to confirm that they have received, read, and will comply with the workplace violence and harassment policies. A brokerage may choose to prepare separate policies regarding workplace violence and workplace harassment or combine them. Employers may also choose to combine either or both with the occupational health and safety policy.

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Lesson 4 | Page 11 of 13

A brokerage consisting of 30 employees has hired a new broker of record. On their first day, the broker of record is reviewing their brokerage’s occupational health and safety policy and implementation program to ensure that it is up to date and compliant with the Occupational Health and Safety Act. Which of the following could be included in the brokerage’s policy and implementation program? There are four options. There are multiple correct answers. 1

The joint health and safety committee is ultimately responsible to ensure worker health and safety.

2

The brokerage is committed to making health and safety an integral part of the brokerage.

3

The brokerage is responsible for providing training to workers on first aid and rescue procedures.

4

The brokerage is responsible for training and certification provisions for members of the joint health and safety committee.

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Lesson 4 | Page 12 of 13

A broker of record is creating workplace violence and workplace harassment policies for their new brokerage. What brokerage obligations should the broker of record include in the workplace violence and workplace harassment policies? There are four options. There are multiple correct answers. 1

Investigate incidents and complaints in a fair and timely manner.

2

Ensure all individuals at the brokerage understand the complaint process.

3

Provide all individuals at the brokerage with the information they need to protect themselves against workplace violence.

4

Provide annual sensitivity training to all individuals at the brokerage.

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Lesson 4 | Page 13 of 13

Congratulations, you have completed the lesson! Completion of this lesson has enabled you to: • Describe key provisions and obligations of the Occupational Health and Safety Act and how they influence operations within a brokerage There are three sections on this page with a summary of the key topics that were discussed in this lesson.

Occupational Health and Safety Act

The Occupational Health and Safety Act sets out provisions for creating a joint health and safety committee based on the number of employees. For brokerages, the number of employees includes independent contractors. A broker of record is responsible for ensuring that their brokerage complies with key provisions and obligations set out in the Occupational Health and Safety Act. The Occupational Health and Safety Act requires the following: • Brokerages with five or less employees (including independent contractors) are not required to have a joint health and safety committee or a health and safety representative. • Brokerages with 6 to 19 employees (including independent contractors) must choose one employee as their health and safety representative. • Brokerages with 20 to 49 employees (including independent contractors) must establish a joint health and safety committee that consists of at least two members, with equal employer and employee representation. • Brokerages with 50 or more employees (including independent contractors) must establish a joint health and safety committee that consists of at least four members, with equal employer and employee representation. • At least two members (one representing employees and one representing the employer) must attend specialized training. • For brokerages with 20 or more employees (including independent contractors), the Occupational Health and Safety Act requires that the employer and employees each

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be represented by at least one certified committee member on the joint health and safety committee. The Ministry of Labour, Training and Skills Development’s Chief of Prevention Officer has been authorized to develop standards for certification of committee members, to approve certification training programs, and to certify individuals who meet these standards.

Workplace violence and harassment policies

To comply with the Occupational Health and Safety Act workplace violence and harassment provisions: • A brokerage is required to prepare and review policies on workplace violence and workplace harassment at least annually. These policies are required regardless of the size of the workplace or number of employees. • A brokerage with six or more employees (including independent contractors) is required to: o Prepare written policies on workplace violence and workplace harassment o Post the written policies in a conspicuous place The policies do not have to be in writing if the brokerage has fewer than six employees. However, an inspector from the Ministry of Labour, Training and Skills Development may still ask the brokerage to put the policies in writing.

Workplace violence and harassment definitions

The Occupational Health and Safety Act defines “workplace violence” as follows: • The exercise of physical force by an individual against a worker, in a workplace, that causes or could cause physical injury to the worker • An attempt to exercise physical force against a worker, in a workplace, that could cause physical injury to the worker • A statement or behaviour that is reasonable for a worker to interpret as a threat to exercise physical force against the worker, in a workplace, that could cause physical injury to the worker The Occupational Health and Safety Act defines “workplace harassment” as engaging in a course of vexatious comment or conduct against a worker in a workplace that is known or ought reasonably to be known to be unwelcome.

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The Occupational Health and Safety Act defines “workplace sexual harassment” as follows: • Engaging in a course of unwelcome comment or conduct against a worker in a workplace because of sex, sexual orientation, gender identity, or gender expression, where the course of comment or conduct is known or ought reasonably to be known to be unwelcome • Making a sexual solicitation or advance where the person making the solicitation or advance is in a position to confer, grant, or deny a benefit or advancement to the worker and the person knows or ought reasonably to know that the solicitation or advance is unwelcome

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Lesson 5 | Page 1 of 7

Lesson 5: Ontario Human Rights Code

This lesson describes key provisions and obligations of the Ontario Human Rights Code and how they influence operations within a brokerage.

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Lesson 5 | Page 2 of 7

The Ontario Human Rights Code prohibits discrimination in five areas called protected social areas. This lesson identifies the prohibited grounds of discrimination in the five protected social areas and describes key provisions and obligations of the Code that will affect brokerage operations. As a broker of record, you will be responsible for ensuring your brokerage complies with the key provisions and obligations as set out in this legislation. Upon completion of this lesson, you will be able to: • Describe key provisions and obligations of the Ontario Human Rights Code and how they influence operations within a brokerage Throughout this lesson, you will participate in decision points to test your knowledge on the topics presented.

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Lesson 5 | Page 3 of 7

Brokerages must comply with the Ontario Human Rights Code in all day-to-day operations. As a broker of record, you will be required to have a thorough understanding of the sections of the Ontario Human Rights Code that will affect brokerage operations, such as employment and constructive discrimination, prohibited grounds of discrimination for employment advertisement and application, conditions of insurance plans (if any), and conditions of special employment (if any).

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Lesson 5 | Page 4 of 7

Ontario Human Rights Code: Overview The Ontario Human Rights Code provides protection to people against discrimination or harassment based on a protected ground in a social area. These five social areas under the Ontario Human Rights Code are as follows: • Accommodation (housing), which is the place where a person lives or wants to live and whether they rent or own the premises • Contracts, which include both written and oral agreements • Employment, including job advertisements, application forms, interviews, work assignments, work environment, training, promotions, discipline, terminations, volunteer duties, and so on • Goods, services, and facilities, including schools, hospitals, shops, restaurants, and sports and recreation organizations • Membership in unions and trade or professional associations The Ontario Human Rights Code specifically prohibits discrimination and harassment based on different personal attributes referred to as “protected grounds”. The protected grounds include the following: © 2021 Real Estate Council of Ontario

• • • • • • • • • • • • • •

Age Ancestry, colour, race Citizenship Ethnic origin Place of origin Creed Disability Family status Marital status (including single status) Gender identity, gender expression Receipt of public assistance (in housing only) Record of offences (in employment only) Sex (including pregnancy and breastfeeding) Sexual orientation

A person’s rights under the Ontario Human Rights Code are not violated unless the discrimination occurs in one of the social areas based on one or more of the protected grounds. To establish discrimination under the Ontario Human Rights Code, a claimant must show that: 1. They have a characteristic protected by the Code (for example, race), 2. They experienced adverse treatment or impact within a social area (for example, in accessing a service, housing, or employment), and 3. The protected characteristic was a factor in the adverse treatment or impact.

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Lesson 5 | Page 5 of 7

Ontario Human Rights Code and Brokerage Operations The Ontario Human Rights Code affects brokerage operations and policies in the following four key areas: employment and constructive discrimination, employment advertising and/or applications, insurance plans, and exemptions and defences. As a broker of record, you must ensure your brokerage complies with all provisions of the Code (in particular, these four key areas) and seek advice from third-party professionals if required. The following four sections contain information on the four key areas.

Employment and constructive discrimination The Ontario Human Rights Code addresses prohibited areas of discrimination that must be considered when developing brokerage employment policies or practices. Discrimination is categorized as either direct discrimination or adverse effect discrimination. Adverse effect discrimination is typically unintentional and less obvious than direct discrimination but is equally a breach of human rights legislation. In the social area of employment, employers often engage in adverse impact discrimination, typically when attempting to treat all employees fairly and equally through the implementation of standard policy or procedures. Although the policy or practice may appear to be fair and equal at face value, it may result in an adverse impact on a particular group of people based on a prohibited ground under the Code. This is called adverse effect or constructive discrimination. For example, if a brokerage has a policy that requires all administrative staff to work Friday evenings on a rotating schedule, this may seem fair but could have © 2021 Real Estate Council of Ontario

an adverse effect on individuals who have religious observations on Friday evenings or on parents who have young children and cannot secure childcare to work evenings. A brokerage should be aware of how a standard one-size-fits-all policy can impact their staff (discriminate against them) and should be flexible in adjusting their policies according to individual staff needs. The brokerage also has a duty to accommodate the employee to the point of undue hardship and cannot discriminate against an employee by terminating their employment as a result of a prohibited ground. For example, an employee who struggles with mental health and is recommended by a doctor to take specified time off cannot later be terminated for following their physician’s recommendations, even if they are not available for work. Cases of potential discriminatory or unreasonable conduct can end in a ruling in favour of an employee by a court or the Ontario Human Rights Tribunal. These decisions may become a matter of public record and could jeopardize the reputation of the brokerage.

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Employment advertising and/or applications The Ontario Human Rights Code requires employers to comply with the Code at all stages of the employment life cycle, including during recruitment. As a result, brokerages should take precautions to ensure that its advertising and recruitment practices are not directly or indirectly discriminatory against a person based on a prohibited ground of the Code. For example, asking whether a female candidate is planning to have children or has any children is discriminatory, as it can be taken as an inquiry about whether the person will be taking a leave of absence from work or whether she has family status obligations. As you learned in a previous module, the application form used by the brokerage must not require the applicant to provide any information that could be directly or indirectly discriminatory based on a prohibited ground of the Code. However, job interviewers may discuss bona fide occupational requirements deemed not to be a violation of the Code (for example, eligibility to work in Canada). Specific topics like residency of Canada and an absence of convicted criminal offences are genuine (RECO registration) job requirements for brokers or salespersons. These are not violations of the Code and can be asked about in the interview. As you learned earlier, specific disclosures must be made to RECO when applying for registration as well as when changes occur to any information provided in the application in order to meet REBBA requirements.

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Insurance plans The Ontario Human Rights Code permits group insurance plans (including accident and sickness, automobile, life, and similar plans) to exclude or otherwise provide preferential treatment based on age, sex, marital status, family status, or disability, provided that such grounds are reasonable and bona fide. For example, when hiring an individual with a disability, the employer must pay the individual a sum equivalent to the employer portion for the plan being denied. The rights of an individual are infringed upon if employment is denied due to that individual’s inability to qualify for a benefit program within the brokerage.

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Exemptions and defences The Ontario Human Rights Code generally bars organizations from hiring in a discriminatory way. However, there are some exemptions. The most common ones are: • An organization that serves a group protected by the Code (such as religious, educational, or social institutions serving ethnic groups, people with disabilities, religious groups, and so on) may choose to employ only members of that group. • An employer may discriminate based on age, sex, record of offences, or marital status if these are genuine requirements of the job. For example, a shelter for abused women may choose to hire only women as counsellors; a club may hire only male attendants to work in the men's locker room; or a childcare facility may refuse to hire someone convicted of child molesting on the grounds that the hiring would pose a safety risk to the children. • Organizations covered by the Code have a duty to accommodate to the point of undue hardship. Accommodation need not be provided if it causes undue or excessive hardship. However, some degree of hardship is acceptable. The Code prescribes only three considerations when assessing whether an accommodation would cause undue hardship:

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o Cost o Outside sources of funding, if any o Health and safety requirements, if any No other considerations can be properly considered. For example, business inconvenience, employee morale, third-party preferences, and so on are not valid considerations in assessing whether an accommodation causes undue hardship. • If a person is prevented from meeting job requirements for a reason that is related to a ground in the Code, human rights law looks at whether these requirements are reasonable and bona fide. The key is identifying which job duties are essential requirements of the position and whether the brokerage can reasonably accommodate the employee without compromising on this job requirement. For example, if a receptionist is not fluent in English but one of the essential duties of their position is to communicate effectively with clients, agents of the brokerage, or agents of other brokerages, this may be a bona fide occupational requirement of the job. However, it is not an essential requirement for the receptionist to speak with a specific accent. • The Code allows for a special program that creates a preference or advantage, even though

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it is based on grounds that are set out in the Code. The Code allows programs designed to: o Relieve hardship or economic disadvantage o Assist disadvantaged persons or groups to achieve or attempt to achieve equal opportunity o Help eliminate the infringement of rights that are protected under the Code

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Lesson 5 | Page 6 of 7

A broker of record is meeting with an applicant who wants to join their brokerage as a salesperson. During the interview, the broker of record learns some details about the applicant. Which would be appropriate grounds for the broker of record to decline the applicant under the Ontario Human Rights Code? There are four options. There are multiple correct answers. 1

The applicant has a record of criminal convictions.

2

The applicant is not eligible to work in Canada.

3

The applicant would not qualify for the group insurance plan.

4

The applicant is coming out of retirement.

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Lesson 5 | Page 7 of 7

Congratulations, you have completed the lesson! Completion of this lesson has enabled you to: •

Describe key provisions and obligations of the Ontario Human Rights Code and how they influence operations within a brokerage

There are three sections on this page with a summary of the key topics that were discussed in this lesson.

Ontario Human Rights Code: Protected social areas

The Ontario Human Rights Code provides protection to people against discrimination or harassment based on a protected ground in a social area. The five social areas under the Ontario Human Rights Code are as follows: • Accommodation (housing), which is the place where a person lives or wants to live and whether they rent or own the premises • Contracts, which include both written and oral agreements • Employment, including job advertisements, application forms, interviews, work assignments, work environment, training, promotions, discipline, terminations, volunteer duties, and so on • Goods, services, and facilities, including schools, hospitals, shops, restaurants, and sports and recreation organizations • Membership in unions and trade or professional associations

Ontario Human Rights Code: Protected grounds

The Ontario Human Rights Code prohibits discrimination on the following protected grounds: • • • • • • •

Age Ancestry, colour, race Citizenship Ethnic origin Place of origin Creed Disability

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• • • • • •

Family status Marital status (including single status) Gender identity, gender expression Receipt of public assistance (in housing only) Record of offences (in employment only) Sex (including pregnancy and breastfeeding)

• Sexual orientation

Ontario Human Rights Code and brokerage operations

The Ontario Human Rights Code affects brokerage operations and policies in the following four key areas: • Employment and constructive discrimination: In the social area of employment, employers may engage in adverse impact discrimination, typically when attempting to treat all employees fairly and equally through the implementation of standard policy or procedures. Although the policy or practice may appear to be fair and equal at face value, it may result in an adverse impact on a particular group of people based on a prohibited ground under the Code. This is called adverse effect or constructive discrimination. • Employment advertising and/or applications: The Ontario Human Rights Code requires employers to comply with the Code at all stages of the employment life cycle, including during recruitment. As a result, brokerages should take precautions to ensure that their advertising and recruitment practices are not directly or indirectly discriminatory against a person based on a prohibited ground of the Code. • Insurance plans: The Ontario Human Rights Code permits group insurance plans (including accident and sickness, automobile, life, and similar plans) to exclude or otherwise provide preferential treatment based on age, sex, marital status, family status, or disability, provided that such grounds are reasonable and bona fide. • Exemptions and defences: The Ontario Human Rights Code generally bars organizations from hiring in a discriminatory way. However, there are some exemptions. The most common ones are: o An organization that serves a group protected by the Code (such as religious, educational, or social institutions serving ethnic groups, people with

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o o

o o

disabilities, religious groups, and so on) may choose to employ only members of that group. An employer may discriminate based on age, sex, record of offences, or marital status if these are genuine requirements of the job. Organizations covered by the Code have a duty to accommodate to the point of undue hardship. Accommodation need not be provided if it causes undue or excessive hardship. However, some degree of hardship is acceptable. The Code prescribes only three considerations when assessing whether an accommodation would cause undue hardship:  Cost  Outside sources of funding, if any  Health and safety requirements, if any If a person is prevented from meeting job requirements for a reason that is related to a ground in the Code, human rights law looks at whether these requirements are reasonable and bona fide. The Code allows for a special program that creates a preference or advantage, even though it is based on grounds that are set out in the Code. The Code allows programs designed to:  Relieve hardship or economic disadvantage  Assist disadvantaged persons or groups to achieve or attempt to achieve equal opportunity  Help eliminate the infringement of rights that are protected under the Code

As a broker of record, you will need to ensure that your brokerage complies with all provisions of the Code, particularly in these four key areas.

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Lesson 6 | Page 1 of 8

Lesson 6: Accessibility for Ontarians with Disabilities Act This lesson identifies key provisions and obligations of the Accessibility for Ontarians with Disabilities Act and how they influence operations within a brokerage.

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Lesson 6 | Page 2 of 8

The Accessibility for Ontarians with Disabilities Act (AODA) is provincial legislation mandating that all levels of government, businesses, non-profit organizations, and public sector organizations must follow standards to become more accessible to people with disabilities. The goal is for the province to be fully accessible by 2025. This lesson describes key provisions in the legislation that will affect the operations of a brokerage, such as customer service policy and procedures, and training obligations. As a broker of record, you will need to ensure your brokerage complies with this legislation. Upon completion of this lesson, you will be able to: • Describe key provisions and obligations of the Accessibility for Ontarians with Disabilities Act and how they influence operations within a brokerage Throughout this lesson, you will participate in decision points to test your knowledge on the topics presented. © 2021 Real Estate Council of Ontario

Lesson 6 | Page 3 of 8

The purpose of the AODA is to develop, implement, and enforce accessibility standards so that all Ontarians will benefit from accessible services, programs, spaces, and employment. All organizations, including brokerages, must develop an accessibility policy that addresses customer service policy and procedures, and training obligations. As a broker of record, you will be responsible for ensuring brokerage compliance with this legislation.

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Lesson 6 | Page 4 of 8

Overview of the AODA The AODA provides various accessibility standards for individuals with disabilities. These standards encompass five key areas: • Customer service • Transportation • Information and communications • Employment • Built environment

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The customer service standard establishes accessibility standards for customer service and requires mandatory accessible customer service training for all staff, volunteers, contractors, and any other individuals who interact with the public. This applies to brokerages (regardless of size) as they provide services to sellers and buyers. Therefore, it is important for a broker of record to understand these requirements and comply with them. Learners can visit the AODA website for more information.

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Lesson 6 | Page 5 of 8

Implementing the Customer Service Standard, I All organizations, including brokerages, must establish policies and procedures on providing services to people with disabilities by complying with the following requirements under the Customer Service Standard: • Set a policy on allowing people to use their own personal assistive devices to access services and information about any other measures the organization offers (assistive devices, services, or methods) to enable them to access the provider’s goods and use the provider’s services. • Use reasonable efforts to ensure that policies and procedures are consistent with the core principles of independence, dignity, integration, and equality of opportunity.

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• Communicate with an individual who has a disability in a manner that takes into account their disability, such as through providing an accessible version of documentation (a document that can be read by a low vision or non-sighted reader) to customers with vision impairment. • Train staff, volunteers, contractors, and any other people who interact with the public (or other third parties on their behalf) on a number of topics as outlined in the Customer Service Standard. • Train staff, volunteers, contractors, and any other people involved in developing the policies and procedures on the provision of services on a number of topics as outlined in the Customer Service Standard. • Allow people with disabilities to be accompanied by their guide dog or service animal in areas of the premises the provider owns or operates that are open to the public, unless the animal is excluded by another law. If a service animal is excluded by another law, the provider must use other measures to provide services to the individual with a disability. • Permit people with disabilities who use a support individual to bring that individual with them while accessing services in premises open to the public and third parties. • Where admission fees are charged, provide notice ahead of time on what admission, if any, would be charged for a support individual of an individual with a disability. • Provide notice when facilities or services that people with disabilities rely on to access or use the provider’s services are temporarily disrupted. • Establish a process for people to provide feedback on how the provider provides services to people with disabilities and how they will respond to any feedback and take action on any complaints. Information about the feedback process should be made readily available to the public. The above list is a plain language summary of the requirements. More detailed information is available on the AODA website.

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Lesson 6 | Page 6 of 8

Implementing the Customer Service Standard, II In addition, all organizations (including brokerages) with 20 or more employees (including independent contractors) must do the following: • Document in writing all their policies, practices, and procedures for providing accessible customer service, and meet all other document requirements set out in the standard. • Maintain records of employee training, including the dates of such training and to whom the training was provided. • Notify customers that documents required under the Customer Service Standard are available upon request. • Provide documents to a disabled individual in a format that takes into account the individual’s disability. Although these requirements are not applicable to a brokerage with fewer than 20 employees, they may choose to follow these practices.

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Lesson 6 | Page 7 of 8

A broker of record has just opened a new brokerage and wants to ensure that they comply with the AODA. What actions would help the broker of record ensure the brokerage complies with the AODA? There are five options. There are multiple correct answers.

1

Publish a survey on their brokerage’s website for customers to provide feedback on how the brokerage provides services to people with disabilities.

2

Provide training for all individuals who work at the brokerage on how to accommodate customers with disabilities.

3

Create a specific policy for their brokerage on providing services to customers with disabilities.

4

Provide an accessible version of all documentation for customers with vision impairment.

5

Permit customers with disabilities to be accompanied by a support individual, except during any traderelated negotiations.

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Lesson 6 | Page 8 of 8

Congratulations, you have completed the lesson! Completion of this lesson has enabled you to: • Describe key provisions and obligations of the Accessibility for Ontarians with Disabilities Act and how they influence operations within a brokerage There are three sections on this page with a summary of the key topics that were discussed in this lesson.

AODA overview

The purpose of the AODA is to develop, implement, and enforce accessibility standards so that all Ontarians will benefit from accessible services, programs, spaces, and employment. The AODA provides various accessibility standards for individuals with disabilities. These standards encompass five key areas: customer service, transportation, information and communications, employment, and built environment.

AODA Customer Service Standard

The Customer Service Standard, a regulation under the AODA, establishes standards for customer service. This regulation applies to all brokerages regardless of size. All organizations, including brokerages, must establish policies, practices, and procedures on providing services to people with disabilities by complying with all requirements under the Customer Service Standard. Some examples of these requirements include the following: • Set a policy on allowing people to use their own personal assistive devices to access services and information about any other measures the organization offers (assistive devices, services, or methods) to enable them to access the provider’s goods and use the provider’s services. • Communicate with an individual who has a disability in a manner that takes into account their disability.

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• Train staff, volunteers, contractors, and any other people who interact with the public (or other third parties on their behalf) on a number of topics as outlined in the Customer Service Standard.

AODA Customer Service Standard: Brokerage with 20+ employees

All organizations, including brokerages, with 20 or more employees (including independent contractors) must also do the following: • Document in writing all policies, practices, and procedures for providing accessible customer service, and meet all other document requirements set out in the standard. • Maintain records of employee training, including the dates of such training and to whom the training was provided. • Notify customers that documents required under the Customer Service Standard are available upon request. • Provide documents to an individual with a disability in a format that takes into account the individual’s disability. Although these requirements are not applicable to a brokerage with fewer than 20 employees, they may choose to follow these practices.

© 2021 Real Estate Council of Ontario

Lesson 7 | Page 1 of 10

Lesson 7: Brokerage Policy Manual and Safety Policies

This lesson identifies key considerations and elements to be included in a brokerage policy manual and describes general personal safety policies and tips for brokerage staff members.

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Lesson 7 | Page 2 of 10

A brokerage should create a policy manual that includes procedures and recommendations for personal safety as it is an important consideration for all brokerage staff. This lesson explains why a brokerage should have a policy and procedures manual and what key topics should be included in that manual. As a broker of record, you should communicate this information to brokers, salespersons, and administrative staff. Upon completion of this lesson, you will be able to: • Identify key considerations and key elements of a policy and procedures manual for a brokerage • Describe general personal safety policies and tips for the brokerage Throughout this lesson, you will participate in decision points to test your knowledge on the topics presented.

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Lesson 7 | Page 3 of 10

A brokerage policy manual sets out detailed procedures and practices concerning the brokerage and is a valuable reference tool for the brokerage staff. As a broker of record, you should understand why a policy manual is important and what topics to potentially include in a manual. You will also need to ensure that all brokerage staff comply with brokerage policies as detailed in the policy manual.

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Lesson 7 | Page 4 of 10

Brokerage Policy Manual All brokerage staff members should understand brokerage policies. As you learned earlier, it is important for all brokerage staff members to review and have access to the policy manual. A policy manual, whether a formal presentation, a loose collection of memos in a folder, or an electronic version, has tremendous value as a reference tool. No standard policy manual exists for brokerages because of differing business models, operating methods, and types of employment contracts used across brokerages.

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Lesson 7 | Page 5 of 10

Key Topics for Inclusion in a Brokerage Policy Manual A brokerage policy manual should include key topics that clearly outline procedures and practices related to the brokerage and staff members’ conduct. As a broker of record, you should ensure your policy manual aligns with terms of employment agreements and independent contractor agreements employed by the brokerage. A brokerage policy manual must support legislative requirements, such as REBBA, and include procedures concerning brokerage activities, such as multiple representation, advertising compliance, and disclosures. The policy manual should also include information on the following: •

The brokerage’s vision and goals

•

General office rules and regulations

•

Listing procedures

•

Complete details concerning remuneration (detailing all plans)

•

Deposits and trust accounts

•

Offers and accepted agreements © 2021 Real Estate Council of Ontario

•

Advertising compliance, with particular reference to REBBA requirements

•

Methods of providing and controlling advances for brokers and salespersons

•

Policies concerning representation, with particular reference to multiple representation

•

Disclosure requirements and full compliance with REBBA

•

Broker of record duties and responsibilities

•

Broker and salesperson duties and responsibilities

•

Broker of record’s role in enforcing standards and termination provisions

•

Acquisitions and dispositions on behalf of brokers and salespersons

•

Compliance with various legislation

•

Dispute resolution

•

Safety policies (which you will learn more about later in the lesson)

This is not an exhaustive list. As a leading practice, a broker of record should review and update the brokerage policy manual on an ongoing basis to ensure it is kept current. This practice is of particular importance when considering disputes, policy revisions, and other precedents that can occur quickly in real time and are sometimes not captured or fully articulated in earlier versions of the manual. These real time updates or revisions can be filed for interim reference purposes, communicated to the staff members, and followed by periodic updates to the manual. A broker of record may choose to create checklists to aid brokerage staff in adhering to brokerage policies.

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Lesson 7 | Page 6 of 10

Personal safety is a priority for brokers and salespersons because they are involved in various activities that extend beyond the normal nine-to-five workday, and their activities often take them to various offsite locations. As a broker of record, you should provide personal safety recommendations to brokers and salespersons and ensure this information is included in the brokerage policy manual.

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Lesson 7 | Page 7 of 10

Personal Safety Procedures for Brokers and Salespersons Personal safety should be a primary consideration at all times. Individuals should use reason and common sense to avoid harmful encounters. A broker of record should consider including the following personal safety recommendations for brokers and salespersons in the brokerage policy manual (this is not an exhaustive list): • When leaving the office for client meetings or property viewings, let someone know where you will be and how you can be contacted. If the circumstances merit, call the brokerage office upon arrival and arrange for callbacks at an agreed upon time interval. • Never meet a stranger at a property for a showing, as this increases the chance of being a victim of a crime. • When showing property, always make a careful note of exits. You may have to use them unexpectedly. • Carry a whistle or similar alarm device. • Carry a minimum of banking materials. While showing property, do not leave a handbag or other valuables unattended. A good place for such valuables is the trunk of your car; be sure to carry the car keys. © 2021 Real Estate Council of Ontario

• Always drive your own car, and ensure it is locked during showings. Keep the keys with you at all times. Carry a duplicate car door key, separate from your other car keys, to avoid locking yourself out of the car. • Be alert to the people around you. Be suspicious of unusual circumstances, odd suggestions, and illogical requests. • Get to know your prospects right at the start: names, addresses, and telephone numbers. If necessary, get verification by means of credentials, licences, and so on. • Develop a buddy system. Do not go to unfamiliar or remote locations without being accompanied by another broker or salesperson. A buddy system can work well both in prospecting for listings and showing properties. • Purchase and install safety applications on your smartphone.

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Lesson 7 | Page 8 of 10

A broker of record is preparing their brokerage policy manual and wants to include personal safety information for brokers and salespersons. What personal safety information should the broker of record include in the brokerage policy manual? There are four options. There are multiple correct answers. 1

Brokers and salespersons should develop a buddy system.

2

Brokers and salespersons should search on social media platforms for clues so they can identify the prospective sellers and buyers prior to scheduled meetings with them.

3

Brokers and salespersons should keep emergency numbers programmed in their cell phone.

4

Brokers and salespersons are required to purchase and install a safety application on their smartphones.

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Lesson 7 | Page 9 of 10

A broker of record is creating a policy manual for their new brokerage. What statements would be appropriate to include in the brokerage policy manual? There are four options. There are multiple correct answers.

1

Salaried employees are paid every two weeks; the brokerage must receive commissions by Tuesday in order to pay out on Thursday of each week.

2

Deposit via electronic funds transfer will trigger a service charge to the buyer.

3

Market share statistics for all brokers and salespersons in the brokerage will be updated and posted on a monthly basis.

4

The brokerage conducts property tours every Wednesday from 9 a.m. to 12 p.m. A broker or salesperson who has added their listing is required to attend.

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Lesson 7 | Page 10 of 10

Congratulations, you have completed the lesson! Completion of this lesson has enabled you to: • Identify key considerations and key elements of a policy and procedures manual for a brokerage • Describe general personal safety policies and tips for the brokerage There are two sections on this page with a summary of the key topics that were discussed in this lesson.

Brokerage policy manual

A policy manual, whether a formal presentation, a loose collection of memos in a folder, or an electronic version, has tremendous value as a reference tool because it sets out detailed procedures and practices concerning the brokerage. No standard policy manual exists for brokerages because of different business models, operating methods, and types of employment contracts used. All brokerage staff should have access to the policy manual. A brokerage policy manual should include key topics that clearly outline procedures and practices related to the brokerage and employee conduct. A broker of record should ensure the policy manual aligns with terms of the employee and independent contractor agreements.

Personal safety policy

A broker of record should provide personal safety recommendations to staff members and include this information in their brokerage policy manual. Brokerage staff members should feel safe at work and not be exposed to unreasonable risk. The safety policy should ensure the safety of staff members at the workplace and outside the workplace.

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Lesson 8 | Page 1 of 12

Lesson 8: Summary Practice Activities

This lesson provides a series of activities that will test your knowledge on the entire module.

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Lesson 8 | Page 2 of 12

This lesson provides summary practice activities. Throughout this lesson, you will participate in decision points to test your knowledge on the topics presented.

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Lesson 8 | Page 3 of 12

A salesperson has informed their broker of record at ABC Real Estate Inc. that they are leaving and transferring to XYZ Realty Ltd. They have provided written notice of their termination with the brokerage. What is the broker of record at ABC Real Estate Inc. required to do with the notice of termination? There are four options. There are multiple correct answers. 1

Provide RECO with a copy of the salesperson’s written notice of termination.

2

Complete an online termination application form, and submit this form to RECO.

3

Provide RECO with the certificate of registration within 15 days of the effective termination date.

4

Submit the transfer fee on behalf of the salesperson leaving ABC Real Estate Inc. to RECO.

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Lesson 8 | Page 4 of 12

Joanna Reynolds, a salesperson and team leader, has asked the broker of record to review a proof and provide approval for an advertisement to be used on a billboard, which announces the team’s awards and includes a photograph of the entire team. The team is composed of eight salespersons, including the team lead, as well as three unregistered assistants. What requirements must the advertisement include in order to comply with REBBA? There are four options. There are multiple correct answers. 1

Any description that implies the team is a separate business entity

2

Identification of each team member

3

Contact details of each team member

4

Registration category of each team member as registered with RECO

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Lesson 8 | Page 5 of 12

The broker of record at XYZ Realty Ltd. wants to terminate the daytime receptionist. The job description was very clear about the tasks that needed to be completed each day. But after numerous performance reviews and requests to improve, the tasks were still not being done. The broker of record decides to terminate without cause. How will the broker of record protect the brokerage from any wrongful dismissal action from this employee? There are four options. There are multiple correct answers. 1

Provide the employee with reasonable notice or pay in lieu of such notice.

2

Provide the employee with the names of other employers.

3

Ensure the brokerage has written proof of previous performance reviews and requests to improve.

4

Comply with the terms for termination as stated in the brokerage policy manual.

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Lesson 8 | Page 6 of 12

A broker of record is reviewing the office policy manual to ensure compliance with the Occupational Health and Safety Act and the Ontario Human Rights Code. Which of the following concerns relate to the Occupational Health and Safety Act? There are four options. There are multiple correct answers. 1

Physical force against an employee in the brokerage that could cause physical injury to the employee

2

Vexatious comment or conduct against an employee in a workplace that is known or ought reasonably to be known to be unwelcome

3

Questions on an employment application form about marital status

4

Question on an employment application form about Canadian citizenship

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Lesson 8 | Page 7 of 12

A broker of record wants to be proactive when serving members of the public with any type of disability and is conscious of updating the office policy manual to include current legislation, such as AODA. Which of the following should the broker of record include in the office policy manual to comply with AODA? There are four options. There are multiple correct answers.

1

A statement to notify an individual with a disability in advance of their scheduled appointment when facilities are temporarily disrupted

2

A statement permitting an individual with a disability to be accompanied by a support individual in premises open to the public

3

A statement permitting an individual with a disability to be accompanied by any type of service animal in all circumstances

4

A statement establishing a process for people to give feedback on how the brokerage provides services to people with disabilities

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Lesson 8 | Page 8 of 12

A broker of record is training a new salesperson and is discussing the personal safety section in the office policy manual. What safety tips would the broker of record discuss with the new salesperson? There are four options. There are multiple correct answers. 1

Never meet a stranger at a property for a showing alone; it may put personal safety at risk.

2

Do not leave handbags or other valuables unattended while showing or viewing a property.

3

Turn cellphones off when showing or viewing a property to give undivided attention to the seller or buyer.

4

Be suspicious of unusual circumstances and illogical requests.

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Lesson 8 | Page 9 of 12

A broker of record is preparing the policy manual for their new brokerage and wants to ensure it includes provisions and obligations that address the Employment Standards Act. What key provisions and obligations of the Employment Standards Act should the broker of record include in the policy manual? WRITE YOUR ANSWER BELOW. The Employment Standards Act sets out the rights and obligations of all employees in Ontario. The broker of record should include parts of the Employment Standards Act that apply to both brokers and salespersons (who are employees of a brokerage) as well as to administrative staff, namely: • Continuity of employment • Payment of wages • Records • Equal pay for equal work • Benefit plans • Leaves of absence • Termination and severance of employment They should also include parts of the Employment Standards Act that apply only to administrative staff, namely: • Hours of work and eating periods • Overtime pay • Minimum wage • Public holidays • Vacation with pay

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Lesson 8 | Page 10 of 12

A broker of record is preparing the policy manual for their new brokerage and wants to ensure it includes provisions and obligations that address the Occupational Health and Safety Act. What key provisions and obligations of the Occupational Health and Safety Act should the broker of record include in the policy manual? WRITE YOUR ANSWER BELOW. The Occupational Health and Safety Act sets out the rights and duties of all parties in the workplace, procedures for addressing workplace hazards, and procedures for enforcement. The broker of record should include policies that address: • Workplace hazards • Procedures for enforcement • Workplace violence and harassment The brokerage should develop and maintain relevant programs, provide information and instructional materials to employees, and review associated policies. The number of workers employed by the brokerage will determine if the brokerage needs to create a joint health and safety committee or have a health and safety representative.

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Lesson 8 | Page 11 of 12

ABC Realty Inc. has recently registered as a brokerage, and the broker of record is creating a policy manual. Which of the following can be included in the brokerage policy manual of ABC Realty Inc.? There are four options. There are multiple correct answers. 1

Warranty provisions for office computers

2

Overall business philosophy and vision

3

Advertising compliance, with particular reference to REBBA requirements

4

Methods of providing and controlling commission advances for brokers and salespersons

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Lesson 8 | Page 12 of 12

Congratulations, you have completed the lesson!

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Module Summary | Page 1 of 3

Module Summary

This lesson contains a summary of the entire module.

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Module Summary | Page 2 of 3

Congratulations, you have completed this module! This lesson will present a summary of the lessons in this module.

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Module Summary | Page 3 of 3

There are seven sections on this page with a summary of the key topics that were discussed in this module.

REBBA Requirements: Registrations, Renewals, Reinstatements, Terminations, and Transfers

A broker of record oversees the registration, renewal, reinstatement, and transfer applications of brokers and salespersons. The broker of record is also responsible for verifying that the information brokers and salespersons disclose on their applications is correct to the best of their knowledge. When reviewing applications, a broker of record must remember the following: • Registrations – To trade in real estate in Ontario, an individual must complete the Pre-Registration phase of the Real Estate Salesperson Program, obtain employment with a brokerage, and apply for registration with RECO through the brokerage. • Renewals – A broker or salesperson must renew their registration on or before their two-year anniversary date. They must complete educational requirements that apply to them. They must renew their registration online through MyWeb and pay the renewal fee. • Reinstatements – A broker or salesperson can only be reinstated if the time period is not more than 24 months since the day they cancelled their registration, they have completed all required continuing education courses, and they can provide proof of course completion. • Terminations – A brokerage terminating a broker’s or salesperson’s employment must provide the individual with written notice of termination, including the effective termination date. • Transfers – A broker or salesperson has 60 days from the effective date of termination to transfer to a new brokerage. If the transfer is not done within that time period, the broker or salesperson must submit an application for reinstatement of registration, pay the applicable reinstatement application fee(s), and meet continuing education requirements.

© 2021 Real Estate Council of Ontario

A broker or salesperson must provide RECO with any information change that was previously reported on their registration application. Notification of changes must be in writing and submitted to RECO within five days of the change. Some issues that may cause a delay in a registration include the following: • Not answering questions completely or correctly • Failure to provide the required additional information related to: o Bankruptcies or insolvency proceedings o Unpaid judgements and/or unpaid debts outstanding, including CRA Requirements to Pay and garnishments o Any charges pending or conviction of any offence under any law Some issues that may result in the refusal of a registration include the following: • Other employment and business interests • Bankruptcy, insolvency, and outstanding judgements • Licence or registration suspensions or terminations • Criminal charges Completion of this lesson has enabled you to: • Identify the compliance requirements under REBBA related to registration, renewals, reinstatements, terminations, and transfers • Identify issues that could result in refusal of or delay in processing a registrant’s application by RECO

REBBA Requirements: Teams in a Brokerage

A broker of record determines whether teams can be created in the brokerage and under what terms. Brokerage teams must comply with the following regulatory requirements: • Advertising a team – Brokers and/or salespersons working together can be described using the term “team,” “group,” “crew,” or any other term that does not imply that the team is a separate business entity from the brokerage.

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• Agreement between team members – A team leader may enter into one or more agreements with brokers and/or salespersons, assign specific responsibilities to these individuals, and establish certain administrative structures. The broker of record should ensure the brokerage is party to any such agreement, and all such matters are subject to broker of record approval. • Off-premise location – Teams may conduct certain activities from locations beyond the registered brokerage. • Registered and unregistered assistants – A team may consist of registered and unregistered assistants. A registered assistant may only be compensated by the brokerage with whom they are employed for any trading activity. For any activity that does not fall under the definition of trading, an assistant (whether registered or unregistered) may be paid by the team leader (broker and/or salesperson) in compliance with all laws and regulations regarding employer-employee relationships. Completion of this lesson has enabled you to: • Identify the compliance requirements under REBBA related to teams working within a brokerage

Employment Standards Act

The Employment Standards Act regulates employment standards. A broker of record must have a good understanding of all parts of this legislation, including knowing which parts apply to brokers, salespersons, and administrative staff who are employed by the brokerage, and which parts apply only to the administrative staff and not the brokers and salespersons. The parts that apply to brokers, salespersons, and administrative staff employed by the brokerage are: • • • • • •

Continuity of employment Payment of wages Employee records Equal pay for equal work Benefit plans Leaves of absence © 2021 Real Estate Council of Ontario

• Termination and severance of employment The parts of the legislation that are not applicable to brokers and salespersons employed by the brokerage but do apply to administrative staff employed by the brokerage: • • • • •

Hours of work and eating periods Overtime pay Minimum wage Public holidays Vacation with pay

The Employment Standards Act sets out certain requirements for termination. From a legal perspective, a brokerage should retain proper documentation if a performance problem leads to an employee’s termination. To manage a performance problem, a brokerage should: • Ensure that proper documentation is retained concerning transgressions, misconduct, or other circumstances in violation of brokerage policies and/or written employment agreements. • Address misconduct or performance problems immediately at the time of occurrence. • Provide written warnings identifying the performance problem at the time of occurrence. • Ensure (if applicable) the brokerage’s employment agreement establishes the terms of termination. • Ensure a proper paper trail is maintained (regardless of the outcome), recording corrective actions so that both the employee and employer clearly understand the improvement or change required. Once a decision regarding termination is made, a brokerage must abide by the following legal requirements: • Inform the employee of the effective termination date. • Prepare all paperwork, including record of employment and termination and severance payments.

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Completion of this lesson has enabled you to: • Describe key provisions and obligations of the Employment Standards Act and how they influence operations within a brokerage • Identify legal considerations regarding terminations under the Employment Standards Act

Occupational Health and Safety Act

The Occupational Health and Safety Act sets out the rights and duties of all parties in the workplace, procedures for addressing workplace hazards, and procedures for enforcement, as needed. This legislation sets out provisions for creating a joint health and safety committee based on the number of employees. The Occupational Health and Safety Act requires the following: • Brokerages with five or less employees (including independent contractors) are not required to have a joint health and safety committee or a health and safety representative. • Brokerages with 6 to 19 employees (including independent contractors) must choose one employee as their health and safety representative. • Brokerages with 20 to 49 employees (including independent contractors) must establish a joint health and safety committee that consists of at least two members, with equal employer and employee representation. • Brokerages with 50 or more employees (including independent contractors) must have at least four members on the committee, with equal employer and employee representation. This legislation also includes provisions that address workplace violence and harassment. To comply with the Occupational Health and Safety Act workplace violence and harassment provisions: • A brokerage is required to prepare and review policies on workplace violence and workplace harassment at least annually. These policies are required regardless of the size of the workplace or number of employees. • A brokerage with six or more employees (including independent contractors) is required to:

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o Prepare written policies on workplace violence and workplace harassment o Post the written policies in a conspicuous place Completion of this lesson has enabled you to: • Describe key provisions and obligations of the Occupational Health and Safety Act and how they influence operations within a brokerage

Ontario Human Rights Code

The Ontario Human Rights Code provides protection to people against discrimination or harassment based on a protected ground in a social area. These five social areas under the Ontario Human Rights Code are as follows: • Accommodation (housing), which is the place where a person lives or wants to live and whether they rent or own the premises • Contracts, which include both written and oral agreements • Employment, including job advertisements, application forms, interviews, work assignments, work environment, training, promotions, discipline, terminations, volunteer duties, and so on • Goods, services, and facilities, including schools, hospitals, shops, restaurants, and sports and recreation organizations • Membership in unions and trade or professional associations The Ontario Human Rights Code affects brokerage operations and policies in the following four key areas: • Employment and constructive discrimination: In the social area of employment, employers often engage in adverse impact discrimination, typically when attempting to treat all employees fairly and equally through the implementation of standard policy or procedures. Although the policy or practice may appear to be fair and equal at face value, it may result in the adverse impact of a particular group of people based on a prohibited ground under the Code. This is called adverse effect or constructive discrimination. • Employment advertising and/or applications: The Ontario Human Rights Code requires employers to comply with the Code at all stages of the employment life cycle, including during recruitment. As a result, brokerages should take precautions

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to ensure that its advertising and recruitment practices are not directly or indirectly discriminatory against a person based on a prohibited ground of the Code. • Insurance plans: The Ontario Human Rights Code permits group insurance plans (including accident and sickness, automobile, life, and similar plans) to exclude or otherwise provide preferential treatment based on age, sex, marital status, family status, or disability, provided that such grounds are reasonable and bona fide. • Exemptions and defences: The Ontario Human Rights Code generally bars organizations from hiring in a discriminatory way. However, there are some exemptions. The most common ones are: o An organization that serves a group protected by the Code (such as religious, educational, or social institutions serving ethnic groups, people with disabilities, religious groups, and so on) may choose to employ only members of that group. o An employer may discriminate based on age, sex, record of offences, or marital status if these are genuine requirements of the job. Completion of this lesson has enabled you to: • Describe key provisions and obligations of the Ontario Human Rights Code and how they influence operations within a brokerage

Accessibility for Ontarians with Disabilities Act (AODA)

The AODA is a provincial legislation mandating that all levels of government, businesses, non-profit organizations, and public sector organizations must follow standards to become more accessible to people with disabilities. The Customer Service Standard, a regulation under the AODA, establishes standards for customer service. All brokerages must establish policies, practices, and procedures on providing services to people with disabilities by complying with all requirements under the Customer Service Standard. Some examples of these requirements include the following: • Set a policy on allowing people to use their own personal assistive devices to access services and information about any other measures the organization offers (assistive devices, services, or methods) to enable them to access the provider’s goods and use the provider’s services.

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• Communicate with an individual who has a disability in a manner that takes into account their disability. • Train staff, volunteers, contractors, and any other people who interact with the public. • Allow people with disabilities to be accompanied by their guide dog or service animal in areas of the premises the provider owns or operates that are open to the public, unless the animal is excluded by another law. If a service animal is excluded by another law, the provider must use other measures to provide services to the individual with a disability. • Permit people with disabilities who use a support individual to bring that individual with them while accessing services in premises open to the public and third parties. Completion of this lesson has enabled you to: • Describe key provisions and obligations of the Accessibility for Ontarians with Disabilities Act and how they influence operations within a brokerage

Brokerage Policy Manual and Safety Policies

A policy manual, whether a formal presentation, a loose collection of memos in a folder, or an electronic version, has tremendous value as a reference tool because it sets out detailed procedures and practices concerning the brokerage. A brokerage policy manual should include key topics that clearly outline procedures and practices related to the brokerage and employee conduct. A broker of record should ensure the policy manual aligns with terms of the employee and independent contractor agreements. Personal safety should be a primary consideration at all times, and brokers and salespersons should use reason and common sense to avoid harmful encounters. While not an exhaustive list, the following are examples of safety tips that a broker or salesperson should consider, and a broker of record should include in the brokerage policy manual: • When leaving the office for client meetings or property viewings, let someone know where you will be and how you can be contacted. Call the brokerage office upon arrival, and arrange for callbacks at an agreed upon time interval.

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• Never meet a stranger at a property for a showing. • When showing property, always make careful note of exits. • Carry a whistle or similar alarm device. • Do not leave handbags or other valuables unattended. • Drive your own car, and ensure it is locked during showings. • Be suspicious of unusual circumstances, odd suggestions, and illogical requests. • Develop a buddy system. Completion of this lesson has enabled you to: • Identify key considerations and key elements of a policy and procedures manual for a brokerage • Describe general personal safety policies and tips for the brokerage

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V6

Module 4: Leading Your Brokerage Disclaimer: This is a reference document which contains pages from the Accessible eLearning module. You should complete the eLearning module to proceed to the next step. Please note that the accessible module on the LMS only contains the interactive pages and you need to go through the content of this document thoroughly to attempt the interactive activities in the module. Please use Adobe Acrobat Reader (Recommended version 9 or above) to navigate through this PDF. Real Estate Broker Program © 2021 Real Estate Council of Ontario. All Rights Reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or in any means – by electronic, mechanical, photocopying, recording or otherwise without prior written permission, except for the personal use of the Real Estate Broker Program learner.

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Module 4: Leading Your Brokerage As a broker of record, your expertise, management abilities, and leadership skills will be vital not only to your brokerage’s success but also to ensuring professionalism and consumer protection. In this module, you will learn about the key aspects of management and leadership, as well as the role of a leader in a brokerage. The module provides opportunities to identify leading practices to retain staff. You will further review the importance of a performance management system, as well as the processes used to conduct performance reviews and ongoing training for the brokerage’s staff. Please note that in this module, the term “staff” includes brokers, salespersons (both independent contractors and employees), and administrative staff in a brokerage. Performing well in a management role requires continuous learning. It is recommended that you continue to develop your management and leadership skills throughout your career. While this module outlines key aspects to consider when leading your brokerage, your pursuits should be focused on enhancing your strengths, identifying your weaknesses, and working on improving these areas. To check your understanding of this module, you must complete all the activities in the online module. While navigating through the online module, click the Legislation button to view laws and regulations related to this module. The contents of the thumbnails Accessible PDF.

and References from the module are added to support your learning throughout this

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Menu : Leading Your Brokerage Number of Lessons

Lesson Number

6 Lessons

Lesson Name

Lesson 1

Considerations for Transitioning to a Management Role

Lesson 2

Role of Leadership in a Brokerage

Lesson 3

Retention Strategies Within a Brokerage

Lesson 4

Performance Management in a Brokerage

Lesson 5

Summary Practice Activities Module Summary

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Lesson 1 | Page 1 of 9

Lesson 1: Considerations for Transitioning to a Management Role This lesson describes the differences between management and leadership in the context of a brokerage. It explains common management realities and identifies common management mistakes when transitioning to a management role. It further explains the benefits and challenges of participating in trading activities when in a management role in a brokerage.

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Lesson 1 | Page 2 of 9

The words “manage” and “lead” are often used interchangeably when describing the responsibilities of a broker of record in a brokerage. However, management and leadership are separate but complementary roles. As a broker of record, you will be responsible for the day-to-day management duties of overseeing staff. You will also be expected to demonstrate leadership in advancing overall brokerage goals. In this lesson, you will learn about the key aspects of management and leadership in a brokerage. You will further review management realities in a brokerage and common management mistakes that you should avoid when transitioning to a management role. Upon completion of this lesson, you will be able to: • Identify key considerations for a management role in a brokerage Throughout this lesson, you will participate in decision points to test your knowledge on the topics presented.

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Lesson 1 | Page 3 of 9

Your responsibilities, as a broker of record, involve both management and leadership duties. The scope of these responsibilities depends on the brokerage structure, which includes the size of the brokerage, the delegation of duties, and the number of branches. In a previous module, you learned that you will be directly involved with your brokerage staff, starting with their recruitment and continuing into day-to-day brokerage operations. The relationship between the broker of record and the staff has a direct impact on staff morale and the success of the brokerage. As you transition from a broker or a salesperson to a management role, you should be prepared to look at the operation of the brokerage from a different perspective and prepare yourself for this new role.

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Lesson 1 | Page 4 of 9

Management versus Leadership The lines between management and leadership are never clearly drawn; the roles are inextricably interwoven, and brokers of record seek a balance between the two. However, certain general qualities and functions can be attributed to each role. In a management role, brokers of record will most commonly: • Plan to achieve pre-determined goals and objectives through the efforts and activities of others • Plan, organize, and oversee administrative systems and staff in the pursuit of brokerage goals and objectives • Direct ongoing real estate brokerage processes, strategies, procedures, practices, and reporting systems • Recruit and retain capable individuals • Perform administrative functions

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In earlier courses, you have learned about several management functions that a broker of record should perform in a brokerage, such as defining brokerage policies and procedures, setting up accounting and administrative systems, recruiting staff, and so on. In a leadership role, brokers of record will most commonly: • Drive the brokerage’s vision and mission • Establish and promote ethical values and brokerage culture • Focus on the development of strategic directions that complement the vision and the mission statement of the brokerage • Create an action plan that propels the brokerage in a chosen direction You will learn more about the role and qualities of a leader later in this module. You will learn about brokerage vision, mission statement, strategic directions, and action plans in a later course.

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Lesson 1 | Page 5 of 9

Management Realities To run a successful brokerage, brokers of record are required to oversee and coordinate staff while also inspiring and motivating them to perform to the best of their ability. The transition to a management role is rewarding but not easy. During this transition, a manager or broker of record may discover a more restrictive environment, potentially lower initial income levels, and loss of familiar ties to brokers and salespersons. While a broker of record may be well aware of the distinct nature of real estate sales, they should also consider unique factors related to management realities typical in a brokerage. The following five sections contain information on factors that should be considered to develop an understanding of management realities in a brokerage.

Non-traditional work structure Brokers and salespersons generally perceive remuneration shared with the brokerage to be the cost of doing business. They typically do not view the brokerage with a corporate mindset (that is, as an employee being paid by an employer). Rather, there is often debate around who is being paid by whom. For this reason, traditional management controls and techniques regarding performance and remuneration may prove ineffective when addressing brokers and salespersons, particularly independent contractors. A broker of record should clearly demonstrate how the value propositions offered by the brokerage assist brokers and salespersons in meeting their individual and brokerage goals. You will learn more about value proposition later in this module.

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Unique relationships In a typical brokerage, brokers and salespersons are competing with one another. A broker of record’s challenge is to create a sense of unity, where an individual broker or salesperson can work effectively for individual gain while also advancing the brokerage’s goals. The ultimate objective is to understand that the total gain is greater than individual contributions. Successful brokers of record implement practices to retain a sense of overall teamwork that complements individual initiatives and successes.

Turnover Turnover refers to the rate at which brokers and salespersons leave a brokerage and are replaced by others. Brokerages are consistently trying to recruit brokers and salespersons, as each broker and salesperson is an asset for the brokerage. Changing brokerages is not uncommon for brokers and salespersons, as they may not have allegiance to a specific brokerage (as compared to other business enterprises). Establishment of an ongoing recruiting program to complement brokerage goals and the retention of capable, skilled staff is a top priority of a broker of record.

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External influences Job performance in commission sales is particularly susceptible to external factors (for example, the ups and downs of the economy). Therefore, a significant challenge for a broker of record is to maintain morale in the face of uncertainty. It is during these periods that brokers and salespersons often leave for another brokerage that appears to offer them more. A broker of record should recognize this and provide training programs and other development opportunities, along with direction, to support brokers and salespersons in a slow market. A broker of record should always be attentive to the actions of their competitors. They should identify ways to improve their value proposition to attract and retain competent brokers and salespersons.

Instability Real estate sales generally lack the stability and predictability of other careers. Family and/or personal problems, financial concerns, ill health, or simple discouragement can significantly impact a broker’s or salesperson’s performance. Lack of the workday structure normally found in larger corporations can lead to personal uncertainty. This is often compounded with the emotional highs and lows of a selling career. Successful brokers of record realize the necessity of creating a stable and positive environment to offset

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negative influences. The ability to provide proper guidance for staff to perform effectively through good and bad times is vital in establishing competent leadership.

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Lesson 1 | Page 6 of 9

Common Management Mistakes A broker of record may sometimes enter the management role with certain preconceived notions that can work against them. In addition to understanding management realities, it is important to gain some knowledge of common management mistakes to be avoided when transitioning to a management role. The following four sections contain examples of common management mistakes.

Goal setting Setting goals can help a brokerage guide staff in prioritizing tasks, thereby helping the brokerage achieve desirable outcomes. Failing to develop and pursue written, realistic longterm goals and short-term objectives when establishing the brokerage can cause a broker of record to lose focus. For example, suppose a broker of record aspires for the brokerage to become the topselling brokerage in the neighbourhood. Without actively creating a plan, they may get caught up in dayto-day challenges and lose sight of this goal. Sometimes, a broker of record may become unduly swayed by the immediate needs of certain staff members to the detriment of long-term goals for the brokerage. It is important for a broker of record to focus on long-term goals while balancing short-term challenges.

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Defining relationships Sometimes a broker of record may continue to have the mindset of a broker or salesperson to please people, rather than actively taking on the role of a broker of record and managing their staff. They should recognize the difference in their role and take action to command a sense of respect and commitment from the staff members to be successful as a broker of record. If the broker of record is not the owner of the brokerage, operational challenges can be created when the role and responsibilities of a broker of record vis-à-vis the owner are not established, documented, and clearly understood by all parties. With unclear lines of authority, brokers and salespersons may fail to seek appropriate guidance, and the brokerage may be prone to additional risks. As you learned in a previous module, in these circumstances, it is important to take immediate steps to establish clear lines of authority, introduce written brokerage policies, and create well-defined job descriptions.

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Managing staff performance A broker of record should assess individual performance and establish goals with each individual, rather than trying to manage staff in groups. For example, mandatory meetings and training, management directives, and guidelines may not be applicable to all brokers and salespersons working in a brokerage. A broker of record should provide individual coaching and counselling based on individual staff members’ strengths, weaknesses, and needs. They should establish and communicate minimum performance standards for the staff so that all staff members understand brokerage expectations. It is also important for a broker of record to encourage brokers and salespersons to solve problems on their own rather than trying to find solutions for them. You will learn more about performance management, coaching, and mentoring later in this module.

Establishing a brokerage culture Sometimes, brokers of record fail to create a positive, progressive environment that attracts and helps retain talented individuals to the brokerage. They may continue to think and act like a broker or salesperson rather than as a broker of record. For example, friendships with co-workers may cause the broker of record to resort to biased decision-making and/or unprofessional ways of communicating or dealing with others.

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This further promotes an unhealthy culture and also alienates other staff members. Failing to establish a positive brokerage culture impacts the morale of the staff and is detrimental to the success of the brokerage. You will learn more about how to establish a strong positive culture later in this module.

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Lesson 1 | Page 7 of 9

Management Role and the Decision to Participate in Trading Activities: Benefits and Challenges The decision of whether or not to list and sell a property when occupying a management position in a brokerage is an issue faced by many brokers of record. A broker of record may choose to oversee the brokerage while maintaining a high profile in the trading area, particularly in cases where a significant clientele has been created. In some instances, they may also have an established team, which is now vital to cash flow in the new venture, prior to opening the brokerage. If the decision is made to actively participate in trading activities, brokers of record can sometimes lessen internal competition. They may decide to only list and/or share any listings obtained with a broker or salesperson or limit selling activities to a defined market (for example, large commercial properties). The decision to participate in trading activities will depend on individual circumstances and should be made after weighing the pros and cons of the specific situation. The following two sections contain information on benefits and challenges of participating in trading activities as a broker of record in a management position.

Benefits of participating in trading activities in a management role If a broker of record chooses to participate in trading activities, they may: • Gain first-hand knowledge of market conditions and be able to provide better assistance to brokers and salespersons • Provide leadership by example for brokers and salespersons • Share experiences and common goals with brokers and salespersons

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• Bring additional business and capture additional market share, which further translates into additional income for the brokerage Provide an opportunity to network with other real estate professionals beyond the brokerage and have greater visibility in the trading area

Challenges of participating in trading activities in a management role If the broker of record chooses to participate in trading activities, they may: • Have a negative effect on brokers and salespersons, as they may be viewed as competition within the brokerage and a drain to the brokers’ and salespersons’ potential commission income • Have less time to assist the brokerage staff, given their commitment to pursuing their personal sales career • Spend less time in primary functions, such as recruiting new brokers and salespersons and day-to-day management and oversight activities in the brokerage Elicit a lack of trust with existing brokers and salespersons due to perceived competition and fair distribution of leads or potential conflict

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Lesson 1 | Page 8 of 9

A broker with 10 years of experience is planning to open a new brokerage, where they will be both a selling broker and the broker of record. They have the commitment of five brokers and salespersons, who plan to join as soon as the brokerage is registered. The broker plans to employ 20 more brokers and salespersons over the next two years. What should the broker do to avoid management mistakes as they transition to a management role? There are four options. There are multiple correct answers.

1

Establish clear lines of authority, introduce written brokerage policies, and create detailed job descriptions.

2

Acquire an office space to accommodate their immediate staff of five people.

3

Identify a niche market to trade in and refer other markets to their brokers and salespersons.

4

Provide new opportunities to the most experienced brokers and salespersons.

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Lesson 1 | Page 9 of 9

Congratulations, you have completed the lesson! Completion of this lesson has enabled you to: • Identify key considerations for a management role in a brokerage Here is a summary of the key topics that were discussed in this lesson. As a broker of record, your responsibilities will involve a balance between assuming the role of a leader and performing management tasks. Furthermore, transitioning to the role of broker of record can come with its own set of challenges. Identifying and adapting to management realities, such as a non-traditional work structure, unique relationships, turnover, external influences, and instability, will help you in making the transition to a management role. You should also recognize and avoid common management mistakes related to goal setting, defining responsibilities, managing staff performance, and establishing a brokerage culture.

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It is also important to consider the benefits and challenges of trading in real estate while in a management role, as this will have an impact on the brokerage in areas such as financial contribution, time available for other primary functions, and brokerage management and operation.

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Lesson 2 | Page 1 of 9

Lesson 2: Role of Leadership in a Brokerage

This lesson describes the role and the qualities of a good leader. It outlines some key considerations for building a strong culture in a brokerage.

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Lesson 2 | Page 2 of 9

As a leader, you will be responsible for establishing a vision for the brokerage, sharing this vision with staff, and ensuring that they work towards it. Your ability to influence and motivate staff to accomplish their personal goals, as well as the brokerage’s goals, will shape the success of your brokerage. It is important to implement proper leadership attributes early on when establishing or acquiring a brokerage. As a leader, it is also important that you lead the staff by example through ensuring that your words and conduct are consistent with the standards you define for the brokerage. In this lesson, you will learn about the role of a leader in the day-to-day functioning of a brokerage and some of the key considerations for building a strong culture. You will also learn how a leader sets standards for their brokerage and reinforces these standards at every opportunity. Upon completion of this lesson, you will be able to: • Describe the role of leadership in a brokerage Throughout this lesson, you will participate in decision points to test your knowledge on the topics presented. © 2021 Real Estate Council of Ontario

Lesson 2 | Page 3 of 9

Effective leadership is integral to the overall success of a brokerage. The role of a leader is to define and implement the vision while establishing a strong culture. They are responsible for providing their staff with opportunities to learn and grow. Effective leadership contributes to long-term success, high morale, and positive attitudes, which promote harmony and facilitate productivity in a brokerage.

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Lesson 2 | Page 4 of 9

Role of a Leader Leaders bring commitment, emotion, zest, purpose, and philosophy to a brokerage like any other organization. Proven leaders have a clear vision of where they want to go and how to get there. However, simply having a vision is not enough. The vision should be communicated and acted upon. Staff in a brokerage should genuinely feel that the individual in a leadership role will propel both the brokerage and their own career forward. This is where a leader’s integrity comes into play, as well as their honesty, respect for others, loyalty, decisiveness, and commitment. A leader sets the standards for the brokerage and reinforces these standards at every opportunity. These standards should ensure regulatory requirements are met and that they support the brokerage’s vision and goals. High standards are not just framing a copy of the Code of Ethics and placing it in the reception area. These standards should be consistently communicated and reinforced within the office environment in the form of policies and procedures to be followed in the brokerage. The leader’s continuous search for excellence in everything that is done within the brokerage sets the brokerage apart from others.

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Lesson 2 | Page 5 of 9

Qualities of a Good Leader Leadership is often associated with natural charisma. Few have it, but many powerful leadership skills can be learned, practiced, and finely tuned to meet the ever-changing demands in the marketplace. Leadership qualities are difficult to quantify but generally centre around: • Giving direction to the brokerage • Being a skilled communicator • Demonstrating determination while offering flexibility • Exemplifying personal drive with a clear vision of the future • Having a positive outlook combined with an enthusiastic attitude The following five sections contain information on qualities of a leader and how they can be implemented in a brokerage.

Giving direction to the brokerage Based on the brokerage’s vision, a leader maps the direction of how to get from the present to the desired future. They ensure that they set standards and policies that align with the desired direction and goals. Good leaders answer the following questions: • What is my brokerage’s vision? • What are my brokerage’s goals? • What is the growth plan? • What and how many resources are needed to begin with? • What is needed to maintain momentum and eventually increase this momentum?

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A good leader should be a role model to the staff by personifying high standards of behaviour based on the brokerage’s vision and values. Effective leadership includes helping staff understand the brokerage’s vision, applying standards to meet the goals, and providing the right tools to staff to align with the brokerage’s vision and goals.

Being a skilled communicator A leader should have thorough knowledge of the brokerage’s goals, objectives, procedures, competitive advantages, and overall philosophies, and should clearly articulate this information to brokerage staff. Communication is key to successfully leading a brokerage. Words have the power to motivate people and drive them to achieve better results, if used effectively. A broker of record should regularly and effectively communicate brokerage standards and reinforce them within the brokerage environment. They should clearly communicate their vision and the action plan to execute the vision with staff. Being a good communicator includes being a good listener and truly considering input received from staff. Good communication skills will help the leader support the staff and create a positive environment, regardless of circumstances. These skills will encourage staff to reach out to the leader for guidance.

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Demonstrating determination while offering flexibility Right from the start, a leader should understand their role as the driver to achieve the brokerage’s goals. However, they should be flexible enough to recognize when goals need to be modified or adjusted for circumstances and help others to adapt and achieve them. Leaders learn from their successes and failures. They keep current by reading books; attending seminars, webinars, and conferences; enrolling in educational programs; and learning from life itself. Effective leaders pursue personal, brokerage, and community activities that instill pride and confirm for the brokerage’s staff that the leader is a dedicated professional.

Exemplifying personal drive with a clear vision of the future The vision of a brokerage is its future destination that the leader should define and prepare to accomplish. This helps them drive the performance and achievement of goals based on the values of the brokerage. A good leader is future oriented and explores opportunities to expand the brokerage’s success. The growth and progress of a brokerage requires enhancing the strengths of each broker, salesperson, and administrative staff employed at the brokerage. It is therefore important for leaders to identify training programs that will further enhance the talent of the brokerage’s staff.

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Effective leaders demonstrate their competency and skills to lead the brokerage to achieve its vision. They inspire loyalty and goodwill in others by acting with integrity and trust. They also demonstrate a willingness to act as an available and reliable support resource for both experienced and new brokers and salespersons.

Having a positive outlook combined with an enthusiastic attitude A leader should work on building skills that appeal to others and create a positive and upbeat work environment. They should inspire others to follow their lead. A good leader connects with the staff emotionally, which encourages staff to trust their input. Attitude is contagious, and a positive outlook is a motivating force in higher productivity and achievement of goals. Over time, it influences and becomes part of the brokerage’s culture.

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Lesson 2 | Page 6 of 9

Building a Strong Culture Effective leadership helps establish a strong corporate culture. Consultants often talk of corporate culture, but the concept applies whether a sole proprietorship, partnership, or corporation brokerage is involved. Culture is the sum of all goals, practices, procedures, and qualities within a brokerage. It is fueled in large part by the distinct attitudes, personal strengths, philosophies, and actions of the leader. Cultures grow and mature through consistency. The leader should develop a distinctive environment that all brokers and salespersons understand clearly. The culture developed is a positive force in the brokerage and reinforces the leader’s vision and the mission.

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A strong culture is: • Identified by a host of unwritten, informal, yet widely known rules that govern day-to-day activities • Exhibited through consistency in slogans and media material, along with a clear perception of the brokerage by both internal (brokers, salespersons, and administrative staff) and external (consumers and other brokerages) groups • Driven by the vision, which is demonstrated through consistent actions of the brokerage staff • Typically embedded in the mission statement, embellished in goals and objectives, and demonstrated in decisions that reflect core values • Reinforced and carried by word of mouth and/or personal referral (for example, the best place to work, the friendliest staff, the most efficient brokerage, or the most experienced with design build projects) • Reiterated by the brokers and salespersons, repeated by the media, and largely accepted by the public • Evident everywhere from social media to newspaper articles, promotional pieces, the type of people hired, the reception area decor, and the brokerage policies • Represented through a physical environment that reaffirms leadership and opportunities (for example, professional image, modern equipment, cleanliness, and comfortable work areas) Conversely, a weak culture is exemplified by fragmentation and inconsistency.

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Lesson 2 | Page 7 of 9

Example of a Distinctive Culture for Illustrative Purposes A distinctive culture can be reinforced through the brokerage policy, procedures, training programs, and so on. The decision to document a brokerage’s culture to reinforce consistency is an individual one. For example, XYZ Realty Ltd., a long-standing, family-operated brokerage, has consistently served the low-tomedium-priced markets in the Tri-City Gateway area. XYZ Realty Ltd. has defined its market, goals, and pledge to high standards. The brokerage decides to document, display, and communicate their brokerage culture to both clients and staff through their website. In the following example, the leader supports the pledge to high standards with actions, such as investing in training, infrastructure, and technology. These actions are instrumental in creating the defined brokerage culture: • Who We Are: XYZ Realty Ltd. is and has been committed to affordable housing for decades. Just as some travel agents cater to budget vacations, we serve economy-conscious sellers and buyers looking for low-tomedium-priced homes in the Tri-City Gateway area. We have been successfully listing and selling affordable homes since 1975. At XYZ Realty Ltd., we emphasize high standards, top service, and satisfied clients. • Our Clients: All sorts of sellers and buyers seek us out: single buyers, newlyweds looking for their first home, hardworking families wanting an upgrade for more space, empty nesters searching for that perfect smaller home, and retirees fitting accommodation to limited budgets. • Our Goals: XYZ Realty Ltd. has three branches operated by fully trained brokers and salespersons who serve the needs of our growing client base. Our goal is to provide an environment that attracts, develops, and retains talented self-starters who want to be part of a leading brokerage in affordable housing. XYZ Realty Ltd. strives to maintain a culture that treats the staff with respect and continuously acknowledges their contributions. The brokerage remains committed to long-standing values, including superior training for brokers and salespersons, insistence on high ethical standards, the latest communication technologies for fast service, and a wide range of opportunities for personal growth and development. • Our Pledge to High Standards: Ensuring high standards and quality service is a continuous commitment. That’s why we developed our exclusive XYZ Quality Pledge to ensure that every seller and buyer is assured of the finest service. Our branches are strategically located to serve target markets, namely homes below $600,000 in Southgate, Northgate, and AnyCity. Experience the difference. Whether you are selling or buying

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in the Tri-City Gateway area or considering a career in real estate, call to find out more about our exciting programs and opportunities.

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Lesson 2 | Page 8 of 9

A broker, who has been with a brokerage for eight years, is being considered to become the next broker of record based on their performance and achievements. The transition will take effect at the start of next month. The prospective broker of record aspires to be a good leader and wants to use their time to prepare for the new role. The broker has registered to attend two relevant professional development seminars planned by the real estate board in the upcoming months. These seminars address pressing current industry realities and would benefit all brokers and salespersons. What should the broker do to demonstrate their leadership and to create a strong culture in the brokerage? There are four options. There are multiple correct answers. 1

Identify standards from the office policy that comply with the Code of Ethics and communicate them to the brokerage’s staff.

2

Have a vision for the brokerage without communicating it to the staff.

3

Inform brokers and salespersons about upcoming seminars and encourage them to attend the sessions with them.

4

Ensure that brokerage policies are consistently reflected in social media, promotional pieces, and reception area décor.

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Lesson 2 | Page 9 of 9

Congratulations, you have completed the lesson! Completion of this lesson has enabled you to: • Describe the role of leadership in a brokerage Here is a summary of the key topics that were discussed in this lesson. A leader defines the vision for the brokerage, sets the standards, and reinforces these standards at every opportunity. A good leader is identified by their qualities of giving direction to the brokerage, being a skilled communicator, and demonstrating determination while offering flexibility. They exemplify personal drive with a clear vision of the future and have a positive outlook combined with an enthusiastic attitude.

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Reinforcing effective leadership is essential to establishing a strong culture in a brokerage, which is fueled in large part by the distinct attitudes, personal strengths, philosophies, and actions of the leader. The culture should consistently complement and reinforce the vision and the mission statement of the brokerage.

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Lesson 3 | Page 1 of 9

Lesson 3: Retention Strategies Within a Brokerage

This lesson introduces some leading practices used for retaining staff within a brokerage.

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Lesson 3 | Page 2 of 9

A brokerage’s success relies on the contribution of its staff. A vibrant, skilled, and knowledgeable staff not only advances the brokerage’s business goals but also ensures high standards and professionalism in the marketplace. As you learned in a previous module, you will be responsible for ensuring that capable staff aligned with the brokerage’s vision are attracted to the brokerage. Retention should be an early consideration even at the time of the recruitment process, where you will identify and hire prospective recruits. It is important to continuously seek and retain the best staff by providing a positive work atmosphere where they feel valued, empowered, and appreciated. A high staff retention rate for a brokerage results in better productivity, increased engagement, improved quality of work, and higher morale. When the staff feels satisfied at work, they tend to have increased commitment to the brokerage. Therefore, as a broker of record, staff retention and job satisfaction should be a priority. Upon completion of this lesson, you will be able to: • Identify leading practices used for the retention of staff within a brokerage Throughout this lesson, you will participate in decision points to test your knowledge on the topics presented.

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Lesson 3 | Page 3 of 9

Effective management practices, such as having a clear vision for the brokerage, supportive leadership, and clear goals, contribute to a positive environment and facilitate staff retention. As a broker of record, retention strategies are important in creating an attractive workplace culture and establishing stronger relationships with your staff. Some leading practices related to retention centre around empowerment, fair compensation, acknowledgment and appreciation, and value proposition. For these strategies to be effective, you should develop them to serve both brokerage and staff needs.

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Lesson 3 | Page 4 of 9

Empowerment Current management theory emphasizes two factors underlying motivation: the work environment and the personal qualities brought to bear in that environment. In other words, motivation results from opportunities and challenges inherent in the work combined with an individual’s desire to achieve personal objectives. Motivational theorists have embraced the term empowerment (that is, the enabling process or simply setting the stage correctly for an individual to succeed). Businesses are reaping the benefits of their staff members realizing their potential through empowerment. Salespersons, in particular, are ideally positioned to actively pursue opportunities, address problems, resolve service issues, and take control of circumstances in the interest of both personal and brokerage objectives. Researchers report that companies advocating empowerment have experienced high quality decision-making, stronger commitments to the organization, more positive risk taking, greater innovation, forthright communication

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regarding problems, and workable solutions for the betterment of staff members, employers, and consumers. Leaders who want to motivate staff members should think in terms of empowerment. Example: A new salesperson shadows the broker of record at an open house and they later discuss key learnings. The following week, the salesperson conducts an open house, which is attended by the broker of record. The broker of record observes the salesperson, asks them what they think about their performance, discusses the challenges they encountered, shares words of encouragement, and provides feedback. Furthermore, the broker of record provides additional opportunities for the salesperson to conduct open houses independently, as well as to discuss challenges and resolutions. It is through dedicated time and focus to the salesperson that the broker of record establishes trust and empowers them to apply and build their skills.

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Lesson 3 | Page 5 of 9

Fair Compensation Remuneration offered to staff should be competitive, easy to understand, and equitable (that is, fair alignment of effort and services with reward). It is important to ensure that all legislative requirements are complied with when deciding remuneration for all employment positions. Research is required to verify compensation in the marketplace and then to decide what is fair compensation for the brokerage to offer its staff. Remunerations should be regularly revisited to ensure alignment with industry standards. A leader should take action to fairly compensate their staff members to encourage high performance and retention. Example: A brokerage ensures fair compensation by offering different commission splits based on the revenue generated by a broker or salesperson. This encourages brokers and salespersons to be productive and to work towards attaining higher commission splits. The broker of record also conducts research and offers fair compensation based on experience and proficiency to the administrative staff.

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Lesson 3 | Page 6 of 9

Acknowledgement and Appreciation To feel appreciated is a fundamental human need. Each staff member brings unique skills and experience, which can be applied at different levels, to the brokerage. Therefore, all staff members should be shown appreciation and treated fairly. A leader can acknowledge staff members using many formal and informal ways to reinforce positive behaviour. Investing time in building relationships with each staff member can help leaders establish personal connections. For example, a broker of record finds different ways to show interest and build rapport with the staff in their brokerage. They follow up on something personal that a staff member shared in a discussion. They write personal notes to individuals appreciating their efforts and acknowledging their achievements. They take the time to learn about their staff to make them feel valued. A leader should actively seek opportunities to appreciate every demonstrated behaviour, effort, and business result that supports the brokerage. This will further reinforce a culture where everyone feels part of the brokerage’s growth and progress, and values each other. Acknowledgement or appreciation can also be in the form of formal rewards and other recognition programs, such as a length of service award.

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Lesson 3 | Page 7 of 9

Value Proposition Staff members who are recognized for the value they bring to the brokerage are more likely to be motivated, loyal, and high performing than those who are not. Compensation is not the only consideration when initially recruiting and retaining capable and competent staff members. Leaders should think about what else can be considered as a value proposition. Value proposition refers to everything of value that the brokerage can provide to their staff members, including compensation, benefits, training, career development opportunities, marketing tools, and other competitive advantages, in return for their unique contributions. The value proposition offered by the brokerage assists the staff in achieving individual goals. It is what makes the brokerage more attractive when compared to other brokerages. Example: A brokerage pays for educational programs and career development opportunities for the brokers and salespersons after they achieve specific levels of sales success. © 2021 Real Estate Council of Ontario

Lesson 3 | Page 8 of 9

A new broker of record hires 15 brokers and salespersons. In addition to creating a positive work environment and building a strong culture, the broker of record wants to put additional measures in place to retain staff. What are some leading practices that will assist the broker of record to retain brokers and salespersons within their brokerage? There are five options. There are multiple correct answers. 1

Offer fair compensation to brokers and salespersons based on research of the trading area.

2

Send out congratulatory emails and/or social media posts to acknowledge brokers’ and salespersons’ accomplishments.

3

Work with each broker and salesperson to set individualized, realistic goals and provide support on a regular basis.

4

Closely monitor all sales-related activities in the brokerage and assist brokers and salespersons in taking each deal to closure.

5

Invest in relevant educational programs and career development opportunities for brokers and salespersons.

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Lesson 3 | Page 9 of 9

Congratulations, you have completed the lesson! Completion of this lesson has enabled you to: • Identify leading practices used for the retention of staff within a brokerage Here is a summary of the key topics that were discussed in this lesson. Staff retention is important to ensure better productivity and ongoing success of a brokerage. Some leading practices related to retention centre around empowerment, fair compensation, acknowledgement and appreciation, and value proposition. These strategies aid in creating a strong culture, which further supports staff retention.

© 2021 Real Estate Council of Ontario

Lesson 4 | Page 1 of 11

Lesson 4: Performance Management in a Brokerage

This lesson introduces a process to conduct performance evaluations for all staff in a brokerage. It also outlines how coaching and mentoring can assist a broker of record in managing the performance of staff in the brokerage.

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Lesson 4 | Page 2 of 11

Performance management can be generally described as a process that ensures the activities or outputs of an organization align with its goals in an efficient and effective manner. Performance management for individuals entails assessing their performance and defining the next steps. The individual staff performance assessment should always be aligned with overall brokerage objectives and individual staff goals. Effective performance management is critical in realizing the brokerage’s vision and achieving its goals. Providing continuous performance-related support, such as training, is key in meeting individual and brokerage goals as well as retaining competent staff. Performance management and training are complementary. In order to manage performance, it is the leader’s responsibility to establish minimum performance standards, assess individual performance, help the individual identify their development needs, and support all individuals in pursuing performance improvement. Upon completion of this lesson, you will be able to: • Identify processes for performance reviews for all staff • Identify processes for providing ongoing training, coaching, and mentoring Throughout this lesson, you will participate in decision points to test your knowledge on the topics presented.

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Lesson 4 | Page 3 of 11

When managing performance, as a broker of record, it is important to consider the following when working with staff: • The role of the individual: Broker, salesperson, or administrative staff • The experience level: Experienced or inexperienced • The employee relationship: Independent contractor or employee Based on the individual’s role, experience level, and employee relationship, you will modify the process for performance assessment. This may impact how you achieve your brokerage goals on an ongoing basis and define appropriate performance management activities for your brokerage.

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Lesson 4 | Page 4 of 11

Importance of Performance Management and Reviews A broker of record should invest in the brokerage’s staff to provide a better service experience for sellers and buyers. Performance reviews as part of performance management can be a positive investment for any brokerage. Performance reviews, also called evaluations, are not just about identifying strengths and weaknesses. They are an opportunity to set or refine goals and objectives and identify support or development needs. No single approach works for everyone, and formal reviews are not always appropriate. For some, ongoing feedback ensures the best performance outcomes. Before any review, brokers of record should take the time to identify what specific topics should be discussed. They should maintain accurate records of these meetings, as a paper trail can be vital should future corrective action be required. As you learned in a previous module, a proper paper trail is critical from a legal perspective at the point of termination.

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Performance reviews or evaluations can help: • Identify, assess, and manage individual goals • Boost staff engagement and productivity • Identify strengths, exchange feedback, and discuss development or other support needs While the relationship with an independent contractor can and should be managed, a brokerage should be cautious in exercising any significant amount of control over an independent contractor that would be similar to an employment relationship. As a broker of record, you can provide helpful support to independent contractors through suggestions, recommendations, and encouragement. When a contract is renewed, you will have an excellent opportunity to review past performance and set new contract outcomes, standards, and service levels.

© 2021 Real Estate Council of Ontario

Lesson 4 | Page 5 of 11

Preparing for Performance Evaluation Process Performance management can enforce acceptable standards of performance, promote staff recognition and effective communication, and motivate individuals to do their best for themselves and the brokerage. A broker of record can establish certain practices within the brokerage, which should be prepared beforehand to support the evaluation process. The following four sections contain information on preparations for the Performance Evaluation Process.

Prepare an evaluation form Performance evaluations should be conducted fairly, consistently, and objectively to protect the staff’s interests and to protect the brokerage from legal liability. One way to ensure consistency is to use a standard evaluation form. The form should focus only on the essential job performance areas. A broker of record can design two different evaluation forms: one for sales staff and one for administrative staff. Alternatively, they can use and adapt performance evaluation templates available online. For administrative staff members, performance areas are based on job descriptions. For brokers and salespersons, performance areas are based on the terms included in their contract (that is, independent contractor or employee agreement). These performance areas could be job knowledge and skills, quality or quantity of work, work habits, and behaviours. Each performance area on the form should have a range of performance level descriptors

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to choose from and space for the individual’s comments.

Identify performance measures To begin developing standard performance measures in a brokerage, a broker of record should review the job descriptions for each position and select the key components for each role that can be specifically measured. You learned about identifying minimum performance standards for job descriptions in a previous module. A broker of record should define the performance goals for each individual that meet performance standards: • For a new salesperson, they should gather quantitative data based on market research and individual goals. • For experienced brokers and salespersons, the data would be based on sales from the previous year’s performance and the current year’s goals. Performance measures could include the number of transactions successfully completed, the number of listings secured, the number of buyer representation agreements secured, and revenue generated by the individual (more specifically the net income contributed to the brokerage). For example, if a brokerage has determined the minimum net income to be contributed by each broker or salesperson as $15,000, an individual contributing less than this amount would not meet the minimum performance

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standard. Individuals contributing more than $15,000 would be considered to have exceeded the standards. Market research and individual data will allow the broker of record to determine if a performance measure was met and if it was below standard or above standard. For administrative staff, a broker of record can refer to the job description and define performance standards that should be met. A performance measure could be related to utilization, timelines, following processes or compliance, and working with others, among other things. The job description will allow the broker of record to determine if performance was above or below standard. For all staff in the brokerage, a broker of record should also determine qualitative measurements, such as observation of leadership or communication skills, that reflect whether the brokerage’s goals are being met.

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Set guidelines for feedback Leaders should give balanced feedback, including discussions about both strengths and improvement areas. This makes it easier for staff members to understand and track their goals and responsibilities. The broker of record should address how they intend to help the individual and establish a plan for monitoring performance and re-evaluating them. Performance evaluation discussion is a collaborative dialogue where the individual provides feedback to the leader and also communicates their perspective on the comments. Comments around improvement areas and next steps are sometimes adjusted based on the discussion. After the review discussion, the staff member should be asked to sign both the individual and brokerage copy of the form indicating that the review discussion took place. The staff member should be provided with a copy of the form and another copy should be retained in the individual’s file.

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Create disciplinary and termination procedures Despite a thorough performance evaluation and discussion of expected improvements, some staff members may continue to perform poorly. Brokers of record should be prepared to handle such situations by having well-defined, written disciplinary and termination procedures in place. As you learned in a previous module, these procedures should outline the actions that will be taken when performance deteriorates. These actions may include a verbal warning, where training or support may be provided if necessary, a written warning if there is no improvement, and termination if the situation is not ultimately resolved. This termination procedure applies not just to administrative staff but also to brokers and salespersons who are employees. The procedure may be detailed in the employment contract.

© 2021 Real Estate Council of Ontario

Lesson 4 | Page 6 of 11

Performance Evaluation Process Performance evaluation is a key component of performance management. The primary goals of a performance evaluation process are to assess a staff member’s contribution to the brokerage, produce accurate performancerelated documentation to protect both the staff member and the brokerage, and maintain high standards in the quality and quantity of work produced. The process can be summarized in the following steps: 1. Define performance standards: A broker of record should define minimum performance standards for each staff member based on their role, the employee relationship, and any applicable brokerage policies. For administrative staff members, minimum performance standards are based on their job descriptions. For

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brokers and salespersons, minimum performance standards are based on the independent contractor agreement or employee agreement. These standards can be revisited periodically to assess if they are being met. 2. Set goals for the next evaluation review: A successful evaluation process involves a broker of record cocreating an action plan with the staff member for the next evaluation review. The action plan should consider individual goals, strengths and weaknesses, and the brokerage’s vision and goals. Typically, the nature of discussion depends on the individual’s role and the employee relationship. For administrative staff, evaluation is typically based on the defined performance standards. It is important to ensure that the minimum performance standards defined in the job description are met when creating an action plan. For brokers and salespersons, evaluation is typically based on sales targets, that is, the number of transactions (also referred to as ends) and revenue generated. Goals may also include education requirements and other needs, such as creating work-life balance, building a team, and learning skills like integrating social media, among others. For independent contractors, a broker of record may ask questions like, “How can we help you meet your goals?”. For employees, the broker of record can have more direct conversations and communicate brokerage-specific expectations. 3. Establish an evaluation review cycle: A broker of record should establish an evaluation review cycle or timeline to define the period and frequency of evaluation. A defined evaluation cycle sets expectations, helps ensure that performance is regularly assessed, and promotes productivity. However, for some individuals, they may choose to have ongoing evaluations with no defined cycle or establish different cycles for different roles. The broker of record should ensure that they are consistent and do not give any appearance of discrimination. 4. Schedule evaluation discussions (according to the cycle): Scheduling and communicating the schedule for evaluation discussions in advance can allow both the broker of record and the individual being assessed to collect their thoughts and prepare for the discussion. A performance evaluation form can help in capturing the performance data and in facilitating the discussion. Performance-related discussions and interventions can happen outside the evaluation cycle, if required, based on the staff member’s performance and experience level. For example, when working with a new salesperson or administrative staff member, the

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broker of record may schedule weekly discussions in the initial period to discuss performance and offer assistance. 5. Discuss performance and identify strengths and development strategies: During the evaluation discussion, a broker of record should be prepared with the data regarding the staff member’s performance. Furthermore, they should direct the discussion to acknowledge individual strengths and address any concerns and assistance (training, services, tools, and so on) required for improvement. This should be a twoway discussion where both parties present and discuss facts and ideas and identify and agree on any additional training or support requirements. The performance evaluation process can guide a broker of record to make decisions related to retaining the staff member and investing in them or letting them go.

© 2021 Real Estate Council of Ontario

Lesson 4 | Page 7 of 11

Performance Feedback Methods The performance evaluation process described so far in this module is typically the process adopted by most brokerages as well as by businesses. This traditional process helps in tracking the achievement of goals by the staff employed or contracted. However, there are other methods used to provide feedback, such as the 360-degree performance assessment. Both the traditional method and the 360-degree performance assessment allow the brokerage to capture performance-related data and facilitate conversations around past performance and future goals. The 360-degree assessment relies on qualitative feedback about an individual’s behaviour from multiple stakeholders who work or interact with them, such as peers, subordinates, managers, and individuals outside of

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the brokerage, including sellers and buyers. Since feedback for each staff member is collected as part of the assessment, it is a development tool to help leaders as well as others within the brokerage to improve their interactions. However, the 360-degree performance assessment is a complex method, which requires time and additional resources, and needs to be clearly understood before it is implemented in a brokerage.

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Lesson 4 | Page 8 of 11

One of the outcomes of the performance evaluation process is identification of key improvement areas and future goals. When properly instituted, training provides the key link between individual goals and their achievement. Performance management and training are complementary. More formal education courses remain a mainstay for brokers and salespersons in refining skills and expanding real estate knowledge. However, successful brokerages increasingly favour on-the-job, sales-related training to ensure that practical skills are acquired, routinely practiced, and focused on to achieve pre-established performance goals. On-the job training aligned with job descriptions are critical for the administrative staff in a brokerage.

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Lesson 4 | Page 9 of 11

Coaching and Mentoring Coaching and mentoring are two specific approaches to ensure that training provided to the brokerage staff is practical and grounded in real-life experience. Coaching is tied to improving performance and focuses on the "here and now". Mentoring is more of an informative conversation about career a path, which also provides guidance, motivation, emotional support, and role modeling. Both are valuable tools for a brokerage looking to improve staff performance. Coaching and mentoring are complementary approaches to orientation and ongoing training in a brokerage. The following two sections contain information on coaching and mentoring.

Coaching Coaching involves collaboration and constructive partnering, as opposed to directing and enforcing. Coaching is based on discovering possibilities and resolving problems. Coaches improve communication, promote the enhancement of personal skills, and provide a positive environment for the benefit of all. Coaching is continuous and ongoing and is not a onetime event. Coaching is used for both success and improvement. The staff member being coached finds answers to performance (or any other) issues through problem-solving techniques. For best results, it should be frequent and consistent with follow-up about progress on previous discussion items and goals, and the setting of new ones. A coach should allocate specific time to meet with brokers and salespersons. They should direct the conversation to actionable solutions for risks and © 2021 Real Estate Council of Ontario

issues that are within the brokerage’s control, rather than focusing on the problems. During the sessions, the coach should be a dedicated listener and create a supportive, positive environment. The discussions should be focused on exploring options, followed by determining a course of action. The coach should emphasize the importance of critical thinking, seeking creative solutions, and looking realistically at possible barriers to success when identifying the most productive and beneficial solution. • Proper coaching can lead to a better understanding of legislative requirements and improved consumer protection.

Mentoring Mentoring programs allow brokerages to provide guidance to new and inexperienced staff. Mentoring, as a technique, is especially effective in leveraging expertise in specific skills from experienced brokers or salespersons. A mentor is best described as a teacher and a trusted advisor. Mentoring programs typically involve an experienced broker or salesperson operating as a guide for new salespersons. Mentoring allows brokerages to provide ongoing guidance in areas of job training, motivation, emotional support, and role modeling. Mentoring, as a technique, is especially effective in leveraging expertise in specific skills. Mentoring can be effective if the mentor has proven techniques to assist the new salesperson in listing and selling skills and understands how to adeptly handle marketplace

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situations (for example, through joint canvassing and listing presentations). As an objective bystander, the mentor can provide valuable insight, as most individuals cannot see their own mistakes or weaknesses. A mentor, given their experience, is also able to assist brokers and salespersons to become aware of issues that may cause problems and prepare them to minimize risks to the brokerage. However, not everyone can perform the mentor role. Some mentors may find it difficult to provide feedback to new salespersons (for example, if both are involved in communication with and presentations to clients). Some mentors willingly and gratuitously take on the role of a personal trusted advisor. However, most seek some form of financial benefit for their time.

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Lesson 4 | Page 10 of 11

A broker of record is defining the training and coaching programs to be implemented in their brokerage. Which of the given statements describe the features of coaching? There are four options. There are multiple correct answers.

1

The focus is on exploring options followed by determining a course of action.

2

An experienced broker or salesperson provides valuable insight to an inexperienced salesperson for trade-related tasks.

3

There should be follow-up discussions about progress on previous goals and setting of new ones.

4

A plan of action should be developed, and a strategy should be set to achieve the plan.

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Lesson 4 | Page 11 of 11

Congratulations, you have completed the lesson! Completion of this lesson has enabled you to: • Identify processes for performance reviews for all staff • Identify processes for providing ongoing training, coaching, and mentoring There are two sections on this page with a summary of the key topics that were discussed in this lesson.

Performance evaluation process

The main purpose of performance evaluation is to measure the staff member’s contribution to the brokerage. Preparation for the performance evaluation process includes creating evaluation forms, identifying performance measures, setting guidelines for feedback, and creating disciplinary and termination procedures. A performance evaluation process will require you, as a broker of record, to define performance standards, set goals for the next evaluation review, establish an evaluation cycle, schedule regular evaluation discussions, discuss performance, and identify strengths and development strategies. Brokerages adopt different feedback methods to capture performance-related data and facilitate conversations around past performance and future goals. The 360-degree assessment relies on qualitative feedback about the individual’s behaviour from multiple stakeholders who work or interact with them.

Coaching and mentoring

Coaching involves collaboration and constructive partnering and is based on discovering possibilities and resolving problems. Coaching is an ongoing routine and is not a one-time event, where the individual being coached is actively involved in finding the most productive and beneficial solutions. Mentoring helps a brokerage use experienced staff to assist new individuals joining the brokerage. A mentor, given their experience, is also able to assist brokers and

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salespersons to become aware of issues that may cause problems and prepare them to minimize risks to the brokerage.

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Lesson 5 | Page 1 of 8

Lesson 5: Summary Practice Activities

This lesson provides a series of activities that will test your knowledge on the entire module.

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Lesson 5 | Page 2 of 8

This lesson provides summary practice activities. Throughout this lesson, you will participate in decision points to test your knowledge on the topics presented.

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Lesson 5 | Page 3 of 8

A broker with eight years of experience with a brokerage is promoted to become the new broker of record. How should the new broker of record prepare for their new role? There are four options. There are multiple correct answers. 1

Create high-level job descriptions to hire administrative staff.

2

Seek advice from their closest allies in the brokerage to define their next steps.

3

Create an ongoing recruiting program to complement brokerage goals.

4

Create a stable, positive environment to offset market instability.

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Lesson 5 | Page 4 of 8

What if the following happened? A broker has worked with a brokerage for 12 years and has recently been selected as the new branch manager. During their sales career, the new branch manager became close friends with some of the brokers and salespersons in the brokerage. However, not all staff members are happy about the new appointment, as some find the new branch manager to be too severe, aggressive, and distant. The new branch manager sees their critics as being boisterous and individualistic. The division of friend and foe becomes very evident during the first sales meeting. While the new branch manager conducts the meeting in a cordial and organized manner, interruptions are frequent, and the critics could best be described as somewhere between mildly disinterested and completely apathetic. What should the new branch manager do to make their transition to their new role successful? There are five options. There are multiple correct answers. 1

Initiate discussions with their friends to learn about the sales staff’s internal discussions.

2

Set up individual meetings with the brokers, the salespersons, and the administrative staff to discuss individual strengths and goals.

3

Research the brokers’ and salespersons’ past successes and transactions; identify ways to acknowledge and appreciate them.

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4

Analyze their own personal strengths and shortcomings, and identify a self-development plan.

5

Enroll the brokers and salespersons in a mandatory team building coaching seminar.

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Lesson 5 | Page 5 of 8

A brokerage’s sales production is in a slump. At the next monthly sales meeting, the broker of record wants to motivate the brokerage’s brokers and salespersons to be more effective. What can the broker of record do to effectively motivate staff members to be more productive? There are four options. There are multiple correct answers. 1

In the sales meeting, communicate assertively but not aggressively to the brokers and salespersons that they are expected to meet the brokerage’s goals, as their remuneration is paid by the brokerage.

2

Analyze whether brokers and salespersons have been adequately prepared to achieve personal goals.

3

Prepare a speech for the sales meeting, which focuses on the brokers’ and salespersons’ poor performance, lack of ambition, and inconsistent efforts.

4

Seek ideas from brokers and salespersons on improving the results.

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Lesson 5 | Page 6 of 8

A well-regarded brokerage has a new broker of record. They want to reduce staff turnover and are considering various practices to retain staff in their brokerage. Which of the given statements are true regarding the practices used for retaining staff within a brokerage? There are four options. There are multiple correct answers. 1

Empowering staff members can be a threat to the broker of record’s control and authority.

2

Providing marketing materials to brokers and salespersons is a value proposition.

3

The brokerage can choose to offer lower commission splits, as it has a highly regarded reputation, which will ensure staff retention.

4

The broker of record should dedicate time to have conversations with the brokerage staff on a regular basis.

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Lesson 5 | Page 7 of 8

A broker of record has defined performance goals and action plans with all staff members in their brokerage. They want to further establish a performance management system to ensure that the goals are being met on a regular basis. What can the broker of record do to effectively manage performance and/or provide ongoing support to the brokerage staff? There are four options. There are multiple correct answers. 1

Establish an evaluation review cycle or timeline.

2

Conduct performance evaluation discussions focused on the individual strengths and improvement areas of the brokers, the salespersons, and the administrative staff.

3

Identify experienced brokers and salespersons within the brokerage to mentor salespersons new to the service areas and/or trade-related activities.

4

Revise performance standards unique to each administrative staff member based on their performance.

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Lesson 5 | Page 8 of 8

Congratulations, you have completed the lesson!

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Module Summary | Page 1 of 4

Module Summary

This lesson contains a summary of the entire module.

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Module Summary | Page 2 of 4

Congratulations, you have completed this module! This lesson will present a summary of the lessons in this module.

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Module Summary | Page 3 of 4

There are four sections on this page with a summary of the key topics that were discussed in this module.

Considerations for Transitioning to a Management Role in a Brokerage

Clear distinction is often not found between management and leadership tasks in a brokerage. As a broker of record, you will have to perform leadership and/or management activities for the day-to-day functioning of your brokerage. The transition to a management position from a broker or salesperson can be challenging, given the management realities in a brokerage. As a broker of record, you should recognize and avoid common management mistakes related to goal setting, defining responsibilities, managing staff performance, and establishing a brokerage culture. It is also important to decide whether to continue participating in trade-related activities when in a management position. The ultimate decision lies in your hands as the broker of record, after weighing the benefits and challenges. Completion of this lesson has enabled you to: • Identify key differences between management and leadership for a broker of record

Role of Leadership in a Brokerage

As a broker of record, you should practise effective leadership techniques and skills to successfully define the brokerage’s vision. You should ensure standards followed in a brokerage align with the brokerage’s vision and goals. A good leader maps the direction for how to get from the present to the desired future. They are identified by their qualities of being a skilled communicator, demonstrating determination while offering flexibility, exemplifying personal drive with a clear vision of the future, and emanating a positive outlook combined with an enthusiastic attitude. They have a thorough knowledge of the brokerage’s goals, objectives, procedures, competitive advantages, and overall philosophies, and clearly articulate this information to the brokerage’s staff. As an effective leader, you will need to establish a strong culture in the brokerage. Culture is the sum of all goals, practices, procedures, and qualities within a brokerage. It will be fueled in large part by your distinct attitude, personal strengths, philosophies, and actions. You should set high standards for the brokerage that comply with the Code of Ethics. © 2021 Real Estate Council of Ontario

These standards should be continuously communicated and reinforced within the brokerage environment. Completion of this lesson has enabled you to: • Describe the role of leadership in a brokerage

Retention Strategies Within a Brokerage

You should develop effective strategies to increase staff retention in your brokerage by creating a positive and attractive workplace culture and establishing strong relationships. As the broker of record, you can deploy various leading practices on an ongoing basis to facilitate staff retention. Common methods to retain staff in a brokerage are: • • • •

Empowerment Fair compensation Acknowledgment and appreciation Value proposition

Completion of this lesson has enabled you to: • Identify leading practices used for the retention of staff within a brokerage

Performance Management in a Brokerage

Performance management systems help boost staff engagement and productivity. Performance management for individuals entails assessing their performance and defining the next steps. A 360-degree performance assessment is one of the many ways in which the staff’s performance can be assessed. As a broker of record, you should know that performance management systems and ongoing training go hand in hand within a brokerage. Coaching and mentoring are two popular forms of training, which can help the staff meet their goals and improve performance through focused activities. Completion of this lesson has enabled you to: • Identify processes for performance reviews for all staff • Identify processes for providing ongoing training, coaching, and mentoring

© 2021 Real Estate Council of Ontario

Module Summary | Page 4 of 4

Course Closure You have now completed the course Human Resources. Human resource management is essential to make effective use of the human capital in a brokerage. The course took a practical view of factors to consider when hiring staff and establishing staff requirements for a brokerage. It described types of employment status and regulatory guidelines to determine the employment statuses of the brokerage’s staff. The course also defined job descriptions and performance standards for the staff in a brokerage. Establishing a recruiting plan for all staff is a central and strategic brokerage activity that can contribute significantly to the brokerage’s growth and goals. A brokerage must meet the various employment-related legislative requirements. This course outlined the Real Estate and Business Brokers Act (REBBA) requirements related to registration, renewals, reinstatements, terminations, and transfers. As a broker of record, you should know the key provisions and obligations of the Employment Standards Act, Occupational Health and Safety Act, the Ontario Human Rights Code, and the Accessibility for Ontarians with Disabilities Act, and how they influence operations within a brokerage. This course further explained concepts like leadership, retention strategies, and performance management. In the next course, Ongoing Oversight, you will learn about aspects to consider when monitoring trade processing, trade record sheets, and trust accounts. You will learn about regulatory requirements related to paying remuneration to staff and advertising for a brokerage. The course will discuss guidelines to ensure fair, open, and transparent real estate transactions and aspects to consider when monitoring the business environment for a brokerage.

© 2021 Real Estate Council of Ontario