TREB has been working with the Ontario Real Estate Association (OREA) on multiple provincial government issues which impact Member business.
The issues are:
- Employment Standards Act Review
- Municipal Land Transfer Tax
- Mandatory Home Energy Audits
- Personal Real Estate Corporations
- Condominium Act Review
- Land Use Planning Review
- Electronic Signatures
To learn more about TREB and OREA’s work on these issues, please read below.
Employment Standards Act Review
The government has initiated a full review of the Employment Standards Act (“ESA”), which is intended to update the Act and tackle the issue of precarious contract work.
One of the areas of focus for the review will be the exemptions that exist under the ESA. The ESA exempts real estate salespeople and brokers from having to comply with certain provisions under the Act. As a result, real estate brokerages do not have to pay salespeople or brokers overtime, vacation pay, and for statutory holidays, among others.
If the exemption were removed, brokerages could be faced with having to pay thousands of dollars per salesperson they employ – much in the same way that other employers do under the Act.
If the exemption is removed, it could be disastrous for real estate brokerages who would face a significant increase in employment costs.
Moving forward, TREB and OREA will fight hard for the maintenance of the exemption.
Municipal Land Transfer Tax
The province has announced a formal review of the Municipal Act, City of Toronto Act, and Municipal Conflict of Interest Act.
The review of these Acts will focus on three broad themes:
- Accountability and Transparency
- Financial Sustainability
- Responsive and Flexible Service Delivery
The review of these Acts will consider the issue of giving new “revenue tools” or taxes to municipalities. The province could create opportunities for new taxes.
If new revenue tools move forward, it is very unlikely that the province will exclude the Municipal Land Transfer Tax (MLTT). The provincial government could also leave the decision to implement those taxes with local municipal councils.
TREB does not support MLTT as a revenue tool. TREB will work with OREA to ensure the MLTT does not spread to other municipalities in Ontario.
Mandatory Home Energy Audits
Energy Minister Bob Chiarelli informed OREA that the province is moving forward on the issue of mandatory home energy audits.
Back in 2009, the government introduced the Green Energy Act, 2009,which included a provision which stated that the person making an offer to purchase a home had the ‘right’ to receive the results of an energy audit, unless they waive that right.
Although the Act passed, OREA and TREB’s advocacy efforts were successful in stopping the government’s implementation of this section. The provision currently sits as an unproclaimed piece of the legislation.
Instead of requiring mandatory home energy audits at the time of offer, the province is now suggesting the audits must be completed by the time of listing.
More specifically, Ministry of Energy officials expressed interest in requiring an energy audit rating to be included on an MLS® Listing. In essence, the province is actively considering mandating requirements on MLS®.
TREB and OREA do not support mandatory home energy audits and will work together to dispute mandating energy audits on MLS®.
Personal Real Estate Corporations
TREB and OREA continue to lobby for the fair tax treatment of REALTORS® when it comes to forming personal corporations.
Thanks to these efforts, earlier this year, Bill 69, the Tax Fairness for REALTORS® Act, 2015, was reintroduced by Prince Edward-Hastings PC MPP Todd Smith. The bill was co-sponsored by Eglinton-Lawrence Liberal MPP Mike Colle. If passed, the bill would make the necessary amendments to the Real Estate and Business Brokers Act, 2002 (REBBA), to give REALTORS® the ability to operate their business through a personal real estate corporation (PREC).
In the spring, TREB supported OREA’s Call-for-Action on Bill 69 which saw over 7,000 emails go from REALTORS® to the Minister of Finance.
Recently, the NDP announced its support of PRECs. PRECs now have the support of allpolitical parties. All party support of PRECs is a testament to the strength of the REALTOR® voice at Queen’s Park and of our ongoing advocacy on this issue.
OREA and TREB will continue to work with the government to find ways to move the bill forward.
Condominium Act Review
TREB and OREA had the opportunity to participate in the province-wide Condominium Act Review consultations. Recently, the government introduced amendments to the Condominium Act, 1998. There are five key areas of reform being proposed by the government:
- Enable the establishment of a Condominium Authority, a delegated administrative authority similar to RECO and Tarion, which would provide dispute resolution assistance.
- The Condominium Authority would be subject to oversight by the Auditor General.
- Provide better rules to protect consumers from unexpected costs after purchasing a condominium.
- Introduce new rules for condo corporations to prevent fraud and mismanagement, including giving condo owners information about their condo corporations’ financial matters.
- Requires the licensing and regulation of condo managers and management firms. Regulations under the Act would set training and education requirements for condo managers and a code of ethics.
Further updates will be provided as the bill moves through the legislative process.
Land Use Planning Reviews
The industry has had the opportunity to participate in a number of reviews undertaken by the government pertaining to land use planning. OREA and TREB will also be participating in a review being conducted on the issue of affordable.
We continue to stress the importance of affordable home ownership and having the government look at initiatives to address brownfield redevelopment and implementing province-wide standards for second suites.
Electronic Signatures
TREB and OREA continue to make progress on proclamation of the amendment to the Electronic Commerce Act, 2000 which will allow the use electronic signatures on agreements of purchase and sale. OREA successfully lobbied for the inclusion of the amendment in Ontario Budget 2013.
Once proclaimed, REALTORS® and consumers will be able to utilize technology to help make transactions more efficient and accessible.
TREB will keep Members updated on this issue.