The traditional model of real estate brokerage takes two forms, a franchise agreement with a provincial or national real estate corporation or a real estate broker opening an independent brokerage office (IBO).

Real estate brokers and salespeople in Ontario have to-date not been able to incorporate their business and so they operate as a sole proprietor within the industry and brokerage framework when registered by the Real Estate Council of Ontario (RECO) as brokers and salespeople. This aspect of the real estate business is evolving and there are options that allow a broker to incorporate and become the “Broker of Record” of their own brokerage business.

Many brokers look towards the national brokerage* franchise model as the path to successfully growing their business and taking advantage of the benefits that incorporation offers (tax savings, income deferral, building business equity, etc.) as well as the national brokerage company’s reputation, services and experience. Franchise fees of $10,000, $25,000 or more are commonplace depending on franchisor, territory, etc.

Other brokers find that establishing their own real estate business through an IBO allows them significant freedom of operation (no territory restrictions and unlimited growth potential) with the added benefits of incorporation.

A new model of brokerage is emerging after being vetted by RECO and operating within the Real Estate and Business Brokers Act 2002 (REBBA 2002) legislation that is called a “sub-brokerage*” (or mini-brokerage or sub-franchise) but defined by RECO as a separate brokerage having the same rights, requirements and obligations as any other brokerage.

Sub-brokerages operate as a brokerage franchise under the local brokerage* masthead sharing office space and services while maintaining a certain level of independence afforded through incorporation and the sub-franchisee agreement. The operating limitations imposed upon the sub-brokerage owner can vary greatly according to the national brokerage franchise terms and the additional limits imposed by the local name brokerage agreement.

The Realty Point Brokerage franchise model has turned this sub-brokerage model into something quite a bit closer to the IBO model through a series of carefully crafted operating conditions approved by RECO.

The traditional naming convention of a real estate brokerage franchise has been turned around. A franchisee puts their name first in the naming convention of their brokerage so you have “Your Name Realty Point Brokerage” allowing a greater opportunity for brand building and recognition.

Shared office space and administration services allowing for franchisees of Realty Point Brokerage to lower their costs of office space and administration staff while maintaining the level of professionalism and service excellence that their clients rely on.

No territory limitations are imposed by Realty Point Brokerage allowing for a broker to establish and grow their business in the area they prefer. Realty Point Brokerage offices are currently located in Toronto, Markham and Oshawa, Ontario.

The lower cost of $5,000 for a five year franchise agreement with straight-forward ongoing costs of $500 per month for private office space and $500 per transaction for closes.
The franchise cost includes your brokerage set-up and guidance throughout the incorporation process and RECO brokerage registration, and brokerage training and guidance to help you successfully build your business.

Included in the monthly office costs are phone and fax services on private numbers/lines (including answering services and call forwarding), reception services, access to shared computer rooms, board rooms and seminar room), printer and copier equipment, internet access and document storage. Additional services are available on an “as needed” a la carte basis.

Transaction fees include the services of the deal secretary, transaction co-ordination, ongoing administrative support, trade record sheets and transaction reports, broker listings, uploads and distance trading availability (work anywhere services).

The Realty Point Brokerage franchise agreement covers such issues as the privacy of each brokerage, non-compete regulations concerning the recruitment of brokers and sales staff and confidentiality of their contacts, leads and deals.

The central focus of the Realty Point Brokerage model allowing a franchisee to take advantage of technology, territory and shared resources to lower costs and build equity in their business is a disruption of the traditional brokerage model that is being well received by real estate professionals searching for the right option that allows them the freedom to build a business without the financial risks associated with IBO’s or the high cost of national franchise operations.

Image Excerpt from RECO “For The RECOrd Fall 2014”

*The following terms in this article are defined as such:

• National brokerage: The parent real estate brokerage corporation (the franchisor) that franchises their brokerage into local territories (Re-Max, Century 21, etc.)
• Local brokerage: The franchisee that pays fees to the parent brokerage in turn receiving support, marketing and other services from the franchisor (Re-max > Local Name brokerage, etc.)
• Sub-brokerage (also called mini-brokerage): A broker operating an incorporated real estate business within the local name brokerage office framework, subject to the operating agreement of the local name brokerage (Re-Max > Local brokerage name > Sub-brokerage name etc.) providing marketing, support, office services as agreed

Contact us today for your confidential free consultation.

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Realty Point. You Sell Real Estate. We Take Care of The Rest.

“LinkedIn® is a growing platform for real estate sales professionals and brokerages to connect to their industry peers,” says Robert Lee, Information Manager at Realty Point Inc., “and accordingly their use of social media channels are regulated by REBBA 2002 legislation and RECO advertising guidelines insofar as disclosure of a registered real estate professional’s status is clearly indicated.”

“In 2015 we fully expect RECO inspections to more fully look at how individual brokerages, brokers, and salespeople use social media and that the required information is present according to currently available guidelines” Mr. Lee continued.

Robert added, “Many real estate professionals seem to be unaware of how social media, including LinkedIn®, falls under RECO and the REBBA 2002 Act as an avenue of business promotion that is regulated and part of our focus is to raise awareness and be a helpful resource in our industry”.

Now available is our free downloadable guide, in PDF format, to help you understand your obligations as you add LinkedIn® to the social media channels you use to network with your professional connections and engage with your current and future clients. We have also included a section about “LinkedIn® best practices” for you to follow if you are new to LinkedIn® and would like advice on using this network effectively.

Is Your LinkedIn® Profile RECO and REBBA 2002 Compliant?

Is Your LinkedIn® Profile RECO and REBBA 2002 Compliant?

1 file(s) 381.93 KB

Download PDF

This guide contains the following sections:

What is LinkedIn®?
LinkedIn® Mission Statement
LinkedIn® for Real Estate Brokers
Best Practices
Getting Started With LinkedIn®
LinkedIn® Profiles
Creating a Compliant LinkedIn® Profile
LinkedIn® Company Pages
LinkedIn® Groups
Tips About LinkedIn®
Important clarifications when using descriptive phrasing
About Realty Point Inc
Web Links

This is a free download and you are free to share it with others.

Note:
RECO has provided its own guide for real estate brokers to follow which you can access at the RECO website.

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Via Salesforce

As a Real Estate Professional in Ontario registered by RECO it’s your obligation to use Facebook (and all social media channels) according to the regulations as they are set out and to ensure your compliance accordingly.

We have created this free downloadable guide, in PDF format, to help you understand your obligations as you add Facebook to the social media channels you use to engage your current and future clients. We have also included a section about “Facebook best practices” for you to follow if you are new to Facebook and would like advice on using Facebook effectively.

Is Your Facebook Profile RECO and REBBA 2002 Compliant?

Is Your Facebook Profile RECO and REBBA 2002 Compliant?

1 file(s) 845.12 KB

Download

This guide contains the following sections:

What is Facebook?
Facebook’s Mission Statement
Facebook for Real Estate Brokers
Best Practices
Getting Started With Facebook
Facebook Profiles
Creating a Compliant Facebook Profile
Facebook Pages
Facebook Groups
Tips About Facebook
Important clarifications when using descriptive phrasing
About Realty Point Inc

This is a free download and you are free to share it with others. You can also embed this document on your website or blog using Scribd.

Note:
RECO has provided their own guide for real estate brokers to follow which you can access at the RECO website.

We have created this free downloadable guide, in PDF format, to help you understand your obligations as you add Twitter to the social media channels you use to engage your current and future clients. We have also included a section about “Twitter best practices” for you to follow if you are new to Twitter and would like advice on using Twitter effectively.

A quick review of about one hundred Twitter profiles of real estate professionals has shown us that compliance is either misunderstood or ignored as about 50% are not in compliance and as part of the professional real estate community we created this easy to follow guide to help you follow the guidelines as laid out by current applicable regulations.

Is Your Twitter Profile RECO and REBBA 2002 Compliant?

Is Your Twitter Profile RECO and REBBA 2002 Compliant?

1 file(s) 772.40 KB

Download PDF

This guide contains the following sections:

What is Twitter?
Some best practices include
Twitter profile creation
Common omissions
Twitter profile creation best practices
1) Header image
2) Profile Image
3) Profile name (also called “real name”)
4) Twitter name (also called “username”)
5) Bio
Important clarifications when using descriptive phrasing
About Realty Point Inc

This is a free download and you are free to share it with others. You can also embed this document on your website or blog using Scribd.

Note:
RECO has provided their own guide for real estate brokers to follow which you can access at the RECO website.