Acknowledgements

The history of the Vancouver Island Real Estate Board (VIREB) reveals a dynamic account of professionalism, the unifying effort of many, and the motivation that drove the Board from its first day in 1951 through modernity. This narration endeavours to offer an objective viewpoint that unites documentation and individual recollection to tell the inspiring chronicle of the men and women who have joined forces in order to work towards a higher aim, a common vision.

The history of VIREB reveals a philosophy of professionalism; its story is paralleled by the earned expertise of the real estate industry as a whole. It is with gratitude that the author recog- nizes those who were interviewed for the history as representatives of the evolving eras of the Board: Allan Armstrong, Pat Moore, Lloyd Wood, Reg Eaton, Ralph Walker, Bob Clarke, Gordon Blackhall, Jack Geisler, Dermot Murphy, Rick Evans (reflecting upon his Father Jack’s contribution), Marty Douglas, Randy Forbes, and Donn Gardner. Their vast knowledge, strategic sense, and commitment to the industry are legendary and the history was not only told, but made with their help.

While these Members and Associates have been instrumental in telling the story of the Board’s history they are not alone, countless Members stand equal in knowledge and commitment, and their actions are clearly recorded within the sixty years of Board Minutes. Above all, it is the Membership that directs the Board. It is that collective voice that has been the guiding force of VIREB; its history is the history of its Members.

Supporting the Board Directors and Membership are the men and women that have orchestrated the business of the Board. The Board Staff have consistently demonstrated progressive in- stinct in order to lead the Membership through changing technology, education, and legislation. Theirs is a role of strategic foresight, technical capability, and customer service. Their knowl- edgebase and professionalism have been vital to researching VIREB’s history. The author has immense appreciation for their shared accounts, friendship, and sincerity during research. It is noted in the Board Minutes that a historical account has been on the minds of Past-Presidents for several years. In 2006 Executive Officer Bill Benoit, guided by the Board, decided to formally document the story of VIREB. It is with his determination, quiet guidance, and (patient) trust in process that the following story is told.

Great care has been taken to present a factual account according to the material available. Not all events could be included due to time and space. Additionally, it is important to note that vocabulary has changed through sixty years and this history reflects those changes. Facts presented have been done so with integrity and goodwill. These pages offer an account of an industry coming of age and the inspiring history of the Vancouver Island Real Estate Board.

This is your story…

All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopying, recording or any information storage and retrieval system, without permission in writing from the Vancouver Island Real Estate Board.

Vancouver Island Real Estate Board 6374 Metral Drive Nanaimo, BC V9T 2L8 (250) 390-4212 www.vireb.com

ISBN 978-0-9696521-1-3

Printed in Nanaimo, BC by: Impact Visual Communications 25 Cavan Street Nanaimo, BC V9R 2T9 www.impactvisual.ca

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2 Table of Contents

1950’s: A Small Dining Room...... 5

1960’s: A Civilized Society...... 17

1970’s: The Rise of the Salesmen...... 31

1980’s: Storming The Hill...... 63

1990’s: A Professional Association...... 89

The 2000’s: A New Millennium...... 111

3 Reflections: Why We Did It

For several years, the Vancouver Island Real Estate Board has discussed writing its history, and with 2011, the 60th anniversary approaching, decided to forge ahead and do it. Reflections is the abbreviated version of the comprehensive history of VIREB compiled by Feron Walker, which is available through our website: www.vireb.com. Many thanks to Marty Douglas for the countless hours he has donated to this cause, and for serving as Chair of the Steering Committee for the book itself.

This is a true reflection of evolution in our profession due to the vision of so many dedicated individuals. The men and women who forged this changing and always challenging industry were leaders within their various communities. They are owed a true debt of gratitude.

Bill Benoit It’s a great read – enjoy the journey! Executive Officer, VIREB

About The Author

Feron Walker was born and raised in Nanaimo, and spent 13 years in Campbell River raising her family. She returned to Nanaimo in 2003 to complete her BA in History & Liberal Studies, then went on to attain her MBA at Vancouver Island University (formerly Malaspina University-College).

Feron works as a freelance writer and in communications for not-for-profit organizations. Feron’s appreciation of history and her business education have made the researching and writing of the Vancouver Island Real Estate Board’s REFLECTIONS; Reflecting on 60 Years of Service 1951 – 2011 a rewarding partnership. Feron Walker

4 1950’s A Small Dining Room

On October 2, 1951 Ernie Butcher and Hugh Wilson knocked on Jack Evans’s front door. While Jack, Ernie, and Hugh were considered competitors in the real estate industry they recognized an essential need to meet on common ground. At the time, the public were wary of Salesmen. Individual Salesmen did not share information about listings, even with co-workers; exclusive listings were preferred. It was difficult for individual companies to provide meaningful, educational opportunities when resources and cooperation were limited. Jack, Ernie, and Hugh acknowledged that shared resources would increase professionalism and, thereby, the success of their Salesmen. It was this acknowledgement that brought them together on October 2nd, the first meeting of what would become the Vancouver Island Real Estate Board.

The three real estate Agents got straight to business. The new Association would be called the Nanaimo Real Estate Board (NREB); Jack was appointed President, Ernie Vice-President, and Hugh the Secretary-Treasurer. It was immediately moved to elect two additional Board Members as three would hardly be enough. Jack read aloud the by-laws and Constitution of the Vancouver Real Estate Board and all three agreed that it would serve as a useful guide in “framing” a Constitution for NREB. This would also foreshadow the enduring friendship the two Boards would enjoy throughout their shared history.

As Nanaimo was the largest centre north of the Malahat the three men recognized the need to include other Island communities. On that first night, the new Executive discussed extending an invitation of Membership to Parksville-Qualicum, Ladysmith, and Chemainus. This reflected the inclusive standard upon which the Board was built. The three gentlemen had no intention of controlling the industry. Instead, they sought to professionalize real estate and knew that there was strength in numbers.

The gentlemen also recognized the benefit of publicizing their new Association. It was suggested that the fledgling Real Estate Board “have adequate publicity of their meetings to let the public know [they were]…functioning”. If the public was aware of a governing body, the real estate industry within the Board area would earn legitimacy and, thereby, gain public confidence. Furthermore, they foresaw the strategic value of advertising outside of Board boundaries. By advertising the Island’s “good roads, excellent climate” in Vancouver and Victoria publications the Board might well “attract retired people and others”. Self-promotion would prove to be a continuous theme for the newly formed Board.

It was decided that elections would be held annually on the third Tuesday in January and regular meetings would be hosted over dinner on the first Wednesday of each month in the Small Dining Room at the Plaza Hotel (known as the Dorchester Hotel, 2011). The first entry of NREB Minutes was a single sheet of typed text predicting the thread of commonality that would run the length of the Board’s history - a thread that includes sharing the workload, camaraderie between Boards, geographical inclusion, public awareness, and Vancouver Island promotion. These are the ties that continue to bind VIREB together today. October 2, 1951 marked the first record of the Nanaimo Real Estate Board (NREB), predecessor of VIREB, and is therefore recognized as the Association’s beginning.

• • • • •

5 1950’s: A Small Dining Room

Eight days after their initial meeting Jack, Ernie, and Hugh were joined by Frank Ney and George Bellamy in the Plaza Hotel’s Small Dining Room. It was the first dinner meeting of the NREB. Frank and George were promptly elected Directors, and the newly formed Board then moved to “adopt” the Constitution and by-laws of the Vancouver Real Estate Board, and formally motioned to be named the “Nanaimo Real Estate Board”. The new Board, recognizing the strategic importance of outlying communities, passed a motion to invite real estate Agents from Parksville, Qualicum, Chemainus, and Ladysmith to join the Board as Associate Members.

A $25 initiation fee was established for Members, an additional $35 annual fee per firm, and a $2 per charge per Salesman over a total of two. Associate Members would be charged $10 to join and $10 in annual dues. A quorum was set at 25% of the Membership. The Board would soon open an account at the Bank of Montreal and organize signing Officers. NREB was on its way.

• • • • •

By the time NREB made its debut a trend in organizing geographically was on the rise. The Superin- tendent of Insurance was the provincial regulating body of the real estate industry in BC. By the 1950s the Superintendent was pushing the responsibility of education and regulation of the industry onto the BC Boards.

Furthermore, in the early 1950s the Real Estate Agents’ Licensing Board was focused on standardizing the educational requirements of applicants. The Licensing Board also served as an advisory to the Superintendent. Tempest de Wolf, Secretary of the Vancouver Real Estate Board, was also appointed Secretary of that Advisory Board. His mandate included a “crackdown on disciplinary procedures and educational qualifications with plans for a correspondence course for all license applicants.” He was also the guest speaker in the Small Dining Room at the Plaza Hotel on November 7, 1951. Addressing Mem- bers as well as Salesmen, he spoke about the formation and operation of the Board.

The following month, NREB’s formal relationship with the Canadian Association of Real Estate Boards (CAREB; later CREA) began with a letter of invitation and assessment notification of $7.50 per CAREB Member. CAREB was established in reaction to the Canadian Government’s post-war policies on property ownership and rent control. Delegates from Victoria, Vancouver, Edmonton, Winnipeg, Mon- treal, and 11 Ontario Boards founded CAREB on March 2, 1943. They sought to improve real estate standards and challenge legislative policy for the protection of the public as well as the industry. This goal has guided organized real estate to this day.

NREB acknowledged the growing need for industry education and made it a priority to standardize sales practices in Island communities, with a goal of professionalize the industry. NREB believed this would better ensure pubic confidence and the continuation of successful businesses. Furthermore, one company could not proceed alone. The standardization of an industry would have to be embraced by all in order to benefit any.

At the end of 1951 the first eight Nanaimo Real Estate Board Members included: George W. Bellamy, Frank Ney, Leo La Pas, Jack Evans, Ernie Butcher, Ken Guest, Cyril Black, and Hugh Wilson. The new Board deposited $280 of registration fees into the bank of Montreal. H.A. Roberts (representing Mladin Zorkin Ltd.), Charlie (Chas) Lenhart, and Bill Ney soon became Members. These first Members were known as “Nominees” and were the managing Agents of real estate firms in Nanaimo; they could be either owners or licensed Agents.

6 1950’s: A Small Dining Room

In the 1950s Owners and Agents held exclusive Membership in the Board; Salesmen were distinct from Agents. The Vancouver Real Estate Board had a Salesmen’s Committee that participated in Board activity in the 1950s; this was the forerunner of the Salesmen’s Division, which would change the history of real estate in the decades that followed.

• • • • •

With a governing body in place, issues could be addressed. Inconsistent commission rates became an issue for the industry. Standardizing commission was seen as a necessary stabilizing factor. The Board was concerned that Agencies were low-balling commissions in order to secure listings and then delivering sub-standard service. While Hugh Wilson agreed to draw-up a “scale of commission fees” as a guide to the Code of Ethics it was generally difficult to find commission records in the 1950s. This may indicate the protective measures Agents took in order to retain their sales force. If commissions were widely known they could be used competitively to recruit top-producers. While setting a commission fee was a means of stability it would prove to be an issue of debate in the future.

• • • • •

External political action was apparent in 1952 when Ernie Butcher petitioned the Central Mortgage and Housing Corporation (CMHC) in an effort to raise the valuations of houses in the Nanaimo District to equal those of Greater Vancouver. This would allow larger mortgage lending and, therefore, an ability to increase the asking price of listings. A copy of the petition was also sent to General George Pearkes, the Progressive Conservative Federal Member of Parliament for Nanaimo since 1945 (re-elected in the riding of Esquimalt-Saanich in 1953-1961). This would mark the beginning of NREB’s proactive political behaviour on behalf of the Membership as well as the public.

Rae Leslie and Allan Armstrong became Members of the Board in March, 1953. Allan had moved to Nanaimo from Prince Rupert and purchased George Bellamy’s real estate company when George retired. Allan gained his Real Estate Agent and Insurance Agent’s Licenses in 1946; purchased for $7.50 each, a total of $15. Had Allan opted for a Real Estate Salesman License it would have set him back $5. In those days “real estate was the cake if you could get it, insurance the bread and butter” Allan recounted. When Allan took over George’s business the average real estate agency had three or four Salesmen, none of whom had much in the way of independence. Listings were still exclusive to an office so listings and commissions were a source of competition. Allan recalls that, despite the NREB, there was still an atmosphere of protectionism and a lack of sharing listing information between offices. However, the Board was only eighteen months old and the Directors were still mapping out standards of interaction and learning to trust each other. Salesmen could not control most aspects of the industry, but they could control their listing information. Understandably, they would have been reluctant to yield that power.

• • • • •

In the summer of 1953 Tempest de Wolf was seeking support from active BC Real Estate Boards to petition for the continuation of the Licensing Board, which was initiated in 1949. New Licensing Board Members were recruited from the Vancouver Real Estate Board. This was a crucial turning point in real estate as Agents now had power to advise and establish policy for the Licensing Board. This arrangement

7 1950’s: A Small Dining Room was not without conflict. It was during this dynamic time that NREB began its alliance with the British Columbia Association of Real Estate Boards (BCAREB).

Herb Fullerton, a Member of the Vancouver Real Estate Board, addressed NREB at the Plaza Hotel in October, 1953. In the audience for the first time were representatives from Agencies in Courtenay, Dun- can, and Ladysmith. Mr. Fullerton presented the findings of the Vancouver Board sponsored Sperling Report. The report scrutinized the Real Estate Licensing Board’s regulations and criticized the Licensing Board’s power, which seemed to supersede the Superintendent’s power. Not all of the 79 Vancouver Board Members agreed, but when the dust had settled Herb Fullerton was elected President of the Vancouver Real Estate Board and a new mandate towards change through an independent licensing process was established.

By 1954 BCAREB passed a motion for an “impartial study into administration and operation of the Real Estate Agents Licensing Board be conducted by the Attorney General”– just as the Sperling Report had recommended. This was an important turning point for the industry as the Agents had, in effect, led a coup to gain directional power.

1953 was also a turning point for Frank Ney of Nanaimo Realty as the Minutes report Frank had “admitted he was hooked – marriage to take place before [the] end of 1953.” His fellow Members called for “three minutes of silence for a fallen comrade.” Frank’s good fortune continued when he was elected the Nanaimo Real Estate Board President in 1954, taking over from Ernie Butcher who had followed Jack Ev- ans’s inaugural two-term Presidency. The Board moved to adopt the Victoria Real Estate Board’s Code of Ethics and Directors were quick to publish and distribute it to all Members, illustrating their keen desire to standardize common practices and bring all stakeholders onboard.

• • • • •

Sixty NREB Members and Salesmen met at the Malaspina Hotel in June, 1954 to discuss the Board’s future. Norrie Carey, an Agent from Norrie Carey Realty in Courtenay, made a motion that a Nanaimo- based Committee be struck to investigate the formation of an Upper Island Real Estate Board. The new Committee’s make-up reflected the diversity of the Island: Wilf Anderton and Norrie Carey hailed from Courtenay; Jack Evans and Hugh Wilson from Nanaimo; Charlie Minor and Pete Prest represented Ladys- mith. In March of 1955 the Committee recommended that larger centres should initiate their own Boards with NREB’s assistance, but not under NREB’s guidance. Furthermore, an inter-Board Association that included the Victoria Real Estate Board was contemplated. However, the Committee only succeeded in attracting more Members to NREB. In fact, Pete Prest was certain that Whittome, Henderson, & Peake would also be joining NREB, as would B.F. Burrows, Duncan & Christmas, and W.H. Dickie - all Duncan- based real estate Agencies.

• • • • •

Through 1954 and 1955 NREB continued to study organized real estate and find a place for itself within it. CAREB sought active Members to sit on their Board and a steady convoy of motivating speakers presented industry related topics at Board sponsored meetings. The Victoria Board and NREB had ongoing intentions of working together to promote Vancouver Island as an investment destination, but the Malahat’s geographical boundary caused physical separation and border conflicts arose in ensuing years. The blurred boundary between the two Board areas became known as the “grey area”. Lloyd Wood

8 1950’s: A Small Dining Room recalls his days as a Salesman in the 50s, before he moved to Duncan, when he and other Victoria Sales- men would take a drive north to Shawnigan Lake to “pick-up a listing”; apparently oblivious to the fact that local Salesmen might take offence.

Increasingly, the Board began to initiate their own objectives. On a March evening in 1955 two speakers presented topics that would force ongoing changes throughout the history of the Real Estate Board. Mr. Irwin Davis, from the Real Estate Licensing Board, reported that all future real estate applicants, both Agents and Salesmen, would be required to take an examination after completing training at the Realty Training Bureau.

Additionally, Mr. Davis outlined the Vancouver Real Estate Board ultimate objective of developing a degree course at the University of British Columbia (UBC), a real estate institute that would be independent of educational prerequisites set by the Superintendent. While radical at the time, this demonstrates progressive leadership within the province. By incorporating UBC into the educational arm of organized real estate, the industry was able to wrestle the government for control.

The second speaker that March evening was Mr. Henry (Budge) Bell-Irving, of Bell-Irving Realty, a Member of the Vancouver Board (Lieutenant Governor of BC 1978 to 1983). Mr. Bell-Irving’s message conveyed the benefits of the Cooperative Listing Bureau (CLB), which was launched under the Chair- manship of John P. Roberts of Vancouver in 1951 to promote listed properties. By 1954 the Vancouver Board voted to incorporate the CLB into its Constitution and by-laws. However, during the registration of the trademark it was determined that the word “cooperative” would conflict with the Cooperative Asso- ciations Act and the description of what a cooperative was. Presumably, a Real Estate Board did not meet the standard of a true “cooperative” as equality did not exist between Salesmen and Agents. Instead, the Vancouver Board changed the name to the Multiple Listing Service (MLS) of the Vancouver Real Estate Board in 1954. This action legally protected the name and rights of use for the Vancouver Membership alone.

By 1956, the New Westminster, Fraser Valley Board, and Victoria Boards were using the MLS name illegally. A request for assistance in setting up such a plan for the Nanaimo Board made the Vancouver (MLS) Committee realize that extending access improved public understanding of the “multiple” concept, and was beneficial to everyone.

At the Plaza Hotel, in the summer of 1955, Chas Lenhart motioned to request an MLS expert be invited to assist in establishing a Multiple Listing Bureau for NREB. In February 1956 Board President Mladin Zorkin struck a Committee of three to complete an “exhaustive report” on MLS. Mladin, Jack Evans, and Chas Lenhart were elected to the Committee by ballot.

The Committee’s subsequent report detailed estimated costs, the necessary location for production, and the constitutional by-law changes. The general Membership was fearful that they would be unable to afford the cost of operation, given the small size of the Board. The three-man MLS Committee resigned, but Charlie Minor refused to give up, suggesting that Agents who were interested in MLS take part at their own expense. However, two weeks later the result was rescinded and a second vote saw MLS accepted and incorporated into Board activity. Charlie, Allan Armstrong, and Ken Guest were mandated to implement, and promote, the Service. A letter-writing campaign encouraged support for the MLS with a $100 “temporary” assessment from each Member for start-up money. It was agreed that Members accepted on or before April 1, 1957 would be charter Members of the Multiple Listing Service.

• • • • •

9 1950’s: A Small Dining Room

In November, 1956 Mini Facer, acting as the “Salesmen Representative” for Hugh Wilson, was the first woman to attend a Board meeting. At the time, real estate was male dominated and Mini’s presence was highly unusual. However, as Allan Armstrong would attest, “Min” was an outstanding Salesperson who commanded the respect of the men in the industry. It also illustrated a trend of Salesmen filling in for Agents when they were unable to appear. Min was also present on December 3rd when the Board voted to adopt the Victoria Real Estate Board’s Constitution in full, with the stipulation that territorial boundaries be established at the Nanaimo County line; from Mill Bay to the northern tip of the Island. She was also present on December 10, 1956 when the NREB change its name to the Nanaimo County Real Estate Board (NCREB) demonstrating its consideration of communities outside of the City of Nanaimo. At the same time, the first Standing Committees were established. These Committees reflected demands of the industry and society, they included: Ethics and By-Laws; Membership; Public Affairs; Standard Forms & Practices; Finance; Publicity; Attendance; Speakers, Sports & Entertainment.

As organizational demands on the Board and its Membership grew, especially due to the MLS, a Secretary-Manager was hired in early 1957 to manage the Board’s business. Stu Furk, a Nanaimo ac- countant, was engaged for $100 a month and ran the Board from his own office, on the second floor at 10 Commercial Street.

• • • • •

The MLS was a structured way of sharing listing information within Nanaimo County. Listing details were typed, mimeographed, and circulated between offices. Although the Board had approved MLS, Agencies and Salesmen were extremely protective of their listings and commissions, Nanaimo County MLS (NCMLS) was a hard sell. The NCMLS implementation continued to be unpredictable as Members argued the pros and cons of the Service. Yet, NCMLS did work as a tool for comparative pricing in that a client could assess their price according to similar houses in the same price bracket. Additionally, it encouraged fair pricing within an industry where Salesmen determine pricing.

MLS had its competition. In 1957, the British Columbia Multiple Listing Service (BCMLS) invited NCREB to register for their service. The BCMLS was working parallel to, but not with, individual Board listing programs; listings could be advertised on both BCMLS and NCMLS. At the end of 1957 BCMLS reported $1.275 million worth of property listed on their system, $500,000 in NCREB territory alone. NCREB funded its own MLS while BCMLS was a province-wide initiative and individual Agencies listed with them regardless of their Board’s actions. Furthermore, BCMLS had a broader audience while NC- MLS was Nanaimo County-centric.

• • • • •

Alex Reed, then President of BCAREB, addressed NCREB at the Malaspina Hotel in February, 1957 to discuss revisions to the Real Estate Act. The Real Estate Agents Licensing Act was also under investigation by attorney Colonel T.G. Norris; he considered the Licensing Board arbitrarily appointed by the government, and that the Superintendent of Insurance’s ability to veto any of the Licensing Board’s decisions rendered the Board virtually powerless. This was reminiscent of the 1952 argument put forth by Herb Fullerton in the Sperling Report.

Colonel Norris recommended that a Real Estate Council of BC Real Estate Agents be established to direct the regulatory and educational aspects of the industry. In reaction, the BCAREB recommended

10 1950’s: A Small Dining Room that a Real Estate Institute of BC be formed with three Divisions: the Realtor Division – to replace BCAREB, the Provincial Division – a “vehicle” to elect Members to Council, and the Professional Divi- sion – for professional Members with RI (BC) designation. The recommendations were supported by Mr. Bell-Irving, Chair of the Licensing Board in 1958.

As a result, the Real Estate Licensing Board was replaced by a 15 Member Real Estate Council in 1958. The new Council “remedied many of the defects of the previous legislation, and was hailed in BC and elsewhere as being a model of its kind”, according to Victoria Real Estate Board record. Dermot Murphy explained that the Council was mandated as the “regulatory agency established by the provincial government…to protect the public interest by enforcing the licensing and Licensees conduct requirements of the Real Estate Services Act.” The Council served as advisor to the “Superintendent of Real Estate”, a role established within the Real Estate Act; it was also responsible for licensing, maintenance of records, transfers, and had authority to discipline Agents and Salesmen.

Irwin Davis was appointed the first Secretary of the Council, serving until 1964. He was succeeded by Assistant Secretary Dermot Murphy, who served until his retirement in 1995. Jack Evans was one of the 15 Chartered Members elected to the new Council, his legendary charm and elegant demeanour made him an ideal representative.

• • • • •

Philip White, a professor at the London School of Economics, joined the Faculty of Commerce and Business Administration at UBC in 1958 to develop the Urban Land Economics Program. This was, in effect, the first academic real estate school in Canada. It provided the licensing courses for Salesmen as required by the new Real Estate Act. It also provided the Diploma Course in Real Estate and Appraisal, which became a requirement for Membership in the Real Estate Institute of British Columbia. Sales- men’s pre-licensing at UBC comprised of 20, two hour lectures over four weeks on campus; correspondence courses would be available later. It was a very dynamic environment of shared learning, in a territory not broached prior. It was new terrain for Canadian real estate, and BC led the way.

Prior to this, various avenues of training were present in BC. For instance, in 1955 when Pat Moore was earning his Salesman’s license in Victoria he had to serve six months of “probationary time” while completing a correspondence course through an independent educator controlled by the Licensing Board. However, such high standards were not always the norm, so a governing body was necessary.

Acceptance into the program was difficult. Students needed to apply, reputations were investigated, and credit checks completed. Dermot Murphy recalls controversial practices of scrutiny, sometimes neighbours were interviewed for comment regarding a candidate’s credit standing or character. If a student wished to become an Agent they had to attain 70% or better in their first year, Salesmen had to achieve at least 60% to pass. The second year, having been separated by academic results, Agents and Salesmen attended different courses. Applied Salesmanship was later offered at the British Columbia Institute of Technology (BCIT), UBC studies were strictly academic.

• • • • •

The relationship between Agents and their Salesmen was changing in the late 1950s. Salesmen were increasingly included in social events organized by the Board and more personal relationships were

11 1950’s: A Small Dining Room cultivated. With new educational demands Salesmen were gaining knowledge and Agents were no longer the only source of information. Salesmen were also interacting with one another and with colleagues from other Boards. It was not uncommon for Salesmen to “jump” companies with little or no notice. As a result, Agents felt that if a commission rate was preset other Agencies could not recruit with a promise of higher commissions.

As early as 1951, a Vancouver Salesmen’s Committee participated in Board activities in Vancouver, although it was not until 1955 that Salesmen’s Division Standing Committee was established within that Board. That new Division pushed for tighter controls on part-time Salesmen, better MLS marketing education, and improved advertising. A philosophy of self-imposed standards and improved salesmanship was a growing trend within the ranks of Salesmen across the province, Nanaimo County included.

Still, some Members of NCREB were reluctant to allow Salesmen to participate fully in Board activities. In late 1957 NCREB Salesmen had taken action by sending letters to the Board seeking information regarding a Salesmen’s Division, which was outlined in the Constitution. Arguably, the participation of Salesmen could benefit the Board; even reluctant Agents could not deny the advantage of additional Committee Members to share the work load. Still, this was a time when Agents were accountable for Salesmen’s ethical behaviour, so their relationship was complicated.

In 1958 W.W. Reid, self-declared President of the first Real Estate Salesmen’s Union in Canada, recruited twelve Charter Members in order to unionize. On July 16, 1958, 150 Salesmen gathered at the Stanley Park Pavilion in Vancouver, but the majority voted “No” to Mr. Reid’s proposed union. It was clear then, and throughout the 1960s, that Salesmen themselves were divided over their own destiny. However, they did want to “organize”. They were also gaining ground in the boardroom, furthering their education, and improving their salesmanship. Although Salesmen were still controlled by Agents the industry was changing.

• • • • •

On August 19, 1957 NCREB met in Courtenay with 6 Agents from Courtenay and 2 from Campbell River. Board Minutes report that the North Island group was “ready to go ahead and form their own Board.” The distance that separated the Agents from Nanaimo was a barrier to Board activity, but the number of Agents in any given area remained financially and logistically problematic.

• • • • •

Despite complying with the Board’s request to submit financial records, the NCMLS failed to gain favour and the Board voted to become Members of BCMLS in 1958. Pat Shea, speaking for a group of NC- MLS supporters, announced the group’s willingness to join BCMLS if they could also maintain NCMLS. Initially the Board stipulated that those using BCMLS must first belong to NCMLS. Yet, given the size of the Membership it was difficult to continue both financial and operational support of two Listing Ser- vices.

On November 18 of 1958 Frank Ney motioned to discontinue the NCMLS and proceed with the BCMLS, but there was no second to his motion. Bill Luhtala thought the new service was too pricy and the Salesmen were ignoring listings due to their lack of BCMLS understanding. Frank Ney and Jack Evans both agreed that “good listings” and “exclusive listings” were not advertised on NCMLS; only “poor”

12 1950’s: A Small Dining Room listings made the rounds. This demonstrated that Agents and Salesmen were still protective of the more saleable properties. Furthermore, it was suggested that Nanaimo County was too small of an area to maintain an individual Listing Service; there was just not enough product. The majority of operation fees, if not the entire cost of doing business, was assumed by Agents. It was finally decided that NCMLS would continued as an entity, but BCMLS would be used to advertise listings.

The rise of MLS is an interesting study in that it shows the complications of any single decision within real estate. While the Salesmen were reluctant to share information with others via Listing Ser- vices, marketing properties and being aware of available listings soon became unmanageable without the Service.

• • • • •

The NCREB Constitution was challenged on April 21, 1958 in a commission dispute between Mladin Zorkin and Frank Ney. The Arbitration Committee was found “out of order” as its parameters of authority were not established correctly within the Constitution. While details of early disputes were rarely detailed in the Board Minutes, the outcome of this dispute was symbolic for two reasons. First, it proved that the Board needed its own Constitution. It had adopted (and adapted) both the Vancouver and Victoria Con- stitutions through the six and a half years of association. Allan Armstrong had been vocalizing the need for a Nanaimo County Constitution since March, 1955. Second, the arbitration conflict forced the Board to establish policy. Even though he had been awarded the majority of the commission split, Mladin appealed the decision and the Board withdrew from the discussion. Years prior it had been agreed that arbitration was binding; all Agent Members would adhere to arbitration decisions in order to present a unified image to the public. Appeals were disallowed.

• • • • •

February 26, 1959 Collin (Coll) Campbell, John Seccombe, Larry Stewart, Bill Ney, Pat Moore, Ron Dickie, Pat Shea, Norrie Carey, Mr. Whittome, Jack Evans, Ken Guest, Herb Norton and Stu Furk sat down to hammer out the details of an Upper Island Real Estate Board – as had been proposed nearly two years prior. However, after a long, exhausting debate the men stood up and left the table, their plan abandoned.

Soon after, the Board voted to discontinue the NCMLS outside of the City of Nanaimo, and forfeit the requirement to join NCMLS before joining BCMLS. This was a precursor to the Board’s greatest transformation. Everything was about to change and the Board would never again be the same.

• • • • •

At the next Board meeting on March 19, 1959, a little housekeeping was in order. Rather than form their own Board, Members outside of the Nanaimo area formally voted to join the Nanaimo County Real Estate Board as full Members. Norrie Carey and Chester Good initiated the formality and were followed by: J. E. Hess & Sons Ltd. – Chemainus; Norton Agencies Ltd. – Campbell River;

13 1950’s: A Small Dining Room

J. H. Whittome Co. Ltd. – Duncan; H. C. Good Ltd. – Qualicum; Parksville Realty Ltd. - Parksville; R. N. Carey Agency Ltd. – Courtenay; R. Thwaites Agencies Ltd. - Parksville; J. A. Ellis of Port Alberni Shipping Co. Ltd. – Port Alberni; E. D. Thwaites Ltd. – Qualicum Beach; H. W. Dickie Ltd. – Duncan.

It was necessary for these Members to formally join NCREB in order to be included in the changes that immediately followed their vote. Upon the recommendation from an exploratory Committee led by Ron Dickie, Allan Armstrong motioned to officially change the Nanaimo County Real Estate Board’s name to the Vancouver Island Real Estate Board (VIREB). The new name reflected the progress of the Board and its ability to adapt and be inclusive.

The March meeting also laid out the new organizational structure of the Board. To ensure that all VIREB Zones were represented fairly a Director would be elected from each Zone. To further ensure fair- ness one Director would be allowed for every five Member Agents (limits from single Zones would be imposed later). It was decided that Directors would elect the President and two Vice-Presidents. Initiation fees would be $20 with a $50 annual Membership fee. The first Directors of the new Vancouver Island Real Estate Board included:

Campbell River – Herb Norton; Courtenay & Comox – Norrie Carey; Chemainus & Ladysmith – Ed Hess; Duncan – Ron Dickie; Nanaimo – Colin (Coll) Campbell and Pat Shea (Pat resigned in September and was replaced by Bill Luhtala); Parksville & Qualicum Beach – Allan Armstrong; Port Alberni – Jack Ellis.

The Directors then elected their first Executive: Ron Dickie – President, Norrie Carey - First Vice-Pres- ident, and Pat Shea – Second Vice-President. In a mere two months Ron Dickie had gone from new Mem- ber to President of the Board. The new Executive represented the diversity of its Membership. Mladin Zorkin, newly nominated to head BCAREB, offered a “hearty vote of thanks” to Ken Guest and Ron Dickie for their effort in organizing the emergence of VIREB. While these few are mentioned as catalysts, many Agents and Salesmen valued an inclusive Board and accepted a structure that would represent each Zone equally.

When the installation dinner took place the following month 72 Agents, Salesmen, and spouses were in attendance. Herb Fullerton installed VIREB’s first Executive. Stu Furk reported that “an excellent dinner was held, proceeded by a most enjoyable cocktail hour which gave new and old Members a chance to get acquainted”. With much ceremony the Vancouver Island Real Estate Board, affectionately known as VIREB, was established.

In September the Constitution was reviewed, with a name change an overhaul was necessary. The Code of Ethics was retained and the Board concluded that each Zone would establish their own commission split according to its geographical location and economic circumstance. It would be up to Zone elected Directors to determine that split.

14 1950’s: A Small Dining Room

• • • • •

Across the province individual Boards struggled to maintain their own MLS programs and BCMLS gradually become the preferred Listing Service of VIREB and other Boards. BCMLS fees were established with a minimum 10% commission in mind; 7% of the total commission would be paid to BCMLS and the remaining 93% was to be split equally between the listing and selling Agents. The 46.5% that each Agent received was further split with the Salesmen. A 50/50 commission split between Agent and Salesman was fairly commonplace by the early 1960s. It was then suggested that VIREB assess each BCMLS sale an additional 1% (or 0.5% if bought or sold by non-Member). While this needed to be decided at the next AGM, the additional income would come to matter greatly to the Board.

• • • • •

Presentations to the Board from outside sources were common and often addressed industry related affairs. This opportunity was also the start of something strategically effective for VIREB. Members from other Boards began to participate in VIREB’s educational events and the Board’s reputation for educational standards grew. On November 23, 1959 VIREB’s first two-day seminar was held at the Island Hall in Parksville, it focused on advertising. The seminar used a panel-format and was an immense success. Minutes report that $214 in registration fees was collected and $213.89 in expenses declared; the Board earned eleven cents in profit.

In the final month of the Board’s first year as “VIREB” the upcoming 1960 BCAREB Convention in Penticton was discussed. The 1961 Convention location had not been decided. It was suggested that VIREB “extend an invitation” to BCAREB for the 1961 Convention. President Mladin Zorkin struck a Com- mittee including Ron Dickie, Ken Guest, and Frank Ney to study Nanaimo’s ability to accommodate 400 to 500 delegates from across the province. After nearly a decade of increased participation in organized real estate, VIREB was about to step-up its game.

15 1950’s: A Small Dining Room

Succession to President: Ellis, Eaton and Wood

VIREB meetings on a variety of topics have always been well attended by members

16 1960’s A Civilized Society

VIREB entered the 1960s with a strong, integrated Board that represented all geographical areas of the Island, north of the Malahat. It was focused on education, meeting the needs of the Membership, and protecting the public interest.

Insurance was a growing issue for Real Estate Boards. Directors, Agents, and Salesmen all needed coverage in case an error was made during a transaction. The Agent was, after all, responsible for the Salesman’s conduct. Furthermore, VIREB continued an ongoing assessment of health insurance on behalf of the Membership. As Salesmen and Agents often traveled by car, their risk level presented unique issues for insurance providers. After extensive debate, British Pacific was selected to provide coverage for a cost of $11.30 per married Member a month and $4.35 per single. Married couples would be charge $10.90 and $4 for singles, if over the age of 50 years. Each policy included a 5% Board service-fee because the Board negotiated terms and organized payment to the insurance company.

In 1960 the Board voted to allow Sunday showings between 1pm and 5pm. The 1906 Lord’s Day Act prohibited business on Sundays. However, the Act allowed the Attorney General to veto any restrictions if deemed appropriate. For many years Salesmen across BC overcame the Sunday restrictions by filing paperwork after midnight so Monday’s date would appear on documentation. In 1960 the freedom to operate on Sunday was extended to the real estate industry due to the unique nature of the business, though hours of operation were still restricted.

• • • • •

Norrie Carey was installed as President in September, 1960 at the Qualicum Beach Inn. The 1961 BCAREB Convention was awarded to VIREB and the opportunity to increase the awareness of Vancouver Island was possible. New residents meant new purchasers. Fortunately, Frank Ney was named Chair of the Publicity Committee that year so the Board was in good hands.

Board Directors began an “institutional advertising” campaign in order to attract more Members. It was not mandatory to belong to the Board and many Agencies did not. Newspaper articles and paid advertising regarding the benefits of Association were published in all Zones. More Members meant more funds for Board initiatives, rather than increased costs for current Members. Plus, the standardization of Licensee behaviour continued to be a prime focus. Non-Members could not be regulated and, therefore, posed a strategic risk to the professionalism of Members. The general public could not determine who was a Member and who was not. Advertising would provide a venue to communicate.

• • • • •

VIREB legalities soon increased in complexity. Accusations of defacing signage and a lack of licenses in the 1950s had evolved into issues of pricing, loans, and bureaucracy in the 1960s. Complaints regarding incorrectly priced homes increased and VIREB considered establishing policies that would dictate a pricing scale for Salesmen to follow. VIREB redoubled its effort to provide additional appraisal courses for Salesmen.

17 1960’s: A Civilized Society

BCAREB had also proposed the standardization of forms for exclusive listings and Interim Receipts (later known as Contracts of Purchase & Sale) in 1961. Forms would then be province-wide and work towards the regulation of industry procedures, further inspiring public confidence. By 1961 BCMLS showed interest in the possibility of a VIREB price-setting policy. BCMLS, at this time, was the only provincial MLS program in operation in Canada and no other area was using a price-policy. However, BCMLS was not prepared to regulate pricing and left it up to VIREB to provide information supporting the need to do so. The only other remedy for inconsistent pricing was education.

• • • • •

Development on the outskirts of larger centres began to increase in the latter 1960s. The first baby boomers were having families of their own. Those living in detached homes were demanding more square footage and converting their basements to liveable space. VIREB Members sought information from the Department of Highways regarding requirements for subdivision submissions. Many Agents and some Salesmen were developing land and their foresight of future housing needs was instrumental to growth in all Zones. Members were not satisfied with speed in which the Department of Highways processed subdivision plans pushed VIREB and BCAREB to force a change.

• • • • •

As VIREB activity continued, expenses increased. The growing need for education and the increasing seminar activity was expensive; speakers and venues were costly. Seminar registration fees were subsidized for VIREB Members in order to encourage participation. In addition, hosting the upcoming BCAREB Convention increased budgetary spending; new Members were essential. A proposed increase of dues from $50 to $65 per year was rejected, but a $3 fee increase for Nominees over one, and a $2 fee per Salesman over one were fixed. Though the Listing Service and seminar registration earned some revenue, Agents carried the bulk of the expenses. The cost of VIREB activities was increasing and the burden of volunteering as Directors while managing their own Agencies rested on the shoulders of Agents.

• • • • •

When the invitations to the 1961 BCAREB Convention were dropped into the mailbox they included a program, a registration form, and a Membership form. This was a clever marketing strategy to attract companies within the VIREB Zone. Frank Ney also suggested that a VIREB Member be appointed to “make long distance phone calls of 3 minutes, no longer than 5 minutes, two days after the notices are mailed, to all those eligible Realtors in our Membership area”. This follow-up reflects the willingness to promote VIREB Membership as well as the need to pinch pennies. The Convention took place May 5 - 6, 1961.

The June Minutes report that the 4th Annual BCAREB Convention was an “unqualified success due to the excellent work of Mr. R.C. Dickie, Chairman, and his Committee.” Special mention was offered to Frank Ney the Program Chairman, Ken Guest for accommodations, and Colin Campbell for transportation. A profit of $412.76 was realized and transferred directly to BCAREB. VIREB had introduced itself on the provincial stage; a legitimizing effort. The Board had come a long way in ten years.

• • • • •

In the meantime, BCMLS was struggling to attract participation. The Board determined that BC- MLS was useful in theory, but house pricing remained unrealistic and revenue was not realized at the Board level despite VIREB’s organizational responsibilities. It was thereby decided that BCMLS should be abandoned without further expenditure. BCMLS did not give up so easily. Fred Philips, Past-President of

18 1960’s: A Civilized Society

BCAREB, presented a case for a Multiple Listing Service to VIREB’s General Assembly in October. He argued that at that point the Service was self-supporting and had sold $850,000 worth of property in 1960, and $500,000 as of September 1961. He asserted that if the Membership priced homes appropriately, others would follow. The decision to “abandon” BCMLS was rescinded and the Board decided further education with regards to the process of multiple listings was required. Ironically, other Boards were experiencing great success with their own Board MLS programs.

With MLS discussions in the forefront, the commission debate soon arose. It had been decided that each Zone would determine their own rates, but “after a lively panel discussion” a minimum rate was proposed with the understanding that commercial and residential commission rates would be considered in two separate categories. Notably, the Minutes do not record the commission splits until 1963, but evidence suggests that Nanaimo residential properties earned 5% commission (within city limits), farmland properties earned 10% for the first $50,000 and 5% on the balance, and commercial properties earned 10% on the first $50,000 with 5% on the next $50,000 and 2.5% on the balance.

• • • • •

Frank Ney and Mladin Zorkin were delegates at the 1962 BCAREB Convention whereat Jack Evans was elected Governor of the Real Estate Institute of British Columbia. By this time, VIREB had incorporated a more social agenda for its AGM and organized a golf tournament for the 1962 installation ceremony. Jack Evans was also elected President for the third time in the Board’s history (the first time under the name VIREB). The 1962 AGM also marked a milestone in the Board’s history. Audrey Thwaites, of E. D. Thwaites Ltd. in Qualicum Beach, was elected the first woman Director. As Parksville/Qualicum had more than ten Agent Members between the two communities the Zone was allocated two seats on the Board, Audrey represented Qualicum and Dudley Wickett represented Parksville. Audrey’s small town sensibility and fundamental understanding of real estate (having grown up in the business) allowed her access to a largely male dominated industry.

• • • • •

The Multiple Listing Service continued to receive scrutiny as its value to VIREB remained questionable. In September of 1962 Ken Guest, then a Director on BCAREB, reported that other Boards were operating their own MLS by putting all listings on the Service and charging 7% of total commission; Salesmen each took their split and 0.5% went to the Board as revenue for the cost of the Service.

In a November address, CAREB representative Pip Holmes pointed out that the MLS also gave the Board stronger bargaining power with its Membership and was a positive instrument for “listing specialists”. In addition, Mr. Holmes outlined the value to the industry as a whole; MLS listings sold quicker, not only were customers happier Salesmen had steadier incomes, which attracted better Salesmen. This strengthened companies and individual Boards. It was particularly lucrative for commercial and waterfront properties. VIREB ordered a study of the MLS program in hopes of formally instituting it into all Board Zones.

As a result, in early 1963 the Directors determined that a formal MLS would require a $100 initiating fee by participating Members and an established commission split of 7%; 4% to the selling Broker, 2.5% to the listing Broker, and 0.5% to the Board for MLS use. Residential and commercial properties would be charged equally, and Agents’ fees would be paid from that split. Additionally, a Secretary-Manager would be needed to manage the MLS; a salary of $4,000 per year was suggested. Operating fees for six months (including rent, telephone, car allowance, postage, power, “typewriter rental”, and banking costs) was budgeted for $3,386. These recommendations were circulated to all Zones for input. Yet, the group could not reach consensus and the MLS debate was tabled.

19 1960’s: A Civilized Society

• • • • •

In late 1963 Salesmen and Agents were concerned over commission rates being “established and published” by the Board. Each Zone had been setting their own commission rates and it was feared that commission inconsistencies would affect the public’s opinion of the industry. Disputes over perceived chattels also arose as some purchasers were surprized to find items removed when they moved in. Fur- thermore, complaints of signs being torn down by competitors were reported and the question of what was included in the purchase of a home needed to be established. This led to the initiation of the Stan- dard of Interim Agreement, a standard form of Interim Receipt that required all assets be listed in order to protect the Salesmen as well as the purchaser.

• • • • •

A variety of tools were becoming available to industry participants. National and provincial bodies provided educational opportunities. Agents were assisted in finding appropriate Salesmen in 1965 when CAREB generated the Sales Personnel Selection Kit. This provided a series of tests to judge how successful a potential Salesman might be. Jack Evans also reported a new service that provided comparative sales information in Vancouver and West Vancouver called the Multiple Listing Sales Comparison Cata- logue. This allowed Salesmen to track market prices and stay in tuned with what was available. It also led to statistical record keeping as Vancouver moved into the technological age, introducing its first computerized IBM system in 1964. This automated system kept record of MLS numbers, expiry dates, physical descriptions, and price ranges. This capability led organized real estate into a new era of information management allowing trend tracking, quicker billing turnarounds, and documenting Salesmen’s statistics. While Vancouver opened the door to technology for all Real Estate Boards it would be some time before VIREB could take advantage of such tools. Technology was a far reach for a Board that still struggled with implementing an MLS system, and was hampered by a vast geographical area.

During the last half of the 1960s subdivisions grew in popularity the demand for building lots was complicated by the need for land to build schools. School Districts, through the Provincial School Board Authority, had been expropriating land in order to construct schools, without compensation. Land that could have been sub-divided and developed was taken without recourse.

Frank Ney and Allan Armstrong were charged with preparing a resolution to address the unfair practice. While this was an issue, changes were afoot. The Duncan School Board commissioned Pat Moore to secure land in order to build local schools in 1966. Pat had had experience with specialized acquisitions prior to the School Board approaching him. In 1958 he was appointed the Real Estate Board’s representative to the city of Duncan during their pursuit of the “Chinatown” land. After Pat negotiated the sale he appeared before City Council to appeal for the preservation of Chinatown’s buildings, which were later moved to the outskirts of town to become Whipple Tree Junction in the 1970s. The Real Estate Board had appointed Pat allowing him only 50% of the Chinatown commission. The remaining 50% was split equally between the other Duncan Member offices in order to be fair.

• • • • •

Pat Moore became President on June 21, 1965 and Frank Ney was appointed CAREB Director the previous month. VIREB was appointed the host of the 1966 BCAREB Convention in Nanaimo. Frank Ney and Ed Hess, delegates to the 1964 BCAREB Convention, had lobbied for the Convention; inviting everyone to “Meet the Hicks in the Sticks in ‘66”.

In a turn of events, the BC Institute announced the termination of BCMLS in 1965. With the elimination of a competing entity Board Directors voted in favour of forming their own MLS in the VIREB area.

20 1960’s: A Civilized Society

In 1966, the Board would do just that, and so much more.

• • • • •

1966 was one of the most important years in the history of the Vancouver Island Real Estate Board. Not only did VIREB initiate the MLS program once and for all, it hosted the BCAREB Convention, and – most importantly - was incorporated as a Society.

In January of 1966 Allan Armstrong outlined a plan to implement the newly approved MLS. It would require that Agents pledge $200 for start-up fees, which would be returned if MLS failed. He insisted a Manager should be hired to focus specifically on the MLS program. A $3 fee would be levied per listings and a tentative start-date was set for May 1, 1966. The Board approved the plan unanimously, and the 20 Members present each paid $200 to become Charter Members of the MLS. Doug Lawford was hired on February 15th as the MLS Secretary and, thereafter, Board Manager. Stu Furk remained involved as the Board’s Treasurer, but his office was no longer appropriate for Board management. Instead, space in the old Jean Burns Building on Commercial Street was leased for $35 per month. In 1966 VIREB dues were $50 per Agent, $6.50 per Nominee over one, and $8 per Salesmen over one. CAREB dues were $10 per Agent and $5 per Salesmen regardless of how many each Agency employed.

In early 1966 Pat Moore, pointed out that VIREB’s current Constitution contained only by-laws and regulations, largely usurped from the Vancouver and Victoria Boards, and lacked “aims and objectives of VIREB”. The President struck a Committee to prepare a Constitution specific to VIREB. Correspondingly, the MLS changes and new arbitration rules would be integrated into the new Constitution. Other Boards were incorporated under the Societies Act and it was an ideal time for VIREB to do the same. The Society documentation and new Constitution were introduced in April of 1966 “to establish, maintain, and regulate the Vancouver Island Real Estate Board. To advance and promoted the interest of those engaged in the Real Estate business as Brokers, Agents, Salesmen, valuators, appraisers, examiners, and experts and to increase public confidence in and respect for those engaged in the calling of Real Estate Agent”.

High on the list of priorities for the new Society was to improve the relationship with the public by exercising the use of the “REALTOR” image. While the term REALTOR had been coined and trademarked in the 1940s it was not largely used by the public, nor was it a commonly used term in VIREB documentation. 1966 marked a turning point where promotion of the REALTOR designation would identify Mem- bers as licensed professionals and create legitimacy in the public eye.

Within the Constitution, arbitration held an important role. Arbitration required the guidance of a Code of Ethics sympathetic to the national standard and customized to VIREB Membership. While VIREB had established a tradition of arbitration early in its Association it was nonetheless a system of peers judging peers. As the Membership grew and regulations were established, a policy-driven standard would be required in order to protect decisions and maintain working relationships.

A commitment to charity was also outlined as an objective of the new Constitution. This charitable emphasis was intended to protect Members if they found themselves in need of financial support, and educational endowment. It was also at this time that Herb Fullerton was granted Honorary Life Member- ship in VIREB.

The Constitution defined Membership in three classes: Active, Associate, and Honorary. It also determined election procedures, and ascertained that an extraordinary resolution would involve at least a 75% majority. On April 1, 1966 VIREB was formally registered as a Society.

• • • • •

21 1960’s: A Civilized Society

Dermot Murphy, the Real Estate Council’s Secretary from 1964 to 1995, tried hard to attend every VIREB event. In Vancouver, VIREB was seen as a “wild area” with the “best parties”. Despite their aptitude to throw a “serious party” it was always a chance to network. To Mr. Murphy the VIREB Membership was a group of “friendly rivals…who cooperate [because] they were friends”. Assuredly, he crossed the Geor- gia Straight to attend the BCAREB Convention in Nanaimo in 1966. Frank Ney chaired the 1966 Conven- tion Committee; there were few people who could match his promotional contribution to Vancouver Island.

The Convention was held from May 15 - 17 with most events taking place at the Malaspina Hotel, but rooms were rented and banquets held at the Shoreline Hotel and the Tally Ho Travel Lodge as well. Frank Ney had organized his network of Nanaimo boaters to provide Gulf Island cruises and salmon fishing ex- cursions. Miss PNE and Miss Hospitality B.C. were in attendance for the Seafood Carnival at Yellow Point Lodge.

Pat Moore was in charge of “refreshments” and on the first night of the Convention he and his business partner Ron Dickie were transporting the opening-night reception spirits to the penthouse of The Towers. The Towers was a new high-rise building on Front Street in downtown Nanaimo. Malaspina Hotel was fully booked, but the management at The Towers allowed VIREB to rent several rooms as it was not fully leased.

Pat and Ron were shuttling boxes of refreshments into the elevator from their car when UBC Profes- sor Philip White and his wife Nancy happened along. Pat and Ron invited them to join them for a cocktail once they had transported all of the boxes to the penthouse. As the gentlemen returned to the car for more boxes a tenant took the elevator up. Much to Pat and Ron’s dismay, more than half of their night’s alcohol was onboard. When the elevator returned to ground level the cargo was intact. However, they soon determined they were short a case of scotch. Professor White began to speculate that if he were a scotch thief he would not take the elevator directly to the floor on which he lived. Rather, he would stow the box of scotch on a landing a few floors short, go to his room and wait in case anyone were to inquire at his door. He would return when the coast was clear.

There were two staircases in The Towers, Pat took one and Ron the other. Pat made it all the way to the bottom floor without finding the box of scotch. Upon his return to the suite Pat found Ron Dickie “with a smile all over his face and there was the case of scotch.” The box had been recovered safely on a landing just as Professor White had predicted and Pat Moore has had a “soft spot” for Philip White since that day.

The 1966 Convention was also noted for abundance of guest speakers, thanks to Frank Ney. Frank often traveled to Toastmasters’ competitions and conventions and was frequently impressed by speakers; he’d then invite those speakers to deliver the keynote address at the 1966 BCAREB Convention in Nanaimo. Many speakers obliged and Frank passed along their names to Pat Moore, who had the tricky task of organizing a multitude of presenters. Much to their surprise the speakers arrived in Nanaimo to find they were one of many “keynote speakers”. Pat organized panels in order to accommodate them all. Furthering complications it had been decided that the keynote speaker would receive a hand-made Indian Sweaters from Hills as a thank-you gift. With extra speakers, the final price tag was substantial.

The 10th annual BCAREB Convention was one of the most successful held by the organization, with 428 registered delegates in attendance. It was also motioned that Frank Ney received a public “thank- you” for his concerted effort to make the Convention a success. In May, 1966 CAREB adopted the double “RR”, which signified the “REALTOR” designation.

• • • • •

22 1960’s: A Civilized Society

The 1966 integration of the MLS system dictated the need of a standard residential commission, which was thereafter set at 7%. A 10% commission on commercial properties, vacant land, and farms up to $20,000 and 7% on the balance were also imposed. Frank Ney proposed that Salesmen split their earned commission 50/50 with the Agent, with bonuses not exceeding 10% of the gross. This commission rate was approved in a vote of five to two on September 26, 1966. This kept the Agent in control. However, the commission rate had increased by 2% and the sales force was on an equal playing field across all Zones. Previously, Salesmen registered their displeasure by leaving one agency for another; sometimes with little or no warning. Standardizing the commission addressed the “jumping ship” issue in that competing Agencies were less able to lure Realtors with better commission rates. It was a stabilizing effort.

It was at this time that a more formal arrangement was forged with the Land Registry Office (LRO). Registering land was a necessary component of the real estate industry, but seeking land title information was expensive and time consuming. It was feared that many Realtors would be tempted to proceed with the sale process despite not having the necessary proof of title. In late 1963 it had been decided that the Real Estate Institute would be informed of extended waiting periods at the LRO for VIREB Members. This reflects the supportive relationship between VIREB and the Real Estate Institute. It also reflects the increasing power Real Estate Boards had regarding organizing entities. These relationships would allow VIREB, and other Canadian Boards, to promote their political agendas in the years that followed.

In 1965 the LRO processed 136 properties in the VIREB area. As the market activity increased in volume, the Registry’s fee also increased; a financial solution would be necessary. In March, 1966 a Land Registry Reporting Service (LRRS) was made available for $300 per month. This cost could be shared between VIREB Members, but a pre-paid commitment was required. By June, 20 offices had pledged $15 per Member to secure the service; implementation took place in August with a prepayment of $90 per office for six months service. However, this only paid for the service it did not ensure promptness. Title searches continued to slow the processing of sales.

• • • • •

The MLS was earning a steady income and by 1968 the LRRS was included in Board services. By late 1969 the Board would begin to investigate Teela Reports, an alternative to the LRRS. Teela not only provided the same information as the LRRS it provided a semi-annual comparative breakdown of statistics relative to location. This was indicative of changing technology; technology that would make statistics an efficient and significant tool for the industry. The Board decided to replace LRRS with Teela Reports when they became available. Not only did the Board Members recognize the need for technology it was willing to forgo recent adaptations to LRRS in order to remain current. Yet, it was not until March of 1971 that Teela Reports became available and their increasing expense would prove problematic to VIREB.

• • • • •

Changes to the Real Estate Act in the early 1960s gave Trust Companies the right to sell real estate. This was competition for all Real Estate Boards and posed greater problems in that guaranteeing Trust Companies were utilizing licensed Salesmen was difficult. Many Boards banned unlicensed Salesmen from accessing resources, including MLS services. Controlling Board-owned resources seemed rational, but it would provee challenging to all Real Estate Boards in the years that followed. The federal Combines Investigation Act (known as the Competition Act after 1986) addressed the activity of limiting competition, specifically the monopolization of an industry and price-fixing. Setting commission rates was a source of contention as it appeared to be ‘price-fixing’ and not competition. It would be a long battle.

• • • • •

23 1960’s: A Civilized Society

During their September meeting the Presidents’ Committee of Real Estate Boards of British Colum- bia had written a letter to Budge Bell-Irving requesting a by-law amendment to change the governance structure of the Realtor Division so the Division’s Executive would thereafter be made up of the President and a Director from each Member Board. At the time, governing organizations were directed by Agent Members.

Mr. Bell-Irving responded promptly and raised four possible changes for the group to consider: “Equal representation to Members from each Board regardless of the Board’s size; Mandatory inclusion of each Board President; Method of electing or appointing Chairman and/or Vice-Chairman; Inclusion of the immediate Past-Chairman in the proposed Executive of the Realtor Division.”

After discussion it was agreed that a representative from each of the existing 8 BC Boards would sit as a Director. Ideally an individual Board President would be appointed, but flexibility was essential and the group decided that Realtor Division Directorship could be filled by individual Board Directors regardless of their position and they would be accompanied by the Board Secretary, in 1966 that was Doug Lawford. The Chairman of the Realtor Division would be elected by the Division itself. Furthermore, the CAREB regional Vice-President and Division’s Past-Chairman would be included in Executive meetings, but would not hold voting power. Given that the Secretary and Board Director both participated, two votes were allowed per Board, and a two-thirds majority was required to carry a motion. At the time the Realtor Division was made up of Agents and managing Secretaries from 8 Boards: Vancouver, Victoria, Vancouver Island, WESCOREB, North Fraser, Okanagan Mainline, Kootenay, and Cariboo. At that time a Northern BC Board was being formed and there was a possibility of a Prince Rupert-Kitimat-Terrace Board.

It was within this solidarity of Real Estate Boards that VIREB found a role as an equal partner. It had evolved from an informal Tuesday night meeting at home, to the Small Dining Room at the Plaza Hotel, to an incorporated Society that had earned a legitimate place at the table with industry leaders. President Pat Moore had led VIREB to the threshold of incorporation, Allan Armstrong had led them through, and Lloyd Wood would continue the next era as President-elect in 1967.

At the start of 1967, 32 Agent Members participated in Board activities. Common issues continued to concern VIREB, but the group was able to rely on the Constitution to answer those concerns. The new Constitution, established in 1966, was tested in the years that followed and necessary revisions were imposed as a means of establishing protocol. In the previous 15 years the Board had worked hard towards establishing internal relationships that would improve the industry. What had been formative decision- making now became policy-driven action. Commissions and bonuses were determined and the standard of protecting the Agent, Realtors, and the public continued. A new Society also meant a new phase for VIREB, one that would include the growing participation of Realtors. Realtors had gained a greater knowledge-base and begun to push a parallel agenda.

• • • • •

Determining commission splits between Agents and Realtors was delicate, but it was also strategic. In the past, Agents had enjoyed the profits of successful Salesmen and, in turn, maintained the cost of office management, advertising, Association fees, and additional education. In autumn of 1967 it was decided that a 50/50 split between Realtor and Agent would be in effect until the Realtor surpassed $10,000 in gross commissions for the year. Thereafter an additional 5% would be paid, 55/45 commission split. If gross commissions surpassed $20,000 an additional 5% would be possible, or 60/40 split (unless a previous contract had been agreed upon to receive more than the maximum 60/40 split – possible, but rarely talked about). It was essential that all Agents adhered to the agreed upon split. This worked as a safe- guard to protect Agencies from losing Salesmen by the lure of higher commissions at other Agencies. It also ensured that the Salesmen would receive at least 50% of their commissions, but would be motivated

24 1960’s: A Civilized Society to earn more. This was tricky for non-Member Agencies in the VIREB area, as they were forced to pay at least 50% commission, or risk losing their sales force.

In addition to a commission fee of 0.50% on sold properties, MLS also commanded a listing fee and an initiating fee to participate. Each listing cost $3 to process and the MLS initiation fee was $100. The MLS commission fee soon proved difficult for top-producers, who felt that 0.50% of their commissions were funding services for less prolific Salesmen. Nonetheless, in early 1968 Board Directors delayed any changes to the MLS commission break-down until such time as a Salesmen’s Division was formed and their opinion sought.

At the same time, the Board ordered 50 “lock boxes” for MLS listings, the first such order. It was advised that the boxes be place on back doors or water pipes in order to avoid scratching the front door. As of December 1, 1969 new MLS listings were accompanied by a letter of gratitude mailed to the vendor for listing with the service; it included a copy of the listing information and a photograph. This personal touch was matched by the more serious legal consideration of lock box security and accountability. The Secretary-Manager was directed to research the Realtor’s responsibility should a lock box be used for criminal activity, such as robbery.

• • • • •

In November 1967 there was an undeniable provincial trend towards including Realtors in the business of BC Real Estate Boards. Nanaimo Realtor Ewart Mabee had been actively recruiting Salesmen to join a VIREB Salesmen’s Division. Salesmen’s Divisions had been a topic for close to a decade in BC. Divisions had already been forged in larger provincial centres and VIREB had established co-operative connections by increasingly including Salesmen in Board activities. However, Salesmen were not necessarily eager to participate in a Division of their own. As always, change was hard to accept.

Gordon Blackhall, who sold for Carey Agencies (later Comox Valley Lands) since 1964, recalls a system of self-preservation that “was for the birds”. Realtors would “get a listing and file it into their back pocket” without sharing details, even between co-workers in the same office; allowing the Realtor to list and sell the property exclusively. From the Salesmen’s perspective an Association of their own would force shared listing knowledge; some were responsive, some were not. However, there were motivating personalities in the Salesmen’s ranks who shared a vision of inclusion.

Correspondingly, there were Member Agents that also saw the benefit of sharing power. Not only were Agents responsible for the financial and physical operations of their Agencies, they were responsible for the operation of the Board. Sitting on the Board also meant chairing Committees, serving on the Executive, and representing VIREB outside of its boundaries. Life as a Director not only took time away from the management of one’s own company, it was an expensive, and time consuming prospect.

While the willingness to accommodate a Salesmen’s Division was progressive not all VIREB Members shared the vision. There were two distinct groups: one set on maintaining the status quo and one set on inclusion for the sake of progress. The fight was not an easy one. Pat Moore recalls a physical altercation of “aggressive persuasion” when discussing the initiation of a Salesmen’s Division with a fellow VIREB Member who was less accepting of change. However, in the end, the preliminary approval of the Division within VIREB territory was met with a unanimous decision by the Board.

In June of 1968 a resolution proposal was formally put before the Board regarding the formation of a Salesmen’s Division. The extraordinary resolution detailed necessary additions to the Constitution and needed by-law changes. The Division was thereby mandated to “promote and encourage a high standard of ethics in the Real Estate Business and to promote and encourage improved methods for the listing and sale of real estate to the general benefit of the Board”. 25 1960’s: A Civilized Society

The Board gave Ewart, who sold for Block Bros Nanaimo, a seat at their table in September 1968. Ewart’s role was largely observational, but he had power within the Division. On September 27th he reported that all Zones were aggressively organizing their Salesmen Executives in order to establish the Division for full effect. Evidence suggests that the Board granted Ewart, the acting Division President, some voting rights as an “active Director”, but the limitations of those rights are not clearly defined. Nonetheless, Ewart had a front row seat to the Board’s decision-making activity which was more than Realtors had had in the past. Furthermore, he also had opportunity to provide input relative to the needs of Salesmen. It was progress.

In 1969 Ewart Mabee was formally elected as the first President of the Salesmen’s Division of VIREB. He was followed by Ralph Walker (1970, 1971), Gordon Blackhall (1972, 1973) and Jim Robertson (1974). What cannot be relayed via a list of past Salesmen’s Division Presidents is the exhaustive time commitment each of these men made on behalf of their colleagues. Given that they were reliant on commissioned sales they must have been motivated beyond profit to ensure the creation of a protective Asso- ciation for Salesmen. Additionally, the aforementioned Salesmen’s Division Presidents were not the sole movers; they were supported by equally driven Salesmen who supported change, but whose names do not appear in any available Minutes. The rights contemporary VIREB Members enjoy were earned for them.

Gordon Blackhall credits Ralph Walker with his own participation in the Salesmen’s Division; “Ralph was a big leader and he dragged me along…we went everywhere and did everything together”. On many occasions Ralph, Gordon, and Reg Eaton piled into Reg’s station wagon to travel to VIREB meetings in Parksville or Nanaimo. However, there was one notable occasion when Ralph put Gordon’s life on the line. Ralph and Gordon were preparing to travel to Victoria to sign the Constitution for the new Sales- men’s Division when Ralph convinced Gordon to allow a friend of his to fly them to Victoria. It was not until they were airborne that Gordon learned Ralph’s friend had built the plane himself – it was homemade! Ralph had elected to take the back seat, preferring to limit his view in the small plane, but leaving Gordon up front with the pilot who allowed him a try at the controls. They arrived safely to sign the Constitution and began their return flight shortly thereafter. The trio made it as far as Merville before visibility was severely reduced by a foreboding bank of black clouds. Night fell and the storm grew, the three men were forced to radio Comox Airbase (strictly military at the time) and beg permission to make an emergency landing. Forty years later, Gordon recalls the terror he felt that day with perfect clarity, but he would have done anything for his friend Ralph.

Adventure aside, the efforts of BC Salesmen’s Division promoted innovation unique among Real Estate Boards in Canada and was the envy of many Salesmen across the country. British Columbia served as a benchmark to the industry and VIREB did more than its share to usher in this new era. Allowing Salesmen into the boardroom would prove essential to VIREB’s future success, as well as its survival. It would also change the course of the entire industry.

VIREB consistently sent representatives to seminars and Conventions across the country. This allowed Board Members and Realtors to network, gather ideas, and share their own progress – it was, and is, an essential aspect of Association. BC often attracted considerable attention for its progressive practices, not the least of which was the Salesmen’s Division. Salesmen from other provinces persistently sought advice as to how to incorporate a Salesmen’s Division into their own Boards.

• • • • •

Ongoing issues with collapsing deals created concern for VIREB. Not only was time and income lost, but a multitude of failed deals would compromise the cultivated image of the professional Realtor and the industry itself. In order to defuse this issue the Board recommended a more substantial down payment be imposed, at least 5% of the sale price. Furthermore, Interim Agreement Forms had been pro-

26 1960’s: A Civilized Society vided by BCAREB in the early 1960s, but a new design was expected from the Vancouver Board. Contracts and Interim Forms were continually revamped as a means of meeting the needs of an industry controlled by economic changes and legislation, but they often reflected unique regional concerns.

• • • • •

Dues for Board Membership in late 1968 were still $50 for an Agent and one Salesman; $6.50 for additional Nominees (by then, those holding an Agent’s license, but not owners) and $8 for additional Sales- men. CAREB fees had increased to $15 per Agent or Nominee and $7.50 per Salesman, while BCAREB charged $5 per Agent/Nominee and $3 per Salesman. Agents were responsible for Salesmen’s Division dues. The steady income of MLS allowed VIREB to finance Diploma Courses for Realtors. Participants were reimbursed for the previous year’s tuition once the proceeding year was underway. In 1969 a decision to invest any surplus funds into a bank bond for two years would prove a lucrative move on the part of the Board. This would help when times got tough, but it would also allow the Board to expand in future years.

• • • • •

The Cariboo Board was named as host of the 1969 Real Estate Institute of British Columbia (REIBC) Convention and invited each Board to perform a short skit. True to industry spirit, it was a competition and the winning skit would be rewarded with what would become the revered mounted “Cariboo Horns”. This invitation began a tradition of amusing, but ruthless rivalry. Reg Eaton recalls the resentment unsuccessful presenters held for winners. Attempted high jacking of the Horns was not an uncommon practice. Skit Night was an important component to the industry though sometimes things went too far. Once, Dermot Murphy was a judge at the Cariboo Real Estate Board-hosted Convention when a skit became so offensive that he actually walked out.

• • • • •

Franchises were a new trend in real estate in the latter 1960s. The one-person operation with a handful of Salesmen (or less) was soon competing with real estate chains that had greater resources for their sales forces and the public. Business lagged for those who could not keep up. Delinquent accounts became a recurring issue and were tricky because VIREB considered its Members equal partners, but it needed revenue to provide services. If a Member office was unable to pay dues, letters were sent to encourage payment. If payment was not forthcoming then MLS suspension was imposed for one month. If Members were still unable to pay, Membership was suspended and a re-instatement fee would be imposed as if the Member were newly applying.

The scope of operations and the landscape of the industry would come to change dramatically as VIREB approached the 1970s. While VIREB Members began to open subsidiary offices across the Board area, notably Frank Ney’s Nanaimo Realty, outside companies also moved into VIREB Zones. 1968 marked the move of Henry and Arthur Block’s Vancouver company, Block Bros, onto Vancouver Island. Henry and Arthur’s unique approach to business would affect real estate in BC until the mid-nineties and, arguably, leave a legacy through the men and women that worked for their company.

The Vancouver Board credits Block Bros with pioneering computerization and catalogue production because it initiated its own catalogue in 1972. Henry Block had served as Vice-President of the Vancouver Board in 1969 and 1970, but was not elected to the role of President due (purportedly) to the size of his company. Instead, Mr. Block withdrew from Board activity and focused his attention on developing his company’s listing service known as NRS. Despite the company’s unorthodox approach Henry and Arthur Block always saw the value in holding Membership in an industry Association.

27 1960’s: A Civilized Society

VIREB members contribute generously to their communities

28 1960’s: A Civilized Society

VIREB goes to Parliament Hill in Ottawa Photo below includes Marty Douglas, top left, and former Nanaimo Mayor Frank Ney

VIREB Directors gather for meeting. Deane Finlayson is at far left

29 1960’s: A Civilized Society

Century 21 opens its doors

VIREB members discuss policy

30 1970’s The Rise of the Salesmen

Over nearly two decades, VIREB had developed into a Board committed to cooperation and standardized regulations. In its first 20 years VIREB established itself as a governing body, but as an equal force within a network of Real Estate Boards. The governing bodies of real estate, having matured with experience and coalesced by interaction, began a progressive tradition of standing united against all levels of Canadian government. What had been operational responses was now proactive behaviour with a strategic vision.

New and creative teaching techniques were provided by the National Association of Real Estate Boards (NAREB; an American Association renamed National Association of Realtors, NAR, in 1972, when Salesmen were included in its Membership) in the form of educational films. In 1969 Realtors found the films, How to List Real Estate in a Competitive Market, Presenting the Offer, Qualifying the Buyer, and Showing Property and Obtaining the Offer useful tools to improve salesmanship. Salesmen’s Division President Ewart Mabee expressed concern over the number of Realtors who were “qualified academi- cally, but [could] not sell”. The Board suggested Agents use the CAREB Personnel Analysis Test; it was believed to “accurately” identify a person’s potential for selling.

In the late 1960s the Federal Treasury Board announced legislation that would allow a wife’s income to be applied to mortgage financing and the provincial government allowed a New Home Acquisition Grant of $1,000 or $5,000 second mortgage loan. This increased buying power. Baby boomers were increasingly gaining university educations and therefore, putting a strain on the labour force. Boomers were also in need of homes to raise their growing families. Supply of labour and demand for housing increased the cost of housing. Coupled with the 8.75% lending rate, the market felt the effect.

Minimum wage rose to $1.50 per hour in 1970 and to a full $2 in 1972, higher than any other province or territory. Furthermore, the legal age dropped from 21 to 19 years in 1970. This increased the number of people able to drink alcohol, marry, vote, and buy houses. While coal prices and allowable cutting quotas in the forest strengthened the economy, BC Hydro reported its first losses in 1970. By 1971 unemployment had risen to 7.5% and in 1972 W.A.C. Bennett’s Social Credit party was voted out of power and Dave Barrett’s New Democratic Party (NDP) was voted in. These trends correlated with, if not directed, the movement of the Salesmen’s Division and the Boards they represented. The 1970s would see the rise of the Salesman.

• • • • •

Jack Ellis was President when the Board gained the capacity of tracking recorded sales and, therefore, statistics with MLS information. In the first three years of MLS, sales had risen from $3 million in 1966/1967, to $7.5 million in 1967/1968, and to $13 million from 1968/1969. Directors began to discuss the abolition or reduction of the $3 listings fee. By the end of 1970 MLS was reported to have sold $50 million worth of real estate since its uninterrupted re-initiation in 1966. MLS listing information was an ongoing source of friction between VIREB Staff and Realtors. Incomplete forms, misinformation, incom- prehensible spelling, or late arrivals left Board Staff frustrated. In 1969 Doug Lawford began the “Cor-

31 1970’s: The Rise of the Salesmen rect and Complete Listing Contest” for the MLS. This was the first in a series of contests, incentives, and downright threats addressing an issue that would dog the MLS throughout its history.

• • • • •

The real estate industry would start the fight of its life in the early days of 1970 when the federal government, led by Pierre Trudeau’s Liberals, issued a White Paper on taxation. The White Paper was later known as the “Basford Bomb” after Ron Basford, the Liberal Minister of Consumer and Corporate Affairs. It addressed the legal employment status of a real estate Salesmen. In a CAREB initiated communication, dated July 1970, the issue of unemployment insurance was raised. The real estate industry had always considered itself a “free-enterprise system” and Realtors were atypical employees in that they were es- sentially, self-employed. The White Paper proposed the expansion of unemployment benefit coverage to 96% of the Canadian population, including professional athletes, police forces, nurses, and military personnel. Coverage would also extend for illness and pregnancy. The 4% of the population left out of this equation were considered “self-employed”. Therein laid the issue, just what definition best described Realtors; were they self-employed or employees? How could they report “regular monthly wages”, what would constitute being “laid-off”?

The White Paper simultaneously threatened the industry’s status quo, but provided an impetus that forced the industry to define itself. VIREB called for letters to be written to Members of Parliament (MPs) regarding the proposed tax reform outlined in the White Paper. Political action would become more than an ancillary focus for VIREB.

The White Paper addressed the continual conflict over ‘price-fixing’ and moved to prohibit any Board from setting the commission split in its jurisdiction. The issue was further inflated by a proposed capital gains tax (CGT), potentially bringing the market to a grinding halt as property investors avoided purchasing real estate that was not their primary residence.

Paralleling these discussions was the emergence of the Salesmen’s Division as an independent entity. CAREB’s Blair Jackson referred to a “Salesmen’s bargaining unit” that appeared to be “more like a union than any co-operative Association”. While there was a hardnosed stance in some Divisions, VIREB Divi- sion President Ralph Walker assured the Board that “in no way was the [VIREB] Salesmen’s Division to be considered a union and that their main purpose was to improve the service to the public by better selection and training of new Salesmen and closer liaison with all concerned”. Furthermore, VIREB’s Sales- men’s Division was an excellent sounding-board for the Directors; recommendations, Salesmen’s morale, and public opinion were shared. It also gave the Division an avenue to vocalize concerns and the Board a chance to communicate the logic of decisions.

• • • • •

Showing houses on Sundays from 1 pm to 5 pm had been authorized in 1960, but Open Houses were not approved until 1970 in the VIREB area. However, it was advised that Realtors not advertise Sunday Open Houses in the event someone was offended. Realtors’ public image was juxtaposed against the constant need for change in relation to the economy and social contributors. For instance, women entering real estate through the sixties and seventies changed an individual’s balance of home and work life. Time was more precious, showings and sale transactions were pushed to the weekends for the convenience of all concerned. These factors contributed to Sunday Open Houses. Nonetheless, image was always essential.

• • • • •

32 1970’s: The Rise of the Salesmen

As proof of VIREB’s continued concern with public impressions Mr. Allan Field was commissioned in the autumn of 1970 as a PR consultant. The motivating desire to present a professional image to the public was vital. Mr. Field recommended that a mail-out pamphlet be sent to all households outlining the benefits of listing with MLS. Additionally, he recognized the growing trend of anti-Americanism among Canadians. This correlated with the growing trend of Americans purchasing recreational properties in Canada, which presented a unique opportunity for VIREB to develop a campaign to promote national pride through land purchase. Theoretically, the purchase of property would mean the retention of Cana- dian land. On the other hand, Mr. Field recognized that tourism had many things in common with real estate and he recommended that the Board work in union with Tourist Bureaus and Travel Agents. Tour- ists visiting the Island might be compelled to relocate, especially in their retirement years.

• • • • •

Salesmen’s Division Presidents were able to present concerns related to the quality of industry-related services. In April 1970 issues regarding MLS photography quality were discussed. Victoria’s picture quality was superior and VIREB’s Division sought to improve the standard available to them. However, Victoria employed a professional photographer. Given VIREB’s geographical distance a Board-photographer would be impractical. In order to resolve the matter Doug Lawford ordered an ITEK PlateMaster which produced suitable pictures for MLS reproduction, but it would not require a special photographer.

Division President Ralph Walker also complained that insufficient recognition was being paid to Mil- lion Dollar Club winners. VIREB had rewarded Salesmen since the mid-sixties when progressive plateaus were reached. Once they sold $1 million worth of property, they were inducted into the Million Dollar Club. The Directors agreed with Ralph and it was determined that a pin proclaiming sales of $250,000, $500,000, $750,000, and $1 million be presented to top-producers along with a plaque and a $200 travel voucher. This system of reward would evolve through the course of Board history and be influenced by the public’s impression that a Million Dollar Club indicated Salesmen had earned total commissions equalling $1 million dollars. This misconception was considered detrimental to the image of the Realtor as they appeared “too successful” and the Real Estate Council advised provincial Boards to re-brand the reward system.

• • • • •

In the autumn of 1970 Ralph Walker presented recommendations on behalf of the Salesmen’s Divi- sion Executive to President Reg Eaton and the Board regarding by-law changes to do with commission splits. The Board took the recommendations into consideration and subsequently commissioned a survey by Church, Pickard, Lane & Newman to determine what a typical income was for Salesmen. The survey reported that on average, a single Salesman earned $9,807.97 per year after expenses; they took home an average of $8,144.26 per year – or $678.69 per month. More specifically, 12 of the 83 Salesmen who responded to the survey reported that their earnings were less than $5,000 in commission for the previous year, 20 reported earnings between $5,000 and $10,000, 18 between $10,000 and $15,000, and 7 Salesmen earned more than $15,000 the previous year. The largest expense was a vehicle, followed by “entertainment”, travel and Conventions, and finally advertising (the majority of costs were paid by the Agency).

In response, the Committee struck to study the Salesmen’s Division’s recommendations suggested that commission distribution be negotiated between the Agent and the Salesmen, but not exceed 60% of the gross commission earned. Additionally, Salesmen should take prescribed BCIT courses within the first 12 months of licensing. While a monthly “draw system” to help supplement the income of new Salesmen was agreed upon, it was soon withdrawn. Instead, new VIREB President Tom Johnstone suggested that compe- tent Salesmen may be recruited by offering pension plans, compensation, education, and profit shares.

33 1970’s: The Rise of the Salesmen

Following a closed-door discussion addressing the counter-suggestions, a meeting Ralph Walker had been asked to leave, a review of the Division President’s authority was considered. It was thereafter determined that the Salesmen’s Division President “be a full voting Member of the Directors, but not have a vote at the Annual General Meeting of the Board”. This was progress.

While Divisions across the province continued to make progress it was not without difficulty. Com- mission splits were always a hot topic. In the early 1970s Gordon Blackhall thought 60/40 was a great split until he met a Realtor from Vancouver who had been earning 100% commission in return for a desk fee. VIREB was generous in affording financial support to the Salesmen representatives in order that they attend industry-related Conventions and conferences across the country. This support was not always the norm for other Boards. Gordon recalls the times he engaged other Convention participants in conversation; although the conversation was amicable, once he identified himself as a “Salesman” the conversation would often end abruptly.

The Salesmen’s Division hosted a pivotal Convention in 1971 in Nanaimo, during which the “nucle- us” for the Real Estate Salesmen’s Association of British Columbia (RESABC) was formed. The provincial Division discussed organizing as an Association, a plan that came to fruition during the succeding Con- vention in Prince George.

• • • • •

A new, and roomier, VIREB home was found at 80 Commercial Street in downtown Nanaimo for $300 a month. By 1971 the MLS had been in operation for five years. President Tom Johnstone noted that during that time 3,816 of 13,160 listed houses had sold, 29%. Those sold represented a value of nearly $54 million. Considering MLS fees were 0.5% this value means a Board income of almost $269,000 over the five years, granted that income was increasing annually rather than spread evenly.

March 22, 1971 marks the first record of CAREB’s name change to the Canadian Real Estate Asso- ciation (CREA) within Board Minutes. The Minutes simply refer to “CREA” in relation to the Combines Investigation Act and its revisions. The Act was a legislative measure to thwart corporate monopolies, a national preoccupation south of the border. NAREB was highly sensitive to the American government’s antitrust laws and warned its Membership against setting commission rates. It was feared, and assumed, that CREA would soon have to follow NAREB’s lead. CREA’s Legislative Committee was given free-reign to deal with the government without further consultation with the CREA Executive. This illustrates the growing presence of CREA, and the expanding scope of government interaction. Understandably, losing control of commissions threatened the industry. Additionally, Real Estate Boards feared added taxation would burden the sales force further, making real estate an expensive career choice.

• • • • •

Allan Deering chaired the VIREB Commission Committee in 1971. They rejected a single commission rate and recommended, instead: 6.5% for residential homes listed on MLS; 6% commission for exclusive residential homes; 10.5% for commercial properties on MLS; 10% commercial exclusives; 5.5% for Build- ers on MLS or exclusive listings. After “extensive” debate the rates recommended were accepted, save the residential MLS listing commission which was increased to 7%, likely to dissuade Realtors from boosting the listing price to adjust for the MLS fee. Additionally, commercial properties were set at an even 10% regardless of listing activity. However, the changes in commission were delayed until after the AGM in order to gain opinions (and support) from each Zone as the changes were considered controversial.

In this situation the Division was a useful avenue in which to solicit Salesmen’s views. Prudently, President Tom Johnstone did not want to have to ‘undo’ commission related decisions after the fact. As it

34 1970’s: The Rise of the Salesmen followed, the only definite dissent came from the Salesmen’s Division with regards to the Builders’ 5.5% commission.

• • • • •

The quality of education continued to improve and 51 participants enjoyed the first floating seminar abroad Lady Rose in May 1971. Professors Stan Hamilton and Vance Mitchell led the seminar with topics regarding the cost of operating offices and motivating Salesmen. The Real Estate Institute had formalized its focus on education by hiring Don Creighton as Education Coordinator in May 1971. All BC Boards had agreed to monetarily support the education investment and paid according to the size of their Member- ship.

The Fall Seminar took place at the Island Hall the following October. Sixty participants attended lectures regarding investment analysis with Stan Hamilton and law with Peter Watts. Pat Moore, the Educa- tion Committee Chair, suggested that the Professional Development Seminar be offered at the same time each year to avoid conflict with other seminars; the Fall Seminar soon became a popular event.

In September Doug Lawford reported on the Northwest Council of Multiple Listing Services meeting held in Victoria in 1971. What made this an extraordinary meeting was the fact that representatives came from across BC, Washington State, Idaho, and Oregon. The Northwest Council was a mix of representatives from Real Estate Boards and independent MLS providers. The group met twice yearly to discuss common problems and to share ideas regarding their respective Multiple Listing Services. As with other Northwest Council Members, VIREB experienced continual problems with misinformation on MLS List- ing Forms. This incurred additional expenses when Board employees had to spend time editing listing information, re-posting the edited copy to the original office, and re-publishing corrected information.

After a subsequent CREA Convention, and gaining insight from other Canadian Boards, VIREB established a policy to address continual MLS errors. The Board decided that re-publishing would only occur if an extension was contracted, a reduction in price of 5% or greater, an increase in price, or any major changes that would affect the sale of a listing. What had been an issue in flawed MLS filing had become an opportunity to establish policy and it ultimately changed how information was circulated.

• • • • •

Tom Johnstone reported on a “heated” CREA Convention in Montreal at the end of 1971. He likened it to a “Gilbert & Sullivan’s ‘A Policeman’s Lot is Not a Happy One’”. Due to the proposed Competition Act and Unemployment Insurance (U.I.), real estate was in a state of confusion. CREA had invited an UIC Di- vision representative to address the Membership in order to expound upon the unique position Realtors and Agents had in relation to taxation and unemployment benefits. It had taken several months for the representative to “negotiate” a prepared speech for the Convention with his superiors. However, an hour before he presented that speech a second speech, prepared by the Taxation Division, was hand delivered. While the representative complied with the demands of the Taxation Division to read the second speech instead, it was clear that he was not in agreement. The UIC representative claimed that since the Realtor and the Agent did not have a “master-servant” relationship Salesmen were not liable to pay unemployment insurance. Yet, the second speech disagreed. Due to this discrepancy CREA’s legal council advised Members not to contribute until the issue was clarified. This rift of government regulatory branches illustrated the great confusion surrounding the legislation.

• • • • •

VIREB began 1972 with a proactive attitude. In the spring of 1972 Tom Johnstone was elected for a

35 1970’s: The Rise of the Salesmen second term and Vic Price became Vice-President. Interest rates were coming down and the Board was gaining ground financially. CREA presented the comparative standings of 65 national Boards for the first ten months of the previous year, VIREB ranked: 17th in sales volume; 21st in percentage gained over 1970; 13th in number of listings; 14th in number of sales; 55th in percentage of sales to listing.

• • • • •

Ralph Walker presented Gordon Blackhall as the new President of the Salesmen’s Division in 1972 and thanked the Board of Directors for their cooperation during his two years of service as Division Presi- dent; he had certainly accomplished a lot. The Division’s collaboration with VIREB had made “a career in this Board more desirable” for Ralph. Highlights included: the establishment of RESABC, joint Executive meetings, joint seminars, a Malaspina College Real Estate Course, the institution of a builders’ commission, and the increase of the exclusive commission rate from 5% to 6%. VIREB could take pride in the fact that its Salesmen’s Division was instrumental in creating the provincial Association, fully realized in 1972.

• • • • •

In April of 1972 the Attorney General informed VIREB that it was illegal to operate with more non- voting Members than voting Members according to the Societies Act. As only the Agents had voting power the hierarchy needed to be revisited. A 6-person Committee, 3 Agents and 3 Salesmen met and decided that by forming two Societies (one for Agents and one for Salesmen), with a provision for cooperation between the two, the breach could be mended. It was expected that the Salesmen would thereafter be responsible for their own actions, rather than their Agents taking full responsibility.

The expense of Board participation was considerable. Not only did it take Directors away from the operation of their own businesses it was a monetary strain. Presidents had been compensated with a stipend in lieu of annual expenditures for more than a decade, and appointed Convention/conference attendees were paid per diem. Yet, recompense was nominal in the 1970s. In early 1972 it was decided to reimburse Directors 15 cents per mile traveled on Board business, the cost of ferry fees, hotel costs (within reason), and $25 Per Diem for food and necessities. The President, due to substantial travel and time commitment on behalf of the Board, was granted a $1,000 honorarium per year.

A growing threat entered the competitive arena in 1971; Block Bros initiated the National Real Estate Service (NRS). VIREB formulated a plan to counter the NRS competition. As President Tom Johnstone responded, “far be it from me to suggest that any Member of our industry does not have the right to attempt to provide a better mouse-trap to the market, but the rest of us must act to prove that MLS is the answer to the problem of marketing real property, and this proof must be supplied to the public”. VIREB saw the public as the target-market in selling the concept of MLS; vendors would demand that Realtors use the system. If the public understood that MLS offered representation of all Agencies rather than only one (as NRS did), it was assumed that they would see the broader scope of exposure of listings. Tom suggested the Board launch a Public Relations campaign. The Directors carried a motion to allocate $15,000 towards developing a PR campaign by Meek & Wilson. Tom reiterated that “inter-Agency co-operation and harmonious effort is the best possible method” of promoting the MLS, “…any other course of action will lead to fragmentation and defeat”.

In 1972 the Board began to conceptualize a MLS catalogue. The Salesmen’s Division liked the idea, but was averse to paying for a booklet. NRS Block Bros had already initiated their catalogue. Block Bros’s example would ultimately benefit the MLS catalogue, but it would also be the source of extreme dissent within the ranks of VIREB. Art Meyers, Manager of Block Bros Courtenay, campaigned against the initiation of an MLS catalogue. Given that Block Bros already funded their own catalogue, Art did not agree with a Board financed edition.

36 1970’s: The Rise of the Salesmen

Nonetheless, in 1972 Gordon Blackhall, the MLS Chairman, visited the Victoria Board in order to gain insight into their MLS printed copy. VIREB did not intend to make the publication immediately available to the public, but it was a first step towards sharing knowledge in the information age. As some saw it, controlling information meant controlling the market.

• • • • •

A budget of $5,000 was allotted to the educational agenda for the Diploma Courses and seminars, sales training videos, and guest speakers. Salesman Wayne Griffith sat as the Chair on the Sub-Commit- tee overseeing salesmanship training, Ken Guest acted as liaison to Malaspina College, and Pat Moore orchestrated seminars. In March of 1972 the Education Committee met with the Mr. Kirk Gerow, Chair of the Real Estate Council, with regards to the upcoming Salesmen’s Seminar at Harrison Hot Springs - a pilot project. With Mr. Gerow’s encouragement VIREB decided to offer the first 35 Salesmen a $35 cash incentive to register.

A new means of education was soon available through the “long awaited” video tape program. VIREB acquired a Sony AV3600 video equipment system through UBC for $1,000. Subsequent educational tapes could be purchased for $75 to $80 and focused on pre-licensing course material, Diploma Courses, and salesmanship training.

In 1972 Stan Hamilton and Don Creighton introduced VIREB’s Education Committee to the Sales- manship Caravan Plan. The Caravan was a newly established travelling seminar addressing a variety of topics. Its purpose was to present educational seminars to all provincial Realtors regardless of their location. The educators were also in favour of Victoria and VIREB co-hosting the Fall Professional De- velopment Seminar in October at the Island Hall in Parksville. The industry’s approach to education was strategic in that it considered the regional needs of Salesmen.

• • • • •

A leadership change was at hand in June, 1972 when Doug Lawford submitted his resignation; it must have been a difficult decision. Doug had managed the Board through its incorporation, its MLS initiation, new legislation, and educational innovation. He had been a detailed administrator committed to the Board as a whole, but would not be leading the Board to the next level of professionalism. In addition, Stu Furk completed his final financial report and retired from the Board, a role he had filled for fifteen years. Kates, Marwick & Company was hired to establish booking keeping practices, complete the annual audit, and begin a search for a new Secretary-Manager.

• • • • •

The hiring Committee soon had three outstanding applicants for the role of Secretary-Manager following Doug Lawford’s departure. Although Donn Gardner claims that he “was third choice” he would prove to be a perfect fit. In July, 1972 Donn accepted the Secretary-Manager’s position with a personal goal of serving for three years in order to gain voting rights for the Salesmen’s Division. However, three years suddenly became 27 years and Donn had spent the majority of his career leading the charge for the Vancouver Island Real Estate Board.

Donn was more than familiar with real estate. While he had spent 15 years working for Shell Oil through the late 50s and into the 1960s he had declined a transfer to Toronto and, instead, taken his real estate license in 1969. Donn’s Dad sold for Block Bros in North Vancouver, becoming their Training Manager, and later establishing Blocks Recreational Lands Division. Donn began selling for Block Bros in Nanaimo after he earned his license. In 1970 he moved to Northbrook Realty to work with Deane Finlay-

37 1970’s: The Rise of the Salesmen son, who became a mentor to Donn, and finally to Nanaimo Realty in 1971.

Donn was also involved with the Salesmen’s Division during his years in sales, serving as the Nanaimo Zone President. He recalls that securing a role for Salesmen on the Board by organizing the Di- vision in BC had initially been a “blood bath”, but over time there was acceptance. Donn recalls the long hours spent at the Island Hall in round-table discussions, or stretched on lawn chairs hashing out the by- law changes necessary to accommodate the Division. Pat Moore, Tom Johnstone, and Deane Finlayson pushed their fellow Agents’ to unify as their Division counterparts pushed in a parallel direction.

Donn Gardner had accepted the challenge of Secretary-Manager, and his leadership would prove invaluable, guiding VIREB into the information age and through a tangle of political confusion. He was a change agent and the Board, with guidance from its Membership, would agitate to revolutionize the industry from within.

• • • • •

A new Secretary-Manager meant a change to the VIREB logo, indicating a new start. After initial discussion a deep Roman letter “V” was decided upon, to be characterized with the colour “new forest green”. This familiar emblem would identify VIREB until late in 2006 when a re-branding took place.

It was also at this junction that the habit of referring to Realtors as Salesmen shifted. Given that many women had joined the industry, a shift in referring to the sales force as “Salespeople” occurred. When Don Gardner started at Block Bros in 1969 there was a sales staff of about 25, five to seven of whom were women, but this was well above average. Initially, many female Realtors worked part-time, balancing their home life with their professional life. Things began to change as women selling real estate increased, and leaders emerged.

• • • • •

In July, Donn Gardner reported that purchasing equipment for in-house catalogue publishing would cost more than $16,000. Alternatively, the equipment could be leased for $400 a month. A lease would give VIREB the chance to determine the long-term usefulness of printing equipment, while an outright purchase might be premature. Additionally, the possibility of “jobbing out” to outside printers was suggested and competitive quotes were welcomed. The following month the Board elected to procure the equipment by purchase. In October Vic Price motioned, to have an MLS book “up and running” by the first of January 1973, only two months hence. Master copies (containing all MLS listings) would be provided to each Member office and additional copies would be available for $2.50, but were not meant for the public use.

The move towards cataloguing listings is an ideal illustration of the evolution of shared information. While Realtors had come from a tradition of exclusive listings and protection of those listings, even within their own offices, their business practices had evolved to include Bluesheets and MLS listings. Bluesheets were printed briefs describing new listings or changes to existing listings. Realtors were ac- customed to using Bluesheets and at this crossroads the Board attempted to transpose listing information into catalogue form, but not without near riot.

When Donn Gardner took over VIREB in 1972 there were “350 to 400” Salespeople and Board Staff had little trouble itemizing new listings in the Bluesheets format. Salespeople took pride in organizing their sheets as Pat Moore observed, it “kept them involved in looking after the data”. Marty Douglas remembers organizing his MLS listings, and subsequent Bluesheets, alphabetically according to street names until a colleague recommended he list them in order of price. He thought it humourous that it

38 1970’s: The Rise of the Salesmen had not occurred to him sooner. Until then, Marty saw the MLS as a running total of sales volume for each Salesperson; he was vaguely aware the information was generated at the Real Estate Board. Marty’s Mother, Win Douglas, was a well established Realtor in Campbell River who started out with Lil Thulin and had a running total in the hundreds of thousands while Marty had a total in the “ones of thousands”. Salesmanship was not necessarily taught in each office. For Marty, real estate meant “hanging around the office doing crossword puzzles because nobody ever told me you actually had to leave the office and go and look for clients, or knock on doors, or make cold calls”.

When Agents and Salespeople learned that VIREB intended to introduce an MLS catalogue, there was uproar. Pat Moore recalls a particularly lively meeting at the Qualicum Theatre where Board Members attempted to explain the decision; the Membership was so angry it was “ready to hang the Directors” according to Marty Douglas. However, change was necessary if the industry was to remain current. The MLS catalogue would lead to sharing printed listings with the public and, eventually, the World Wide Web.

• • • • •

Tom Johnstone and Gordon Blackhall acted as a MLS “tag team”, an Agent and Realtor duo that promoted MLS use to Agents and Realtors respectively. While Duncan eventually gained interest in the benefits of MLS through Dorothy (Smith) Whittome’s enthusiasm, in the early days Parksville and Qualicum Beach were customarily opposed. Port Alberni, despite its smaller population of Realtors, maintained a reputation of accepting change. When word of the Board’s intention to produce a MLS catalogue reached the Members and their Salespeople a mixed response from each Zone was heard loud and clear. This illustrated the greater truth that all Zones had distinct traditions of behaviour and were not the same.

On the practical side of publishing, the room necessary to accommodate large printing equipment was substantial and the Board office barely housed the Staff. VIREB would have to consider moving to a new location if the purchase of equipment was to take place. On November 24, 1972 after an “eloquent preamble” by Deane Finlayson, Vic Price motioned to purchase property to build a VIREB office, the motion carried.

• • • • •

The 1972 Fall Seminar, co-hosted with Victoria, was split into two sections: Professional Develop- ment and Applied Salesmanship. This format was typical for the Fall Seminar, though consideration of what content the participants might need for a changing market was reassessed annually. It was both VIREB and Victoria’s intention to maintain a seminar that was appealing, relevant to the needs of the participants, and affordable. Salespeople active on Vancouver Island paid $35 to participate and Agents, $40; attendees from outside of the VIREB/Victoria area paid $85, but space was limited. The annual seminars were highly successful and registration filled-up quickly.

Education was not limited to the Fall Seminar. The audio-visual equipment had arrived in late September and had quickly made its rounds to VIREB Zones, much to the delight of the sales force. Ad- ditionally, Donn Gardner presented a course on How to Buy and Sell your Home at Malaspina College. Hugh Ney, Frank’s cousin, presented courses on stocks and bonds investment. This was followed by Tom Johnstone, who presented a six hour course on Real Estate Investment Analysis. These courses were open to the public and were soon offered at the Malaspina Campus in Duncan. This was positive for the VIREB image and the relationship with the public.

• • • • •

39 1970’s: The Rise of the Salesmen

In November, 1972 Jack Evans offered his resignation from the Board. The Board accepted “with regret and with heartfelt thanks for past assistance in Board activities”. It is hard to adequately assess the unseen effort Jack contributed to the real estate industry, but his Herculean effort on behalf of VIREB Members and Salesmen was legendary. For more than two decades he had devoted himself to promoting the ethical standard of his profession. Allan Armstrong remembered Jack’s “charming elegance”, Ralph Walker remembered him as “an impressive man of wisdom, with an air about him”, and Pat Moore recalled a “Prince of a man…with a set of standards…real estate people would always look up to Jack”. Jack’s recognition for the need to combine resources and organize an Association of Agents in order to professionalize an industry was paramount to VIREB’s initiation. His commitment is marked by three terms as President, countless roles as Committee Chair or Committee Member, elected Zone representative to the Board of Directors from 1951 to 1972, Real Estate Council representative, countless times served as provincial and national Convention delegate, guiding force in the development of the Constitu- tion and, quite literally, the Founding Father of VIREB.

It was in Jack’s living room in 1951 that the Board began. Rick Evans was a boy of six when Ernie and Hugh knocked on the family’s front door and Rick vaguely remembers his Father’s demanding commitments outside of the family home when growing up. Instead, he remembers an ever-present Dad who was devoted to his son and wife; remarkable to his son for “his great kindness”. In 1970 Rick joined his Father in real estate and appraisals, and taught post-licensing at VIREB for many years. Of his Father’s professional impact on his own life, he learned the “importance of integrity and a high standard of values of one’s life…he was a great man to learn life standards from”.

• • • • •

By 1973, the establishment of an MLS catalogue was a foregone conclusion. VIREB could no longer house itself in an 800 square foot office if it was to reach its full potential. The Board had approved the purchase of property in order to build its own venue in late 1972. While it seemed a reasonable decision to move to a larger space, the symbolic implication should not be lost; it was strategic planning in action. By committing to a new space VIREB was declaring its willingness to progress, its willingness to commit to technology, and its willingness to stay relevant. It also showed confidence.

Not only was a new office essential for operations, it was important to adhere to the Societies Act. A Society needed to apportion a certain percentage of revenue in order to remain a non-profit organization. The Board needed to spend surpluses, or be taxed as a profit making company. The Board allocated $125,000 towards the purchase of land and the construction of a new Board office; the mortgage was not to exceed $105,000 and location was to be agreed upon by mailed-in vote of VIREB’s 52 voting Members (73% of which responded positively when a site was found). It was agreed that a 4,000 square foot building would cost $22 per square foot for a total of $88,000; land was expected to cost $30,000, and land- scaping $2,000 – for a total of $125,000. A first and second mortgage of $85,000 and $20,000 were agreed upon, and was to be paid over 25 years. The motion was carried and plans began.

Deane Finlayson alerted Donn Gardner to the eventual building site, a three acre hobby farm supporting a small trailer and two “old guys”. Donn negotiate the purchase of 1.5 acres for $27,500 with the stipulation that the resident dog stayed with the property. Every day for eighteen months Donn made the obligatory journey from downtown Nanaimo to the site in order to feed and water the dog, after which time Al Lupton “succumbed to decency” and adopted the dog as his own.

• • • • •

1973 was a legitimizing year for VIREB. Small actions increased the authority of the Board. Past-Pres- idents’ photographs were procured for display in the boardroom. A $500 bursary to UBC and two $250

40 1970’s: The Rise of the Salesmen bursaries to Malaspina College were launched. A monthly bulletin was planned for inclusion in the MLS catalogue to establish regular communication between the Board and Member offices. The Islander was launched in mid-November, to be published every two to three months. In addition, the Public Relation Chair Andy Pearson recommended the Board should “be more concerned with special projects that benefit the community and place the Board in a position of leadership to the community at large”. Further- more, a Standards and Practice Committee was struck for the first time in an effort to screen consumer complaints and deter unethical behaviour.

• • • • •

The MLS catalogue was produced by computer and reliant on a coded system to identify the geographical area of the listing. It also required Staff to learn technological skills to run the equipment. Donn cautioned Members that listing information should be mailed weekly, delaying postage would delay publishing. Additionally, a tradition of sending the vendor a full copy of the MLS listing, complete with photograph, was abandoned. However, a letter of congratulations was still sent.

• • • • •

The Salesmen’s Division was gaining ground. In 1973 a second Division representative was allowed to vote at the Board level. In addition, the Chairmanship of the MLS Committee and a spot on the Manage- ment and Finance Committee were permitted. Those two votes belonged to Ralph Walker and Gordon Blackhall; fortunately for Salespeople Ralph and Gordon made a positive impression on the Board, their inclusion was an easy transition. At the time, 7 of 9 provincial Boards were also Members of the RESABC. Furthermore, the RESABC sought and were granted representation on the BC Council in 1973. Addition- ally, Ralph Walker and an eastern colleague were invited to attend a CREA Executive meeting as Salesmen representatives.

• • • • •

Political consideration was warranted as the government continued to wade into the realm of real estate authority. The rising cost of housing was blamed to the lack of land for development. Because ser- viced lots were precious, prices rose and the market was at risk of becoming stagnant due to high costs and lack of inventory. VIREB proposed a databank of relevant information in order that developers and Realtors find each other.

The Community Planning and Development Research Committee was established to gather a pool of knowledge that could be drawn upon in order to lobby different levels of government and change the policies of land development. Alex MacDonald, BC’s Attorney General, ignited debate in February of 1973 when he suggested real estate commissions were inflated. Conscious of industry criticism at all times, the Board elected to examine Mr. MacDonald’s statements rather than assume an automatic defensive position. The Board studied the possibility of a 6% commission on all properties, as well as an annual MLS flat fee. There was a truer, underlining fear that the provincial government would push commissions to 4%. It was decided that a comprehensive survey of Realtors’ current incomes, versus the income expected if a reduction in commission was imminent, should be conducted. The results would be presented via brief to Mr. MacDonald with a letter protesting his comments. This challenge demonstrated VIREB’s willingness to self-evaluate and stand-up for its Members.

• • • • •

Over-recruitment continued to be an issue for provincial Boards. Nearly 1,500 new Licensees were register with the Council in the first quarter of 1973 alone. Given that the province already supported

41 1970’s: The Rise of the Salesmen

6,500 Realtors, it was feared numbers could increase by 75% before the end of the year. Tom Johnstone vocalized what many professionals felt; that new Salespeople were being welcomed without consideration of over-saturation, or market conditions. Tom recommended that VIREB redirect PR funding towards discouraging misdirected recruitment, and that Agents stop promising unrealistic earning potential in an effort to attract successful producers. Tom felt that a quota system based on ratio of existing staff would be a better option. Boycotting recruitment was impossible, but controlling it could protect the integrity of the industry.

It was also feared that successful Realtors would open their own Agencies if they were not given the opportunity to direct business operations or participate in Board decisions at some level. This awareness was crucial in the ultimate decision to allow Salespeople to participate in greater capacities. If more firms opened, more Realtors would be required. This may appear to satisfy over-recruitment, but strategically an overabundance of Realtors and competing companies would still be drawing on the same market.

The Minimum Wage Act dictated a monthly wage of at least $347. While this was not legislated for real estate yet, Tom Johnston felt that initiating a standard wage might benefit VIREB in that it would serve as a benchmark to see which Salespeople were self-supporting. Tom argued that if a Realtor was not at least earning the minimum wage real estate sales might not be for them.

• • • • •

VIREB was not the only industry entity undergoing transformation. CREA, the Real Estate Institute, and BCAREB also followed shifting trends and sought to improve their effectiveness within real estate. By 1973 CREA represented 33,000 Realtors. During the April Assembly in Ottawa CREA communicated their need for “guidance” from Canadian Boards. The Assembly expressed sentiment that CREA should concentrate more on national legislation and less on “Mickey-Mouse projects”. It was also felt that by moving national headquarters to Ottawa, CREA would be able to pursue government lobbying more effectively and employ a fulltime lobbyist to study legislation, identify concerns, and submit briefs on behalf of the industry. By fall CREA was requesting the right to increase its dues but the Assembly successfully fought to delay the increase until 1975 and, instead, ordered an organizational audit to determine expenditures and function of the national body.

When the House of Commons opened their fall session it elected not to introduce a new Competi- tion Act, but rework the existing Combines Investigation Act instead. It thereafter made monopolies illegal under the Act. The Government identified a monopoly as, “a situation where one or more persons either substantially or completely control throughout Canada or any area thereof the class or species of business in which they are engaged and have operated such business or are likely to operate it to the det- riment or against the interest of the public”. This included the MLS. By limiting MLS access to Members only, the industry was seen as thwarting competition and faced penalty. The Restrictive Trade Practices Commission replaced the Competitive Practices Tribunal and restricted monetary penalty to $10,000, but prison terms became a possibility. Anyone fixing prices or improperly inflating prices “is guilty of an indictable offence and is liable to imprisonment for two years”. The Act also determined that exclusion from any Real Estate Board, or limiting access to services was unlawful. Additionally, restricting access to MLS as a penalty for infractions or non-payment of dues was also illegal as it stopped Realtors or Agents from participating in commerce. On the other hand, Realtors offering service for a proportionately lower commission would also be at fault for undermining competitors.

Furthermore, the Federal Government had plans to introduce the Omnibus Bill, giving them the power to fix service-fees. If real estate had fixed fees they would be exempt from the Combines Investiga- tion Act. Yet, they would be forced into external control, losing the power to operate in a free-enterprise. While unions would be unaffected by such action, Lawyers, Accountants, Realtors, and Agents would all

42 1970’s: The Rise of the Salesmen suffer the consequences.

In reaction to over-recruitment REIBC, with the approval of the Attorney General, announced they would suspend pre-licensing courses after April, 1973. The Superintendent also requested plausible solutions to over-recruitment no later than May 30. Requesting solutions exemplified how the provincial government trusted the opinion of BC Boards and the governing bodies.

• • • • •

Pat Moore and Andy Pearson attended the provincial Executive Seminar to discuss Land Use Con- tracts and the upcoming revisions to Bill 42. Bill 42 pertained to the Agriculture Land Commission Act and offered greater definition of “green belt areas” and “agriculture”, but was less forthcoming about the exclusion of expropriation rights. What’s more, under Bill 42 local and provincial governments would have greater power deciding land use. The provincial Agricultural Land Commission (ALC) formed to study land use issues. Appointment to the ALC was by “pleasure”, in other words the government controlled the likely direction of the Commission. While the Act sought to preserve agricultural land, the lack of developed land continued to be an issue for developers and Realtors alike; further loss of land availability hampered the building of new homes to sell and housing opportunities for the public. This drove up the price of a home even further and, in subsequent years, proved challenging to areas restricted by geography. An average house in BC in 1973 cost $17,885 compared to $15,803 the year previous; in VIREB’s area house averages were $16,274 in 1972 and $16,723 in 1973.

Concerns were compounded by the impression that the ALC did not adequately compensate land owners when land was purchased for protection, interfering with private property rights. This was just the sort of political conflict BC Boards were compelled to fight. While interest may have been piqued due to a need for inventory it was the parallel issue of citizens’ rights that spurred action. The issue of land availability was juxtaposed with the issue of Capital Cost Allowance, which slowed the construction of new apartment buildings due to penalties imposed on resale.

April of 1973 also marked the introduction of computerized accounting. It was anticipated that the new system would be more efficient in calculating payouts and maintaining statistical records. It was soon turning out monthly and year-to-date comparatives.

• • • • •

The VIREB Salesmen’s Division was given control of $5,000 to design a successful incentive program to encourage MLS use. The Million Dollar Club achievers were still rewarded with a plaque for sales plateaus. In 1973 a new travel incentive was announced. The top prize was a flight for two and hotel accom- modation anywhere “in Air Canada’s World”. It was necessary to vote on travel incentives each year as any expenditure was dependent on Board elections and budgeting.

MLS participation was essential to the Board’s income. The MLS commission split had not been revisited since incorporation in 1966 and the MLS Management Committee (renamed in 1973) recommended that a new split should reflect market conditions. Surpluses could not be returned to the Mem- bership due to the Societies Act by-laws, which forbade Members profiting from an incorporated Society. In September it was suggested that a 0.3% commission, to a maximum of $500, be taken off the top of MLS commissions and the remainder be split evenly between listing and selling Realtors. Additionally, a $360 annual assessment was imposed, as well as a $30 monthly service charge. In June of 1973 the Board had approved a 6.5% commission split, but this was reversed and the 7% payout reinstated. In-house commission splits were up to the Agent and the Realtor. However, Donn Gardner argued that this system of payment was confusing. He felt that if each office was assessed $300 annually, per Licensee, addi-

43 1970’s: The Rise of the Salesmen tional service charges would not be necessary. It was further suggested that the MLS commission cut be reduced to 0.25%. This marked a step towards a single fee per Licensee.

• • • • •

Tom Johnstone was elected President of the Realtor Division of the REIBC in 1973. Continuing its commitment to political action the Realtor Division sent a brief to the Minister of Labour, the Honour- able William King, requesting that real estate professionals be excluded from the Labour Relations Act. The Act demanded regulated hours of operation and an established menu of services, but real estate required flexibility; how could services be dictated without changing the nature of the industry? The brief outlined the unique role between Realtor and client as well as Realtor and Agent and argued that each transaction was different. Therefore, a menu of detailed “duties” would be impossible. The competitive nature of the industry would suffer from conformity and the nuances of salesmanship would be controlled by labour laws rather than customer service. The industry was a self-policing entity with an outstanding record for professionalism; to industry participants there was no need to regulate it further.

• • • • •

The Ethics Committee was distinct from the Standards and Practice Committee in that the former dealt with internal conflicts and the latter with public complaints. Arbitration between Member offices was common. While Members conducted Board business they were still rivals in the field. Issues related to inappropriate advertising, delayed receipts and forms, and lack of reporting collapsed sales were not uncommon. A Realtor could gather sale’s points towards incentive packages and Million Dollar Club status by delaying the reporting of a collapsed deal until after cut-off. Additionally, conflict regarding so- licitation of listings prior to expiration with another Salesperson was apparent. Letters of reprimand were utilized to warn of protocol infractions. The Committee had authority to determine the split of commissions if, for instance, one Realtor usurped a listing from another Realtor prior to the expiry of a listing. Soliciting vendors was a strict transgression of the Code of Ethics. Yet, the Constitution only allowed a token punitive payment of $5 per offence. As a result of continuous ethical breaches the Committee decided that a policy manual should be distributed to all Licensees, bypassing the Agent, in order to ensure that each Realtor had access to the rules of fair play. Furthermore, the CREA Code of Ethics was officially adopted on October 9, 1973.

In late 1973 Ralph Walker, having earned his Agent’s license, opened his own agency. Walker Realty was accepted by the Board in November. Gordon Blackhall, his friend and colleague, offered “his appreciation to Ralph on his involvement over the years and extended his best wishes on this new venture.” While it was the end of an era, Ralph Walker would still continue to serve the Board.

• • • • •

By November, 1973 a $100,000 mortgage had been secured at the Nanaimo and District Credit Union, amortized over 20 years with a $998.40 monthly payment. Thereafter, the Wellington District lot, suggested by Deane Finlayson, officially belonged VIREB, and an organization that existed for the sake of property ownership was finally a property owner. G.A. McIntosh Construction Limited won the contract with a bid of $87,950 and Architect John G. Young was commissioned to design the new VIREB building.

VIREB entered 1974 with the construction of the new building underway. Lauren Miller succeeded Vic Price as President and Deane Finlayson was Vice-President. Jim Robinson took over for Gordon Blackhall as Salesmen’s Division President, and Peter Ramsay was the new solicitor. On April 5, 1974 VIREB Staff, with the help of assorted Members, packed up the small office on Commercial Street and moved to 6374 Metral Drive, telephone 390-4212, P.O. Box 592, Nanaimo BC. 4,000 square feet must have

44 1970’s: The Rise of the Salesmen been incomprehensibly spacious to VIREB Staff who were used to 800 square feet of compacted elbow room.

• • • • •

The MLS catalogue was floundering in 1973. Despite the dynamic nature of the industry Realtors were nonetheless creatures of habit. An MLS opinion survey saw a 74% response rate, indicating a strong opinion. Only Nanaimo and Parksville/Qualicum were in favour of continuing the catalogue. It was thereby decided that the MLS catalogue would be discontinued by April 1, 1974.

Interim Agreements pertaining to possession dates, completions, occupancy, and adjustments were often confusing. This showed a need to tighten the reporting system and educate Salespeople. The MLS Management Committee recommended that one form be used for listing residential properties, lots, and acreage and a second form should be used for Industrial, Commercial, and Investment (I. C. & I) contracts. Change orders, until then haphazard, were to be printed in duplicate. Changes or mistakes doubled the workload of VIREB Staff and the Committee sought to improve efficiency and service.

Since the early 1970s Teela had been used to access land titles, by 1974 data micro-fiche became available to the Real Estate Institute when the Land Registry Office computerized. However, it held limited information and did not store the property conveyance, sales data, lot size, or assessment data. Furthermore, it was only available to the Real Estate Institute. It was, nonetheless, a progressive step.

• • • • •

The Combines Investigation Act amendments were studied by Stan Hamilton and Peter Watts (Mr. Watts was, by then, the solicitor for the Vancouver Real Estate Board and legal authority for real estate at UBC) and it was determined that all commissions would need to be negotiated and that office exclusives were inappropriate. Instead an “exclusive agency listing” would be used in order to take advantage of a loophole in the Act’s wording. Listings belonged to the Agency and not the Realtor. Additionally, a 1974 Committee was struck to investigate the possibility of incorporating MLS as its own entity and, thereby, legally separating it from VIREB in reaction to the changes in the Combines Investigation Act. However, by April 1974 CREA reported that the Act would overlook exclusivity, and MLS practices would be accepted. Setting commission rates was still deterred. The Committee also studied the option of offering full Board Membership to all Realtors. If the Agent ratio was illegally dominating Board activity, what would happen if Membership was made available to everyone?

• • • • •

Computerization was a focal point for BC Boards – yet not all were equal in capability. Vancouver, the most computerized of all, was more than generous with its software and technology assets. VIREB was especially fortunate in that it had a long history with the Vancouver Board, Donn Gardner also had strong ties in Vancouver, and VIREB held a parallel progressive attitude. In the latter half of 1974 Donn Gardner was asked to seek quotes from IBM, Burroughs, Basic Four, and Lougheed for in-house computers with an option of remote terminals for Member offices. However, at that point, only Vancouver and Victoria would be able to interact with VIREB in a technological capacity. This was part of the reason why Vancou- ver was eager to share its technology with other Boards. VIREB was wary that a commitment to purchase computer equipment might be premature. Cost was one thing in 1974, technical aptitude was another. Donn Gardner was adamant that the Board would be “wasting time” if it waited any longer for in-house technology, but wait they did.

• • • • •

45 1970’s: The Rise of the Salesmen

In mid 1974 VIREB enlarged the Research Centre at the Board office to include more than just books; statistical information (population, personal income, growth, building costs, by-laws, maps, zoning maps) were included for the convenience of Members and Realtors. Additionally, legislation, Acts of parliament, pamphlets, new books, and relevant publications were integrated. This effort was strategic in the sense that it allowed access to information and omitted Board Staff from the process, this was efficiency in action.

Staff had made themselves at home in the new Board office since May, but the Grand Opening was not held until September 13, 1974 to avoid the busy selling season of summer. The Grand Opening Com- mittee sought “to create Membership pride” and “public awareness” of Board activity. In order to complete preparation, a 44-foot tall flagpole with “tapered aluminum, nautical yard arm” was commissioned for $2,325. A hand-carved entrance sign reading “Vancouver Island Real Estate Board” was ordered for $500, and a sign depicting the Board logo for the outside of the new building was also commissioned for an additional $300. At the official opening on Metral Drive a multitude of “For Sale” signs mysteri- ously appeared along the curbed entrance way, a special welcome from each Member office. Members and Realtors turned out in droves. Gordon Blackhall, Ralph Keir (of Cowichan Valley Regional District), Dennis O’Leary, and Jim Robertson raised double-edged axes in union to chop a ceremonial rope on the new building. It was a day of celebration, but more importantly it was a day that marked just how far the Board had come.

• • • • •

In late November 1974 REIBC launched their Special Report regarding the inclusion of the Salesmen’s Division at the Board level as Members and the educational prerequisites that would be expected for their inclusion. VIREB circulated the report to all Zones in order to gain input from every angle. This exercise in popular opinion was not uncommon. Historically, it had been the Agent Members that mattered, but the trend towards inclusion was irreversible. As a result, VIREB recommended that the Real Estate Institute shorten the pre-licensing course and refine the content to accommodate industry changes. More importantly, it insisted that if Salespeople were to be Members, they should be permitted to serve as elected Directors with full privileges. On December 16, 1974 Donn Gardner announced that VIREB Directors had voted to extend full Membership to Realtors.

• • • • •

Lock boxes had been in use since 1968 when the Board made an initial order of 50 units. By late 1974 a total of 1,200 were in use, 800 of which had missing keys. The Board was forced to re-key the entire operation. The primary concern for VIREB was the protection of the public. The Committee was also concerned with time clauses. While the 72 hour time clause was in place to protect the first purchaser’s offer, in September of 1975 the Minutes note that the focus of protection was turned towards the vendor. Thereafter the time clause became a time-allowance in which the first offer had the opportunity to meet or beat any subsequent bids.

• • • • •

When the amendments to the Combines Investigation Act were approved and enacted in 1975 it suggested MLS “originated by organized real estate for the prime benefit of the public and operates as a mini stock exchange under the auspices of a local Real Estate Board”. This implied that MLS was restrictive to trade and the demand for educational standards was deemed illegal due to the discriminatory nature of selection of Salespeople. It was a frustrating crossroads for an industry that took pride in its ethical effort to professionalize its Members for the ultimate benefit of the public. CREA immediately petitioned the federal government for revisions to the Act and reassured Canadian Boards that financial and legal sup-

46 1970’s: The Rise of the Salesmen port would be available should any Board be charged under the Act.

The provincial government maintained its own agenda. Alex MacDonald commissioned Gideon Rosenbluth, of UBC, to do an extensive study of the real estate industry. Mr. Rosenbluth’s study proved less than popular with industry professionals, Mr. MacDonald described the situation in the Hansard Report (February 4, 1977) thusly:

The clear, simple message of the Rosenbluth Report is that real estate commissions the public are paying are too high - read the report; that this has increased housing costs and held back land from development; that people entering the real estate pre-licensing courses are grist for the big Realtor’s mill and drop out - 850 of them in the year 1974 - when they have been used up and can’t any longer make a living in real estate.

Clearly, a difference of opinion existed. The provincial Boards were actively developing possible solutions for a Realtor-saturated market through efficient recruitment and education. At the very least, the Report was misleading. At the 1974 AGM (held January 31, 1975) President-elect Deane Finlayson encouraged the Membership to write letters of protest and to approach their local MLAs in order to persuade provincial law-makers to reconsider the Report.

Around the same time Stan Hamilton and David Baxter were commissioned to critique zoning struc- tures with regards to real estate and their findings generated significant attention. Mr. Hamilton declared the real estate industry was “obsolete”, “too inefficient”, and “too expensive”. This was a shock to the delegates gathered at the 1974 REIBC Convention as Stan Hamilton had worked closely with BC Boards for many years. In fact, his professional service and UBC depended on the industry for substantial support in the form of financing and educational enrolment. He suggested that auctions, public bureaus, and do-it-yourself kits would overtake the tradition of organized real estate. In retrospect, it may have been a mistake to assume Mr. Hamilton welcomed the dire outcome of his predications as his commitment to the industry, and the education of those entering it, was steadfast. It was arguably an apparent assessment of his research. Nonetheless, it was a hard pill for provincial Boards to swallow.

• • • • •

In early 1975 VIREB Membership was growing steadily as Salespeople applied for full Board access; 20% to 25% of Realtors joined immediately, but a Membership stampede did not ensue. This may have been due to a lack of necessary education or time-served, or Salespeople were satisfied with the services they received, and were not keen to forfeit annual dues. Those who did not have enough service time logged, or did not meet the required education level were identified as “Candidates for Membership”. While Candidates could not vote or hold elected office they could access all other services provided by the Board.

VIREB took its public image seriously and worked hard to offer professional services via education and supervision to Realtors, but it sought to add value to its relationship with the public. Through the Public Relation Committee a series of published pamphlets and educational classes were offered by VIREB. Ten thousand copies of How to Buy and Sell Real Estate were published in January 1975; followed by Home Ownership – A Basic Guide. The purpose of the publications was strategic. They were used as a means of educating the public as to the process of selling homes through a Realtor, as well as providing helpful tips on how to best present a property. The pamphlets were distributed at college night classes as well as at secondary schools. This not only targeted potential and future markets it provided constructive education on how to maintain real estate investments, it attracted potential Salespeople, and most importantly it added value to the industry’s relationship with the public.

47 1970’s: The Rise of the Salesmen

• • • • •

In 1975 CREA warned its Membership that a Minneapolis Board was facing a $7,400,000 class action suit in relation to 125,000 transactions. The Board was accused of commission fixing. CREA ordered Ca- nadian Boards to remove commission rate references from any paperwork, or face expulsion from CREA.

Despite taking action with regards to the Combines Investigation Act, the provincial organization was largely dissatisfied with CREA’s overall performance. After two years of voicing their disapproval VIREB voted to withhold annual CREA dues for 1975 until such time as the national organization could satisfy the Members. In dispute were CREA’s budget and the consistent pattern of not offering initiatives relative to all CREA Members. Many BC Boards were threatening to withhold dues and demanded that CREA explain its spending at the National Assembly in Kelowna that April. Additionally, CREA was called to task for dated by-laws which did not include Salespeople as Members.

The Provincial Legislative Committee (PLC) retained Guild Yule & Company to monitor, assess, and report on provincial legislation affecting the real estate industry. Real Estate Council Members participated in the National Association of Real Estate Licensed Law Officials (NARELLO) meetings with regards to condominium laws, condominium time-shares, and new legislation related to both. New varieties of housing were emerging in the province.

Mobile homes proved a conundrum for government and the real estate industry alike. Previously, the Social Credit Government had prohibited Realtors from selling mobile homes on rented pads because they were without “real property”, but how did the NDP view it? The industry argued that a mobile was indeed a home. VIREB dispatched a letter requesting that the government revisit the question in hopes of determining the definition of a home.

• • • • •

The REIBC was comprised of three Divisions: the Realtor Division, the Professional Division, and the Salesmen’s Division. The Realtor Division broke away from the Institute to become BC Real Estate Association (BCREA) in 1975, forcing the Professional Division to assess its role. The new BCREA created an Association comprised of Members of BC Real Estate Boards. At the 1975 AGM, VIREB extended an invitation to host the 1977 BCREA annual conference. Furthermore, the Superintendent of Insurance accepted Council’s recommendation for mandatory Post-Licensing Course effective for those licensed on or after January 1, 1976. Post-licensing would have to be complete within twelve months of licensing.

• • • • •

While Public Relations (PR) was traditionally viewed as an exercise to attract external favour, VIREB also viewed internal PR as essential to the Board. As it earned income from MLS commissions the Board sought to encourage MLS use. Travel incentives were important, but they were often unattainable by less prolific Realtors. Instead, the PR Committee sought to “remind” Members to use the MLS services by presenting them with a gift. The Committee also believed it would be a worthwhile plan to offer items for Realtors to purchase as gifts for their clients at the completion of the sale. Gifts such as, brandy snifters, paper weights, or key chains (printed with the MLS logo). Furthermore, guest speakers were organized in each Zone to explain and encourage MLS use by Realtors and the public alike. If vendors understood the system they would insist that their Realtor advertise on MLS.

The PR Committee was also concerned with promoting the role of VIREB within the community. In 1975 one initiative proved to be very successful. In June the Board announced its intention to conduct a photography contest that would correlate with traveling exhibits used to promote VIREB at trade shows.

48 1970’s: The Rise of the Salesmen

By July the photo contest had developed into an entire book of photography highlighting the natural beauty and culture found within the VIREB area. Vancouver and Okanagan Mainline had also printed photography books in the late 1960s. The Board felt that it would be a worthy promotion

The group could not have known the adventure they were embarking upon, or the exposure it would provide VIREB and each of its Zones. Despite a postal strike 80 photographs were submitted by October and countless photography supply stores were requesting additional Entry Forms. By late 1975 a concept for the book’s format had evolved into sections: Behind the War Canoes – the civilizations occupying the Island prior to the arrival of European Explorers; Land of Hard Work – the industrial currents of the Island, modern commerce, and natural resources; Why they all Return – lifestyle of Island people, sports, and tourist attractions; A Wild Land – wildlife, flora, and fauna. The promotion of Vancouver Island remained a foundational aspect of all Board decisions.

• • • • •

In May of 1975, and after much debate, Steve Tasko was hired to set-up the IBM system for VIREB, with the expectation it may take upwards of six months to do so. Broadening from its immediate purpose of statistical record-keeping for the VIREB area, the IBM system was soon sought for national statistical information when 35 Canadian Boards were asked to forward their statistics to CREA. By July it was evident that 5 million “bytes” of storage was not enough. Donn Gardner requested that the Board accept the recommendation to upgrade the hardware and increase disc storage to 9 million “byte characters” for the IBM System-32, although the monthly rental fee would increase to $100.25 the Board agreed.

• • • • •

The strength of VIREB leadership had not been lost on other organizing bodies within the industry. At the 1975 Convention, CREA Chair Mary Mallory nominated Donn Gardner to the Vice-Chair position of the Executive Officers Council (EOC). This was a resounding endorsement of Donn’s leadership. VIREB offered hearty congratulations to their Secretary-Manager for a job well done. As followed, in October of 1975 Donn Gardner was elected the 1976 Chair for the EOC of CREA. Subsequently, he was given a seat on the CREA Board of Directors as an observer. In 1977, as Past-Chair of EOC, Donn would be the first “Dean” of the EOC Seminar.

Donn Gardner organized the Northwest Council’s 1975 conference in Victoria. It proved so successful that the President of the Washington State Board of Realtors invited Anne Broadfoot (Public Relations for Vancouver Real Estate Board), Don Creighton (Education Coordinator for REIBC), and Eric Char- man (of the Victoria Board) to address their State Convention at the end of June. Donn Gardner was a guest speaker at the group’s subsequent long-range planning session at Harrison Hot Springs. Donn was grateful when he was then elected President of the Northwest Council Board, but even more so because his American colleagues brought two cases of beer as there was a brewery strike in effect. The Council represented 60 Boards across the Pacific Northwest and eventually Alaska. Between CREA, the Northwest Council, and VIREB Donn was a busy man.

• • • • •

Ethics was a top-priority for VIREB. The Ethics Committee could discuss issues with Members involved and determine a solution. Realtors were required to submit supporting documentation in their own defence. However, the Committee’s recommendations were then reviewed and ratified by the Board as a whole. This created an issue of privacy and a question of authority. If the Ethics Committee could be overruled by the Board, what power did it truly hold?

49 1970’s: The Rise of the Salesmen

• • • • •

In January, 1976 the Research and Resource Committee allocated up to $2,000 to fund an independent study critiquing subdivision control by-laws by the Regional District of Comox-Strathcona (RDCS; in 2008 this area was divided to become the Comox Valley Regional District and Strathcona Regional Dis- trict). The study proved impactful and VIREB believed that, together with stakeholders, they had successfully postponed the restrictive 20-acre subdivision minimum. However, Hugh Curtis, Minister of Munici- pal Affairs, indicated that he would still approve the by-law in the spring regardless; time would tell.

Conversely, the District of Campbell River requested that VIREB assist them in developing subdivision by-laws (later identified as Subdivision Control By-Law 695). This request demonstrated the growing reliance governments had on organized real estate. The Board was increasingly sought for its real estate authority, from all levels.

Also in January, the Board announced the federal government’s plan to make the metric system the standard for all real estate transactions as of January 1, 1978. The metric system was introduced in 1970, but it was not until 1975 that a deadline for industry to incorporate the system was set. While metric la- belling was in place in 1975, it was not until 1977 that road signs and odometers went metric. The Board had two solid years to prepare. Members immediately recognized the need to include metric converters in all New Salesperson’s Kits and provide one for all active Members. In 1977 metric tapes were available through CREA for a bulk-order discount. Seemingly, the nation adapted readily to metrication for fuel, but the same did not happen for home measurements. The public preferred their homes by the square foot. Arguably, a home advertised in square footage might appear larger than a home advertised in square metres.

• • • • •

The changes at the federal and provincial level as well as the acceptance of Realtors as full Members required ratification of VIREB’s by-laws and Constitution. The changes detailed protocol, defined VIREB participants, and determined ethical code. The definition of Membership would be ratified to include Salespeople and define a “Candidate” as a “Licensee” who has yet to complete required time and education commitments to become a full Member. Furthermore, Membership applications would thereafter be circulated in the applicant’s Zone for scrutiny, requiring a majority vote by the Directorate for admit- tance.

Unacceptable infractions for Members included: bankruptcy, criminal offence, non-payment of fees/dues, or failure to comply with by-laws and Ethical Codes. In addition, a Director absent for three consecutive Board meetings without due cause would be considered “resigned” from their role and be replaced by election at the next Board meeting. The by-law dictated that the Executive would include a President, 1st Vice-President, 2nd Vice-President, and Secretary-Manager. A “quorum” would require 9 Directors.

Committee Chairs had to be active VIREB Members, but not necessarily elected Directors. Addition- ally, approval was given for non-Members to advertise on the MLS in accordance with the Combines Investigation Act. However, VIREB removed itself from managing non-Member listings to avoid a conflict of interest. What is vital to these changes was the inclusion of Realtors as full Members. This was a milestone, but it was also demonstrative of a progressive mindset in a dynamic industry.

• • • • •

The 1975 AGM was held in Duncan at the Village Green Inn. Dennis O’Leary became President and

50 1970’s: The Rise of the Salesmen newly Past-President, Deane Finlayson, was appointed to serve with Dennis as Realtor Division representatives to BCREA. As President, Dennis was also appointed representative to CREA. Richard Bledsoe was appointed Board solicitor for 1976 and Peat, Marwick, Mitchell & Company (with new partners) was reappointed Board auditors. The new Board opened the year with now-familiar topics regarding real estate organizing bodies, municipal concerns throughout the VIREB area, and the protection of the Mem- bership. BCREA had allocated $5,700 towards the P.S. Ross Study concerning the economics of developing rental property.

In addition, the BC Assessment Authority (BCAA, also referred to as “BCA”) was created in 1974 in reaction to a chaotic property assessment process. At the time, 140 independent assessors were valuating property. Inconsistencies were a constant and banks were reluctant to loan money to purchasers if the value of a home was suspect; there was little accountability. The provincial government struck an “all- party” Special Legislative Committee Task Force to determine the feasibility of reproducing an assessment roll to satisfy the real estate industry, to consider legal requirements, and the use of micro-fiche. That Task Force included Donn Gardner. The Committee recommended an independent Assessment Authority. Thereby, on July 2, 1974 the Assessment Authority Act gained Royal Assent and the BC Assess- ment Authority was formed.

• • • • •

Municipally, the Board continued to support the efforts of all Zones. Comox-Strathcona Regional District continued to push back on the 20 acre subdivision minimums. VIREB recognized the economical disadvantage this minimum would have on housing. Developers would be subject to restrictive measures in expensive developments that were not guaranteed to sell. VIREB foresaw an eventual freeze in new housing. This, juxtaposed with the need for affordable housing, came to a head in early 1976 at the Land vs. Water Meeting. Although the Minister of Municipal Affairs pushed forward with the restrictive by-law it was only a few weeks before it was revised and, instead, the Minister sought input from both the Courtenay Zone and VIREB. The same plot unfolded in Campbell River where subdivision restrictions were revised after VIREB’s input was considered by the government.

The Nanaimo Zone had issues with their own regional district. The Regional District of Nanaimo’s (RDN) planning area included Lantzville, Pleasant Valley, and East Wellington. In February of 1976 a “no-growth” zoning by-law was introduced to control development in those areas. Furthermore, a 30 acre subdivision minimum requirement was imposed in Planning Area D (Nanaimo – Lantzville area). A group of private citizens sought assistance from VIREB in an effort to halt the new regulations. The Board mobilized Members in a letter writing campaign to protest the RDN’s restrictive actions. The by-law was defeated. VIREB and its individual Zones, had worked hard to organize research, and were successful in activating changes at each political level.

• • • • •

While international franchises did not make a serious impact on the VIREB landscape until the latter 1970s and early 1980s, more local companies such as Block Bros and Nanaimo Realty did. These two, in particular, were early movers who had a steady growth rate within VIREB Zones. Nanaimo Realty Sales- people succeeded in winning many of the incentive rewards in the 1970s. Proof of its brand strength was found in its ability to move into new communities despite its geographical reference of its name.

Block Bros did not compete in VIREB incentive contests because it had its own NRS. Randy Forbes, VIREB Member since 1975 and former Manager of Block Bros (Campbell River), would later describe VIREB as the “great equalizer”. Randy’s formative real estate experience was founded in the corporate environment of Block Bros and his observations of VIREB were unique in that he served as an elected

51 1970’s: The Rise of the Salesmen

Director for a decade, but had a Block Bros’s perspective. To Randy, VIREB was an organization that enabled smaller firms to survive despite competition from larger firms. It “equalized” the playing field with subsidies, training, and marketing tools.

In early 1976 VIREB outlined the Co-operative Advertising Program whereby participating Agents were subsidized $75 per week, up to $750 for newspaper advertising plus $300 in radio advertising. It began in Port Alberni and stipulated that “MLS” must be mentioned. Only current MLS listings were to be advertised, no company logos were to appear, commission rates were not to be mentioned, and the PR Committee had final approval prior to publishing.

• • • • •

A subtle change in atmosphere occurred when Salespeople earned the right to full Membership on the Board. It was a pivotal moment in real estate history, but not only for the obvious reasons. Granted, allowing Salespeople a vote and the right to serve as elected Directors meant more power, but it was counterbalanced with the withdrawal of Agents’ participation. That is to say, funding and intellectual support also changed. If Salespeople wanted equality they would also have to accept accountability. In retrospect, this was important for further professional progress.

When Salespeople gained the right to vote commission splits steadily rose. In 1976 the listing Realtor and the selling Realtor still shared a 50/50 commission after the MLS commission was paid, but Agents were paid from those shares. Offices were having difficulty affording operating fees without at least a 60/40 split; they resorted to charging a “desk fee” to fund operations. Nationally, RE/MAX began a trend of charging their Realtors a set desk fee, regardless of productivity, and was one of the first to offer 100% commissions. The change in Board control forced business practices to change, and expenses were increasingly pushed upon the Realtor simply because Agents did not have the income.

• • • • •

In the spring of 1976 a rash of complaints were received at the Board office. The degree of hostility was steadily rising to the point that a special Ethics Clinic was ordered. The Board invited Peter Watts to lead a seminar; mandatory to all Licensees. Some Realtors were showing exclusive listings without no- tifying the listing Realtors, soliciting exclusive listings, and making offers directly to the vendor of those listings. The latter had become so unnerving to vendors that the Board entertained enacting a policy that would require offers to be filtered solely through the listing Salesperson.

• • • • •

The Board began to discuss criteria of a new incentive, the “Realtor of the Year Award”. At their Zone meeting in Campbell River, Realtors recommended that an outstanding Realtor be nominated in each of the six Zones, from that group of Zone winners a nominating body would choose one ultimate winner. The Board concurred and it was decided that the Realtor of the Year Award would be administered by the PR Committee.

Gordon Blackhall clearly recalls the AGM at the Village Green Inn at Duncan in early 1976. Deane Finlayson had engaged Gordon in conversation just prior to the start of the Awards portion of the AGM. He quizzed him casually about his war-time service, his first jobs, and about his start in real estate with his lifelong friend Norrie Carey. Gordon’s jaw swung open when, shortly thereafter, Deane took the stage to repeat Gordon’s life story word for word and then present him with the first ever Realtor of the Year Award. Thereafter, the Award was given to subsequent recipients by past winners who would explain the process of selection and present the winner with the honoured Award.

52 1970’s: The Rise of the Salesmen

• • • • •

By 1976 access to computer-generated statistical information was expanding. Jim Robertson, the MLS Committee Chair, reported that the computer, affectionately known as “BERT”, would provide: sales volume by Licensee; sales volume by Broker/Agent; the top 50 Licensees; residential sales analysis; sales volume by property type; gross sales by Broker/Agent; listing activity by Licensee and Broker; monthly overviews. While these statistics provided an incredible amount of information, the learning curve was steep and it required a continual effort on the part of VIREB Staff. In addition, available software steadily changed; staying current was a challenge unto itself. This challenge was unrelenting as the Minutes repeatedly report upgrades, computer presentation, and sharing computer knowledge with other Boards. All the while, Board Staff remained a step ahead of the Membership in order to teach new technologies.

• • • • •

The certification mark of “REALTOR”, as depicted by a double “RR” icon became problematic in that ownership and control of the trademark was complicated. The certification was trademarked in the Unit- ed States by NAR and had been leased to CREA since 1950. Given that American Realtors were viewed as sharing common professional activities with their counterparts to the north, the name naturally loaned itself to Canadian Salespeople. However, casual use of the name for self-promotion or advertisement was strictly regulated in the US. In Canada it could only be used to designate a service, not an actual individual.

• • • • •

Meanwhile, the PR Committee was energized by the attention the photography contest was gener- ating. The Committee planned to follow-up with five ads in local papers and one ad in Western Living Magazine. Merit Awards were presented to professional and junior photographers at regular intervals as the contest progressed and those winning photographs were displayed in photography stores to encourage participation. Stu Wilson of Meek & Wilson continued to develop the pictorial book and Nanaimo Realty printed Merit Award winners in its advertising fliers. The July issue of the Islander promoted a competition to name the book though submissions required a pre-purchase of the book. Additionally, the Committee mailed out monthly calendars displaying a single month’s calendar with a quality photograph, a description of the contest and book, and a tear-out order form. These one month calendars were sent to Member offices, libraries, photography stores, tourist bureaus, newspapers, and radio stations.

At the end of the year the contest proved to be the “the Board’s greatest single Public Relations project” to date. Judges included: Arlen Bernie, Kodak Technical representative; John Charnetski, Malaspina College Art Director and Sculptor; Glenn Christiansen, Chief of Photography at Sunset Magazine in Cali- fornia. The winning name of the photography book was “Vancouver Island Reflections”.

• • • • •

The Research and Resource Committee recognized a need for greater awareness of housing and economic development within the VIREB area. The Committee named Vancouver Island Trends as the Board’s latest endeavour. Expected to go to print by October of 1976, the publication would herald its successor, the Indicator, a well-respected, painstakingly researched annual detailing economic contributors and housing trends within each Board area (not to be confused with the Islander). The inaugural 1976 copy of the Indicator cost $10 and only 1,000 were printed. It would serve as a strategic tool for a variety of stakeholders and capture valuable statistics to serve the industry in the years that followed.

The Indicator offered editorials and statistical information regarding public policy, housing markets

53 1970’s: The Rise of the Salesmen

(starts and average prices), land development, and economic impacts. It also correlated census information with market trends and augmented the bigger picture with reports on industrial development and commercial influences. Each Zone’s real estate environment was presented in the Indicator and the first edition offered great insight into the previous five years of real estate activity.

• • • • •

Registration was lacking for the Fall Seminar in 1976. Long an educational mainstay, the Fall Seminar was failing to attract the number of attendees that had previously participated. The Board had to determine if it was the content of the Seminars, the market, or just a need to refresh a proven concept. Know- ing what the Membership needed (or wanted) was an occupational pastime.

• • • • •

1977 was again met with constitutional changes that redefined the meaning of Membership. Active Membership would be granted after 12 months of service rather that 36, and only after completing prescribed post-licensing education to the satisfaction of the Real Estate Council. Additionally, the immediate Past-President would be included on the Board of Directors, appointed rather than elected. Directors would thereafter be elected to 2-year terms; this would better allow long-term strategic planning. How- ever, two years was a substantial commitment for volunteer Directors and it was feared that the extended timeframe would prove a deterrent to service. The Board structure also changed in the spring of 1977. Twelve active Members, plus the Past- President would make a 13 Member Board: 6 Realtors, 6 Agents, and the Past-President. Rather than three representatives from each Zone only two would be required: one Agent and one Realtor, but no single Agency could be represented by more than 3 Directors. In addition, a quorum would change from 9 to 6 Members. This streamlined spending as well as decision- making.

• • • • •

CMHC had previously advertised its own listings on the MLS for a commission fee, but in 1977 VIREB insisted that CMHC use a VIREB Realtor to list homes. This demand was possible because CREA had just won a four and a half year battle for ownership of the “MLS” trademark. This gave the Board more control over government agencies utilizing this resource. It also limited VIREB’s ability to enter into an individual contract with any one group as the rights to the trademark was not owned by the Board, but by CREA. Regardless of the ruling, using a VIREB Realtor meant CMHC was using an expert capable of judging the local market. To be fair, CMHC used a rotational model to select Realtors in appropriate Zones when needed. Once selected, a Realtor would return to the bottom of the list.

• • • • •

External and internal complaints forced the Board to instigate or modify policies affecting vendors. Issues that arose in 1977 included protocol when a vendor received multiple offers on a property. Com- plaints gave the Board opportunity to establish policy. Thereafter, vendors had the right to accept any offer presented. However, no aspect of the first offer could be disclosed to those making the second offer. By 1978 the protection of the vendor would be paramount and selling Agencies would have contractual rights of indemnity. All offers would thereafter be presented to the vendor through the listing Salesper- son, rather than directly to the vendor. Every policy had a start and a purpose.

Independent Interims also presented confusion that forced the Board to instil a policy that would dictate future commission disagreements. Although Interim Forms had been in use since the early 60s, by 1977 Companies often used different Forms to confirm the details of a transaction; this was challeng-

54 1970’s: The Rise of the Salesmen ing in that they were not standardized. Peter Watts, by then also the official solicitor for VIREB, advised that if the vendor signed both documents the original listing contract would be the only legally binding document. Ethical concerns reflected the changing environment of real estate and often presented opportunities to set policies to fortify industry professionalism.

Changes to the Real Estate Act demanded that Licensees provide written Disclosure Statements prior to purchasing property for themselves; this would protect vendors from unethical behaviour. Moreover, it would create a sense of transparency, and therefore trust, in the public eye. Additionally, the Sales Record Sheet would thereafter indicate who was paying the commission, the vendor or the purchaser. In May, 1978 Peter Watts notified the Board that the Mobile Home Act stipulated that Realtors could not accept mobile home listings unless land was involved, or the lease exceeded three years.

• • • • •

In the fall of 1977, the RESABC formally requested that BCREA create a Salesmen’s Committee at the provincial level, indicating that the Salespeople intended to dissolve their Association in favour of a more inter-connected relationship. While this Association had served to empower the Realtor it had done its job and run its course. As Gordon Blackhall would explain years later, “had enough sense to do what they did and then to quit while they were ahead”.

• • • • •

Before the end of 1977 the election of Directors was under scrutiny in that continuity of directives was difficult when all Directors were re-elected at the same time. The Board and its Staff were effectively “starting over” after each election. While terms of service had been increased to two years earlier in the year, a staggered voting process was imposed near the end of 1977. Staggering the vote allowed Agents and Salespeople, as well as individual Zones, to be elected in opposite years in an attempt to avoid a Board full of novice Directors. Earlier in 1977 amendments made room for an “It-designated” Zone Di- rector; an “It-Director” could be an Agent or a Salesman. Campbell River, Courtenay, and Duncan were on the same voting schedule, while Nanaimo, Parksville/Qualicum, and Port Alberni were on the opposite schedule.

The Board also decided that arbitration would be directed by the Standards of Practice Committee in 1978, rather than by the Board as a whole. This would secure privacy for those involved in disputes. In the past the Directors reviewed the Standards of Practice Committee reports and were able to ratify any decisions. Thereafter, complaints were to be submitted in writing, naming the Code of Ethics contravened. Additionally, the new amendment changes proposed that commission disputes be submitted in writing with a $50 deposit; this would discourage erroneous complaints.

• • • • •

In between amendment changes, Board business, and rewriting arbitration rules VIREB managed to host the 1977 BCREA Convention from May 29th - 31st. Events were held at Beban Park Recreation Cen- tre or the Tally-Ho Hotel. Delegates were given registration packages containing registration information, a Reflections book, a miniature bathtub, and bathtub hats in honour of the Nanaimo Bathtub Races.

• • • • •

The 1977 CREA Convention was held in October at Calgary and focused largely on self-protection as the “REALTOR” certification remained a national concern. The Convention participants also discussed the RESABC recommendation that a special Salesmen’s Committee be incorporated at the provincial

55 1970’s: The Rise of the Salesmen level. Additionally, CREA advised that each Canadian Board would have to enter into the Three Way Agreement with their provincial governing body and CREA for legal use of the trademarked “MLS” name and logo. VIREB had already done so, as had most BC Boards.

The Agreement established the terms of Association with CREA and the promise of Boards and individuals to observe CREA’s rules, regulations, and Code of Ethics. The use of the MLS certification mark and designation of Realtor was strictly controlled and to be used by Licensees only; they were not to sub-lease it to any other party. In addition, the CREA trademarked MLS logo (three small houses) was also brand-protected.

• • • • •

At the Northwest Council meeting in the fall of 1977 discussions revolved around Sherman’s Anti- Trust Law. This US law was similar to the Canadian Combines Investigation Act. Donn Gardner reported that American laws could serve as a guideline for Canadian Realtors and he cautioned VIREB to implement rules and regulations that protected the rights of Members and the public alike. This was sound advice as the rising fear among practitioners of stepping outside of lawful boundaries, intentionally or not, was commonplace. The federal government had seized more than 1,000 documents from the London, Ontario Real Estate Board during an investigation concerning anti-competitive behaviour. CREA warned its Membership that all Combines Investigation Act complaints were investigated. This included false advertising; one Agent was forced to travel to Ottawa to defend his Agency for incorrectly advertising that a house had new wiring when it did not.

VIREB pushed to be involved in local, regional, and provincial legislative activities; whether it was through interpretation, input, or lobbying for change. In 1978 mandatory seatbelt use caused great concern to the Membership. While Members thought the legislation was appropriate for children under the age of sixteen, it felt that Realtors should enjoy the same exemption that taxi drivers did; each group spent considerable time in their vehicles.

• • • • •

In early 1978 the Board voted to provide free tickets to the AGM Banquet and Dance to the top 10 Realtors in the Sales Achievement Award competition, those achieving more than $500,000 in sales. Furthermore, the top-producer would also receive free accommodations at the Island Hall. While Gor- don Blackhall had been given the “Realtor of the Year Award” for 1976 Norman Ross, President of CREA, formally protested the use of the word “Realtor” in the Award’s title for the 1977 recipient. It was an infringement of trademark, as “Realtor” was technically owned by NAR and in the form of an Award, did not represent a service. The PR Committee renamed the recognition the “VIREB Award”.

• • • • •

1978 President, Dave Paterson, attended the Vancouver Real Estate Board AGM which welcomed Rafe Mair, Minister of Consumer and Corporate Affairs as the guest speaker. Mr. Mair echoed the industry’s concerns when speaking of the need to develop a vendor’s Disclosure Statement, to rework Interim contracts, a solution to the excess of Salespeople, and his concern over 100% commission rates and “rental desks”. While previous issues had worked to protect the vendor, a Disclosure Statement would also protect the buyer. Mr. Mair’s concern regarding the number of Realtors in the industry, coupled by the trend towards 100% commission was correlated. If would-be-Salespeople were attracted by 100% commission then participation would increase and the market could not sustain an overabundance of Realtors. Yet, if Agencies were not collecting commission splits the ability to afford services and maintain standards was uncertain. Both Mr. Mair and the provincial Boards were concerned with industry quality

56 1970’s: The Rise of the Salesmen and consumer protection.

• • • • •

VIREB’s Dennis O’Leary was elected President of BCREA in 1978 by acclamation; John Thompson from Victoria was elected Vice-President. Bob Chaplin took over as the new Executive Officer at BCREA and continued the tough task of leading the provincial Boards through changing legislation. A Vendor Disclosure Statement was drawn up by a BCREA Committee and circulated to all Boards for consideration and input. VIREB also won the Best Skit Award at the BCREA 1978 Convention, taking home the elusive Cariboo Horns with thanks to the directorial skills of Ann Dusseault and Stephen Widman.

• • • • •

Under Marty Douglas’s leadership, the Research and Resource Committee investigated new ways in which to replace the aging Teela System. The Committee’s conclusions led the Board to accept a change to the BCAA generated Sales Listing System on micro-fiche. The BCAA Service separated sales into sub- districts, or neighbourhoods, enabling Realtors to price homes according to an area. Initially, subscribers would receive sales listings for the previous two years, followed by a quarterly update. The BCAA Service would cost $9,000 per year and each office would be required to purchase a “reader” for a cost of between $250 and $500. At the time, the Teela Service was costing the Board $15,000 a year, but was discontinued as of December 31, 1978. Additionally, in October 1978 a 90-day notification of contract discontinuation was submitted for the IBM System-32, in use since 1975.

• • • • •

An Extraordinary Meeting was held at the Qualicum Theatre in September, 1978. The Membership was asked to approve a Board recommended funding scheme for the MLS. By a secret vote of 134 to 128 a second amended motion was carried; the MLS fee was increased from 0.3% to 0.4% with a mandatory catalogue fee of $4. However, the final amendment accepted by the Members at Qualicum Theatre was declared out of order by Board Solicitor Peter Watts because the main motion had not been voted upon.

At Zone meetings following the Extraordinary Meeting the Membership voiced their disapproval of the way in which the meeting was conducted. Duncan asserted that due to the incorrect parliamentary procedure no monies should be released for the production of the catalogue and Parksville concurred. As a result, the Board called a second Extraordinary Meeting to determine an appropriate means of funding the MLS. The meeting was set of November 1st and the Membership came out in force.

At the second Extraordinary Meeting, 273 votes of a possible 310 were registered in person or via proxy. This represented 88% of the voting Membership. The Board firmly communicated the intention of using secret ballots with regards to MLS funding, but that voting sticks would be used for all other votes. Peter Watts was appointed Parliamentarian and Bob Berry of Duncan, Prince Pabbi of Port Alberni, and Don Sharpe of Campbell River served as scrutineers. The initial motion was to charge Licensees a “mandatory” $3 per weekly catalogue and increase MLS fees from 0.3% to 0.4%. The amendments that followed, including one to drop the word “mandatory” were systematically defeated. Having followed parliamentary protocol the main motion was called and carried by a secret ballot vote of 145 to 128. All Members were thereafter required to participate in funding the MLS catalogue.

At the following Board meeting, eight days later, a Block Bros delegation addressed the Board concerning catalogue funding. Art Meyers reiterated his concern over the “mandatory” aspect of catalogue participation. Furthermore, Art asserted that Block Bros Salespeople outnumbered all other VIREB Mem- ber companies. Arthur Block urged the Board to maintain a voluntary approach to catalogue participa-

57 1970’s: The Rise of the Salesmen tion as Block Bros did for its own catalogue and “any departure from such an approach would force Block Bros into re-assessing their Membership with VIREB”.

Nonetheless, by September 1979 Multi-List Data Communications was awarded the printing contract for VIREB’s MLS catalogue. Production was to commence in California until the company gained approval to operate in Canada; at which time they would publish the catalogue in Victoria.

• • • • •

At the first meeting of 1979, concerns were raised regarding the number of Assisted Home Ownership Program (AHOP) funded foreclosures CMHC was listing on MLS. What had been a funding Program to allow first time buyers into the real estate market was turning into an economic debacle. Homeowners were finding it difficult to make ends meet, interest rates were rising, and renewing mature mortgages became unaffordable. Due to the sheer numbers of foreclosures, CMHC pushed individual Boards to allow them direct access to MLS, rather than listing through a Realtor. In addition, the government also sought to market Crown Land directly on the MLS and each provincial Board was again faced with determining appropriate business practices. Deterring competition contravened the Combines Investigation Act, but the Board had a responsibility to Members that funded the service.

• • • • •

A sign of the times was evident in the 1979 budget wherein funding for bursaries was cut, sales incentives were cut, and funding for extra CREA and BCREA representatives was cut. Even the vendor’s MLS welcome letter was discontinued. Moreover, the cost of new office Membership and Association Membership was increased ($250 and $80 respectively). The Board also ceased funding the UBC Diploma Course after 1979. This reflected cost-savings as well as meeting the needs of the greater whole as many Realtors were unable to participate in the Diploma Course due to the slow market. Instead, the Board chose to concentrate their shrinking funds on more practical, more accessible educational opportunities. It also continued funding Zone meetings and “legislative studies”. This proved their role as a grassroots organization with a protective agenda of monitoring government actions and creating educational opportunities for the Membership.

President Dorothy (Smith) Whittome was elected by acclamation in 1979. She was the first woman to hold this Executive position for VIREB, but not the last. Chuck Perry, First Vice-President and Marty Douglas, Second Vice-President supported Dorothy’s leadership and they proved to be a formidable team. The Executive determined that a five-year plan would serve the Board’s mandate for fiscal responsibility and legislative action. Furthermore, each year the Board of Directors sought to utilize the accu- mulated expertise of Past-Presidents, who were well versed in Board activity and the real estate industry. In September, 1979 the first “Past-Presidents’ Luncheon” was held and welcomed 10 Past-Presidents.

• • • • •

Realtors from BCREA began to investigate the establishment of a Chair at UBC in order to establish research into Urban Land Markets. A “Division” would focus on topics such as brokerage, real estate organization and franchising, local and federal taxation, impact on land, and land-use and controls. While establishing such a Chair would cost “in the neighbourhood” of $200,000 BCREA felt it would serve the industry and the public by instituting primary research.

The Real Estate Council was initiating its own changes and sought input regarding their intention of allowing Licensees to be elected after five years of service or more. This was a step towards integration. Furthermore, a BCREA Board of Directors meeting in April, 1979 determined that a standardization

58 1970’s: The Rise of the Salesmen of computer technology was essential in order for the industry to progress uniformly. The Vancouver Board’s offer of free access to their technology was more than generous. VIREB suggested that Vancouver hold a One-Day Seminar that included all EOs and a Director from each Board in order to explore computer sharing. BCREA also increased their Membership dues from $20 to $25 in order to fund its increasing political action. Additionally, in June BCREA suggested that a Realtor be appointed to the Real Estate Council of BC.

• • • • •

As a measure of continued improvement, the Board of Directors realized that the MLS top-producers were not rewarded adequately and sought to change that fact at the 1980 AGM. At the time, top-producers were rewarded with a plaque and a hanger that identified them as having sold $500,000 or more worth of real estate. However, the Board felt it was also important to recognize the top 10 producers individually. They did so by including “Top 10” on their hangers. Furthermore, it was decided that the top overall producer would receive a piece of commissioned artwork and VIREB would issue a press-release to mark their success.

• • • • •

In June, 1979 the Directors continued to struggle with missing keys for lock boxes. It was decided that a $50 fine would be imposed for the loss of the first key and a $100 fine for the loss of a second key. Across North America Boards were starting to use a lost key service offered by Supra Products. This involved a one time charge to register the key owner with Supra, thereafter providing the Licensee with a coded tag for a key ring with guaranteed return postage to Supra. Five Hundred tags would cost seventy cents each.

As the 1980s approached, many Licensees held a distorted vision of what their monthly dues of $30 supported. The Minutes report that the Members were “suspicious of the activities of the Board and against…spending any money on programs that are outside the jurisdiction of the operation of MLS”. The Board was seen somewhat as a bureaucratic entity without operational value for the average Realtor. It is important to remember that many Salespeople had only become Members in the late 1970s, when it was opened to them. Communicating the aims and objectives of the Board was a process.

The 1970s had been a turbulent, but productive decade for VIREB. It had grown from an Association of Agents focused on professionalizing an industry through standardization, education, and arbitration to an organization that influenced public policy and promoted self-protection through research, legislative interpretation, and lobbying. Most importantly, it was a decade of inclusion wherein Salesmen became Salespeople and earned the right to vote and serve the Membership as elected Directors. For VIREB, it was a decade that finished with a woman in charge.

59 1970’s: The Rise of the Salesmen

VIREB Christmas party Enjoying the festivities

VIREB Directors introduced

Original MLS logo

Preparing for the new VIREB offices: Frank Phillips at left

60 1970’s: The Rise of the Salesmen

In appreciation for hard work Barry Watchorn

Directors pose for photo in the Comox Valley

The Chef pauses for refreshment VIREB meeting at Duncan’s Village Green

61 1970’s: The Rise of the Salesmen

Deane Finlayson was one of VIREB’s true characters

President Barry Clark, centre, and below left

A good time was had by all

62 1980’s Storming The Hill

The 1980s opened with an industry facing rising lending rates, widespread foreclosures, and tight- ened purse strings. VIREB had worked hard to professionalize its Membership and establish practices that would not only improve skills, but continue to facilitate professional behaviour and success. The provincial and national organizations were learning to work in union to effect change in government for both Members and the public.

By 1980 BCREA entered the MLS catalogue fray in an attempt to develop a collective approach to production wherein BC Boards could share resources and expenses. The BCREA/MLS meeting in Janu- ary, 1980 illustrated the progressive nature of BC Boards as they pushed to incorporate a computer system that would put all Boards on the same page. After each Board itemized their MLS status regarding production and funding, the provincial MLS Committee recommended that all Boards adopt Hewlett- Packard hardware in order to capitalize on inter-Board activity; VIREB agreed. In anticipation of a May delivery VIREB had to renovate to accommodate the new computer system.

• • • • •

Each Board had a unique accord with CMHC with regards to foreclosure listings; commission rates ranged from 4% to 6% and a seemingly equitable listing agreement of “sell one, list one” existed. In 1979 CREA and CMHC both suggested that Boards appoint a Director to act as the listing Realtor. However, property and transactions were legally insured for the protection of a Board. It would be unfair to ask a Director to also incur the risk of insuring listings. By 1980 almost 2,500 mortgage defaults were accrued in BC, more than 31,000 across the country.

The Legislative Committee at BCREA also found it necessary to research protective measures for Salespeople losing commission when Agencies went bankrupt. Correspondingly, the provincial Asso- ciation continued to vocalize criticism of the government’s mortgage schemes. Down payments were replaced with 100% financing, this led to higher interest rates due to overall risk. The Credit Union, for instance, was financing mortgages at 15%. When mortgages came due for renewal and rates had risen, and incomes had not increased correspondingly, defaults would result.

• • • • •

1980 marked the institution of the Herbert R. Fullerton Chair in Urban Land Policy at UBC; a policy research endeavour financially established through support of BC Boards. VIREB’s Membership endorsed support at their 1979 AGM in the amount of $25 per Licensee up to $15,500. Dr. Michael Goldberg was appointed the first professor of the Herbert R. Fullerton Chair in Urban Land Policy.

• • • • •

Dorothy (Smith) Whittome chaired the Public Relations Committee in 1980. Dorothy had been succeeded by Chuck Perry, the first Salesperson President. The PR Committee contemplated what could be done that would benefit both the community and the Membership? This curiosity inspired a role for

63 1970’s: The Rise of the Salesmen

VIREB as corporate citizen. The Board allocated a fund of $5 per Licensee to be directed towards a Zone- centric community project. This not only offered representational funding, but Zone sensitivity in that each Zone could select its own project.

By spring, Duncan had decided that their “community involvement” fund would be directed towards a high school bursary, and Courtenay considered donating their allotment to the Chamber of Commerce for a specified project; both showed a long-term strategic mindset. In 1980 the Nanaimo Zone allocated a portion of their funding towards the purchase of 72 copies of Vancouver Island Reflections, to be presented to participants when the Nanaimo Curling Club hosted the National Senior Men’s Curling Cham- pionship in March, 1981. In October the Campbell River Zone also allocated their community fund to a bursary and the Zone Realtors decided to assess each Zone Licensee an additional $5 in order to offer a second $500 bursary.

Additionally, the PR Committee investigated a variety of media opportunities that would promote real estate in the broadest format possible. After an earlier foray into television advertising the Commit- tee elected to produce a twelve minute film that could be used as a “TV filler” and, in essence, bring the Vancouver Island Reflections book to life. The Board did not want to present Vancouver Island strictly as a tourist destination, but as a “unique physical and social environment”. Directors anticipated that a short film could also be made available to the Economic Development Commissionaires, Chambers of Commerce, Department of Tourism and Economic Development, fraternal organizations, and schools. This foresight showed the strategic agenda VIREB continued to set for itself. Stratford Agencies were contracted to produce the film for $14,800.

• • • • •

In March of 1980 Pat Moore had completed his six year term on the Real Estate Council. He was given special recognition by his Council cohorts and Salesmen’s representative, Gordon Blackhall, for his outstanding contribution to the Council’s Education Committee. Pat was a relentless advocate of education. He was replaced by an equally industrious Ralph Walker, elected to the Council as the “Nanaimo County” representative on May 23, 1980.

• • • • •

In early 1980s CREA called a special National meeting in order to discuss the federal government’s increasing concern that Real Estate Boards were profitable, and should be taxed. The issue of revenue arose because a handful of Boards were not spending financial surpluses, mandatory for Society status. Many recognized the overages as problematic and took early action by adjusting MLS fees and dues, or sharing the abundance via community projects. Capital reserves towards asset purchases were allowed if used for improvements for the growth of the industry.

It was difficult for the federal government not to see the MLS as a profit making system, rather than a necessary tool of business. Boards compromised by agreeing to re-adjust MLS fees according to the cost of use. MLS fees could not be re-ajusted according to the Board’s profit margin. Rather, the service needed a static fee reflecting the true cost of operation. If profitability occurred, the Membership dues could change, but not the MLS fee. This would assure the non-profit nature of the service.

CREA kept a close eye on the new Canadian Constitution (enacted in 1982) and rose an alarm when the Charter of Rights and Freedoms omitted “the right to enjoy property” despite an appeal from CREA for its inclusion. However, provincial governments protested the inclusion of “private property” references in the Charter as provinces felt they held property jurisdiction. The issue of “property” was in the definition; it was too broad of a description for government and only “real property” to real estate prac-

64 titioners. Nonetheless, this issue would ignite the real estate industry and inspire political action across the country in an effort to protect the rights of the public.

• • • • •

On September 12, 1980 the establishment of the Real Estate Foundation was announced. It would be governed jointly by representatives from the real estate industry, the Attorney General’s Department, REIBC, and the Real Estate Council.

There was an ongoing industry concern related to filing of documentation registering property title. Delays occurred between registration and the time of absolute transfer, which was when the Registrar signed the title. It appeared that the Land Title Office (LTO) was overworked and understaffed. Prior to the absolute transfer, a Caveat or Lis Pendens (pending lawsuit) could be registered against a property. In addition to delaying transfer of title and risking a possible Caveat, it delayed payout. BCREA complained to the Attorney General, the Honourable Allan Williams, who advised that the LTO would be computer- izing over the next two years and increase its staff by 20 employees; any delays would likely subside. Pat Moore, VIREB’s Liaison to the LTO, pushed the Board to demand that the provincial government remedy the problem by allowing registration of a title take precedence over the Registrar’s signature.

On the other hand, the LTO admonished the Victoria and Vancouver Island Real Estate Boards for their practice of using the LTO for surface searches, which further burdened the system. LTO warned that Realtors should be using title search companies for State of Title Searches. However, the industry found title search companies unreliable. Boards, conveyancers, and the LTO all felt that if title search companies were subject to regulations, licensing, and formed an Association then service would be better. This opinion led BCREA to petition the government to recognize the LTO as an essential service. When the BC Government and Employees Union (BCGEU) went on strike in 1982 and shut down the LTO - title registration was at a stand still.

In early 1983 VIREB approved the use of State of Title Certificate Research Company; surface searches would cost $6. In May, the Victoria Real Estate Board introduced a system wherein Agents prepaid for searches and were then given “sticker identification tabs” to affix to photocopies for proof of payment. In this way, Agents assumed payment of the search fee. VIREB followed suit and introduce the LTO prepayment plan to VIREB Zones.

• • • • •

Just months after commissioning Vancouver Island Reflections, the film, VIREB hosted the film’s debut. Reminiscent of a red carpet affair, Donn Gardner fondly recalls Marty Douglas and Chuck Perry arriving at the film’s premiere in full costume, dressed as a thespian and an art critic. The film was an unparalleled success and was later shown at the Century 21 Convention in Las Vegas, the Realty World Convention in Calgary, and the Bank of Montreal’s regional and national Directors meetings. It made its way to the CREA Convention, the Northwest Council meeting in Corvallis, Oregon, and onto the airwaves at CHEK TV. It was also shown multiple times on PBS and Donn recalls comments from people who had seen the film during the depths of winter on the back roads of Saskatchewan.

• • • • •

At the November 1980 CREA Convention VIREB’s Dennis O’Leary was elected one of three Directors- at-Large for the national organization. VIREB earned praise for the Indicator and the Islander and Presi- dent Chuck Perry was rewarded to find that other Boards across the nation were learning from VIREB’s endeavours. The Convention also gave Boards the opportunity to witness a VANDAT demonstration; a

65 1980’s: Storming The Hill computer inquiry system that would lead the industry to a new level of capability.

• • • • •

The MLS system of reporting sales was under scrutiny for a variety of reasons. First, chaired by Peter Guest the MLS Committee took issue with Licensees failing to report sales. Several companies preferred to submit sales after all conditions were removed. Yet, many Realtors neglected to submit the sales information even then. Conversely, many pending sales were reported and the accepted sale price was circulated. If the sale then collapsed the accepted offer was common knowledge, removing the vendor’s bargaining power. Additionally, some listing Licensees lost control of sales information if a house was sold by a second firm. In the interest of consistency, the Board decided that the listing Salesperson would have the duty of reporting all sales, and that properties with pending offers be identified as such in both the catalogue and the computer “on-line” enquiry system (minus the details of the offer). Furthermore, VIREB prohibited the inclusion of commission rates on MLS listings as a protective measure.

• • • • •

In February, the Membership accepted the Board’s motion to allow a quorum of 15%, but it declined a change in Board of Director composition. While the Board did maintain 18 representatives it eliminated the need for a “Second Vice-President”. The Board also presented the format of the new catalogue expected in 1981 and sought to include advertising for community groups such as the United Way, Multiple Sclerosis, and the “Heart Fund” in the rear of the catalogue as part of their social commitment. Separate from the catalogue, the on-line MLS services then included: Income Property Analysis; Buyer Qualifica- tions; Buyer Cost Estimate; Seller Net Estimate; Residential Owning Analysis; Amortization Schedule.

• • • • •

In April, 1981, the Board requested that the Executive Management Committee determine the benefits of mandatory Membership for Licensees. Until this time, Members had joined by choice for a fee. Although a formal motion would still be required it was agreed that, in theory, Membership should be extended to all new Licensees minus the $20 registration fee. Since 1972 Agents were assessed $20 and $3.50 per Salesperson until full Board inclusion, at which time everyone was charged $20. Furthermore, in April of 1981 MLS commission was reduced from 0.3% to 0.25% with a maximum payment up to $250.

• • • • •

Marty Douglas, as VIREB President in 1981, attended the BCREA Convention in April. Peter Hynd- man, the Provincial Minister of Consumer and Corporate Affairs, delivered the keynote address. He praised the real estate industry in general, but warned the delegates that the Liberal Government had an agenda to come down hard on Realtors who were “flipping” properties, buying below fair market value and turning over the property for a profit.

In October, the Nanaimo branch of the Mid-Island Home Builders Association (HUDAC) wrote a letter to the Mr. Hyndman accusing Licensees in the Nanaimo Zone of flipping homes, constructing houses, and manipulating the housing market for personal gain. In reaction VIREB sent a letter to HUDAC and Mr. Hyndman offering full support in investigating these allegations in hopes of curbing the behaviour; maintaining professionalism for public trust was paramount. However, upon investigation no proof of “flipping” was found, so the issue was dropped.

In 1981 Dorothy (Smith) Whittome revealed the results of a two-and-a-half year recruitment study of real estate participation in Duncan. The average turnover of staff in all offices was more than 50% and

66 1980’s: Storming The Hill

Dorothy believed this reflected the independent nature of the Salesperson. In order for Agents to maintain a workforce they would have to plan to replace one quarter of their staff each year; this calculation did not consider a volatile market. If the BCREA’s Joint Sponsorship Committee reported statistic of only 1 in 8 students seeking licensing was accurate the Duncan Zone alone would need 413 people to take the licensing course in order to maintain numbers.

• • • • •

Ideas for community involvement were creative and well thought out as each Zone gained an understanding of the purpose of the fund. Following CREA’s lead to focus on heritage programs, the Nanaimo Zone was determined to spend their community funds on the purchase of the Maquinna Mask, carved by Jimmy John a descendent of the great Chief Maquinna. Nanaimo, due to its Realtor population, had $1,000 in project funds to invest in the mask, which was priced at $1,500. VIREB vowed to underwrite any financial shortfall if the Nanaimo Zone could not afford the entire cost, but the Members rallied to make up the difference from their own pockets. The Maquinna Mask came with conditions. It had to be donated to the Nanaimo Museum and it could never leave “Canadian shores”. Today, the mask remains in the care of the Nanaimo Museum.

• • • • •

The first mention of urea formaldehyde foam insulation (UFFI) appeared in Board Minutes in August 1981. Complaints were on the rise and the federal government banned its use in construction. CMHC offered a tax-free grant up to $5,000 to remove the offending insulation from homes; previously they had subsidized its use.

• • • • •

In the spring of 1981 VIREB had decided to find a new home for its flagpole, which had been purchased for the opening of the new VIREB office building in 1974. The ensuing Flagpole Contest proved to be one of VIREB’s more successful Public Relations campaigns. Schoolchildren were asked to suggest a new home for the VIREB flagpole. On school in Parksville, with 100 children, thought the flagpole would be a wonderful addition to their new school and 500 children in 6 Campbell River schools worked together to have the flagpole donated to Yuculta Extended-Care Lodge. The students had taken time to visit the Lodge to gain support for their idea. They also hosted Yuculta residents in order that seniors could share their life experiences with the children. The choice was clear and the flagpole was presented to Yuculta Lodge on Ironwood Street in Campbell River March 18, 1982.

• • • • •

Towards the fall of 1981 a slowdown in the market was unmistakable. The reinstated MLS catalogue was proving expensive to a Board that was earning less and less in MLS fees. By September, the catalogue had moved to a bi-weekly publishing schedule, from a weekly publication. Because of low sales to listing ratio, minimal changes were made to listings each week. The reduction of editions saved the Board $12,000 each week the catalogue was not published.

The Bank of Canada reports interest rates peaking at over 20% between 1981/1982. Across the country housing was beyond the grasp of the average citizen, mortgages were in arrears, and houses abandoned. BCREA hoped that a coalition of stakeholders, working together, might design an attainable solution. At the end of 1981, BCREA initiated the Provincial Housing Conference, Marty Douglas represented VIREB and the Board donated $750 towards the success of the meeting.

67 1980’s: Storming The Hill

Industry representatives formed panels and presented their distinct perspectives on the housing crisis in BC. Opening remarks indicated that everyone had a right to have a home. It also recorded that “conferences rarely find all of the solutions to a problem, but a lot of stupid ideas can die there”. Each panel, motivated by its own agenda, presented ideas to solve the crisis.

The Real Estate Panel suggested that the market would correct itself over time as many of the solutions were built into the “market mechanism”. The Consumer Panel represented a cross section of society including cooperative housing, senior citizens, and citizens with physical challenges. This Panel criticized Builders for wanting governmental representation removed from the housing equation, thereby eliminating protective measures. The Builders and Developers Panel felt that a free-market system would not work with housing as long as there was government interference. They saw government incentive programs as distorting the market and driving costs higher. Furthermore, the Builders saw voters as the “biggest single roadblock” to innovative housing due to their “not in my neighbourhood” attitude; they said affordable housing needed to be designed and built as “infill” rather than as entire subdivisions.

The Government Panel, representing Bill Bennett’s Social Credit Party, recognized that inadequate housing was a serious concern. The Government Panel admitted that it could no longer afford to support the housing industry. They recognized that housing issues were a “lightening rod” that drew criticism, but felt it was the fault of inflation. The Financial Panel stated that the housing crisis would not subside until the housing costs across North America caught up to BC. They recommended that the government establish a single Housing Ministry, consider projects that affected housing in the long-term, and establish a provincial capital gains tax on “flipping”. Furthermore, this Panel argued to eliminate rent controls, but maintain rent review Boards; arguably, rent controls affected supply and demand. If a developer was limited by government rent restraints they might be hesitant to develop housing at all. Without new developments, competition would be lacking – thereby driving up the cost of existing housing.

While some key participants, such as the regional districts and municipalities chose not to attend, the Provincial Housing Conference was an important venue at which stakeholders were able to share their concerns and ideas for solutions. Presumably, each of these groups had a rare opportunity to unite for a common purpose (and perhaps kill a few “stupid” ideas). It was, in fact, a ground-breaking event and mention of it gives a synopsis of the issues facing the industry at the time.

• • • • •

Following CREA’s lead on property rights, BCREA and BC Boards began to raise questions pertaining to the property rights of British Columbians. Concern over the lack of an Expropriation Act in BC was recorded in 1981; without guidelines property ownership was at the mercy of the government. Addition- ally, recommendations to BCREA suggested that the real estate industry show overt support of the government’s attempt to remove rent controls over the following 3 to 5 years. It was time that BCREA had a fulltime lobbyist in Victoria. The desire to develop political relationships defined real estate in the 1980s.

• • • • •

Marion Podritske became President of VIREB in 1982, announcing a $4,300 operating profit in Janu- ary, the first profit since July of 1981. At the start of 1982 VIREB was supporting the educational and practical needs of 786 Members.

At the March 1982 Duncan Zone meeting, Lloyd Wood was presented with the 1981 VIREB Award. The Board had determined new criteria in order to make the selection process transparent to all stakeholders. • • • • •

68 1980’s: Storming The Hil

At the spring meeting of the Northwest Council, both Canadian and American Boards reported a decline in Membership for Realtors as well as Agents. The 34 Boards and independent MLS organizations present represented 3,745 offices and 27,399 Licensees. Combined, they had a 10% drop in Agents and 20% drop in Licensees over the previous eight months.

American colleagues were also experiencing an upsurge in political action. In fact 2,000 Members of NAR met with President Ronald Reagan in the spring of 1982 to discuss the housing market. NAR’s Politi- cal Action Committee (PAC) asked each Member to dedicate 24 hours of service a year towards political action. If each of the 750,000 Members complied, 18 million hours of volunteer hours would be available. The US was also experiencing severe economic instability and lacked support for housing development from its government. Americans were demanding single-family homes regardless of artificial prices. “Pundits” saw the future of real estate involving: an increase in brand names (franchises); an increase in franchise services; diversification (real estate companies merging with insurance companies); national firms solidifying services to benefit from an economy of scale; survival of independents who were as- sociated with specialists or were specialists; lowered (competitive) fees; avoidance of forming individual companies; successful Realtors would join/stay with established franchises and small companies would become extinct; decreasing Membership as Realtors leave the industry.

Because firms were becoming larger, a shift in the balance of power within individual Boards was also apparent. Larger firms were filling the roles of Directors on Real Estate Boards. The relevance of a Real Estate Board was in doubt. This was a reality on both sides of the border. In Montreal, five of the city’s largest firms (“The Big Five” representing 75% of Montreal’s Licensees) were in litigation with the Montreal Real Estate Board. They argued that they lacked computer services in comparison to the rest of the country, and suffered due to an absence of representational power because smaller firms held the same number of positions on the Board. The Big Five felt smaller firms were unfairly benefiting.

Teela submitted a proposal to publish a catalogue for the Montreal Big Five and provide on-line computer services thereby giving the firms what they needed to operate. This mutiny would seem to mark the demise of the Montreal Board, which had only six months of reserves to fund operations – losing the patronage of the city’s largest firms would be catastrophic. On October 31, 1982 the Big Five served notice to withdraw from the Montreal Real Estate Board. However, CREA appointed a 3-person negotiating team in January, 1983 to establish a truce. The Big Five risked ejection from the national organization for overthrowing its local Board.

It was time for organized real estate to reconsider its role in the industry. Even though the government threatened the MLS, each Board knew, more than ever, that the MLS was their strongest asset. Corporations that provided marketing, education, and financing were a threat to organized real estate. Companies that could afford to provide the necessary core competencies to its sales force would not need a Real Estate Board. The MLS was a trump card.

At a special CREA meeting in June, Member Boards discussed the issues surrounding the non-profit status and incorporation of the MLS. Revenue Canada saw a divide between the business of a Board and the MLS. CREA Membership, led by the Calgary Real Estate Board, drew a proverbial line in the sand in order to establish precedent. The CREA Tax Committee determined that current legislation would not allow Revenue Canada to tax Boards despite MLS profits as the service was intrinsic to business. The government had previously threatened to audit passed years of operation if the Boards did not comply with the taxation of an incorporated MLS. CREA reaffirmed that as long as Boards readjusted their dues periodi- cally they were not operating a for-profit business. As a precautionary measure, the CREA meeting participants voted to assess each Licensee $2 in order to fund the legal battle against Revenue Canada if needed. The Assembly also decided that the industry would benefit from a structured Political Action Com- mittee (PAC). CREA had engaged a lobbyist, but the industry focus was broad; provincial and national

69 1980’s: Storming The Hill concerns differed. CREA foresaw the PAC working as a two-way messenger system from grassroots to bureaucrats. The group decided that once a consensus was determined, the CREA President and all provincial Board Presidents would release identical press releases. Furthermore, PAC representative were appointed at the local level and also gathered opinions from their region’s Members of Parliament (MPs) in order to fully inform the PAC. This was monumental step.

• • • • •

In mid-1982 the Board discovered that the Secretary-Manager and the Office Manager had voluntarily reverted to their 1981 salaries in order to save the Board money during financial hardship. While the general Staff was unaware of this goodwill it saved the Board from cutting back on Staff and hours. This was a good thing, as the Staff had increased their productivity more than 76% in the first half of 1982 despite the fact that they were a small group of only nine employees.

• • • • •

By the summer of 1982, the drawstrings were pulled tight at VIREB. Yellow page advertising was discontinued in all Zones, the AGM banquet and dance was cancelled, Zone luncheons were limited to six annually, advertisement of the MLS winners was discontinued, and even the Zone community project funding was temporarily stopped. The Teela service at the Board office ceased. Also stopped were Membership Cards, the VIREB clock given to new offices, and service plaques for Directors. Attempts to suspend bursaries, MLS gifts for top Salespeople, and the annual diaries however, were defeated. Fur- thermore, VIREB Directors suggested that BCREA and CREA meet every second year, and recommended that the provincial organization consider suspending the BCREA Bulletin. VIREB had also reverted to paying CREA and BCREA dues monthly as the number of Licensees changed dramatically from month to month, paying a year in advance was not cost-effective.

VIREB also contributed to the brain trust of real estate with representatives at all levels of organization. VIREB celebrated Marty Douglas’s appointment to the CREA Legislative Committee in March 1982, and in May his appointment to the BCREA Public Relations Chair and the Executive Management Committee. Marty was joined by Marion Podritske, who was appointed to BCREA’s Finance Committee at the same time. Additionally, Ralph Walker was appointed the Real Estate Council representative for 1982/1983. This had followed Gordon Blackhall’s Council representation in 1980/1981. Marty was the Board PAC liaison for VIREB in 1982/83 and was the Board liaison to MP Ray Skelly. David Moss was the liaison to MP Jim Manly, and Marion Podritske met with MP Ted Miller. Barry Clark was the PAC Commit- tee Chair.

• • • • •

Sharing resources was essential between Boards, what would benefit one would often benefit all, especially with technology. In 1982 the Ottawa Real Estate Board had commissioned an individual from the Space Program to study the feasibility of transmitting image records via terminals that had a video tape recorder (VTR) screen. At that point in time, Sony had a video terminal that could transmit still photographs from a small four-inch disk. The industry foresaw a use for such technology through cablevision. This could eliminate the need for a catalogue and predict the World Wide Web.

• • • • •

On December 17, 1982 a telegram arrived from the Honourable Marc Lalonde, Minister of Finance for the Federal Government, requesting support for the extension of the $3,000 Home Owner Grant Pro- gram for the purchase of new homes by first-time buyers. This measure would stimulate new construction and afford first-time buyers the opportunity of home ownership, it might also stimulate the econo- 70 1980’s: Storming The Hill my. Upon motion, VIREB endorsed Minister Lalonde’s initiative. Conversely, Licensees were finding that purchasers were reluctant to buy with interest rates so high. While the rate had peaked at 21.46% in 1981, the aftermath was still unfolding. Interest rates in 1982 were still in the high-teens.

As the Board of Directors prepared for the start of 1983, they had to get tough with the budget. Due to a lag in the market, though slowly rebounding, funds were limited and the Board could not foresee the possibility of delivering a balanced budget. Many fixed expenses could not be avoided. VIREB was forced to consider increasing dues, cutting services, or laying off Staff. Even the Past-President’s luncheon was threatened with cancellation, until the Past-Presidents offered to pay the cost of catering themselves. As a result, a catered lunch was served at the Board offices, rather than a rented room, for a 60% savings. On a voluntary basis, VIREB Staff agreed to help in cost-cutting measures. They consented to forego their annual wage increase, worked an additional fifteen to thirty minutes a day, increased workload by not hiring a part-time Staff Member, took an extra day off each month to save wages, and even agreed to share daily janitorial duties. Tangibly, this amounted to over $20,000 in savings for the struggling Board. Still, the workload continued to increase despite a slow market. VIREB Staff more than proved their loyalty to the Membership during the economic hardships of the early 80s.

• • • • •

In 1983, the Board elected Barry Clark President by acclamation. The market began to improve and the provincial government was increasingly interested in the needs and opinions of the real estate industry. By January the provincial Pre-Licensing Course had sold-out 800 spots for the August intake, with a further two courses of 500 to follow. An increase in enrolment, coupled with a slowly declining interest rate indicated a market recovery.

Coordinated efforts to continue lobbying for property rights began in the spring of 1983. CREA initiated Private Property Week in order to rally Canadian Boards and present a united front to the public. In its pursuit of protecting the public, the national PAC appealed to all Canadian Boards to organize a letter- writing campaign encouraging the Liberals to include property rights in the Constitution.

In response to the mandate of political action at the national level, BCREA established the role of Parliamentarian and developed a training seminar specific to the job; the appointment lasted the length of any given meeting. VIREB endorsed the appointment of Dermot Murphy, Secretary of the Real Estate Council, as Parliamentarian at their next AGM.

In March of 1983, the Superintendent announced that licenses would only need to be renewed every two years and new Licensees would have one year to complete their post-licensing coursework. Further- more, in September Property Managers were required to be formerly licensed with the Superintendent.

In May, 1983 Barry Clark was appointed Director of BCREA and Chair of their Communications Com- mittee (formerly Public Relations Committee). BCREA also renamed the Legislative Advisory Committee the “Provincial Government Liaison Committee”.

• • • • •

The changing market made future planning difficult. Other Boards, such as the Okanagan Mainline, had incorporated a set-rate for Membership dues that did not include MLS sales commission, but a monthly fee. While the number of Licensees still fluctuated, the Okanagan Mainline Board did not rely on the market to determine their income; they had some control. After a September Membership study, VIREB’s Executive Management Committee felt it was too soon to incorporate such a payment structure, fearful of relying on only one source of income. Although initial inquires found that a change would not be popular with the Membership, it was revealed that the lack of support came from “low” producers, 71 1980’s: Storming The Hill while “high” producers would be open to such a change.

• • • • •

The new Municipal Act worried Pat Moore. It allowed municipal approving officers to demand that developers donate up to 5% of their land to the local municipality for use as parkland. Furthermore, it gave municipalities the option of expropriating up to seven meters of private waterfront for public use. Such action would not only compromise property rights, but property values, and Salespeople’s liability.

• • • • •

The Indicator was produced by Board Staff in 1983, as the budget could no longer afford an UBC student. The Staff had also been delivering two, and then three catalogues per month with fewer hours. Donn Gardner presented the Staff’s position at the June Board meeting. As sales had increased by 30% in the past six months so, too, did telephone inquires, MLS listings and changes, and filing. Donn demonstrated the effect by detailing one particular day when 235 changes were registered, this required five hours of filing thereafter. The Board immediately returned Staff to full-time, and hired a part-time employee. By the end of the year the Secretary-Manager had been empowered to negotiate Staff wages and the Executive Management Committee was authorized to negotiate the Secretary-Manager and Office Manager’s salaries.

Although Board meetings were suspended for the summer months many Zones organized social events open to the entire Membership. Duncan hosted an annual golf tournament at the Cowichan Val- ley Golf Course; the Nanaimo Zone held one of their own at the Nanaimo Golf and Country Club. Port Al- berni organized the annual cruise aboard the Lady Rose, and Parksville was known to host barbeques at Rotary Park. Courtenay had begun an annual slow pitch tournament in 1981. Courtenay had also issued a blood donor challenge to all Zone offices in November 1981 to which John Cameron donated “Count Dracula’s Cup”, which was awarded to the most generous office.

• • • • •

CREA planned “Private Property Week” (PPW) for the first time October 2 – 10, 1983. Many citizens did not fully understand the lack of ultimate control they had over their own properties. VIREB’s Zone Directors took charge of promoting action within their own areas, calling on local media to cover PPW. The Campbell River Zone hosted a “property rights essay contest” for secondary school student. VIREB allocated $500 for the purchase of PPW pins for the Membership. All levels of organized real estate issued press releases to publicize the government’s inaction in protecting property owners. Barry Clark officially opened Property Rights Week alongside Mayor Frank Ney at Nanaimo City Hall.

In further consideration of the public protection the Board initiated Realty Watch in September of 1983. Realty Watch was a crime prevention Program that started in York, Pennsylvania as a means of protecting communities from criminal activity. Given that Realtors were often on the road between 10 am and 3 pm organizers felt trained Realtors could be the “eyes and ears” of a community. Not only was the Program logical, it created goodwill for Realtors. President Barry Clark was clearly the motivating influence pushing VIREB to include this Program in their activities.

The following year, Dave Bryan and Donn Gardner presented the Realty Watch concept to the PR Committee of Vancouver and Fraser Valley Boards, and 13 law enforcement officials interested in the project. Once VIREB developed the training program, it planned to offer Realty Watch to Boards across the Canada. By January of 1985 the RCMP had notified VIREB that Realty Watch had been adopted by the RCMP of BC as an “operational crime prevention program”.

72 1980’s: Storming The Hill

• • • • •

The September 9, 1983 Minutes announce the passing of Herb Fullerton. Mr. Fullerton was an immense influence on VIREB, guiding real estate at all levels. He had been one of the first speakers in the Small Dining Room at the Plaza Hotel in 1953, had installed the first “VIREB” Executive in 1959, and became an Honorary VIREB Member in 1966. He was an industry champion and a devoted friend to VIREB.

• • • • •

As 1983 was drawing to a close the MLS Committee, chaired by Doug Beatty, had been busy establishing the continuation of existing Awards and the initiation of new ones. The Committee sought to better recognize outstanding producers. Established in 1983 were: Top Volume of sales producer; Top Unit Producer – selling the greatest number of listings; Excellence in Listings – greatest number of listings; certificates for the Top Fifty; certificates throughout the year for Achievers who reach incremental plateaus of $250,000 in volume.

The MLS Committee also instituted a new recognition known as the “President’s Award”, to be given to the individual who earned the top position in two of three categories: top sales volume, excellence in unit sales, and/or excellence in personal listings sold. The President’s Award, later known as the “Presi- dent’s Cup”, proved to be an elusive honour. As further housekeeping, on May 27, 1983 all Sales Awards were thereafter referred to as the “Medallion Club”.

• • • • •

1983 ended with Barry Clark’s election to a second term as President. Being elected for a second year was unusual, but not unheard of. Jack Evans had served as VIREB President for three years, 1951, 1952, and 1962. Jack Ellis had been elected in 1968 and 1969 and Tom Johnstone in 1971 and 1972. After his two terms as President, Barry would go on to serve as Real Estate Council Chair, BCREA President, and on the Real Estate Errors and Omissions Insurance Corporation.

• • • • •

Near the end of 1983 the Board accepted a proposal from Xerox to lease two Xerox 9500s, in addition to the Xerox 9400 they already operated; VIREB could produce their catalogue onsite. The move to in-house printing would require the Board to approve a building extension to accommodate the additional printing equipment. The Directors approved a $35,000 expenditure for computer equipment and a $50,000 budget for construction. The catalogue had been produced in Vancouver for the previous three years. In order to achieve in-house printing the Xerox machines required a Compugraphic Typesetting System (MCS 10/8645) with 256 Kilobytes of memory, automatic ruling, zebra processing, and twelve available fonts at a price of $89,000. The additional Xerox printers would increase that cost to $250,000 over five years, but was expected to save $100,000 per year. It was the price of progress.

• • • • •

I.C. & I. was often on a parallel, but distinct, track to residential real estate. REINET, an international listing service, had been established for commercial listings in the past and MLS had adapted a commercial section within the catalogue, but it was not a cost-effective venture for VIREB. In March of 1984 VIREB endorsed the concept of a provincial I.C. & I. MLS system that would advertise commercial listings in the province in a self-supporting manner. Conversely, Teela Data Management Systems announced a new service for Commercial Realtors. Teela published up to 50 MLS catalogues across the country already and proposed to publish an I.C. & I. Exchange, available to anyone for a monthly subscription fee

73 1980’s: Storming The Hill of $25 per issue. Properties could be listed for $15 per page for three months.

I.C. & I. education differed from residential sales education. In May of 1984, BCREA presented a new course titled Introduction to Computerized Real Estate Investment Analysis. The copyright to the material was held by the Real Estate Board of Greater Vancouver (this is the first time VIREB Minutes refer to the Vancouver Board as REBGV), but they were always keen to share.

• • • • •

Regarding the Expropriation Act, Randy Forbes, VIREB’s Legislative representative in 1984, submitted a proposal to the BCREA Legislative Committee requesting that the provincial body petition for amendments to Section 729 of the Municipal Act. The proposal demanded compensation for expropriated property, the right to negotiate a financial settlement in lieu of the 5% parkland, and the right to appeal the expropriation. BCREA’s Legislative Committee considered the submission and felt that only “fair compensation” would be necessary in order to protect the property owner. While this was not what Randy or his Committee had in mind, VIREB was satisfied that BCREA was taking action.

• • • • •

In October 1984 BCREA announced its intention of forming a provincial “PAC” in order to address provincial legislation; all Boards were invited to send a representative. And at the November 1984 CREA Convention Dave Bryan and Donn Gardner presented the Realty Watch program to the Assembly. It would motivate many Canadian Boards to organize such a Program in their home communities. It was during this time that Donn Gardner’s title of Secretary-Manager was changed to Executive Officer (EO)

A pivotal event occurred at the November 1984 CREA Convention at Ottawa; armed with prepared briefs 300 CREA delegates “stormed Parliament Hill” in a united front. The theme of the annual Conven- tion was “A Capital Connection”; a theme realized as the delegates filled MP offices in order to present their arguments. The group of real estate practitioners took specific issue with property rights, mortgage rate protection, Interest Act amendments, Bankruptcy Act revisions, Combines Investigation Act amendments, Revenue Canada reform, and especially the federal deficit – which delegates referred to as the “albatross”. Participants sat down with their hometown MPs and communicated their dissatisfaction with the federal government.

Storming the Hill was an organized action, and delegates were well-prepared. Not only did they present criticisms, they offered solutions. It would prove to be the first in a history of progressive protests that has built a constructive relationship between industry and government.

Furthermore, CREA investigated possible tax deductions for real estate practitioners. They were determined to fight for the right to claim capital expenditures, deductions exceeding commission income, and conference expenses. The national body felt these three deductibles were the most likely to be accepted by government. According to legislation of the day, the only capital expenditure permitted for a Salesperson was their vehicle. Proposed amendments included computers, “pocket pagers”, and “car phones”. At the time, these tools were only deductible if they were leased.

At the same Conference CREA announced that it had ordered a Hewlett Packard computer which would allow “interfacing” with “ten or twelve” Real Estate Boards across the country, one of which would be VIREB. It is a remarkable testament to VIREB, and to the strong relationship with REBGV that the Board was in a position to support interfacing with the national organization.

• • • • •

74 1980’s: Storming The Hill

CMHC had returned to contracting VIREB Realtors for foreclosures via a rotational protocol in the early 1980s, rather than using a Board Director. By November 1984 individual Zones were in charge of distributing CMHC listings. In the Nanaimo Zone, for instance, CMHC listings were awarded with a rotational format, as long as the listing office earned a sales volume greater than $500,000. New offices had to wait at least one year to enter the rotation. Other Zones relied on an alphabetical system.

Computerization had proven to be a lucrative venture in staying current within the industry, staying connected to other Boards (as well as BCREA and CREA), and providing additional services to the Mem- bership. The Board encouraged all Agencies to computerize their business practices, but several were unable to afford the costs, or lacked the knowledge to do so. While the Board had subsidized many ventures for its Members throughout the years, the cost of computers was substantial. If one company was assisted financially, did that compromise the success of another Member office that was able to afford such an expense? On the other hand, who owned the Board if not those who paid dues and should they not benefit from that ownership? It was complicated. Many of the larger offices, or franchises already operated their own computer systems. By October 1985, the Executive Management Committee would recommend that the Board finance computer purchasing at a term deposit rate over 2 years, equalling what the Board would have earned had the money been invested. This “special computer financing” would discontinue in June of 1988. It is important to note that the more computerized the industry was, the more interaction companies had with each other. Business was sometimes stifled without the ability to communicate on the same level.

• • • • •

The ongoing debate over fee-for-service funding had reached a critical plateau in early 1985. The Board had issued a Members’ Survey in late 1984 and the returns were proving that the Membership was ready for a change in funding structure. While an immediate change would require a Notice of Motion, the Board did come to a consensus of what would be most appropriate. It was clear that top-producers were contributing more than less active Licensees. Arguably, top-producers were penalized for their success, but they were also using the system more. Three alternatives were outlined: fee-for-service; an actual cost of service between Board and MLS based on the commission earned, known as “user-pay”; or monthly assessment and commission split, as was in use.

At a special meeting, the Membership voted on Board funding. In a 38.7% to 61.3% result, user-pay- method was favoured and President Tony Pearson declared the method approved. An additional ballot was necessary concerning adjustments to fees. Considering the cost of the catalogue production, fees would have to change. The Membership could vote for retention (establish monthly fee of $40 and continue using MLS service-fees to subsidize the catalogue production) or for an adjustment (maintain the $40 assessment and recover the cost of the catalogue through MLS commission adjustment). In a close vote of 206 to 228, 52.5% of the Membership selected the adjustment plan.

• • • • •

In April, 1985 the Directors held a private strategic planning retreat for the first time. Stan Hamilton facilitated and it gave Directors a structured way in which to discuss strategic plans. There was a new possibility of remote MLS entry by Realtors. While this would save money for the Board, and alleviate considerable stress for VIREB Staff it would increase Agencies’ costs and put a strain on their own Staff. Furthermore, phone lines would be “tied-up”, quality of information would be out of VIREB hands, and the need for increased phone lines would increase costs to Agencies. However, it might have expedited information and give individuals control over the process. The Board recommended implementing a remote entry system by January 1, 1986 as long as VIREB Staff approved the technology and procedures. Other Boards were interested in the outcome of a remote entry process, but feared that the high standard

75 1980’s: Storming The Hill of the MLS system would be compromised.

• • • • •

In June, BCREA sought input from all Boards regarding recruitment. VIREB’s Executive Management Committee suggested: a minimum income for all Licensees to discourage part-time Salespeople; a “shelf life” for an unused license to six months before an exam had to be challenged; Licensee must activate their license within ninety days of completing the licensing exam to discourage frivolous pursuit of a license and allow quotas to be filled by serious students; the “shelf life” of an inactive Nominee or 9.15 be limited to two years, after which the exam would need to be challenged.

Recruitment was also indirectly affected by politics. Import quotas on cross-border trading threatened the Canadian economy. While a standard of free trade existed, new American legislation was proposed to add tariffs to some Canadian imports, namely lumber. BCREA urged CREA to ask NAR to, in turn, put pressure on the US government to continue the free trade tradition. Progressive Conservative Prime Minister Brian Mulroney (elected in 1984) followed the footsteps of his predecessor, Liberal Pierre Trudeau, by pushing for unhindered trade between the two countries, as detailed in the MacDonald Commission. BC would be particularly affected by import tariffs due to its reliance on the forest industry. If jobs were lost purchasers would not be buying houses, and vendors would not be able to afford the ones they had. Additionally, lumber prices would rise across the border as increased costs were pushed onto the consumer, stifling new development and affecting NAR Members. Both organizing bodies had a valid interest in free trade.

Marty Douglas (newly elected President of BCREA for 1986) attended the May 1985 Board meeting with Barry Clark, the newly elected BCREA Treasurer. In his “maiden” Presidential speech to BCREA, Marty made “some wild promises” to persuade the Directors to select VIREB as the host for the BCREA 1986 Convention using the theme “Come Across”. By June, BCREA had awarded the conference to VIREB and a Convention Committee was struck.

• • • • •

In May of 1985 BCREA established a $10,000 fund as reward for information leading to the convic- tion of violent offenders committing crimes against BCREA Members. This was in reaction to the death of Beverly Seto who was murdered at her Open House on March 31, 1985 in Abbotsford. That spring the Nanaimo Zone hosted “Lady Beware Seminar”. In March of 1986 BCREA announced that it had paid a $10,000 reward for information leading to the arrest of the person responsible for the crime.

• • • • •

In June, the Nanaimo Zone submitted a list of recommendations to establish appropriate representation on the Board. The Zone asserted that representation should be “weighed” according to the population of Licensees in each Zone. By 1985, Nanaimo represented a third of all Licensees in the VIREB area. Yet, three Directors represented each of the six Zones: an Agent, a Salesperson, and an IT. The Nanaimo Zone felt that their Zone lacked sufficient communication with the Board. They blamed the lack of communication on the number of Board Directors representing such a large number of Realtors. However, the VIREB by-laws mandated an equal split of representatives between Zones and the Board refused to consider Nanaimo’s representation by population argument.

However, as elections loomed for 1986 Directors, the Board was faced with the annual concern of finding Members able to serve as Directors. Nanaimo’s proposal of representation according to population soon found favour. In a surprizing turn-around the Executive Management Committee, chaired

76 1980’s: Storming The Hill by Diane (Fullmer) Siebolts, recommended a reorganization of Board structure. Each Zone would have a minimum of two Directors – one Agent and one Licensee. If the population of Members was larger than ninety, for any one Zone, then a third Director would be added. Once the population reached 150, a fourth Director would be elected. Within these guidelines, the 533 Members of VIREB would be represented by fifteen Directors: Campbell River – 74 Members meant two Directors; Courtenay – 72 Mem- bers, two Directors; Duncan – 105 Members, three Directors; Nanaimo – 181 Members, four Directors; Parksville/Qualicum – 65 Members, two Directors; Port Alberni – 36 Members, two Directors.

• • • • •

The mid-1980s recorded a change in the general mood of the industry as practitioners demanded harsher penalties for infractions. While the Standards of Practice Committee felt they were addressing complaints efficiently and forwarding serious infractions to Council, they did recognize penalties could be more severe in order to deter poor behaviour. In October, 1985 the Board voted to direct any collected fines to the Education Committee to organize Ethics Seminars. By November the Board allowed the Stan- dards of Practice Committee to levy fines up to $1,000 for ethics infractions and at the AGM in February 1986 the Board raised the maximum to $5,000. Until then, the minimum penalty had been $25, which had replaced the original $5 penalty.

• • • • •

In September 1985 VIREB adopted Multiple Sclerosis (MS) as their prime charitable focus. Specifi- cally, the Board planned to organize their own Carnation Day in May of 1986; gathering donations in return for a carnation flower. This would prove to be a very successful community service for more than a decade.

• • • • •

On September 25, 1985 the Past-President’s Luncheon hosted: Jack Evans Pat Moore Allan Armstrong Jack Ellis Reg Eaton Tom Johnstone Vic Price Lauren Miller Deane Finlayson Chuck Perry Marty Douglas Marion Podritske Barry Clark Tony Pearson Dorothy (Smith) Whittome

Past-President of the Salesmen’s Division Gordon Blackhall and Jim Robertson also attended. Donn Gardner had prepared a brief account of VIREB’s history and presented it to the Presidents in order to gain further input. The Past-Presidents recommended that the Board hire a summer student to travel the Board area and interview individuals who had contributed to VIREB over the years. It was felt that by looking at the stages of VIREB’s development the Board, and its Membership, would have a greater respect for how far the industry had come.

• • • • •

The Real Estate Foundation was finally proclaimed on October 1, 1985. The Foundation was developed as a philanthropic organization for the purpose of public and professional education, real estate

77 1980’s: Storming The Hill reform, and research. While the government could theoretically designate up to 50% of the funding, it would be mainly administered by the real estate industry.

Technology was improving rapidly, and services available to VIREB were increasing. In October of 1985, the Board examined the iNET 2000, an “intelligent network” developed by Telecom Canada that was designed as a database access method and processed information. The iNET 2000 allowed retrieval, recording, filing, and editing of data. Furthermore, it provided messaging and data conferencing opening a veritable wealth of possibilities. The iNET 2000 was a Block Bros owned tool. They allowed access to subscribers and planned to present the system to VANDAT HP users at the next CREA Convention. This would allow Boards across the country access to databases in any part of Canada with a subscription.

The Board also considered the merits of the ENVOY 100. A system that would allow subscribers to compose, edit, send, receive, and file electronic messages between subscribers nation-wide. While this system was similar to the iNET 2000 it would be most useful for Broker Load, otherwise known as “remote entry”. In November, the Board elected to install the iNET 2000 system. In so doing, VIREB became an “Information Service Provider” (ISP) allowing it to share a wealth of information with Members.

In considering additional software, it was also necessary to assess computer systems regularly. The Board relied on their “beloved” computer, nicknamed ERNIE (not to be confused with BERT), for a majority of its technical services. At the end of 1985, VIREB’s central processing unit (CPU) utilized two megabytes of memory. In order to increase it by one megabyte and realize its full potential of three, the Board would have to expend approximately $15,000. The CPU was a temporary storage memory-bank for information. Information stored for the long-term was kept on two disc drives containing 404 megabytes and 120 megabytes respectively. VIREB had filled this memory to 90% capacity. To increase the memory capacity by another 400 megabytes the Board would have to spend $46,000. This reflected the storage leased to the Victoria Real Estate Board for computer rolls. Together with VIREB’s increased use of “Vidat graphics” more space would be necessary. While an improved CPU would be an eventual necessity, the disc drive was a more lucrative choice and the Board allocated funding to acquire an additional 400 megabytes.

VIREB’s computer study paralleled CREA’s research of a national computer network that would eventually link all Boards together. In the fall of 1985, fourteen Boards and organizing bodies gathered in Edmonton to discuss the benefits of the VANDAT system.

This special CREA Committee endorsed the VANDAT computer software used by the Hewlett-Pack- ard system. However, an imbalance of access to computer networking between Boards was soon evident. Many smaller Boards with 100 to 200 Members were unable to afford modern technology. As a result CREA sought a “programming-down” approach in order that all Boards progress at the same pace.

CREA’s Taxation Committee had abandoned its attempt to classify Realtors as “independent contractors” by late 1985, as the majority were considered “employees” according to their home province statutes. However, the Committee did push forward to obtain deductions for reasonable capital expenditures, expenses beyond commission income, and for costs related to seminar training. When CREA delegates “Stormed the Hill” in 1985 they focused on the federal deficit, social housing, longer mortgage terms and lower interest rates, amendments to the Income Tax Act, and helping Canadians buy homes. PAC activities proved to be an ideal format from which to approach the government with recommendations initiated by real estate professionals.

• • • • •

78 1980’s: Storming The Hill

In January of 1986, the Board received a delegation from the “Spirit of Chemainus Project” requesting sponsorship of the “Vancouver Island flagship” in order to promote the Island, especially during EXPO ‘86. The Spirit of Chemainus was a 90-foot replica of a Brigantine Gloucester Schooner, originally built in 1902. The delegation requested that the Board join five other sponsors to fund the project for $12,000 each, VIREB agreed. Much to the delight of the Board, the Spirit of Chemainus planned a promotional sailing to Newcastle Island during the BCREA Convention.

For more than a year REBGV had been planning for EXPO ‘86. The Vancouver Board had invited all provincial Boards to participate in their collective marketing plan, allowing each Board to showcase their unique geographical area. While a combined effort would divide the costs, it was still an expensive venture. In addition, Vancouver Island Associates from a variety of organizations had plans of their own for a parallel campaign known as Islands ’86; a plan to draw EXPO ‘86 tourists to the Island.

REBGV had organized a five-pillar display booth for the EXPO ‘86 site. CREA, the interior Boards, and VIREB indicated interest in the project though Victoria had declined. While the display unit and subsequent costs of leasing the space was expensive, Vancouver assumed most of the expense. VIREB Directors had only to decide how to promote the Island. Vancouver Island Reflections the movie would prove a fitting promotion.

• • • • •

In February of 1986 Diane (Fullmer) Siebolts stepped into the role of Board President. While VIREB’s reporting style had evolved over the years to encompass a less casual style, a noted difference emerged when Diane began her term. Additionally, the Assembly voted to approve the adoption of CREA’s Stan- dards of Practice and Code of Ethics in order to create a nationally recognized standard of protocol. This acceptance of standardization echoed VIREB’s adoption of the Vancouver Code of Ethics in the early 1950s, a decision borne of necessity. But in 1985 the decision illustrated a determination to streamline national policy to protect professionalism.

• • • • •

In March 1986, VIREB’s BCREA Convention Committee reported a “Treasure Island” theme. Harvey Drdul had organized 20 “enthusiastic 17th century pirates” to serve on the Sergeant-at-Arms Commit- tee. Pipers and banjo players were booked for spot performances as well as the Rube Band from Duncan. An auxiliary program for non-delegates included a walking tour of Chemainus and a luncheon at Mount Breton Golf Club. The Campa Big Band from Courtenay was to play the finale at the Newcastle Island Pa- vilion. Additionally, the Board resolved to provide a complimentary copy of the Vancouver Island Reflec- tions book to each BCREA Convention delegate.

• • • • •

By the spring of 1986 VIREB extended automatic Membership to Licensees as soon as they completed the Post-Licensing Course. However, when a Member changed offices transfer paperwork was required; a $25 fee was charged. In September, companies providing post-licensing training to new recruits requested the recruits be excused from VIREB’s mandatory Post-Licensing Course. However, standardized education was essential in order to maintain a consistent professional status and VIREB denied the request.

During the 1986 PAC Days, delegates expressed concern over private property rights, as the government had not yet entrenched property rights into the Constitution; without mention of property rights the government would have the freedom to do as they pleased without compromising any laws. Addi-

79 1980’s: Storming The Hill tional concerns included longer-term mortgages, the deficit, and government listings marketed through MLS. The federal government had promised to amend the Interest Act in order to allow 25-year mortgages with a fixed interest rate, but had failed to enact the changes. MLS promotion of government properties was an ideal focus for CREA as the federal government was the largest landowner in the country.

• • • • •

In June of 1986, the Board voted to ban Members from advertising gifts or prizes to attract listings. The practice contravened the Code of Ethics by appearing to under-mine other Realtors who adhered to traditional commission rates. Additionally, a new marketing approach of blanket mail-outs was the cause of concern as it appeared that Members were soliciting vendors who already had their homes for sale. Even though entire neighbourhoods received promotional letters the Board ruled that a Member must ensure that any house receiving a mail-out must not already be for sale.

In September, the Board voted to collaborate with the Tourist Association of Vancouver Island (TAVI) and Kenchenten & Associates in order to produce a 22 minute, 16 mm colour film highlighting Vancou- ver Island. The project was expected to cost $20,000, an updated version of the original Vancouver Island Reflections movie.

At this time, BCREA initiated an aggressive agenda by appointing 23 Members to a strategic Com- mittee with an 8-person Steering Committee. Both groups had VIREB representatives. BCREA intended to focus the coming year on business practices, media training, and Board management. This included strategic planning, finance, legalities, and parliamentary procedures. Furthermore, BCREA planned a PAC-like seminar in Victoria in order to address provincial real estate regulators. Each year, at each level of organization, governing bodies continued to press their agenda and empower their Memberships.

• • • • •

In late 1984, and again in September of 1986, the “Citizens Against By-Law 500” approached VIREB seeking support for their battle with the RDN. The RDN had introduced the by-law on August 14, 1984 thereby imposing “horrendous” subdivision restrictions, “down zoning”, and creation of non-conforming uses for property. It was feared that the by-law would depreciate property values. This would compromise property ownership and hamper earning power for Members. Property rights were a priority and VIREB was pleased to offer moral and financial support to the group. The Board pledged $3,000 to cover the shortfall of legal fees already incurred. After initiating the action in 1984 the group won their battle two years later on appeal when the Courts set aside the by-law. This is an ideal example of VIREB meeting the needs of the public while also meeting the long-term strategic needs of the Membership.

• • • • •

In prior years VIREB had initiated a reimbursement policy for practitioners who had completed the UBC Urban Land Diploma. When a 2nd, 3rd, or 4th year was completed the cost of previous year was reimbursed to the participant. The Board felt that the Diploma Course would build a professional foundation of Members that would better serve VIREB and the Membership. However, the venture was abandoned during the market downturn in the early 1980s. By 1987, the market was stronger and the Diploma Course had grown into a four-year program. Considering the time and energy the coursework would require, the Board voted to reinstate the reimbursement plan. In addition, the Board was prepared to reimburse those who had taken the UBC Land Diploma Course during lean years without financial assistance.

• • • • •

80 1980’s: Storming The Hill

There were 600 Members in 54 offices when Bruce Berry became President in 1987. The provincial organization increased their legislative commitment the same year by pushing the BC government to approve private property legislation that would, hopefully, influence the federal government to do the same. Furthermore, BCREA was disconcerted by the introduction of the Property Purchase Tax, which increased the cost of purchasing a home considerably. The industry considered housing a necessity and therefore felt it should not be taxed.

• • • • •

March 25 and 26 marked PAC days in Ottawa. Dorothy (Smith) Whittome joined Donn Gardner and 176 national delegates as they descended upon Parliament Hill. In 1987, CREA Members were concerned with property rights – still! Incorporating property rights into the Constitution was foremost upon CREA’s agenda. Second upon CREA’s agenda was the Business Transfer Tax (BTT). The BTT was a federal tax meant to replace the federal manufacturing tax. It was expected to increase the cost of new homes by more than $2,500. Proposed resale taxes would affect: commission, legal fees, appraisals, and survey fees for example.

A final outcome of the 1987 PAC Days proved monumental for Canadian Salespeople. NAR and CREA had come to terms after many years of using the word “REALTOR” to identify a profession. It was thereafter permitted to identify an individual who worked in real estate sales as a REALTOR®. In November 1987 CREA announced its intention to phase out the double “RR” over two years in favour of the title of REALTOR®.

In June, 1987 Barry Clark was elected President of BCREA and Marty Douglas was renamed Past- President when Jim Van took a provincial job. Additionally, Dermot Murphy was named Honorary Life Member of VIREB. Mr. Murphy had served the Real Estate Council since 1959, becoming Secretary in 1964 after succeeding Irwin Davis. He was an enthusiastic supporter of VIREB.

• • • • •

VIREB discontinued printing Bluesheets at the end of 1987, not only would it save the Board $38,000 a year it would allow Staff to concentrate on more pressing projects. Bluesheets had been an informa- tional staple for several years, but new technology increased efficiency. Instead, the Bluesheets were moved “on-line” to “Menu 12”, also known as MLS Daily Bluesheets. The computer-accessed “Menu 12” displayed new listings, sales, and expiries. The shift in practice was possible due in part to the growing use of Broker Load, which had become popular with Member offices. By October Board technology also allowed Licensees to upload Open House information, further streamlining business functions.

• • • • •

The government had finally announced the formal released of the White Paper on tax reform in the summer of 1987. Dorothy Whittome reported that three alternatives were presented: the BTT, a Value- Added Tax (VAT), or the National Multiple-Stage Sales Tax involving provincial government cooperation. VAT and the Multiple-Stage Sales Tax would allow the government to tax the profit at each stage of trade. The Goods and Services Tax (GST) is a VAT example. CREA was quick to start work on a VAT Position Paper.

• • • • •

In November of 1987, VIREB heard a presentation by Stan Hamilton regarding the proposed creation of The Canadian Real Estate Research Bureau within the Faculty of Commerce and Business Adminis- tration at UBC. He anticipated that it would serve as a national centre for real estate research and be a 81 1980’s: Storming The Hill model for the industry. UBC sought $6 million for construction of a new building to house the Research Bureau; VIREB allocated $15,000 in support of the project. It would later be known as the Centre of Urban Economics and Real Estate.

• • • • •

By the late 1980s, VIREB had developed a national reputation as a progressive Board, one that took risks in order to improve the real estate profession. Newly elected President, Barry Watchorn took pride in the fact that other Boards saw VIREB as an “innovator”. VIREB was not the largest Board, but it was always willing to be involved in industry advancements; it never shirked its responsibility. Barry credited a strong Directorship and a capable Executive Officer for VIREB’s success.

1988 was a strong year financially for the Board; the market was “buoyant” and the lean years of the early 1980s were nearly forgotten. In late 1988, the government imposed a Prohibition Order that, among other things, dictated that MLS catalogues should present commission information. VIREB had long ago deleted any commission reference in reaction to the Combines Investigation Act (by then the Competi- tion Act). Nonetheless, the Board did not want to risk non-profit status. In late 1988 VIREB developed a coded system to state standard commission rates. More importantly, the $100,000 mortgage, assumed in 1974 for a new Board office was paid off in July, 1988 thanks to accelerated mortgage payments.

• • • • •

Educationally, 1988 saw the return of some of VIREB’s most cherished traditions. Namely, the Fall Seminar returned in 1988 and was once again co-hosted with the Victoria Real Estate Board. The Agents’ Seminar was held for the first time since the late 1970s and the BCREA Education Committee implemented the Composite Education Committee made up of representatives from UBC, BCREA, and REIBC.

• • • • •

In 1988, VIREB’s Standards of Practice Committee, chaired by Dave Hammond, was concerned with listings and contracts, lack of care towards vendors or purchasers, and unprofessional conduct. VIREB had appointed an “investigator” in 1988 and this proved efficient in that the investigator was able to determine if an infraction should go to a Hearing or be referred to Council for further judgement. This saved Committee Members, and ultimately the Board, time and money. Of 52 complaints only eleven fines from $200 to $1,000 were levied in 1988. Additionally, probations were imposed, ethics training was ordered, and Hearing expenses were charged to Realtors or their Agencies.

• • • • •

The leadership of President Joan Leach and Vice-President Margaret Leck led the Board in 1989. This marked the first time two women held the top spots at VIREB. The year also proved to be the best yet for unit and volume sales as the interest rate was stable and the average home price was considered “affordable”.

PAC directives in 1989 included the protest of the GST, proposed by Brian Mulroney’s Progres- sive Conservatives the same year. Initially the Prime Minister sought to impose a 9% tax, replacing the decades-old 13.5% Manufacturers’ Sales Tax (MST). The MST was buried in export and manufacturing fees and its reassessment intended to make Canadian goods more attractive to foreign trade. While the government claimed it was merely a “tax shift” the GST was an overt tax pushed onto consumers. GST applied to “services” so Realtors were affected.

82 1980’s: Storming The Hill

The Liberal majority in the Senate refused to pass the tax into law. However, Prime Minister Mul- roney utilized “Section 26” of the “Deadlock Clause” by appointing eight temporary Progressive Conser- vative Senators to the Upper Chamber who then voted with the Prime Minister. Even though the Liberal opposition initiated a filibuster to delay enactment, the GST would come into effect January 1, 1991. A small victory for those opposed to the tax was realized when the tax was lowered from 9% to 7%. Most provinces already had a Provincial Sales Tax (PST). The real estate industry had an ongoing battle over the Property Purchase Tax (PPT), which taxed homeowners on the sale price of their homes. VIREB feared that consumers would delay or avoid purchases and send a strong market into a tailspin.

• • • • •

The iNET 2000 was cancelled in 1989 due to cost increases of thirty cents per minute to communities outside of Nanaimo, after less than two years of service. Thereafter, the Board returned to a direct dial- ling practice. This, in conjunction with additional phone lines, reduced “busy times” from 3 hours per month to only a few minutes. In November the Executive Committee allocated funding to purchase two “Eagle drive units” from Hewlett-Packard in order to improve the speed of processing for on-line users. The Committee also decided to maintain the MLS fee, which had dropped to 0.1% through the 1980s as the market strengthened. Furthermore, the decision to send MLS catalogue production out-of-house was made in 1988, but it was not until October 1989 that Moore Data Printing in Edmonton was contracted to publish the catalogue.

At the 1989 AGM, Donn Gardner noted that VIREB was now entering the last decade of the century. Illustrating the success of the MLS system, Donn noted that 9,000 of the 13,000 MLS listings had sold in 1989. Listings typically incurred 3 changes during their lifetime on the market. After the initial download of information, alteration of information, and the sale each listing had an average of 61,000 “penetra- tions”. Coupled with countless telephone inquires, VIREB Staff was kept busy. As the printing was no longer an “in-house” function, the Board redefined Staff functions. They also shuffled the building layout and began renovations in order to have a distinct classroom that was not also a boardroom.

The average home in 1989 cost $72,000, not quite on par with the previous high of $78,000 in 1981. While this can show the strength of a market, it could have served as a warning. Interest rates had fallen below 10% since 1986, but by the end of the decade, they had slowly increased to 12.72%, peaking at 14.21% in 1991. It had been a decade since the market slowed to a near stand-still with stifling interest rates reaching 21.46% in September of 1981.

83 1980’s: Storming The Hill

VIREB gatherings included awards, projects, and always, plenty of fun

84 1980’s: Storming The Hill

Networking: A VIREB staple

VIREB Rookie of the Year awards

VIREB Directors and Executive

Mark Anderson takes the gavel At a VIREB meeting

85 1980’s: Storming The Hill

Making announcements Opening of Coast Realty’s Parksville office

VIREB booth at a trade show

VIREB Executive members Line dancing

86 1980’s: Storming The Hill

Malaspina University-College President Rich Handing over a cheque to another Johnston, seated, with Roger McKinnon worthwhile cause

Merry Christmas from VIREB

Marty Douglas in fine attire

87 1980’s: Storming The Hill

Realty World Advance in Campbell River

Taking time out for a photo

Roger McKinnon, left, with another award Putting out the VIREB book was a big job

88 1990’s A Professional Association

There was a marked difference in Board practices as the new decade began. It was a subtle streamlining of behaviour and efficiency of reporting. It is the outcome of professionalism, a standard that VIREB had been working towards for four decades. This professionalism was evident in Board Minutes, in published reports, and in actions.

Still, the market dictated. 1990 opened with rising prices and dropping sales. Listings peaked in the first quarter of 1990 at over 1,800 units, but dropped to 600 by the end of the year. The Board was wary of the looming impact of the GST, expected in 1991. High interest rates and economic instability would likely follow. Therefore, the Board approached the 1991 budget with caution, reducing spending by 20%; it had learned its lesson in the early 1980s.

President Margaret Leck was delighted to announce that Donn Gardner had received the esteemed W. Frank Johns Award at the 1990 CREA Annual Convention in Ottawa. Donn was recognized for outstanding leadership and contribution to the “developing status of Executive Officers across Canada”. Donn had been instrumental in guiding the Board since 1972, and he was in the company of great colleagues who trusted his instincts.

• • • • •

Harvey Drdul chaired the Public Relations Committee and their 1990 theme was “Professionals dedicated to our Community”. The enthusiastic Committee organized the VIREB Residential Garden Contest as well as the Recycle Ricky Colouring Contest. Not only did these two contests give Realtors a chance to interact with potential clients, it presented Members as environmentally astute and family-oriented.

In the past, each Zone was allocated funds to give to deserving recipients in their community. In 1990, the Public Relations Committee decided to focus on a few high profile events that would be both deserving and promotional. For instance, support for the Parksville Sandcastle Competition was continued, the Comox Valley Rehab Centre received a donation as it served all of Vancouver Island. Duncan, Cowichan, and Courtenay received funding towards the upcoming BC Winter Games. In addition to the annual MS Carnation Day, the Board had also initiated the Christmas Toy Drive. Furthermore, 1990 was the first year that the “VIREB Bursary” was awarded to children of Realtors, from a $5,000 bursary fund. Jack Forsyth was recognized for his persistence in establishing the Bursary.

VIREB’s PAC Committee officially changed its name in 1990 to the “Legislative and Government Liai- son Committee” (L&GL Committee), this became a standing Committee in 1991.

Stan Hamilton facilitated VIREB’s September strategic planning session with the Board aiming to develop a 3 to 5 years Strategic Plan. VIREB allocated $10,000 to a scholarship fund for students taking real estate related business programs. The donation was part of a larger grant by the Real Estate Founda- tion for an Endowment Fund at Malaspina College; the College had agreed to match the donation “dollar for dollar”. VIREB reported 899 Realtors at the end of 1990; this resulted in a slight increase in assessment fees

89 1990’s: A Professional Association and the number of Members. However, the switch from in-house catalogue production to out-of-house production increased expenses by $370,000. The cost was inflated by the increase in catalogues purchased by the public, a new service. Even though VIREB charged consumers for catalogues, this only covered half of the production cost. Additionally, a drop in investment values, outstanding accounts receivable, and a decrease in MLS commissions (due to a slow market) decreased profits.

While 1989 saw high sales volume and an “average” house priced at $72,000 in the VIREB Zone; house prices had increased in 1990 to an average of $82,000. It was feared that higher house prices and an increasing mortgage rate would soon dissuaded buyers. As a precaution, VIREB slowed spending on nonessential expenditures. Compounding financial pressure was an increase in provincial and national organizations’ dues; VIREB’s membership dues went from $66,259 to $100,228.

Amendments to the by-laws changed the number of Board Directors from 14 to 12. Port Alberni and Duncan lost a Director; bringing them to one and two respectively. As a result, Port Alberni was allowed to elect a Realtor or an Agent, otherwise known as an “IT”. At the time, Zone Directors were elected for a 2-year term, but elections were staggered.

• • • • •

1991 marked the 25th anniversary of VIREB’s incorporation as a Society and the 40th anniversary as a Real Estate Board. The Board’s quest to develop a strategic long-term plan resulted in the creation of Fast-Track to Excellence, a 10-Year Strategic Plan. President Roger McKinnon described it as “an adapta- tion that would position the Board, not only for 1991, but for the future”. He gave credit to Derrick Pereira and the Executive Management Committee for their insight in developing the plan. Derrick foresaw it as a “living map of WHERE we want to go and WHAT we have to do to get there.”

Sales began an increase in 1991, though there were fewer listings than in 1990. The average house price in the VIREB area climbed to more than $95,000 from $82,000 the previous year; this increased revenue via the 0.1% MLS commission. Additionally, the MLS Management Committee, chaired by Paul Osborne and later by Robert (Bob) Koester, endorsed CREA’s advertising guidelines and the Property Condition Disclosure Statement. While some provincial Boards elected to make the Disclosure Statement mandatory, it was still optional for VIREB Members.

One of the most outstanding accomplishments for the MLS Committee in 1991 was the Purchaser Profile (later known as the Buyer Profile), a practical tool that offered annual statistics regarding purchasers in VIREB Zones. The data gave stakeholders insight into the motivation of buyers. Where did the buyer come from? What will the property be used for? What area was chosen? Is this a first-time buyer? This proved essential in anticipating the long-range market and social trends.

Furthermore, the MLS Computer Sub-Committee was struck in 1991 in order to monitor on-line menus, deepen knowledge of technology, develop a 5-year hardware acquisition program, and train the Membership to use computers to their fullest potential. The BCREA Computer Committee also sought to establish an increased level of computer use by all BC Boards. This would allow greater interfacing between offices. Furthermore, it would support image transmission, larger uploading and downloading capability, higher speed of data transfer, and more efficient data sharing between Boards. The Sub-Com- mittee also assisted in establishing the BC OnLine System.

• • • • •

Since the inception of Continuing Professional Education (CPE) in January of 1989, VIREB had held the most seminars to date, within the province – 66 in total. Additionally, it placed second in BC for participation in CPE courses. Sandy Baker noted that only 20% of BC’s 15,000 Licensees participated in 90 1990’s: A Professional Association

CPE training, although 51% had been licensed within the previous three years. As a result, the Educa- tion Committee proposed that UBC and BCREA somehow “harmonize” pre-licensing and post-licensing training so that new Licensees had practical knowledge of the industry before they became fully licensed.

• • • • •

Under the leadership of Mark Anderson, the Standards of Practice Committee reorganized into two Sub-Committees for arbitration and mediation; they were vice-chaired by Sylvia (Mustard) Gardner and Jim Gordon. This divide doubled the workload capability of the Committee, effectively dealing with complaints in half the time. What is more, public complaints had only risen slightly over the previous year; a year that had witnessed record-breaking increases in sales and in the number of new Licensees. This moderate increase in complaints could indicate the success of pre-licensing and post-licensing courses, as well as CPE.

At the time, mediation was developing into a Zone-centric network of Board-trained Mediators. A claimant could initiate a claim against a disputant, have that claim heard by an impartial Mediator, and receive an outcome. Rather than judgments, participants were able to design an agreeable solution and avoid further conflict. If the Mediator felt that a solution was unachievable, they could recommend that the dispute go to Arbitration.

• • • • •

As 1991 was a provincial election-year Zones were encouraged to host All-Candidates Meetings for the public. Campbell River, Nanaimo, and Parksville each hosted public meetings. Port Alberni co-hosted an event with the Chamber of Commerce, and Duncan welcomed candidates to the Zone luncheon. Margaret Leck, the L&GL Committee Chair, also sat on the BCREA L&GL Committee. Board representatives participating at the provincial level facilitated a common political agenda and a continuity of standard practices. This common ground gave BCREA, and all provincial Boards, greater influence with the provincial government.

• • • • •

By 1992, VIREB maintained the needs of 1,181 Members, a 20% increase over the previous year. It was the 18th largest Board population in Canada. Derrick Pereira was happy to report a “landmark” record- setting year as sales surpassed $1.12 billion in 10,000 transactions. VIREB also won two awards for its dedication to professionalism and value-added customer service. VIREB was recognized with a second “CREA Board of Directors Crime Prevention Award” for its continued commitment to Realty Watch: Home Security Program (the first was won in 1988 for the original plan, Realty Watch). The second Award, the Ethics Award, was received for the Board’s effort to address complaints, ethics education, and mediation of commission complaints. Furthermore, Sylvia (Mustard) Gardner penned the Professional Aware- ness Column, which allowed Board-wide participation in ethical concerns.

VIREB also adopted CREA’s Property Condition Disclosure Statement for vendors as of June 1, 1992. As a result, VIREB developed a companion seminar on Agency Disclosure.

• • • • •

The prolonged wait for a “lockbox” (also known as “keybox”, formally “lock box”) changeover was finally resolved in 1992. After more than a decade of anticipating a change the Board vowed to make a switch from manual to electronic keyboxes in 1992. The delay was because relatively few keys had been lost. As a reward for MLS use, a total of 859 new keyboxes were given to Member offices with at least $1.2

91 1990’s: A Professional Association million in sales volume in 1992. An old lockbox key could be traded for a new “lockbox card”. However, the transition was not without its problems. Realtors were not eager to spend $50 on a new lockbox when the manual one was a fraction of the cost and worked well. Eventually, the Membership complied and the boxes were ordered in 1992, but not incorporated until the second quarter of 1993.

• • • • •

A formal threat to MLS access was launched by the Public Access to MLS Committee, a group who demonstrated at the CREA Convention in Victoria in 1992 seeking the right to advertise on MLS despite not being licensed Realtors. However, the group did not fully understand that the MLS was trademarked by CREA; it was not a public venue. In response, Michael Ziegler, CREA President in 1992, asked for an increase in dues to design a national campaign to increase public awareness regarding MLS. By taking a proactive stance the national body hoped to turn the issue into an educational opportunity for the public.

• • • • •

1992 was an exciting year for the new “standing” Computer Task Force Committee, renamed the Computer Services Committee. It initiated its first ever Computer Trade Show and Symposium: Image of the Future – Technology in the 90s. The Trade Show attracted 22 exhibitors and hosted 19 seminars for more than 300 people. Furthermore, the Computer Services Committee installed Zip Form XL at the Board allowing Realtors to use “fill-in-the-blank” software when using forms with copyright protection.

A revolutionary digital photography process was developed in 1992. The laser process of digitalizing photographs for catalogue production was jointly developed by VIREB, the Cariboo, Chilliwack, Kamloops, Kootenay, South Okanagan, and Regina Boards. However, it was implemented in the VIREB Zone first. The new technology involved a “manual paste-up” process that prevented inverted or missing photographs and was the first step towards PC VANDAT, or Image Transmission. The PC VANDAT was developed by Nova Computer Systems Inc for the REBGV and was a newer version of VANDAT. PC VAN- DAT enabled colour MLS photographs that would be usable for catalogue reproduction. It also let users download information and then work off-line. The new digitalizing technology was in place by January, 1993.

• • • • •

Educationally, 1992 marked a growing interest in “Single Agency and Buyer Brokerage”. Pat Moore led 16 Agency Seminars regarding the concept of Realtors representing either the vendor or the purchaser, but not both. This concept would develop over time.

• • • • •

By 1992, the L&GL Committee monitored and infiltrated all levels of community decision-makers. Committee Members represented the industry on municipal Task Forces and continued to build business networks that proved mutually beneficial throughout the years. The Committee met with Nanaimo City Mayor Joy Leach, MLA for Powell River-Sunshine Coast Gordon Wilson (also the Leader of the Op- position at the time), and the Minister of Transportation and Highways Art Charbonneau with regards to the lack of funding to complete the “Inland Island Highway”.

Each Board’s L&GL Chairperson represented their Board on BCREA’s Legislative and Government Liaison Committee (which was also known as the L&GL Committee). The provincial L&GL Committee worked hard to achieve a Property Purchase Tax (PPT) exemption for first-time buyers and investigated

92 1990’s: A Professional Association housing options for British Columbians.

Nationally, the government introduced the Home Buyers Plan, which involved a loan from an individual’s Registered Retirement Savings Plan (RRSP). While popular, it was criticized by the industry for its limited “window” of opportunity. Late in 1992, Progressive Conservative Finance Minister Don Mazankowski extended the program to March 1994; the PAC had made a difference. The original purpose of the RRSP was to save for retirement. However, property purchasers could also borrow up to $20,000 of tax-free dollars from their RRSPs in order to buy a home. An additional $20,000 was available from a spouse’s RRSP, but both had to be repaid within 15 years.

Conversely, the government also announced that it would discontinue the $100,000 capital gains exemption on real estate in early 1992. PAC, as well as individual Boards at the L&GL level, all took immediate action to protest. While it appeared that federal decision-makers intended to dissuade investment in real property 1992 was a “banner year” for real estate on the Island. The average home price in the VIREB area was $110,000, up $15,000 from 1991.

• • • • •

Vice-President and Executive Management Chair Randy Forbes announced the Board’s intention to build an addition to the Board office. Post-licensing, a possibility of delivering continuing education, and the ongoing need for computer training made existing space inadequate. Furthermore, VIREB was meeting the needs of almost 1,200 Members, double the number from 1987. Randy recognized Roger McK- innon and Donn Gardner for their hard work investigating possible expansion scenarios and the costs involved. The two men spent many hours volunteering their time to determine a plan. It was not until late 1993 that funding was put into place and the expansion began, and still further into the fall of 1994 that it was expected to be complete.

• • • • •

At the 1992 AGM at the Coast Bastion Inn in Nanaimo, proposed changes to the by-laws included the ability of a Vice-President to stand for election as President for one year, regardless if they had won their Zone election or not. A Vice-President commonly progressed to the role of President, to ensure the continuity of strategic planning. The proposed amendment would have allowed Vice-President Randy Forbes, who had not been re-elected in his Zone, to become President in 1993. However, the Membership voted to study the proposed changes in a Presidential Task Force that would not report its findings until October 1, 1993; the delay was too long. Instead, Vice-Chair of the L&GL Committee, Margaret Leck, was elected President for 1993 and Mark Anderson was elected Vice-President. For Randy, the turn of events allowed him to change companies in 1993. Had he been re-elected to the Campbell River Zone Direc- torship and then as VIREB President, Randy may have turned down the offer to become Coast Realty Group’s general manager.

• • • • •

Sadly, the Board marked the passing of Frank Ney on November 24, 1992. Frank was a real estate practitioner, founding Member of the Board, Past-President, and outstanding advocate for Nanaimo and Vancouver Island. Countless stories of Frank’s real estate antics were, and are, held dear to the Members who knew him in business and in life. Always an unstoppable proponent with a cause, Frank was an unforgettable icon in the history of real estate.

• • • • •

93 1990’s: A Professional Association

In 1993, almost 100 Directors and Committee volunteers supported Board activities. Sixteen Staff Members processed 9,317 sales transactions and organized 37 computer classes for 290 students. While 1993 marked a drop in sales from the previous year, the dollar volume had increased as house prices rose to an average of $149,542. VIREB Staff underwent a comprehensive efficiency audit to assess productivity. The audit proved the stellar service the Board’s Staff offered in comparison to other Boards

In 1993, the MLS Committee saw the completion of the lockbox changeover, from mechanical to electronic keyboxes. Supra Products complimented Board Staff for the “smoothest, best organized changeover that they had experienced”. The MLS Committee also finalized a change in catalogue format- ting that allowed Members to order either bound or unbound copies. This saved money as copies could be stored in binders and updates simply added rather than producing entire editions. It was also better for the environment and this was a growing concern. VIREB was the only Board in Canada providing an MLS catalogue for public use in 1993. The Committee also voted to order diamond and gold lapel pins to reward ten-year Medallion Club winners; the Award was in its eleventh year.

The MLS Management Committee also awarded Roger McKinnon with the President’s Cup for selling the greatest volume and participating in the greatest number of unit sales. Though the President’s Cup was initiated in 1983 it had been awarded only three times previously. Roger had 72 units and $8.8 million in sales volume to his credit. David Proctor of the Comox Valley was second with 52.75 units and almost $7 million in sales.

• • • • •

In March 1993, the Membership was officially introduced to the PC VANDAT at the spring Computer Trade Show and Symposium in Parksville. However, it was not until the fall that 14.4 bytes per second (bps) modems were installed to accommodate the PC VANDAT for 1994. As added insurance, the Board hosted an information evening to demonstrate the PC VANDAT to local technology suppliers who might assist the Board with installation and upkeep.

• • • • •

The BCREA Task Force had initiated a Realtors’ survey to determine the perceived necessity of making CPE mandatory. A resounding 91% of those surveyed agreed that continued education was needed. The Task Force, which included Anne Alcock and Donn Gardner, designed a “comprehensive business plan” for the Real Estate Council’s consideration regarding mandatory courses. For VIREB’s part, it continued its commitment to CPE by planning seminars on: Contract of Purchase and Sale; Agency Disclo- sure; Getting Started in I.C. & I.; Managing Your Office for Fun and Profit; Marketing Your Professional Image; Project Marketing.

• • • • •

Also in 1993, the PR Committee had cause to reconsider its commitment to the VIREB Residential Garden Contest. In its fourth year, and still successful with 110 entries, it failed to attract support from the Membership. Understandably, Members were busy listing and selling houses, but the Contest had not turned into a “prospecting tool” as hoped and therefore may have been less appealing to busy Sales- people. The Committee felt obliged to recommend cancelling the Contest.

• • • • •

The Business Practice Committee (formerly the Standards of Practice Committee) processed 60 files in 1993. The interest rate peaked for the year at 9.47% in January, down from the previous year. Eighteen

94 1990’s: A Professional Association months later, the interest rate would climb to 10.69%, while the rate did not reach the highs of 1981 the fluctuation was further complicated by a recession, and the increased cost of living due to the GST. These factors often dictated the activity of the Business Practice Committee. On the other hand, the Arbitration Committee heard few complaints.

• • • • •

Trish Widdershoven accomplished a significant amount as Chair of the L&GL Committee in 1993. Each Zone hosted a federal All-Candidates Meeting in November. Thousands of citizens attended these Meetings, which presented VIREB and its Membership as non-partisan and, therefore, more accessible to the public as a whole. VIREB was awarded a $2,500 BCREA grant to help offset the expense of hosting the All-Candidates Meetings. In addition, Marty Douglas served as Chair of the Real Estate Council of BC in 1992 and 1993.

In the meantime, the Nanaimo Zone debated the benefits of their portion of the Inland Island High- way, known in Nanaimo as the “Parkway”. Though the by-pass took motorists away from the downtown core, not all Members were against the motorway. One clear benefit was the VIREB office location, between both highways. The purchase of the Board property in the early 1970s was now considered a stroke of genius, although at the time, it was criticized for being too far from town.

BCREA and VIREB’s L&GL Committee took issues to the provincial government in 1993 in reaction to land use. The list of relevant topics included: land reserves, BC 21 (or “Build BC”), regional planning issues (i.e. increasing sewage treatment capability), Aboriginal Land Claims, rent control, changes to the Workers’ Compensation Act and the Condominium Act, and adult-only residences. The government was largely accepting of the additional viewpoint, not to mention the extensive research the industry completed for the benefit of legislators. Furthermore, BCREA successfully forced the recognition of Realtors as independent contractors; they were thereafter exempt from paying Workers’ Compensation Board (WCB) premiums, and benefited from tax exemptions.

At the 1993 PAC Days in Ottawa, delegates pushed for a 5-year extension of the Home Buyers’ Plan. CREA had commissioned an Angus Reid survey that showed 4 of 5 buyers factored their RRSP into their home purchase and almost 49% said they would not have been able to buy a home without it. This proactive research was instrumental in influencing the government with facts and statistics rather than just personal opinion. The real estate industry was, as always, reliant on the public’s ability to purchase homes. Increasing ways in which to do so was essential. The delegates also pushed for Employment Benefits (EI) for commissioned Salespeople, regaining the $100,000 capital gains tax exemption on real estate, and eradication of the federal deficit - which was burdening the entire economy. In the winter of 1993, CMHC considered VIREB’s argument that the $125,000 price ceiling was not in line with the average cost of a home north of the Malahat. The Board argued that appropriate accommodations were difficult to afford given the price guideline under the “First Home Loan Insurance Program”.

The debate over Agency Disclosure remained a source of contention through the early 1990s. The im- passioned dispute found practitioners arguing for either Sub-Agency (a symbiotic relationship wherein a purchasing Realtor works with a specific listing Realtor to unite purchasers with vendors) or an assumed Buyer Agency (when the buyer’s interests are put before the vendor’s). VIREB adopted the Buyer Agency model. The Board had been actively promoting Agency Disclosure since 1992, but it was not until De- cember 31, 1994 that CREA amended Article 3 of the Canadian Real Estate Association’s Code of Ethics and Standard of Business Practices to make the Disclosure mandatory across the country. However, a Limited Dual Agency remained optional, in that a Realtor could work with both the vendor and the purchaser to “double-end” a sale as long as there was full disclosure that the Realtor was doing so.

95 1990’s: A Professional Association

• • • • •

Mark Anderson was elected President in 1994; the Board focused on governance and incorporated the Carver Model. Theoretically, the Model’s design allowed a Board of Directors to focus on strategic goals and leave the daily activities of Board operations to the EO. Directors were appointed to Com- mittees that most suited their capabilities and in 1994 the Board planned to replace several Standing Committees with Task Forces. A Task Force would have a time-limited focus on specific goals, once accomplished the Task Force would disband. It was hoped that this would enable dynamic reaction to an ever-changing industry.

In 1994 VIREB finally earned a CMHC “First Home Loan Insurance Program” ceiling increase to $150,000, with 5% down. This was a direct result of VIREB lobbying the government for an increase in funding to match the increase in housing costs in the VIREB area. Not only did this benefit the individual Realtors, it benefited the public. However, the government contended that Campbell River and Port Alberni did not have a twelve-month average trend over $125,000 and were thereby excluded from the increase. The lower housing averages were likely due to the seasonal aspect of natural resource jobs the two areas.

• • • • •

Computer service was not only driven by increasing improvements in technology it was influenced by consumer demand. The public were demanding access to the MLS, which had grown into an “online” information forum for Realtors. VIREB was divided as to the amount of access the public should be given. It was feared that access to market information, via the increasing use of the Internet, would decrease the need for Realtors. However, many within the industry felt that the public dictated the market; what they desired should be made available. Proponents argued that practitioners ultimately controlled the flow of information.

As Mark Anderson pointed out at the 1994 AGM, listing information on an online MLS forum was “nothing more than an electronic/interactive advertising medium”. Additionally, CREA was in the process of designing MLS® 2000 a listing system that would connect Boards across Canada and provide listing information to all Members regardless of their location. This was an enormously progressive movement that would change the face of real estate. However, VIREB would have an instrumental hand in providing MLS listings to the public and would be the first Board in Canada to go online.

A provincial computer specific to BC MLS listing was anticipated. Mark Anderson was appointed to the new BCREA MLS Task Force, something VIREB had been requesting for several years. The Task Force was expected to organize a provincial system. VIREB felt that if organized real estate did not provide what the market demanded, consumers would go elsewhere.

PC VANDAT was a visual data acquisition system developed by the REBGV and VIREB renamed VI- DAT when it arrived in 1994 in acknowledgment of Vancouver Island; 244 Members signed up to receive services in its first year of operation. Incorporation of PC VIDAT was a benchmark, but required continued education at the Board office and in each Zone. However, despite PC VIDAT’s increasing use the “Classic VIDAT”, available through ERNIE, was still available to those Members who did not to upgrade their software.

• • • • •

It was decided by the MLS Committee that a more substantial celebration of the Medallion Club Awards would be appropriate. The first Gala Event was planned for 1995, whereat winners would be

96 1990’s: A Professional Association presented with their Awards. The Gala was to be held separate from the AGM in order to focus on individual successes and offer the prestige recipients deserved, they were still funding the Board with a MLS commission. By 1994 the Medallion Club was twelve years old, had 9 Charter Members, and 7 ten-year Members; the President’s Cup was not awarded in 1994.

• • • • •

Under Margaret Leck’s leadership the Education Committee shifted from the “Fall Seminar” to an “Education Day”. The move was met with approval and 300 Members attended lectures on business practices, mortgage finance options, sewage and septic, environmental issues, income tax, goods and service, self defence, and the Inland Island Highway. The Committee also sponsored the Agents’ Seminar which welcomed 100 Members and addressed Agency, mandatory education, real estate advertising (national, provincial, and VIREB standards), and legal updates with Peter Watts. As Agency Disclosure had been introduced a One-Day “Train the Manager” Seminar followed.

In an effort to further streamline Committees a special resolution would be proposed at the 1995 AGM to shrink the number of Standing Committees from 9 to 5; there was a plan to utilize Task Forces more extensively. It was also hoped that this would attract further Board participation in that Members could volunteer according to the task-at-hand specific to their area of interest. However, at the 1995 AGM the Membership amended the article to include a sixth Standing Committee rather than the proposed 5. They would be: Executive Management, Computer Services/MLS, Business Practices, Arbitration, Legis- lative and Government Liaison Committees, and Education.

• • • • •

The Community Services Task Force, chaired by Talore Hillton in 1994, had taken ownership of programs that provided an added value to the public, such as Realty Watch: Home Security. Notably, VIREB was presented with the “Provincial Attorney General’s Award of Merit for Crime Prevention and Com- munity Policing” for the home security program. The program also attracted community alliances; the Duncan branch of the Kiwanis Club joined VIREB’s cause in promoting the Realty Watch at the end of 1995. The Kiwanis Club not only funded a large portion of training, its Members actively promoted Realty Watch.

• • • • •

The national body followed the North American trend of striking Task Forces rather than maintaining Standing Committees. Furthermore, organizations were encouraged to do a services inventory to determine the core competency of each Board. Identifying core competencies would then dictate cost recovery for services outside of the Board’s mandate. A new mindset was emerging. Organized real estate began to look at activities as possible income sources. As Members demanded fiscal responsibility from the Board, the Board was forced to become more and more creative with regards to providing services and earning an income to fund those services.

• • • • •

The market began a slowdown and VIREB exercised a few cost-saving measures in 1994. Namely, the UBC Urban Land Economics Diploma reimbursement was discontinued as of January 1, 1995. The suspension of dues during a Leave of Absence (LOA) was discontinued. Furthermore, the subsidy for LTO searches was reduced to $3.50 per search, and would be discontinued completely.

• • • • •

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In direct correlation to the onset of Internet use the public’s demand on Realtors and Real Estate Boards also increased. As real estate is likely the single largest investment a person makes in their lifetime, practitioners were (and are) under constant scrutiny by an increasingly savvy public. The Competi- tion Bureau also kept a steady focus on the industry. External and internal complaints led to a standard of arbitration, this reassured the public that a standard of accountability was in place. As a protective measure, Errors and Omissions Insurance, Disclosure Statements, and Agency Disclosures had also been established. The tradition of self-policing was fundamentally inherent to the industry. Public confidence was, and is, paramount.

• • • • •

Donn Gardner maintains that something began to change in the industry in the early 1990s. The Minutes reflect a change. Markedly, the VIREB Staff began to take increasingly proactive roles as the Board was adhering to the Carver Model wherein Staff maintained the daily operations and Directors focused on strategy. The market was slow, smaller companies were finding it difficult to stay afloat. 1993 had had a respectable listing to sales ratio in comparison to 1994 and 1995 when listings increased and sales decreased. Arguably, 1993 sales increased in reaction to increasing house prices, and consumers’ desire to purchase before house prices were unaffordable. In turn, increasing prices inspired homeowners to list. The average cost of a house in the VIREB area had reached a high of more than $170,000 by 1994. The slowdown in sales was further complicated by the increase in Salespeople, who were attracted to a busy industry. By January 1994 the sales force had increased to a record high of 1,313 Members (subsequently, that number rose to 1,408 during the year). Two years later it would drop dramatically to 1,082 Members and 987 in 1997. This decline in Membership would continue until 2003 when numbers increased in reaction to a market revival.

• • • • •

President Bob Koester led the 1994 AGM (in February 1995) at the Florence Filberg Centre in Comox. Rather than individual Committee Reports Bob Koester and Vice-President Wayne Hoffart delivered a single AGM Report in tandem, with the interest of “good governance” in mind. In addition to the trend of replacing Standing Committees with Task Forces, the Membership voted to allow both to be chaired by non-Directors in the interest of flexibility. This move indicated the need for participation as Directors were burdened with dual workloads. However, by 1996 it was stipulated that an elected Director must also serve as Co-Chair, for the sake of accountability. Furthermore, in reaction to the dynamic economy the Board reconsidered their 10-year Strategic Plan and found that their vision did not match the reality of the market.

While image had been an ongoing concern through the Board’s history, a concern of corporate image emerged in the mid 1990s. Evidence of this shift can be found in a proposal to change the name of VIREB to the “Vancouver Island Association of REALTORS®”. It was hoped the name change would better communicate the associative agenda of the Board to the public. While the vote failed, and VIREB retained its 36 year-old name, a recommendation by John Finlayson to incorporate “An Association of Realtors” into the existing title was accepted.

• • • • •

The average price of a house had stopped climbing in 1994/1995, remaining at a relatively constant level until the average began to increase in 2001. Looking forward, a steady decline in listings meant a lack of homes on the market in the late 1990s and early 2000s. This lack of product helped to drive the next peak, as home buyers scrambled to find something to purchase before prices took another drastic jump, as they had a decade prior. The increase in average home prices would, in turn, induce an eventual

98 1990’s: A Professional Association slowdown in the market by 2008; just as it had in the last half of the 1990s.

Dynamic trends affecting real estate were often directed by baby boomers. Having bought family homes to raise children their needs were gradually changing as their children left home, especially in the mid to late 1990s. Until that point the boomers’ persistent growth had driven the increase in house prices for the previous twenty years. By mid-decade baby boomers and their aging parents were dictating industry changes in a new way. Rather than seeking square footage and land, boomers with empty nests refocused on quality of life and sought smaller homes with upscale features. With longer life expectancies purchasers were interested in something that would also meet their needs into retirement.

• • • • •

The public had grown reliant on “one-stop-shopping” in retail venues and the Board anticipated that demand for convenience would spill over into real estate. By 1995 VIREB was predicting the continued trend towards Member offices providing greater services such as property management, mortgage bro- kering, and appraisals. The demand for Agency Disclosure, coupled with the convenience of integrated services encouraged the public to utilize single firms for all of their needs. This concept created value- added opportunities for companies. A few companies took strategic risks by expanding despite the slow market. However, many smaller companies who could not diversify were force to close their doors or were absorbed by larger firms.

This trend in value-added services also led successful Realtors to begin a tradition of using personal assistants to support high sales volumes. In the past, successful Realtors would simply open their own offices and translate their personal success into a business. By the 1990s legislation, the economy, the cost of operations, and the expense of technology deterred Realtors from striking out on their own. In- stead, they hired personal assistants with specialized skills and, increasingly, Realtor designations. This in-house expansion allowed greater sales capacity without the expense, or the risk, of operating an entire office. Correspondingly, the increasing cost of providing operational support to Realtors put financial pressure on companies. Required education and technical support was expensive. Therefore, VIREB often provided “core services” with a conservative budget.

The Board sought inventive ways to utilize resources and approach spending given the slowdown in the market. Budgeting was complicated by committed expenses from past budgets, such as re-keying in 1993. While funds were available from reserve savings the slowdown decreased revenues. This contributed to the Board’s consideration of fee-for-service model rather than a user-pay system. After the 1995 budget was released Hal Chalmers of Sutton Group - Malaspina Realty, submitted an extensive analysis of the budget and recommended that the Board move to a fee-for-service. Vice-President Wayne Hoffart was Chair of a Task Force to study funding options. As a result, in May of 1995 the Membership elected to pursue a user-pay plan charging $105 in monthly payments ($94.58 VIREB dues, $4.17 BCREA dues, $6.25 CREA dues, plus GST). While dues did fluctuate over time, Members had been paying a monthly $40 assessment and 0.1% of the sale price of MLS listings. Until 1993/94, when the by-laws were rewrit- ten, the Directors had authority to raise the MLS percentage charge up to 0.4%. It had reached a record high of 0.35% in the early 1980s when sales were declining and revenue was shrinking, but had remained at 0.1% since 1990. An assessment fee of $30 was imposed in 1974 and had increased to $40 by 1995. The low MLS fee was possible due to the increase in MLS sales and the increase in revenue from Membership dues, but sales and Membership were declining in 1995 and VIREB could not run a deficit budget. The new funding structure would impose a monthly fee on each Member, but not charge a MLS commission fee. This was welcomed news to top producers. It would also allow the Board to project a budget that was not subjected to the whim of the economy, but it would depend upon how many Realtors could survive the market.

99 1990’s: A Professional Association

VIREB also took action to save money. As of July 14, 1995 the interior pages of the MLS catalogue were printed on Electrobrite newsprint paper for cost effectiveness. Furthermore, listing expiry notices were discontinued. Only one copy of Action Board and the Top 100 MLS producers was sent to each office, rather than to each Licensee. Membership cards were discontinued, and the new Licensees were given 120 days to complete the required VIREB orientation. Fewer Licensees were entering real estate and there was opportunity to save money by hosting fewer orientations.

• • • • •

Alliances or “joint ventures” were often explored for mutual benefit in the interest of cost savings. For instance in 1993 BC Tel and VIREB investigated a public access advertising program. This would allow the public to access listing information via phone lines. While the venture proved too expensive and surveys indicated a lack of industry support, the experiment did determine that the Board needed an electronic source of marketing in order to stay current. Although VIREB had initially decided not to participate in a CREA pilot project to integrate electronic marketing, they were convinced the Internet was the direction of the future. CREA’s pilot project would later be known as “Realtor Link®” and VIREB would participate by 1999. But first, with thanks to VIREB, mls.ca had its start.

At this time Victoria Real Estate Board President Bill Pettinger introduced Donn Gardner to JCI Tech- nologies, an Internet service provider (ISP) based in Victoria. While Victoria opted out, VIREB aligned with the ISP in order to market VIREB listings online. JCI was one of 140 “content providers” for the “new” Microsoft Network (MSN) which was accessible through Windows ’95 by August 24, 1995. JCI’s core competency was computer technology and that expertise allowed VIREB access to future technology without the Board having to fund the development of the same expertise. VIREB’s alliance with JCI was so successful that Donn Gardner and John Finlayson peddled the company to other Boards and governing bodies across Canada and CREA opted to make JCI the “preferred provider” for all Boards. VIREB’s own system went “live” on October 12, 1995, the first in Canada to do so. This included VIREB’s own Internet website. VIREB also participated in Beta testing the WAVE™ software for JCI, software that the Board promptly purchased.

Website companies were already marketing listings online for Realtors at a cost of $15 to $80 per listing; VIREB intended to offer the same option for $5 per listing, making it the first Canadian Board to provide this service. While this trend threatened some Realtors who feared losing control of listing information, it was a trend directed by the public. Soon, purchasers were contacting Realtors from outside their jurisdictions and arriving at Member offices with a list of homes to view. Homes they found first on VIREB’s website, www.realtymatch.com. Clearly, time was saved finding potential listings for purchasers, not to mention the purchasers themselves. This marked a new age for real estate.

Many Realtors were acquiring their own technological capacity and VIREB cautioned them that contracts with other ISPs may not provide all of the options JCI did, including a free homepage (also known as a Uniform Resource Locator, or URL) for all VIREB Member offices with a free link to RealtyMatch for three months, after which it would cost $150 per year. However, homepages established through other ISPs could also be linked to the RealtyMatch page. Initially, it was VIREB’s intention to maintain exclusive access to the MLS homepage, ergo controlling information outflow. However, after a “lively” debate it was determined full access to internal and external consumers was in the best interest of the industry.

It was announced that the Computer Services Committee would merge with the MLS Committee in 1996. This move would prove significant in that the distribution of listing information had been dependent on printed catalogues since the 1970s; a merge with the Computer Committee indicated a major shift in how information was delivered to consumers. It was a statement. It was also expected to be cost effective as both Committees were interrelated.

100 1990’s: A Professional Association

• • • • •

Cost effective spending was always a concern, but as the Board steered VIREB into 1996 economic stability was increasingly uncertain. The interest rate had dropped below 10% in March, 1995 and listings were plentiful. All indicators pointed towards a resurgence of the Canadian economy, but VIREB could not afford to be too optimistic. It was at this time that discussions involving a provocative partnership began. The idea of merging the Victoria Board and VIREB was suggested. While it was at the fledgling stage of debate, the idea surfaced in reaction to the growing cost of operations and the benefit of sharing resources. To some Members, this was a logical move, to others it was sacrilegious.

• • • • •

While the use of the Internet had infiltrated the real estate industry and Salespeople were familiar with computers there was a steady awareness that practitioners needed to understand exactly how the World Wide Web could market listings effectively; it was a new way of approaching business. The technological advantage of marketing listings online was translated at the national level in 1996 with the inception of www.mls.ca, which was possible thanks to the relationship VIREB had struck with JCI.

• • • • •

Proposed by-law changes in 1996 included a quorum adjustment from 9 to 7. In the past, 18 Direc- tors did the business of the Board, but that number had dropped to 13, and then shrunk further to nine. However, at a second 1996 AGM (in March of 1997) the Membership rejected a proposed decrease to seven Directors. Ironically, the first attempt to pass this by-law change at the 1997 AGM in February was thwarted due to the lack of a quorum.

• • • • •

VIREB reported 987 Members on January 1, 1997; a drop of 95 from the previous year. The majority of which were lost in Nanaimo (from 378 Salespeople to 330). While listings and sales were on the rise, sales did not increase as fast as listings and the consequence of an oversaturated market was soon apparent. With the inundation of listings (nearly 8,500 in mid-1996) the average price of a home dropped slightly, or flattened. Many Realtors could not afford to stay in the business.

During tough economic times real estate practitioners often found it hard to participate in programs or seminars outside of their Zone or, realistically, outside of the core practices of real estate sales. As a result, VIREB was forced to “announce the demise” of the Realty Watch: Home Security Program effective December 31, 1996. It had been a groundbreaking project that garnered respect and practical use of Real- tors’ capability. However, with fifty-one of 1,000 Realtors certified and only 64 requests for home inspec- tions in 1996, the Program lost steam.

• • • • •

By late 1996 and early 1997 Board decisions were showing regular signs of the flexibility required to remain current in an unpredictable market. The FSBO (for sale by owner) phenomena continued at a parallel pace yet Realtors wrote offers on behalf of their purchasers and, as a result, VIREB began to count non-MLS sales as “half credit” towards Medallion Club status. Additionally, a Fee Agreement was designed to protect Members’ commissions when working on private sales. This, at the very least, allowed VIREB Members to participate in the private market.

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101 1990’s: A Professional Association

In 1997 computers became more integrated into the day to day operations of companies. “V-mail” (VIREB’s internal email) was used for communication and listing expiry notification. The six digit MLS number was also introduced. Firms offering electronic forms were licensed to do so as a means of quality assurance, and programming for the “Year 2000” was underway. The Board also needed to find an alternative Internet supplier to JCI.

• • • • •

A government watchdog was necessary for the protection of every Canadian Board, its Members, and the public they served. For instance, VIREB and the Nanaimo Chamber of Commerce successfully opposed the imposition of the City’s “professional business license”, sardonically known as the “head tax”. The head tax would be charged to each Realtor and each Agent, but VIREB argued that Realtors were considered “employees” under the Real Estate Act. The City had initially suspended the decision then re-imposed it in late October. However, by taking legal action VIREB, together with a Nanaimo Agents’ Coalition headed by Allan Lupton, successfully thwarted the City’s second attempt. This saved nearly 300 Nanaimo Realtors $110 each.

Furthermore, municipalities in VIREB Zones were increasing Development Cost Charges (DCCs) on building lots and in 1997 the cost of developing a lot in Nanaimo could reach as high as $20,000, not including land. This was twice the cost from two years prior. VIREB was diligent in fighting this increase and warned the City of Nanaimo that a housing shortage was imminent if builders could not afford to develop properties. It follows that the cost of housing would be passed onto the consumer and people interested in moving to the area would be deterred. The City of Nanaimo disregarded VIREB’s advice to keep DCCs affordable and builders stopped building. The Board encouraged Realtors to protest the fee increases as it would also decrease inventory, driving the prices upwards, and slowing the market.

• • • • •

In 1997 Dave Procter won the President’s Cup, the fifth time the Cup had been awarded. The Me- dallion Club was under Task Force revision in 1997, its 15th year in existence. Chaired by Sandra (Hoyt) Parkes, the Task Force scrutinized the criteria for Medallion Club, Membership’s support of the Club, and impact the Club had on MLS promotion. Additionally, there were some concerns regarding the cost of recognition as there was a user-pay structure in place so all Realtors were on an equal paying field. Furthermore, did the points earned by individual team members in “mini-firms” count collectively? Some team Members were not registered Realtors, but they contributed to sales volumes. Also, using the Medallion Club standing to self-promote as “#1”, could be seen as undermining fellow Realtors and would not be tolerated. Technically, it was a plateau of achievement that was shared by several successful Salespeople. In fact, only a President’s Cup winner could truly claim “first place” in any given year.

• • • • •

Re-educating the Membership with regards to Buyer Agency, Seller Agency, and Limited Dual Agency was a reoccurring concern. Disclosure of Agency relationship was required by Section 25.1 of the Real Estate Act. A decisive contract outlined commission, responsibilities, and disclosure of property conditions and relationships of Realtors and Agencies involved in transactions. Not only were such agreements necessary for the protection of the consumer, they were necessary for the protection of Members. Should a customer decide to take a Realtor to court the Buyer/Seller Agency contract would determine responsibility.

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102 1990’s: A Professional Association

John Finlayson was elected President by acclamation for 1998 and David Ney was named Vice-Presi- dent. The year would see a decline in Membership from 921 in December 1997 to 795 at the end of 1998. Membership numbers had not been that low since 1991. Despite the decrease, the 1998 AGM turnout proved VIREB Members cared about the future of their industry. In 1997 only 126 Members attended the AGM at the Qualicum Beach Civic Centre and in 1998, 320 Members attended the AGM at Beban Park Recreation Centre. Arguably, location could have influenced participation, but it was more likely the changes to VIREB’s operations and the slow market.

The decline in listings that had started in mid-1996 continued into 1998. Sales had remained slow, but steady in 1997. Yet they, too, began to recede in 1998. This led to many companies closing or merging. The result of a decreasing Membership forced CREA, BCREA, and VIREB to increase dues, or discontinue services. John Finlayson suggested the declining market would lead to inter-Board mergers, economies of scale, and more creative ways to earn revenue. Even the long-running MS Carnation Day was cancelled in 1998 due to diminishing participation and donations.

In 1998 the Board had investigated several earning opportunities. The Directors approved the lease of Board facilities to short and long-term tenants. The Board also sought to sell advertising space in the supplementary catalogue, explore alternative methods of fee payment, and increase Associate Member- ship fees. More drastically, they discussed the possibility of selling or mortgaging the Board building. Furthermore, sharing expenses with the Vancouver and Victoria Boards offered VIREB further savings through economy of scale. Software and knowledge sharing had gone on between the Boards for decades, but in 1998 a more formal “Programs and Services Partnership” (PSP) was established. There was also continued discussion of a merger of Boards; Victoria and VIREB or Vancouver and VIREB. This possibility was presented as a means of “survival”. Nonetheless, the decision to merge was postponed, though not forgotten.

The PSP was most concerned with shared technology in an effort to continue modernizing services. Internet policies, Broker Load, and common regulations were of interest to the three Boards, but implementation would take time. Therefore, a strategic approach to unifying objectives was adopted.

In 1998 the industry was formally introduced to REALTOR Link®, a “one-stop-shopping” approach to service. If the industry was to remain relevant it had to control information in a progressive fashion. RE- ALTOR Link® was an Intranet service solution offering Realtors a more efficient means of searching for properties, researching regulations, and remaining aware of listing changes. VIREB had not joined CREA’s REALTOR Link® initiative at the grassroots level, but understood its potential and “formally committed” itself in 1999. Membership received newsletters, statistical information, Action Boards, news releases, Computer Bytes, Professional Awareness, and Graphstats via email. As a result of the increasing use of the Internet, “Wave for the Net” was developed in 1999 and released in 2000.

VIREB had gone “live” with all of its listings in 1995, the first Board to do so in Canada. Since that time, JCI Technologies had discontinued operations and CREA had taken a new direction for mls.ca. By 1998 VIREB’s listings were enjoying exposure on mls.ca as well as Realtylink.org, which was operated by REBGV.

• • • • •

In 1998 Ken Neal of RE/MAX Duncan topped the Membership in units sold (58.83) and sales volume ($7.64 million) to achieve the coveted President’s Cup in the Medallion Club’s 16th year. Following the 1998 AGM the Board of Directors revised VIREB’s Mission Statement to read: The Vancouver Island Real Estate Board is committed to serving the needs of its members by providing cost effective tools, services and information necessary to foster professionalism and maintain the

103 1990’s: A Professional Association

REALTOR’s position as the primary focus in the real estate industry.

• • • • •

In 1998 the BC Assessment Authority (BCAA) announced their intention to discontinue providing the names of homeowners to Realtors. This was a key service for the industry as it confirmed ownership and prevented fraudulent activity related to the sale of property. The BCAA Commissioner and Chief Execu- tive Officer was Tom Johnstone, Past-President of VIREB and BCREA, and former Port Alberni Realtor. After negotiations with Gerry Thiessen (BCREA President), Stuart Kirkpatrick (BCREA Past-President) Tom decided to honour the contract until it expired December 31, 2000. This would allow BCREA time to find a new source of information.

• • • • •

On the first day of 1999 the Membership, Directors, and VIREB Staff could not have known what a difficult year laid ahead. The upheavals experienced in 1999 would change the face of the Board and facilitate a new brand of leadership. In 1999 VIREB would say good-bye to one of its most ardent leaders. It would be a long year.

• • • • •

President David Ney reported that the operational standard of Board activity changed in 1999. Wherein a Carver Model of governance had dictated a strategic direction the new Policy Governance Model would allow the Board Staff to make decisions based on the guidelines of policies set by Board Directors. Consequently, the Directors could focus on the strategic effectiveness of the bigger picture and not be tied to the routine of operations. While the Model was not formally initiated until September of 2000, Directors were determined to reassess all policies in order to design their own Policy Governance Model before actual implementation.

Real estate’s Prohibition Order expired in 1999. As a result, CREA requested that all Boards adopt a “compliance document”, this was a promise to voluntarily adhere to the Code of Conduct, renamed the Principles of Competition. Such compliance would require an amendment to VIREB’s by-laws. Therefore, at the 1999 AGM VIREB put forth an amendment to change the “certification and design marks” and create Section 20 Principles of Competition. The new by-law meant that Members would be required to identify themselves with certification and design marks, but cease using these marks when not a Mem- ber of CREA and abide by the Principles of Competition as set by CREA. It was a formality that worked to ensure a standard of professionalism.

Although Broker Load had been put on hold the project was not dead. It was expected to save money in the long-term, but the transition was time consuming, the equipment expensive, and Staff training would be extensive. Conversely, the cost of upgrading hardware to host Broker Load would be the responsibility of the individual brokerage. In the past, VIREB would have subsidized such upgrades in order that all offices were on an equal footing, but that was no longer a reality. Furthermore, PSP would require Broker Load to be available on a common computer system. These were unavoidable costs.

In April of 1999 provincial legislation demanded that residential builders be licensed in order for homes to qualify for New Home Warranty protection. Furthermore, the Condominium Act was replaced with the Strata Property Act reflecting the variety of housing that fell under strata reference.

At the end of 1999 WCB welcomed a new Assessment Branch Manger who considered the WCB coverage of Realtors questionable. WCB was interested in interviewing Realtors in order to determine

104 1990’s: A Professional Association if the exemption was acceptable to Members. WCB could either continue the exemption or levy a fee across the industry. Given that many small companies were merging with larger firms, or going out of business entirely, it was feared that WCB fees would be passed on to the Realtor. The paradox lay in the fact that Realtors acted as independent contractors and benefited from that role in certain ways. The fact remained, as it always had, Realtors were hard to define.

• • • • •

Each Member had the right to question VIREB and Bob Belhouse exercised that right in January, 1999 by commenting on VIREB’s budget. President David Ney responded as the Membership did not always understand the motivation of the Board’s spending decisions. The Budget was directly affected by the consistent drop in Membership; dues collected did not always match the expenses required to operate the Board and provide Members with required and expected services. Furthermore, “liquid reserves” were drained in 1998 from $400,000 to $200,000 in an effort to avoid increasing the dues that year. A reserve provided a buffer against insolvency and was allowable income according to Revenue Canada. When funding change to monthly assessments in 1995, there were more than 1,300 VIREB Members. That number had dropped significantly by 1999. Capping the Budget, as was proposed by Bob, would ultimately prevent VIREB from achieving its purpose in providing services that facilitated the professional conduct of its Members.

Performance assessments at the end of each year proved Staff value to the organization. Throughout the Board’s history employment surveys have proven that VIREB’s Staff were (are) consistently more productive in comparison to many other Boards. It is important to remember many of the Board employees had served the Membership for most of their working careers. Donn had led the Board since 1972 and Patti Wenman’s career had been integrated with Board development since 1977.

It is also important to remember that Directors, Chairs, and Committee Members were volunteers who spent time away from their own businesses in order to benefit the VIREB Membership. In 1999 Com- mittee Chairs received an annual stipend of $600 and Directors $300 to cover the costs incurred conduct- ing Board business. Nonetheless, the structure of the Board allowed criticism for the betterment of the whole and the Directors were willing to address concerns Members had. Bob Belhouse’s criticism and David Ney’s protective response illustrate the need for appropriate communication between the Board and its Members.

At the 1999 AGM held in February of 2000, Bob Belhouse motioned to change the description of the Executive Officer’s position and the criteria of the role. The Membership then voted to appoint an EO with a written contract that specified time and performance guidelines. As Donn had been a part of the Board for so long, his role as EO had grown with the Board. The Board and Donn were nearly indivisible. By deciding a guideline for the role the Board was establishing limits and expectations for both the Board and the EO. As further fiscal restraint was required Bob Belhouse also motioned to restrict travel allowances for Directors and Staff to CREA, BCREA, and NAR Conventions. While travel expenditures were at issue in 1999 David Ney had asserted the importance of Executive Staff and Directors attending conferences and Conventions for the sake of progress and knowledge sharing. A Task Force was struck in order to examine and establish guidelines for travel expenses and procedures. Travel expenses thereafter required pre- budgets and post-event written reports with attached receipts. It was a tightening of belts and procedures, and a fair change in policy.

Bob also motioned to allow regular Members the opportunity to submit motions to the Parliamen- tarian prior to AGMs to lessen the risk of being “out of order” due to inappropriate procedure or wordage. The AGM had specific protocol. Prior, Members had a right to make motions from the floor, but proper

105 1990’s: A Professional Association procedures needed to be followed. As a result of the 1999 AGM, and starting in 2000, any Member had the opportunity to refine their motion prior to presenting it to the Membership for a vote. This gave greater authority to all Members.

• • • • •

Even though Duncan’s Ken Neal topped the Medallion Club winners in both units and sales volume the President’s Cup had been discontinued and was not awarded in 1999. Marty Douglas served as Chair of the Errors and Omissions Insurance Corporation in 1999, while Barry Clark and Bob Clarke served the Real Estate Council of BC as Agent and Salesperson representatives respectively.

In December of 1999 the Board of Directors waived Membership dues as an anticipated decline in Membership numbers was not fully realized. The $140 monthly assessment proved too cautionary and dues for 2000 were reset to $127 monthly. Though the ratio of listings to sales had improved over 1998 the average costs of houses had decreased to just over $160,000. As a result of the relatively slow market the Board reported 720 Members in 1999. This decline in Membership was mirrored at the provincial level and fees increased for BCREA by $1 per Member in 1999 to make up the difference lost by those leaving the industry.

• • • • •

In the final Action Board notice of 1999, Volume 99, Issue #32 the Board of Directors announced Donn Gardner’s retirement as Executive Officer of the Vancouver Island Real Estate Board. He had led the Board from a tiny office on Commercial Street into their own building. He had orchestrated the successful shift into the age of technology and ensured that each Staff Member was equipped with the necessary knowledge to do their jobs efficiently for the benefit of the Membership. He had guided provincial, national, and international committees and Boards in an effort to modernize real estate and professionalize the industry. Donn represented VIREB on countless occasions at every level of real estate; his contribution was immeasurable and the Board was lucky to have had him. Yet, real estate is dynamic and change is the essence of the industry. Donn will tell you, “if it’s not broke, break it and make it better”. He saw it was time to go, and he went.

106 1990’s: A Professional Association

Handing out certificates. Barry Clark is at back, right

Amazing talent at a VIREB event Gary Ford, Realtor of the Year

107 1990’s: A Professional Association

VIREB members are very generous

Carnation day

Tony Pearson, centre, with Dave Hammond and Kurt Beens

108 1990’s: A Professional Association

Doug Rispin, centre An impressive VIREB golf team

VIREB Directors at the Bayside Inn in Parksville

VIREB members at the beach

109 1990’s: A Professional Association

Building a winner at Parksville’s famous A proud award winner Sand Castle Building competition

Frank Phillips, centre, and Neil McNiven work on a radio script

The apron says it all Lock boxes

110 The 2000’s A New Millennium

Norm Cauchie was presented with the Presidential gavel by David Ney in 2000, supported by Vice- President John Tillie, both of whom called the Duncan Zone home. After Donn’s retirement Linda Scott- Campbell took over the role of EO. She had been with the Board for twenty years and was more than capable of guiding VIREB into the 21st Century with the support of the VIREB Staff. After the leadership change Bestwick & Partners was contracted to complete an organizational review in order to determine Board efficiency. As a result, the Board acted upon the recommendation to create a two-way system of communication in order that Members could better contribute to Board decisions. Focus Groups were established in each Zone with random Realtors, top-producers, and Brokers in order to gain region-specific feedback; 60 Members participated.

In 2000 BCREA initiated the Pledge of Cooperation between BC’s 12 Boards, also known as the Spirit of Cooperation. The Vision Statement said, “BC REALTORS are central to all real property transactions through full cooperation and seamless access to all services among Member Boards”. At the time, CREA was in the process of taking over the administration of REALTOR Link®. It would be managed by CREA’s new MLS® and Technology Council to which VIREB’s John Finlayson had been appointed. Furthermore, CREA was also at work launching the Information Exchange Network (IXN). This Network allowed CREA Members to access listing information online using a password, but it was not for public use. The Na- tional Commercial Council (NCC) also introduced the cls.ca to VIREB, a commercial real estate version of mls.ca. For both the IXN and cls.ca VIREB decided to initiate a cost study before it participated.

• • • • •

In March of 2000 the Board motioned to support VIREB’s continued commitment to a paperless office in that it was decided that the majority of Board-generated communication would be delivered to Members via e-mail. A single printed copy would be delivered to each office; by then 73% of the Mem- bership had email addresses (66% had personal email addresses) and could receive e-copies. This was a cost-saving measure with environmental benefit. Correlating this action, the Board office had been pushing the Membership to communicate with VIREB through email. Members were automatically included on a subscription list if they had provided their email address to the Board. Larger publications such as REM and Canadian REALTOR (a CREA publication discontinued in 2000) were too large to email and continued to be delivered by post.

Increasingly, Members were utilizing the Internet to promote listings and services. However, Internet advertising was not distinct to real estate and the federal government realized the need to protect private information on the Web. At the BCREA Conference in 2000 CREA warned Boards to be aware of the government’s Proposed Privacy Legislation and the limitations it would create for the industry. Not only was privacy an issue, but stringent copyright consideration was necessary for REALTOR®, MLS®, CREA, and BCREA. Members were not permitted to use the MLS logo in domain names or email addresses. How- ever, after growing demand the REALTOR® logo was permitted by 2000, as long as it was attached to an individual’s name and indicated CREA Membership. Thereby, a Realtor could not appear as the only Re- altor in any one area. However, a regional Board or geographical organizing body could use REALTOR® within its domain name or email address as long as it was region-specific. • • • • •

111 The 2000’s: A New Millennium

In June Linda Scott-Campbell notified the Board of Directors that she would not seek reappointment as Executive Officer when her contract ended December 31, 2000. After more than two decades of service she decided to concentrate on her family.

As a result of continued discussions regarding the merging of Boards, specifically VIREB and REBGV, the Real Estate Board Affiliation Task Force was struck in 2000. Task Force Members David Ney, John Finlayson, and Jim Gordon continued to explore the possibility of merging or partnering with other Boards. The controversy of amalgamation was a popular topic amid the Membership. The Task Force was charged with building a model that would both identify possibilities and consequences. For example, if VIREB were to merge with Vancouver who would own the assets VIREB had acquired in its nearly fifty years of service? Other viable options included merging only MLS services with another Board. Or, merging with a Board other than Vancouver and remaining autonomous.

REBGV had been a willing partner as it shared an inclusive, long-term relationship with VIREB. It also felt that Board mergers were the next logical step in organized real estate. However, many VIREB Members were reluctant to partner with a Board that had 7,000 Members; ten times larger than VIREB. Nonetheless, the Membership was decreasing and revenues with it. This meant an increase in financial responsibility to individual Members remaining in the industry. Additionally, volunteer Directors and Committee Members were harder to find with fewer people to select from. While Victoria may have seemed a more logical partner they were reluctant to join discussions with Vancouver and VIREB, electing to take a “wait and see” approach. However, under the guidance of a new EO the Victoria Real Estate Board did strike its own Task Force in 2001 to explore a possible partnership with VIREB.

Initial model studies indicated that a merger with Vancouver would save 44% of the Membership at least 50% of what they were paying in dues and fees at that point in time. However, 6.2% of VIREB Members would pay more, and 50% would pay the same. The Task Force felt that more services would be available to VIREB Members including immediate access to new technology, which would then benefit clients. While the options in services seemed appealing VIREB risked losing regional control of properties, their unique identity, and logistical complications arising from operating in an even larger geographical area. VIREB would become a “Division” of the Vancouver Board; it was an enormous decision.

Despite possible changes to the structure of VIREB, the Board maintained a steady course as it entered the new millennium. With Linda’s departure, the position of Executive Officer would be available in early 2001. After a country-wide search the Membership prepared to welcome a new Executive Officer; with him would come a new era of leadership, development, and economic stability through a skyrocket- ing housing market. Bill Benoit had been involved in industry since 1977 and arrived after 8 years as the Saskatoon Real Estate Board’s EO. This was preceded by a career in real estate sales, firm ownership, and as the Regional Manager for Canada Trust. With him came the strict opinion that a Board’s mandate was the directive of the EO. While economic recovery was on the horizon, Board mergers were still a topic of exploration. If the Board ordered a merger then Bill would work to facilitate a smooth transition, but he would need a decision one way or the other.

• • • • •

John Tillie, of RE/MAX Duncan, had succeeded Norm Cauchie as President of the Board in 2001; the Board’s 50th year of service. As a means of introducing Bill Benoit to the Membership John and the standing Directors took care to attend Zone meetings in order to introduce him in person. This proved an important exercise as communication between the Board, its Staff, and the Membership was encouraged and Bill gained insight into the mood of the Board. Putting “a face” to the new EO helped Members make the transition into a new era; funds were allocated to ensure the new meet and greet tradition continued in 2002.

112 The 2000’s: A New Millennium

Bill’s experience in sales, ownership, and administration gave him a unique perspective into the role of the Realtor. He understood that real estate funding for all levels came from “the same pocket”, the Re- altor’s pocket. He also believed that organized real estate had no room for a “we” versus “they” mentality; everyone was going in the same direction, why not go together?

With new leadership came a complete reassessment of Board office roles and by-laws. It was determined that an inventory of skill-sets and job descriptions were necessary in order to determine appropriate compensation for each Staff Member and decide who was responsible for what. Job reassignment and role clarification allowed for greater efficiency at the Board level. Furthermore, in the fall of 2001 a 5-person Task Force was struck in order to initiate a complete review of VIREB’s Constitution, all by-laws, rules and regulations, and policies. It was a thorough spring cleaning.

Despite the change in leadership it was ‘business as usual’ at the VIREB office. MMSI accounting software was implemented by March of 2001. While implementation proved to be labour intensive for the Board Staff, Members’ feedback was positive. The Speak-Up forum feedback was made available at [email protected]; responses were summarized for the printed copy that appeared in Action Board notices throughout the year. Additionally, in 2001 the Board purchased Survey Pro software to better pole the Membership.

• • • • •

The 2001 AGM welcomed Doug Torrie of Vining Senini, who succeeded Peter Watts as the Board’s legal advisor. Mr. Watts had provided legal education since the early 1970s and represented the Board since the mid 1970s with his practical and reassuring approach to real estate. His commitment to VIREB was only a fraction of the legal work he did on behalf of the real estate industry in BC as he served UBC, several provincial Boards, and all provincial organizing bodies.

While it had been a long-standing reward system, for the majority of the Membership the Medallion Club was out of reach. Some Members preferred to earn a living without the added burden of competing with other Members. Members were concerned that if their name was not listed on the Medallion Club roster they would appear unsuccessful to the public. Additionally, the questionable inclusion of “team” statistics for a single Realtor was frustrating to individuals working alone. Furthermore, Members felt that some Salespeople misrepresented their statistics to promote themselves above their colleagues. In the 2001 Annual Membership Survey 48.7% of Membership indicated they felt the Club should be discontinued, 27.5% thought a restructuring was in order. The Medallion Club had been initiated nearly two decades prior, when MLS commissions were charged and top-producers carried the burden of funding Board activities. However, by 2001 each Member paid equal dues. While the Sales Achievement Certifi- cates were still awarded, the Medallion Club was discontinued the following year.

• • • • •

By January 2003, Members had increased to 693, up 40 from the previous year. BCREA charged Real- tors $7.25 per month, and CREA charged $7.50. Additionally, BCREA charged $150 for new Members or Members who had been out of the business for more than a year. CREA’s initiation fee for new or returning Members was $100.

After several years of tightening their belt the Board Staff had found creative ways to generate income. While VIREB was no longer able to present offices with such gifts as MLS clocks or Realtors with calendars for free, it still subsidized CPE courses. Participants were only charged for the cost of materials ($27 in 2001). Exhibitors were invited to the Education Day Seminar in September and charged a rental fee which helped offset the cost of the venue. The Board also planned to create revenue with the sale of the Buyer Profile. The statistical report was available to the Membership for free via REALTOR Link®, but 113 The 2000’s: A New Millennium the Board expected it could sell at least fifty copies to interested parties for $25 per copy starting in 2002. In 2001 four tenants rented space at the Board building, the Computer Room was often rented to Concise Systems (34 classes in 2001), and the boardroom was increasingly leased to organizations that needed meeting space. The rental of space alone earned more than $25,000 in 2001. However, printing catalogues amounted to more than $300,000, which was more than double the cost of combined information services such as VANDAT programming or MMSI support. Technology had been the great expense in the early 1980s and 90s; by 2001 it was cost effective.

• • • • •

Susan McGougan became President in 2002. The year was spent “cleaning up the by-laws” after an organizational review. The Board had initiated 4 distinct directives during their 2001 strategic planning session and worked hard to accomplish those goals during the following two years. Top priorities within the Strategic Plan addressed the immediate issues arising within the Board area, how organizational performance could improve, and how to increase value to the Membership. Membership numbers seemed to be making a comeback, this forecasted a stronger market. As the by-laws were under review the Board felt that scrutiny of rules and regulations should follow. After several years in a slow market, with considerable cutbacks to spending, VIREB was able to waive dues for two months in 2002 thanks to the upturn in Membership and a market turnaround.

Jim Stewart and Trish Widdershoven represented VIREB at BCREA in 2002. In addition, Randy Forbes had returned to the Board of Directors and sat as Chair of the L&GL Committee. Randy would later relay that he specifically returned to Board service after almost ten years in order to protest any Board mergers. However, the market soon began a rebound and talk of mergers faded.

The Board also considered the personal life of its Members and in 2002 initiated a pilot project through the South Vancouver Island Assessment and Resource Service, known as the “Island Employee Family Assistance Program” (or “Island EFAP”). It provided counselling services to VIREB Member offices, Staff, and their families. By 2003 the Program was available to all VIREB Members for $60 per year, and remains available to the present day.

• • • • •

At a special meeting January 9, 2003 Rob Ohs of Coast Realty Group Parksville moved to “reverse the Directors’ decision to adopt the Pledge of Co-operation”. In return, John Tillie raised an objection to the motions due to possible legal infractions in that the Competition Act may be compromised if Sales- people are blocked from competing in a particular regional area; something the Pledge of Co-operation ensured. Bob Belhouse suggested that John’s objection was out of order as he had not cited any specific legal grounds to object. “Much discussion” followed. The Parliamentarian and legal counsel, Maureen In- gram and Doug Torrie, were called upon to determine procedure according to the Robert’s Rule of Order. They ruled that if two thirds of the majority agreed, the objection would carry. A petition protesting the Pledge had been filed with more than 100 Members’ signatures attached. The petition demanded that the Directors reverse Pledge’s Policy 1.20 which addressed the waiving of MLS fees for out-of-Board Real- tors. The petition demanded that out-of-Board Realtors be charged $2,500 per sale within the VIREB area, or 3% of the selling price – whichever was higher; they had been charging $250 per listing. Additionally, keyboxes would need to be programmed to allow VIREB Members access if the listing Realtor was from out-of-town. It was further suggested that 90% of the MLS listing fee be returned to the selling Realtor once a property sold. The petition took no issue with the Common Marketing Area shared with Victoria. At the Special Meeting, 168 of the 248 votes registered allowed the objection to stand, Rob Ohs was forced to withdraw his motion and the meeting was adjourned. While the petitioners were not successful it is important to note that due process was available to the Membership. The Board was presumably torn between cooperation with outside stakeholders and Membership protection. 114 The 2000’s: A New Millennium

• • • • •

President Tom McNee described 2003 as a year of “change”. VIREB was involved at the provincial level, presenting input for the new Real Estate Act. In 2003 VIREB increased its vigilance regarding competition as the federal government redoubled their focus on the Competition Act; educational videos were distributed to each VIREB office in order to communicate allowable behaviour. The provincial government had also initiated the Personal Information Protection Act (PIPA); to be implemented on January 1, 2004. As a result, VIREB was forced to change many of their standard forms, including: Authority to Lease; Exclusive Buyer’s Agent Contract; Contract of Purchaser and Sale Addendum; Fee Agreement; Lim- ited Dual Agency Agreement; Multiple Listing Contract; Property Disclosure Statement – for Strata Titles, Residential & Farms and Acreage. It was a sign of the times.

• • • • •

Reported sales in the VIREB area were soon surpassing any other recorded statistic in VIREB files. While listings were also increasing, sales were out pacing them - driving the price of houses upward. In 2003, 15,388 houses went on the market and 10,226 sold. In early 2003 the average price of a house was nearly $180,000. As a result, new and returning Realtors increased VIREB’s Membership from 693 in January of 2003 to 777 a year later. At the 2003 AGM Bob Clarke was presented with an Honorary VIREB Membership. Bob had worked tirelessly instituting educational standards and practices for VIREB and continued his dedication at the Real Estate Council. Bob was a “bastion” of hard work and a steadfast proponent of not only education and fair play. While his demeanour was that of a quiet “consensus- builder”, his work ethic was larger than life.

A new “front end system” known as INTERFACE™ was implemented in 2003; this led to the discontinuation of “Wave” at the end of 2004. It also required additional, and continued, computer training at the Board office.

• • • • •

President Gabby Osborne was pleased to report a record year of sales in 2004. VIREB Members had increased sales by 29% from the previous year for a total of $2.1 billion; BC had sold a total of $24 billion in residential sales alone. The success of the industry saw VIREB’s Membership increase to 859 by year’s end. The sales to listing ratio had never been so strong, 68% of 2004 listings sold. Realtors were running out of inventory, which pushed house prices higher. John Finlayson and Bob Clarke were elected VIREB representatives to the Real Estate Council in 2004 and John Tillie was elected to represent the Member- ship at BCREA.

Additionally, VIREB continued to protest the provincial government’s Property Transfer Tax (PTT) which had earned the government $500 million in revenue from 2003 to 2004 alone. The industry argued that the government could benefit in other areas by eliminating or reducing the tax. Originally, the tax had been imposed in order to fund infrastructure for new developments without increasing property taxes for existing homeowners, but it had become an obstacle for those entering the market, or trying to change their housing situation. It was also an obstacle for development. Coupled with rising DCCs, housing prices were increasing at such a rate that many purchasers were soon priced out of the market. BCREA demanded that the provincial government hold local governments accountable for their DCCs allocations, which accounted for as much as 28% of the cost of development. All levels of organized real estate worked hard to protect the purchaser, the property owner, and the real estate practitioner.

Additionally, VIREB and its provincial counterparts were scrutinizing the new Riparian Areas Regula- tion (RAR), which had succeeded the controversial Streamside Protection Regulation (SPR) of 2001. The latter, had automatically expropriated land from the high-water mark of watercourses for the protec- 115 The 2000’s: A New Millennium tion of fish habitat, but without financial reimbursement to the property owner. While the SPR had been abandoned, the controversial expropriation stipulation was not even mentioned in the RAR. Therefore, it appeared that no policy had been established. If the government expropriate land no laws would have been broken. Taking proactive measures BCREA Members fought to include fair-market compensation for land owners affected by the new Regulation.

• • • • •

VIREB and the other 11 BC Boards reaffirmed the Pledge of Cooperation in October of 2004. After the petition in the previous year, Directors were careful to solicit Members’ opinions at Zone meetings via Speak Up and surveys. In the end, VIREB decreased listing fees from $250 to $125 for out-of-area Realtors without a Membership backlash.

BCREA introduced “the Quality of Life Program” in 2004. This proved to be a culmination of years of professionalism, education, and research as it created a foundation on which to launch its five principles: ensuring economic vitality; preserving the environment; protecting property owners; building better communities; providing housing opportunities.” This was a holistic approach to ensuring a stronger market wherein purchasers are empowered and property has lasting value. Yet, these were also common themes thread through VIREB’s decades of service.

• • • • •

At the 2004 AGM, Jim Hoffman made a motion to amend the by-laws in order to create a Commercial Division within VIREB’s Constitution. Under Schedule “A”, Article 10, the “Commercial Division” would be comprised of VIREB Members who: satisfied a minimum level of experience, were VIREB Members, had formally applied for Commercial Division Membership, and who agreed to abide by the regulations set forth by the Division’s Executive. In relation to VIREB, the new Division would be managed by a body of three elected Directors, plus the past Chair; 2 would be elected in odd years and 2 in even years. The Division would work within the regulations of VIREB but, due to the unique needs of commercial sales, would be self directing. Jim’s motion carried and the new Division was a reality. Yet, it was not until 2006 that the new Division was up and running.

After more than 20 years away from the Board of Directors, Marty Douglas was elected to represent the Comox Valley along with Rob Nygren. He returned with a wealth of knowledge collected at all other levels of real estate organization. In addition, Bill Benoit was elected to the national Association of Execu- tive Council (AEC) Board of Directors. This suited Bill’s extensive experience and was an ideal opportunity to gain knowledge and share VIREB’s outlook with other Boards across the country.

• • • • •

Jim Hoffman received the gavel from Gabby Osborne to become VIREB President in 2005. While the sales to listings ratio began to plateau in 2005 the average cost of a house increased. VIREB reported a 22% increase to the average sale price of a home. At the time the Board average was $253,298. Incred- ibly, it had increased almost $50,000 from the previous year. This was a long way from the latter half of the 1990s when a decrease in sale prices was the norm. As a result, 117 additional Realtors joined VIREB, which served the needs of 976 Members and 84 offices as of January 2006. As a result of the increase, dues were decreased to $85 per month for 2005, and this continued in 2006.

The new Real Estate Services Act (RESA) forced VIREB to overhaul its Constitution in 2005 due to changes in vocabulary. Agents were thereafter “Managing-Brokers” and Realtors/Salespersons/Licens- ees were referred to as “Representatives”. The 2005 L&GL Days were canceled because of the provincial

116 The 2000’s: A New Millennium election, but VIREB did financially support All-Candidates Meetings in the Board area. In late 2005 the Legislative and Government Liaison Committee was renamed “Government Relations Committee” (GR Committee).

Furthermore, the Real Estate Council imposed the mandatory continuing education for licensed Representatives. While it was not formally implemented until January 2006, the Board Staff went to work preparing for the logistical implications of holding classes at the Board office. Mandatory education would encourage continued professionalism and industry standardization in order to maintain public confidence. It was never-ending.

In 2006 Darrell Paysen, of Duncan, was elected President of VIREB and it turned into a remarkable year. At the 2006 AGM the Commercial Council, otherwise known as the Commercial Division, was formally presented. The inaugural Council was directed by Chair Jay Cousins, Vice-Chair Ralph Walker, Past-Chair Dale McCartney, and Councilor Guy Bezeau (who had replaced John Cowan).

Given commercial real estate’s unique requirements the Board ratified an “extension of VIREB”, creating a Division to enhance the capability of commercial real estate Representatives. While the ground- work for its formation and the “first meeting” happened during a conference call in November 2005, it was in 2006 that the Commercial Division became overtly active. The new Division worked in union with VIREB, but held its own AGM, the first in December 2006.

Subsequently, the Division gained Membership in the BC Commercial Council and CREA’s Canadian Commercial Council of REALTORS® (CCCR; sometimes referred to as CCC; formerly known as National Commercial Council, NCC). VIREB’s Division was soon at work at all levels of commercial real estate. These affiliations encouraged shared resources and provided greater exposure for VIREB.

CCCR was created in 1994 as a subsidiary to CREA and for the education and standardization of Rep- resentatives focused on commercial properties. Members included Realtors, developers, property managers, commercial appraisers, and real estate consultants. Commercial Divisions had a variety of tools at their fingertips including MLS®, ICX.CA, and clslink.ca. However, to belong to CCCR a Realtor had to first belong to a Real Estate Board’s Commercial Division. By establishing one under the VIREB umbrella, commercial Realtors in the Board area could then access CCCR. VIREB needed its own Division for its commercial Representatives to realize their full potential.

• • • • •

VIREB began the process of rebranding in 2006. Impact Visual Communications was contracted to design a contemporary logo and website to reflect the progressive nature of VIREB. The deep “V” and small “i” logo that had represented VIREB since 1972 changed to a house beside water, backed by moun- tains and a shining sun. The new look exemplified what it meant to be an Islander.

An automated fining system was incorporated at the start of 2006 to deter late reporting of listings and sales. While the membership was displeased with the threat of additional fees it was likely more appealing to pay a fine than to have a listing removed from the MLS® system all together. Misinformation and late reporting had long been an issue for Board Staff, but in the end only a “handful” of fines were levied against late Representatives or Managing-Brokers in 2006.

In an effort to increase community awareness the Board hired a full time communications professional to establish a steady source of information between VIREB and the public. This proved strategic in that press releases and subsequent publications increased, and offered information about housing trends and new legislation that was timely and relevant to public interest. It was a tangible way in which to offer a value-added service to the public and create greater awareness for VIREB and its Members. 117 The 2000’s: A New Millennium

• • • • •

At the 2006 PAC Days in Ottawa CREA presented the PAC Team Award for 2005 to VIREB as well as the Real Estate Board of Greater Vancouver. Both were recognized for their consistent and formidable political action at every level of government. VIREB had increased its commitment to hosting All-Candidates meetings to provide the public with a forum in which to access candidates running for election. CREA President Alan Tennant explained that “both of these winners have an impressive list of federal PAC activities over the last year. They held constituency meetings with MPs. They communicated federal issues effectively, both to MPs and to their own members.” It was a fitting tribute to the two Boards who had worked so closely for more than five decades.

Political action had evolved into PAC Days (federal), consistent media interaction, Government Liaison Days (GL Days, provincial), Buyer Profile distribution, circulation of strategic studies, and hiring a Government Relations staff person to ensure all political activists were informed and prepared.

• • • • •

The market experienced a correction in 2006. House prices had escalated due to a lack of supply for consumer demand over the previous years. As a result, many homeowners were motivated to list, thereby triggering a rise in product on the market that was evident as 2006 came to a close. While listing to sales ratio lessened, the dollar volume still set a new record with $2.88 billion worth of sales.

By 2006 the Professional Development Program (PDP), the Continuing Education (CE) mandated by the Real Estate Council of BC and under BCREA guidance, was proceeding; 2007 would see the “first cycle” of Realtors completing the compulsory PDP and Council’s Re-licensing Education Program (REP). Additionally, the new Agency Course was also available to Managing and Associate Brokers amid protest that sales Representatives could not attend classes initially. Further educational opportunities included the Tech Fair, Staff Development Day, Professional Development Day, and Practical Commercial Series Level One.

A Task Force was struck to explore an initiative known as Realty Watch/Amber Alert; this would restart the Realty Watch Program originated in Barry Clark’s years as president 1983-1984 in a way that could benefit the public as a means of crime prevention and provide a volunteer opportunity to Realtors who were in their cars, on the roads during the daytime.

• • • • •

Jennifer Lynch became VIREB President in 2007. While January started slowly, a new dollar volume high closed the year with $3.46 billion worth of sales. In February the Board of Directors revived the Past- Presidents Dinner (formerly a luncheon) and Presidents from every decade gathered to share their stories of hardships and triumphs. It had been 56 years since the first President was named and the caliber of leadership was evident.

The Board developed the REALTOR® Care Award in 2007 to showcase philanthropic good works and community service done by Realtors across the Island. This was in union with CREA’s Quality of Life projects for the Canadian REALTORS® Care Foundation, which was also established in 2007 as a means in which to support charitable causes nationally on behalf of all Canadian Realtors.

The GR Committee pushed the provincial government to lower Property Transfer Tax and protecting waterways for the public. Federally, a Capital Gains Tax decrease and an increase to the allowable withdrawal amount from RRSPs under the Home Buyers’ Plan were on the agenda when VIREB met with MPs 118 The 2000’s: A New Millennium in Ottawa.

Additionally, VIREB became a Founding Member of The Vancouver Island Economic Alliance (VIEA) in 2007; VIEA represents all communities on Vancouver Island and the Southern Gulf Islands and would become a source of regional business leadership, economic expertise, and association in coming years. A core focus was “branding” Vancouver Island as a desirable economic investment with a skilled labour force and space to build.

In April the new Commercial Division held its first “Haves and Wants” session. It was a venue in which to share knowledge and hear suggestions for improvements. “Haves” indicated what properties a Representative had for sale, and “Wants” referred to the properties they sought. Subsequent “mini” Haves and Wants involved “field trips” to buildings or sites under development. The Connector Newsletter was established 2007 to serve commercial real estate’s distinct approach to sales and the needs of clients. Commercial Division Members, along with Bill Benoit, were active participants in BC Commercial Coun- cil (BCCC) and the CCCR at the national level.

Interaction with Victoria’s Commercial Division increased throughout 2007 and VIREB’s Division took note of VREB’s Building Awards Program with hopes of developing a North Island equivalent in 2008. It made sense that the two Divisions shared commercial knowledge as they were both driven to promote investment on Vancouver Island.

• • • • •

Sadly, VIREB marked the passing of one of its own when Diane Scott died unexpectedly in April of 2007. She was an irreplaceable Member of the Board Staff, expert in her field, and always prepared to assist the Membership in any way she could. Diane had loyally served the VIREB Membership for 25 year . • • • • •

At the 2007 AGM held in February 2008, a Special Resolution was put before the Membership to decrease the size of the Board from 13 to 10 Directors and limit the terms served to three. All Zones would thereafter elect one Licensee Director each, except Zone 4 which would have 2 due to its larger population of Representatives. Furthermore, 3 “at large” Managing Broker Members would be elected by Manag- ing Brokers.

• • • • •

In 2008 President Subhadra Ghose represented VIREB at the Real Estate Council’s 50th Anniversary and the 20th Anniversary of the Real Estate Foundation of BC. In September 2008 it is noted that Vice- President Ray Francis, and subsequent Vice-Presidents, was first referred to as “President-Elect”.

VIREB augmented its tradition of education by establishing an Endowment Fund at Malaspina-Uni- versity College (which would become Vancouver Island University, VIU later that year). The two organizations had a close relationship spanning four decades which began with real estate seminars for Licensees and the public.

The REALTY Watch/Amber Alert Program was initiated in March of 2008. It was timely in that a Victoria Realtor, Lindsay Buziak, was tragically murdered while showing a home in early February. The Program would allow VIREB to “fan out” to their communication network through the Touchbase system, which acted as “blanket text messaging” to the entire Membership as long as individuals had registered. This was helpful in order to alert Realtors about such things as missing children or vehicles sought by police. It was a way in which Realtors could incorporate public service into their daily routine. In the 119 The 2000’s: A New Millennium summer, the Program was used during the successful search for a Comox Valley child.

Parallel to the interactive community service of the REALTOR Watch/Amber Alert Program was REALTOR® Care Awards. The Board had painstakingly developed a fair selection process with which to recognize Realtors for outstanding community service and industry leadership. The first Awards were presented at a special Past-Presidents’ Dinner at Parksville in 2008; Bill McGuire, Dave Proctor, Ian Lindsay, and Harvey Hunter were recognized for outstanding service and volunteerism within their own Zones. Also, for the first time, the REALTOR® of the Year was selected from the Care Award recipients. Of the four finalists, Bill McGuire was named REALTOR® of the Year for 2008. Bill was licensed in 1978 and had been the well-respected Commodore of the Loyal Nanaimo Society at the Nanaimo Marine Festival, otherwise known as the Bathtub Races, since 1976 when the Society began.

Guy Bezeau took over the Chair of the Commercial Division from Jay Cousins and the group hosted 200 people at the inaugural Commercial Building Awards on April 17, 2008 at Tigh-Na-Mara. This assisted the Division’s overall push to create awareness for the specific needs of commercial clients and the professional standards commercial Realtors upheld.

• • • • •

In 2000 the federal government established the Financial Transactions and Reports Analysis Centre (FINTRAC) of Canada; an independent agency dealing with “the Proceeds of Crime (money Laundering) and Terrorist Financing Act (PCMLTFA)”. In June, 2008 FINTRAC imposed new regulations that pertained to money laundering and real estate purchases. The new regulations required Realtors to gather personal identification from buyers and sellers to help track suspicious financial activity.

A 2008 change to the Real Estate Services Act would allow “REALTORS®” to form Personal Services Corporation by January 2009.

In 2008 the number of listings increased while the number of sales dropped significantly. Just as the market adjusted in the latter 1990s the pattern continued into the late 2000s, marked by flattening house pricing and an almost $1 billion drop in overall dollar volume.

Administratively, VIREB began a process of succession planning with the assistance of a Vancouver Island University MBA student intern. An operational manual was developed detailing necessary skills and job descriptions for all Staff and Board volunteers in order that each position was fully understood in case of an unexpected emergency. Furthermore, the use of Electronic Document Storage (EDS) was addressed as a means of continuing the objective of running a “paperless office”. The EDS was a “realistic” approach to environmentally friendly office procedure.

In 2008, VIREB lost two of its most influential Members. Jack Evans, first President and Founding Member of the Nanaimo Real Estate Board passed away in April. Jack had been a pivotal figure for real estate on the Island, and instilled the standard of professional respect and collaboration well beyond VIREB’s borders. It was in his living room on Eberts Street that the first meeting, of what would become VIREB, took place. In October Past-President Allan Armstrong, who had joined the Board in 1953, also passed away. Allan worked diligently to shape the real estate profession and maintained his Membership into the 2000s. He was a proud proponent of progress and one of the earliest Agents to push the MLS® agenda, though in the mid-fifties they could not have imagined how MLS® would evolve. These are the gentlemen of real estate who built the foundation of a modern industry.

• • • • •

120 The 2000’s: A New Millennium

Ray Francis had succeeded Subhadra in 2009; John Tillie was elected BCREA President and supported by BCREA Director Jennifer Lynch. Guy Bezeau continued as Chair of the Commercial Division. Broker Load was at the beta testing stage in July, 2009 and launched as “optional” by the end of the year. Though it had been “put on hold” ten years prior the new Programs and Services Partnership (PSP) would require Broker Load capability.

While 2008 felt the effects of an over-saturated market 2009 had high hopes for improvement as buyers purchased homes before house prices shot up further. Coupled with manageable interest rates properties were moving. From April 2009 to May 2010 the variable lending rate stayed as low as 2.25% while the five-year interest rate remained 3.75% from May 2009 to March the following year. The fixed rate would rise to 3%, but the variable rate would drop. 2010 marked the lowest prime rate, one-year fixed mortgage rate, three-year fixed rate, and five-year fixed rate in the decade. BCREA expected the Bank of Canada to maintain the lower rates as the economy recovered, but an increase was expected in 2011. At the end of 2009 the average house price in the VIREB area was $330,499, a decrease of 5% from the year before.

• • • • •

VIREB was recognized with the revered PAC Award in 2009 for outstanding political action and CREA celebrated it 50th Anniversary with a special Gala in Ottawa, home of CREA headquarters. In 2009 the first mention of the Harmonized Sales Tax (HST) was noted. Subsequently, “HST Action” ensued. The HST was touted to “eliminate embedded taxes along the ‘value chain’ and replace it with a single tax”. Nonetheless, it would increase the cost of new home purchases from 5% GST to 12% HST, though rebates were available for houses priced at less than $400,000. Closing fees, commissions, commercial leases, and strata fees were a few of the “extras” that would also be affected.

The Commercial Division continued to work hard at recruiting Members in 2009 and held the first “Commercial Professional Development Day - Study Format” session whereat VIREB Members could learn more about selling commercial properties by strategically using a case study as a walk-through example. The event proved popular enough to offer a second session and plan for the following year.

The Virtual Office Website (VOW) was under development in 2009 allowing registered users from the public to access listing information on a Realtor’s personal site. Like IDX it provided online MLS® dis- plays. Listing information was downloaded from a MLS® or IDX server, and notifications of new listings and changes were sent to users. This was an interactive option to create value-added benefit to clientele.

• • • • •

On October 2nd, 2009 (a special date in VIREB history) Bob Clarke, a longtime friend and colleague of Ralph Walker, put forth a request to recognize Ralph’s four decades of real estate service, determination to elevate the Salesperson to a position of equality, and his drive to further develop the opportunities for commercial real estate. In a unanimous decision the Board bestowed Honorary Membership to Ralph Walker, a Salesman for more than 40 years, a Managing Broker for 36 years, Board Director, Past-Chair of the Real-Estate Council, and Founding Member of the Real Estate Salesmen’s Division.

The recognition was particularly special the following March when Ralph passed away after a val- iant battle that only he could wage. Ralph’s determination had helped guide VIREB to new heights, he was instrumental in realizing equality for Realtors, and was a driving force to ensure the establishment of the Commercial Division. However, as in all aspects of real estate, Ralph was able to achieve so much because of collaboration with other passionate professionals, who worked beside him at every step. Emblematic of their true friendship Gordon Blackhall, who had taken flight in a homemade airplane with Ralph, passed away in May 2010, less than two months after his good friend Ralph. Theirs was an era that 121 The 2000’s: A New Millennium forged the identity of the professional REALTOR®.

• • • • •

Cliff Moberg became President in 2010 and Judy Gray was elected as Commercial Council Chair. VIREB was approaching its 60th year of service and symbolic of its annual commitment to community, letters of gratitude for donations arrived from such charities as the Comox Valley Food Bank, the Salva- tion Armies in Nanaimo and Comox Valley, Habitat for Humanity, the Multicultural Society, the John Howard Society, the Great Nanaimo Toy Drive, Haven House, and ShelterBox. VIREB Members had donated $1,000 to the ShelterBox Program in an effort to give temporary shelter to Haitians left homeless in the January 12, 2010 earthquake. VIREB challenged all Canadian Boards to do the same.

Illustrating its dedication to continued learning, VIREB received letters of gratitude from across the region from bursary recipients pursuing post-secondary education. VIREB had donated its first 3 bursaries in 1973, $500 to a UBC student and two $250 bursaries for two “Malaspina College” students.

A 60th Anniversary Committee was struck in order to plan a Special 2011 Gala to celebrate the Board’s sixty years of service; the event would correspond with the 2010 AGM, Awards Night, the Past- President’s Dinner, and VIREB’s history book would be presented in a printed commemorative copy and full-length online.

In February 2010, Marty Douglas was made VIREB’s seventh Honorary Member, recognizing forty years of unparalleled service in real estate. Licensed in 1970 Marty had served as a Director in the 1970s, became VIREB President in 1981, sat on CREA’s Legislative Committee, was President of BCREA in 1986, Chair of the Real Estate Council of BC, Chair of the Errors and Omissions Insurance Corporation in 1999, and in 2005 he returned to VIREB’s Board of Directors after more than 20 years away. Marty’s service to his chosen industry was incomparable.

• • • • •

During the April GL Days BCREA and provincial Boards called for the elimination of the Property Transfer Tax, shelter tax, and the HST. During PAC Days Members lobbied to allow a Capital Gains defer- ral for purchasers buying revenue properties within a year of selling a similar property. Jennifer Lynch was appointed Chair of the BCREA Professional Development Committee in 2010, which was known as the Education Committee prior to re-structuring. In June, Subhadra Ghose resigned her VIREB Director- ship due to her election to the Real Estate Council of BC.

In April 2010 the Board received a letter of thanks from Donn Gardner who had been invited to attend the 50th Anniversary of the Association of Executive Council (AEC) of CREA. As Past-Chair of the Executive Officers Council, Donn was a valued member of its anniversary celebration. Donn was able to re-connect with former colleagues he had worked hard with to effect change in the industry, and he was quick to convey the esteem with which Bill Benoit is held in the AEC network.

A new Third Party Data License contract was under review in 2010, once approved by legal counsel a notice would be sent to Managing Brokers to reiterate the regulations of access to MLS® by third parties and inquire as to whether the Brokerage would opt in or out of reciprocity. MLS® Reciprocity was a means in which to advertise MLS® listings on an individual Representative’s own website, and was also known as Internet Data eXchange (IDX).

Bill Benoit was named “President-Elect” to the Vancouver Island Economic Alliance Board in 2010, a prestigious position in which to offer development opinions, and create awareness for VIREB. Addition- ally, Board Staff examined the potential acceptance of a mandatory Touchbase profile. Though 86% of 122 The 2000’s: A New Millennium the Membership had already complied, it was hoped 100% would participate in order for it to be fully effective; from November to December more than 56,000 messages were sent via Touchbase. 2010 also saw the introduction of mandatory education for Mortgage Brokers.

In September 2010, BCREA communicated its Strategic Plan for 2011 with a focus on: Partnering for Success; Advocacy; Advancing the Profession. As always, all levels of real estate were driven to enhance and promote the real estate professional. An unrelenting effort to incorporate ethical practices and education was paramount at every level.

In October the Competition Bureau announced an agreement with CREA regarding real estate services offered to Canadians. Canadians would thereafter have the “ability to choose which services they want from a real estate agent when selling their home and to pay only for those selected services”. The Bureau assured the industry that real estate practitioners would also have the “flexibility” to provide individualized service in return. This move was in reaction to a February, 2010 objection by the Com- missioner of Competition over the exclusive use of MLS® by Members. The agreement stated that CREA must “eliminate its ability to adopt ant-competitive rules, including those that discriminate against real estate agents who are hired by consumers to offer a ‘mere posting’ service”. The battle had been ongoing and an anti-competitive accusation would have other complications.

• • • • •

At the November Board meeting, Marty Douglas moved to make New Member Orientation mandatory on January 1st, 2011. As decided at the strategic planning session, new members and those who had been on hiatus for more than two years would have to participate within 90 days of initiation. As incentive, new initiation fees were increased to $700, with a $350 rebate once the Orientation was complete; Orientation classes would be offered quarterly in 2011.

The Commercial Division, Chaired by Judy Gray, participated in the CCC Forum in September whereat the group sought to establish a CREA owned Commercial Information Exchange (CIE). The CCC saw the need for nationally shared commercial information for organizing bodies. The United States had dozens of CIEs to share information, Canada had none. CCC wanted to be the Canadian authority on commercial real estate, parallel to CREA, but distinct due to its unique requirements. As a result, CIE would be made available to everyone within the following two years.

Consistency of data on ICX.ca was problematic because individual Boards used different software and not all was compatible with ICX.ca; the typical “dirty dozen” input items were not always recognized. Furthermore, individual Commercial Divisions pushed BCREA for appropriate PDP courses for commercial Realtors. The CCC Membership was growing rapidly and Judy hoped VIREB’s Commercial Division Membership would grow from 47 to 50 by the 60th Gala Event in February 2011.

The Real Estate Council was working closely with BCREA towards Designated Agency. It was also reported that the Real Estate Foundation approved funding in the amount of $60,000, which VIREB would match, in order to establish an endowment fund for Vancouver Island University and North Island Col- lege in honour of VIREB’s 60th Anniversary in 2011.

Jim Stewart would be stepping into the role of VIREB President in 2011, and Guy Bezeau was ac- claimed President-Elect. With long-term Directors Jim Hoffman, Ray Francis, and Marty Douglas retiring from Board service 2011 would prove to be a new era in real estate as VIREB took time to reflect upon its past successes since three men met in a living room in 1951. At the end of 2010, VIREB had 1078 Mem- bers.

123 The 2000’s: A New Millennium Heart and Stroke Fundraiser 2008 Jim Stewart, Dave Hammond and Dave Thompson Keybox Exchange 2008

Honorary Member 2009-RalphWalker 124 The 2000’s: A New Millennium

Donation to Island Corridor Foundation Donating Computers to Literacy in Memory of Blair McKinnon Nanaimo-VIREB Staff Joanne Russell - Jason Conway 125 The 2000’s: A New Millennium

Diane Scott, VIREB’s Technology Co-ordi- Elected to Real Estate Council of BC - nator began work at VIREB in 1982 at the Subhadra Ghose and Susan McGougan age of 17, she loyally served the Member- ship for 25 years. Regretfully, Diane passed away unexpectedly in April 2007.

Roger McKinnon was Chair of BC Children’s Hospital and was the Past President of the Board in 1992. His family is also in this picture.

A class on Writing Enforceable Contracts Realty Watch, in conjunction with the at the VIREB office in Nanaimo RCMP. Darrell Paysen, right

126 2011 Reflecting On 60 Years of Service

2011 marks the 60th Anniversary of the first night Jack, Ernie, and Hugh met to discuss the formation of an association they hoped would improve the ability of “Salesmen” and increase professionalism in the real estate industry. Had these three gentlemen been able to glimpse into the future they would have seen their vision realized, and the professionalism of an industry achieved.

In a Small Dining Room at the Plaza Hotel the fledgling Board drew knowledge by partnering with the Victoria and Vancouver Boards when it was still the Nanaimo Real Estate Board. Quick to take part at all levels of real estate Board Members, who were Agents at the time, sat on provincial and national Boards in order to do their part, but also to gain knowledge to share with the Membership. Arbitration in accordance with recognized by-laws soon set boundaries of behavior as Agents and their Salesmen slowly adjusted to the demands of association to become professionals.

In 1956 the Board became the Nanaimo County Real Estate Board, but by early 1959 the inclusive nature first established on October 2nd, 1951 was demonstrated yet again when Zone Members were welcomed as full Members for the first time - becoming the Vancouver Island Real Estate Board. By this time, the unwavering standard of education for Salesmen, Agents, and the public were an ingrained tradition. Not only did education serve to professionalize the industry, it gave the public knowledge about an array of topics relative to real estate properties. This earned goodwill.

When VIREB became a Society in 1966 the Membership was an integral part of Canadian real estate, thanks in part to its relationships with Vancouver and Victoria, but also due to the progressive nature of the Board Directors who served year in and year out. Board Members were not exclusively serving real estate; many sat on Boards of other organizations and led businesses of their own. Salesmen also attained the REALTOR® designation in 1966. Yet, Salesmen were still unable to serve as Directors. The balance between Agents and Salesmen would reach a tipping point in the 1970s when “Salespeople” won the right to vote and to serve as elected Directors on the Board.

Once Salespeople could represent individual Boards as equals they filled the Board roles at every level. The balance of power created the ability to increase political action, and representatives first “Stormed the Hill” in 1984. As advocates of property rights, real estate autonomy, and the professional practitioner the industry took political action seriously. Through the 1980s and 1990s increasing technological capability allowed Realtors to improve their service to clientele.

Hot markets through the 1990s increased the Membership and drove up the average cost of a home, but ensuing slow markets closed offices and left a market over-saturated with houses and Realtors. As the 2000s approached leadership changed and a new era at VIREB was at hand. The government was vigilant through the Competition Bureau to insure real estate was not a monopoly because of MLS®. The government and industry participants struggled, as they always had, to define the REALTOR®.

On February 24th, 2011Bill Benoit will welcome real estate dignitaries, community leaders, and most importantly the Membership of the Vancouver Island Real Estate Board on the same street Stu Furk first did the business of the Board at 10 Commercial Street in downtown Nanaimo. It is the same street that

127 2011: Reflecting On 60 Years of Service

Doug Lawford ran the Board from in the old Jean Burns Building, and the same street where Donn Gard- ner and VIREB Staff packed up the tiny office to move to Metral Drive in 1974.

VIREB has come a long way in sixty years because of the caliber of its Members, their willingness to pursue leadership roles and take progressive approaches in business. It is thanks to the skilled and innovative Board Staff who diligently do the work of the Board day in and day out. Yet, it is, as it always has been, the voice of the Membership that has guided VIREB and proven the value of education, arbitration, and political action by exemplifying the true nature of a professional. This is your story...

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