The world of real estate is a complex and competitive one, usually involving large sums of money. In Canada there are specific rules and regulations that govern the industry, so for these reasons it’s important that prospective buyers and sellers in Toronto seek out the right level of experience and knowledge when selecting their real estate brokerage services. With more than 120,000 registered real estate agents across Canada, finding an effective and trustworthy level of real estate brokerage in Toronto can be a tricky business.
The world of real estate brokerage is changing as fast as technology can develop, and property buyers and sellers in Toronto seemingly have more options open to them than ever
Why knowledge and experience count in real estate brokerage
According to the Real Estate Institute of Canada (REIC), it helps if Toronto buyers and sellers look for the Fellow of the Real Estate Institute designation, which is recognized nationwide as a prestigious title – confirming a certain degree of expertise and insight and also indicating an agent who is looking to advance their practice to a higher level. Real estate brokers need a minimum of five years’ experience in the field to qualify for the designation, with a thorough knowledge of real estate laws and financial regulations, and a solid grasp of the principles of real estate sales and marketing.
Another area of real estate brokerage that agents need to be knowledgeable in is taxation. With the Canadian Revenue Agency (CRA) increasingly aware of tax issues related to real estate transactions, there were penalties in 2019 that totalled over $57 million, putting an emphasis on Toronto buyers and sellers to notify the CRA of real estate dealings in their tax returns. This is a key area of real estate brokerage for agents to focus on, and with the CRA’s latest actions it will grow in importance.
Toronto buyers and sellers will look to their real estate agents to assist with the preparation and safe retention of all related documentation associated with sales and purchases. This includes receipts and accurate records of what has been paid. Changes in ownership – for example, when someone is added to the title deeds to create a joint ownership – and passing properties on to family members also have tax-related consequences that homeowners need to be aware of.
What do real estate brokers actually do?
Agents play a vital role in the real estate brokerage process. In many areas it can be a complex and difficult procedure to understand, and for Toronto property buyers or sellers it is often experience and knowledge that make all the difference. While real estate transactions are almost everyday in their regular occurrence, they usually involve large amounts of money and complicated contractual agreements and negotiations. With so much at stake in terms of the actual property and any other expensive assets, it is vital that everyone has a solid grip on understanding contracts, liabilities and other legal documents.
While buying or selling a house is a commonplace event, there are few things simple about it: a real estate agent will be required to check various issues such as the sales contract, the title deeds for the property and its chain of ownership, together with all legal documents associated with the purchase. They may also need to address problems associated with liabilities and liens (the legal claim over a property). When selling, the sale contract must be checked along with the final settlements of existing loans, and the correct and timely preparation of necessary documentation must also occur to ensure the completion of the selling process.
In order to ensure everything is handled in a smooth and correct way, the real estate broker will also be looking to clarify that the interests of the buyer or seller are protected and included in the contract of sale. This helps shield a client from financial loss during the process. All documentation must also be drawn up in accordance with local and state laws. Contracts can be infamous for allowing small details to sneak through, but they may nevertheless have big consequences. A diligent and experienced real estate broker will flag up any clauses that could be problematic to their clients, and must be ready to question wording that is vague or insufficient in providing the right level of protection.
Real estate brokerage is becoming increasingly online
Real estate brokerage in Toronto, as with many other parts of the developed world, is changing with the times. New so-called disruptor firms are launching in Canada with a primarily online set-up, hiring agents to carry out the traditional brokerage services but also offering clients technological innovations such as online 3D video tours of properties – removing the need for in-person viewings. The advent of iBuyers – otherwise known as institutional buyers – is also changing the way real estate brokerage works by using online algorithms to determine the market value of a property and make an offer, sometimes without even seeing it.
The world of real estate brokerage is changing as fast as technology can develop, and property buyers and sellers in Toronto seemingly have more options open to them than ever.
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