Many of B.C.’s realtors lack the English skills necessary to protect buyers and sellers in a market where English is the operating language for licensing education and official contracts, says a report from an independent panel being used by the provincial government as a road map for regulation reform.JONATHAN HAYWARD/The Canadian Press
Many of B.C.'s realtors lack the English skills necessary to protect buyers and sellers in a market where English is the operating language for licensing education and official contracts, says a report from an independent panel being used by the provincial government as a road map for regulation reform.
Among the panel's 28 recommendations is a suggested comprehensive review of the licensing and education requirements for aspiring realtors, including a consideration of the role of fluency in a market where many licensees deal mainly with fellow non-native English speakers.
The provincial government released data on Thursday showing that during a three-week period last month, about one in 20 homes in the Vancouver area was purchased by a foreign buyer, the majority from China. But even if many transactions are conducted in a language other than English, the formal documents required to complete the deal are entirely in English.
"This creates a risk that licensee's education and ongoing proficiency will be impacted by language proficiency or comprehension issues," the report stated. "This is a risk that the regulator cannot ignore."
Many long-time agents have argued the current system makes it far too easy for anyone to join the industry and that language proficiency requirements are too easy to skirt.
Aspiring real estate agents in British Columbia must spend at least 10 weeks completing a series of online assignments through the University of British Columbia's Sauder School of Business. Applicants must then complete a 100-question multiple-choice test, earning a mark of 65 per cent or higher, to become licensed.
If they weren't educated in English, the real estate students must also write a separate exam where they prove their fluency by attaining a mark of at least 60 per cent on a several-hundred-word essay.
Language proficiency within the real estate industry has become part of the charged debate around foreign ownership. But formal complaints about it are rare: A search of recent disciplinary decisions by the Real Estate Council of B.C. failed to turn up a case of realtor wrongdoing where a language barrier was a direct factor.
Tony Gioventu, a member of the advisory panel and head of a trade association for B.C.'s condominium owners, said submissions from the public and industry insiders to the advisory panel made it clear that language proficiency has been an issue.
"The parties didn't necessarily always understand what they were signing or what the implications of what they were signing was," he said.
Several real estate brokerages offer prep courses to help aspiring realtors cram for the multiple-choice licensing exam, as well as the essay component that non-native speakers must write.
New Coast Realty, one of Metro Vancouver's most controversial and fastest-growing brokerages, has five branches across the region that prep students seeking to become licensed.
"This complicated professional course intimidates even native English speakers. The difficult-to-understand legal and real estate terms discourage many otherwise interested people," states a Chinese advertisement for the company's prep course. "Our knowledgeable instructors and concise materials will help you learn easily and pass the exam quickly, paving the way for your career or investment plans."
UBC in the past has defended its licensing program as rigorous, but says it looks forward to working with the government to "help to promote public protection and satisfy the professional education requirements" of realtors across the province.
Realtor Gary Wong suggested that adding a written essay or oral exam component to the multiple-choice licensing test would automatically raise the language-proficiency bar and make it harder for everyone to become a realtor, something the province has promised to do as it overhauls the existing real estate regulations.
He said roughly half the Chinese-Canadian agents he deals with see his name and start their conversation in Mandarin. Mr. Wong, who speaks Cantonese and only a smattering of Mandarin, said business continues as usual once he asks them to switch back to English.
"It's not the greatest, but you can work around it," he said, noting that agents can use templates for most contract clauses, which eliminates grammar mistakes or spelling errors.
A handful of realtors contacted by The Globe and Mail say it is rare to work with an agent who doesn't speak passable English, but many realtors prefer to talk to clients and colleagues in their mother tongue. Those who may have trouble understanding a contract work around it, such as asking their managing broker or a lawyer for help
But Mr. Wong noted the workarounds won't cover all of the bases. He noted, for example, that those with limited English ability might be less likely to read through strata documents that often refer cryptically to any issues with the building.
Kevin Lynch, a veteran realtor and CEO of Richmond-based Metro Edge Realty, said if UBC changes its testing format – which has been in place for at least 24 years – it would need to invest much more money in hiring people to mark the new exams and their pass rate would "go down dramatically."
"UBC pumps through a lot of numbers," Mr. Lynch said. "This is a business for UBC."
The university has been administering the licensing course and exam since 1958, when a new law allowed the real estate council to delegate the education of realtors to UBC. The percentage of those who pass the course, by answering at least 65 out of 100 exam questions correctly, has gradually declined over the past decade from the low 70s to the low 60s.
UBC says its $1,075 tuition includes face-to-face tutoring and a host of online support, so aspiring realtors do not need to pay hundreds of dollars to outside firms for extra help.
New Coast promises participants in its six-week course that they will be reimbursed the $1,000 licensing fee and given up to $2,000 in incentives if they begin working for the company and stay on for at least six months. The firm is currently under investigation by the real estate council after The Globe revealed that its owner teaches realtors that they should persuade homeowners to sell for less than their home is worth to collect a quick commission.
The company also sponsors a $5,000 annual scholarship for a UBC commerce undergraduate who "demonstrates scholarship, leadership and community or student involvement" in honour of New Coast's "commitment to real estate education in British Columbia." The school says the award was set up last fall and "if an [ongoing real estate council] investigation proves wrongdoing, the university will review our association."
Rosario Setticasi, New Coast's chief compliance officer and managing broker, said none of the allegations against his firm has been proven and that three of its highly qualified licensees are now offering training to about 100 aspiring realtors.
"It's a great service for the people that are looking at learning," said Mr. Setticasi, who noted that those who pass the entrance exam are not obligated to join New Coast.
Mike Hager