Real Estate: An Essential Service
On March 24, 2020, the Ontario Government announced that the Real Estate industry is an essential service. This was done primarily to ensure homeowners with pending closings, i.e., those who have already bought and need to sell, or those who have sold and have to buy, etc., are able to complete their transactions.
However this is NOT business as usual. Realtors are being advised to refrain from face-to-face real estate practices as much as practicable during the State of Emergency as they continue to satisfy their ethical duties to their clients. Members have a responsibility to protect their own safety, as well as the safety of their colleagues, clients, and the general public. Members should adapt their practice to ensure that their professional activities are safe and comply with all guidance provided by Health Canada, the Province of Ontario and medical professionals. (Source: Toronto Regional Real Estate Board)
Here are other FAQs Provided By The Toronto Regional Real Estate Board:
1) What does it mean that real estate is considered “essential” and is exempt from the “closing at risk workplaces” order under the provincial shutdown?
While those engaged in real estate services are permitted to leave their homes to provide real estate services, TRREB does not recommend that people do so unless it is absolutely necessary. Furthermore, individuals are strongly encouraged to find alternatives means for conducting business, such as through virtual tours and video conferencing. It is NOT business as usual, and Members are reminded to pay attention to recommendations for best practices by the various levels of government with respect to the COVID-19 developments, including social distancing (at least six feet from any other person) and avoiding in-person meetings.
2) Are Realtors permitted to engage in showings?
TRREB strongly recommends that Members avoid face-to-face real estate practices, including showings, as much as practicable until it is safe to do so. Members are strongly encouraged to find alternative ways to engage in showings, such as virtual tours and video conferencing. Members should consult with their sellers and brokerages to ensure compliance with any company policies that may be put in place to keep people safe. If Members are acting for a landlord, Members should also remind such clients of the fiduciary duty landlords have to ensure a safe environment for their tenants.
Realtors can engage in real estate showings. However, all persons participating in a real estate showing are required to maintain social distancing of at least six feet from any other person, and where possible, have hand sanitizer and sanitizing products readily available.
3) Are brokerages permitted to host open houses?
TRREB strongly recommends that Realtors do not host open houses during the COVID-19 emergency. While this is a brokerage decision in consultation with your clients, open houses put Realtors, their clients, and the public at risk during the COVID-19 pandemic and provincial State of Emergency. Members should find alternative means to host open houses, such as holding virtual or video open houses, or rescheduling open houses until after the emergency has abated and it is safe to do so.
Again, TRREB urges all people engaged in real estate services to take prudent and common sense precautions to limit the risk of unnecessary exposure to, and transmission of, COVID-19 to Realtors, their clients, and the general public. Members should consult with their sellers and brokerages to ensure compliance with any company policies that may be put in place to keep people safe.
TRREB has suppressed public open houses on TRREB’s Stratus MLS® System and our public facing websites TRREB.ca, Collaborate, and realtor.ca (owned by CREA), until it is safe to restore them.
4) Are related businesses such as movers, lawyers, financial Institutions and construction?
A number of businesses directly related to real estate are on the list of essential services. They include:
Land Registry Offices
Land registry is considered essential, so real estate closings should not be impacted. We will provide further updates as they become available.
Moving services
Institutional, Residential, Commercial and Industrial Maintenance
Businesses that provide support and maintenance services, including urgent repair, to maintain the safety, security, sanitation and essential operation of institutional, commercial industrial and residential properties and buildings, including, property management services, plumbers, electricians, custodial/janitorial workers, cleaning services, security services, fire safety and sprinkler systems, building systems maintenance and repair technicians and engineers, mechanics, (e.g., HVAC, escalator and elevator technicians), and other service providers who provide similar services
Professional Services
Including lawyers, paralegals, accountants.
Construction
Construction work and services, including demolition services, in the industrial, commercial, institutional and residential sectors.
Financial activities
Capital markets (e.g., the TSX);
Banking & Activities related to Credit Intermediation; credit unions;
Insurance;
Businesses that provide pension services and employee benefits services; and
Businesses that provide financial services including payment processing, the payroll division of any employer (as defined by the Employment Standards; and Act/Occupational Health and Safety Act), any entity whose operation is the administration of payroll, banks and credit unions.
Businesses that support the safe operations of residences and essential businesses.
Here’s the complete list of essential workplaces: https://news.ontario.ca/opo/en/2020/03/list-of-essential-workplaces.html
5) Disclosure of potential COVID 19 exposure.
This information could be material to anyone at risk for potential exposure, but raises the question of whether it’s a property concern or a people concern. Is the concern that the property site itself might have been or is contaminated? Or is it the risk of having been around a particular person? And was this person on the property or offsite?
Legally, known material conditions related to the property should be disclosed. Per Health Canada, it’s possible the virus can spread from contact with infected surfaces or objects on a property, meaning a person could get COVID-19 by touching a surface or object that has the virus on it and then touching their own mouth, nose, or possibly their eyes.
To be on the safe side, a disclosure could be made.
If making a disclosure, it should be done in a generic way so as not to invade privacy or implicate personal information. This would mean not using names but a general description along the line of “a visitor to the property on “X date” has tested positive for COVID 19.”
6) May I ask clients or others I interact with in my real estate business if they have traveled recently, or have any signs of respiratory illness?
Yes, you may ask clients or others about their recent travel, particularly to areas identified as having an increased risk of COVID-19. Be sure to ask all clients the same screening questions based on current, factual information from public health authorities.
7) What are Lenders doing?
Many of our major lenders are providing options to help alleviate some of the financial stress. Depending on your lender, there may be options available such as:
Deferral of payments
Re-amortization of the loan
Capitalization of outstanding interest & costs
Special payment arrangements
8) What are Mortgage Insurers doing?
In addition to the big banks, mortgage insurers, including CMHC, Genworth & Canada Guaranty, are working to help homeowners who have been financially impacted by the COVID-19 outbreak. Starting now, they have increased their flexibility and are allowing payment deferral of up to 6 months for homeowners who, primarily, but not exclusively, purchased with less than 20% down.
9) How about the impact on municipalities, planning matters, Committee of Adjustment delays & property taxes?
We are currently reviewing municipal services related to real estate transactions that could be impacted by the state of emergency and provincial shutdown. It is now very possible that municipalities may close their offices or work with reduced staff and that delays in receiving compliance information, permits and municipal agreements may be experienced.
A growing number of GTA municipalities are taking their own actions to provide economic relief to everyone impacted by the COVID-19 pandemic. As such, some municipalities are extending deadlines for property tax payments. Below is a list of GTA municipalities with links to their COVID-19 web pages, which provide details on their responses, including financial relief, closures, cancellations, and status of municipal services. Note that this is not an exhaustive list, and TRREB assumes no responsibility for the accuracy of this information due to the fluid nature of the pandemic developments. For this reason, we encourage Members to check with their own local municipalities, as changes and updates happen on a daily basis.