ITSO halts implementation of new exclusive listing feature in light of CREA’s compliance concerns

Click here for the article in REM

https://realestatemagazine.ca/itso-halts-implementation-of-new-exclusive-listing-feature-in-light-of-creas-compliance-concerns/

Right off the top, our initial feelings and opinions.

1. We think that a service like ours specializing in exclusive type information should be consulted for feedback. Our members have successfully provided cooperation on the networking exclusive listings since 1994 but in a confidential manner.
2. Our definition of exclusives is anything that is not on MLS either because the REALTOR could not get a signed listing or because it is preferrable for one of many legitimate reasons.  We call it the networking of information.
3. We are in an information age. But we REALTORS must follow the guidance of government regulators. MLS was sued in the USA. 
4. ICIWorld recommends that every member follow the rules, such as those of RECO, the Real Estate Council of Ontario, which states that if you are going to give an address to someone or identify a property, you must have the owner’s consent in writing.  
5. We network opportunities, not necessarily signed opportunities.  But we do it according to the rules.  Keep in mind this is different from MLS where everything is validated. That is why it is the quality of information is so reliable. When you network information, it is not reliable. It is information. If someone is thinking of selling, that is not reliable.
6. YOU CANNOT LEGISLATE TO PUT SOMETHING ON MLS IF YOU CANNOT GET A SIGNED LISTING.
7. MLS is still one of the best ways to sell real estate, no question about it. But it is not the only way.
8. Networking information can trigger interest.
9. Keep in mind real estate brokers and salespeople are matchmakers. I find someone who’s thinking and we try to find a buyer who could be potentially interested. Sometimes even the buyers and sellers are not sure until they actually find out there is somebody interested and that gets them interested to sell.
10.  Owners of businesses do not like their business plastered all over the internet for sale it could be bad for business the employees might start leaving the chef might say oh the new people might not hire me I better look for a job people wonder if there’s something wrong in the kitchen the owner gets pestered with all kinds of questions daily.
11. If you were to ask any owner today if they would consider selling their business for the right price many of them would say yes but I do not want to give you a listing at this time but if you bring me a buyer I’ll pay you a commission. So try to find me a buyer.
    
12. Well ICIWorld has been finding buyers for these kinds of opportunities for 30 years. We do it by networking the opportunity without the address it’s called networking where did we learn it we learned it at the Toronto Regional Real Estate board in the auditorium at ccim breakfast meetings or Brokers would stand up and talk about the opportunities they had but because they’re not listed we don’t share the names of the owners and the addresses. We know that we have to put agreements in place first.
    
13. In real estate you can get in trouble if you say that you have a hot water tank that is owned and it turns out to be rented you can get into trouble. So our recommendation is to all our members is to never give out an address of a property for two reasons people could go behind your back if you don’t have it listed and you do not have the consent of the owner in writing. There were more reasons why you should have the consent of the owner and writing.
    
14. When the clear cooperation policy came in with the National Association of Realtors in 2020 and with the Canadian Real Estate Association in 2023 there was never a consideration that there was a way to actually share information exclusively by not giving an address. There are many legitimate reasons why owners sometimes do not want to share and make their properties publicly available and some of these reasons were delineated nicely in the REM article by Barry Lebow sometime ago.
    
15. I too have been a broker for 50 years. I have always said that you cannot mix an information listing service with an actual multiple listing service that everyone is used to. And information listing service of exclusive information is simply more like classified ads in the newspaper of opportunities not necessarily listings. Basically they are leads. Wants, a buyers acquisition criteria are big time on ICIWorld. $75 million dollar office buildings have been sold by brokers making connections with people who want to buy with someone who contacts our broker member with someone who wants to sell. The brokers then go to work and do all the due diligence that is necessary to effect a sale.
    
16. What the heck wrong is doing that!
17. Brokers are making money. The public is achieving their objectives. Their is security for the public because brokers are trained in consumer protection. Look at what is happening on social media and the Internet, the crime, fraud and other terrible things. I say, encourage brokers to network information because then all the loose information on the internet can be qualified by the real estate broker and salespeople professionals of the world. They watch out for fraud artists, thieves and crooks. They spend time qualifying the tire kickers, curiosity seekers and time wasters which is a big job. No developer wants to sit with all these crooks and open themselves up to a major catastrophe.  Brokers and salespeople protect them and all the public.
18. However exclusives has been criticized. One broker says he does not want to spend the time qualifying it because the other broker who has the contact does not know what they are doing. That can be true but there is a solution. Another broker says they do not have all the information about a property. My god. Isn’t that what $100,000 and $50,000 commissions are supposed to pay for. Go to work and get it. You have interested buyers and there are interested sellers. How you do your due diligence is up to you. The owner will get you the profit and loss statements from his accountant. The owner will assemble the statement of assets and liabilities with his accountant and family. 
19. A REALTOR is a quarterback in a transaction putting together and monitoring all the factors going into the sale. The managers, owners of real estate brokerage offices provide whatever assistance they can and even more important they know where to get assistance when you need it.  
20. You cannot put something on MLS that is not in writing and we agree 100% with that.
21. Networking is a key ingredient for every broker and salesperson in the business. But there has never been a world service for networking. Many brokers do not want to waste their time. THAT IS THEIR PREROGATIVE their right to make their own decision to not work with someone. But that should not deny someone else who prospects more, chooses to dig a little further and then digs enough to help the sale and it goes through. 
22. Many developers looks at land and it turns out to be something wrong. That happens when networking information. Not as much with MLS where things are checked out. But initial networking by a broker can get these questions asked of the owner and follow up. This is brokers helping the public.
23. There is a great opportunity for the real estate industry worldwide to network on a global scale. A family in Europe or Asia has expertise in a certain kind of business. But the owner of that business in the USA or Canada does not want to put it on MLS at this time. But they would look at an offer if you get it. The answer: network the information with their verbal consent but without the address or identifying the property. Once someone is interested, then put a listing agreement in place to show it.
24. Be a match maker.
25. We taught one broker over the phone, ask an owern if they would consider selling. He asked his dentist. Dentist said yes. Broker placed in on ICIWorld where there already were several buyers of dental offices. Sold within 90 days. This was not an MLS listing. See this page of testimonials of brokers networking information to do transactions. 
26. As far as I am concerned this proves beyond a shadow of a doubt there is so much business out there not getting done because brokers have not learned yet now to network information properly. In fact it is frowned upon perhaps by the institutialized thinking of MLS. I think brokers should always be encouraged to get an MLS listing but when they cannot then network the information. 
27. All the FSBOs in the world could be placed on the ICIWorld International Network by real estate brokers and salespeople to sell. 
28. All brokers should be placing their Wants on the ICIWorld International Network for the owners to see and call them. 
29. All brokers in the world can provide this networking service on their own website to provide more services to the public. The public can understand there is a difference between networking intentions and an actual signed listing for sale. We explain all kinds of things to them. This is just one.
30. The world is wide open for brokers and salespeople to do this kind of business. The faster a critical mass it built for your community the faster, and more money one can make and customers can be served.
31. We are happy about the report that they are open to consider alternatives to how to handle exclusive type information. Keep in mind it appears they are only considering what appears to be a signed exclusive listing. That is different from networking. The quality of MLS cannot be compared to networking because networking is exploring potential transactions with real people with most times nothing in writing. But exploring these leads has lead to some of the largest transactions in the world. On ICIWorld $75 office buildings have been sold. $50M development lands sold as a result of brokers helping buyers and sellers explore what they have to offer and qualifying the potential buyers.  May we suggest ICIWorld become a basis for establishing networking as a major tool to explore doing trades in real estate. They all lead to a signed listing someday and many of them onto MLS. Once sold, many of the buyers and sellers may not mind that the results be put on MLS for statistical purposes.
32. We disagree of the all encompassing feedback and overwhelming support they say they have. There was no national discussion. Our surveys indicated 75% against the rule. Particularly since the original thrust was because brokers were not sharing their exclusive residential listings. Our definition of exclusives is different from what others understand. There are actually more than two meanings. One could be a signed exclusive listing not on MLS. Another is exclusive is simply a piece of information about an opportunity. ie: You know a company is thinking about selling. If you want to be the salesperson to help that company you are not going to share it with everyone because another broker could end up goind direct and bypassing you. We calling it going behind someones back. That is why we do not give out confidential information until a listing agreement is put iin place first. 
33. To be continued.