The COVID-19 pandemic ushered in an era of unprecedented challenges across nearly every global sector, and the real estate industry was profoundly impacted. From real estate brokers, Realtors, and sales representatives to all associated industry stakeholders, concerns escalated rapidly regarding its potential effects on daily operations, client interactions, and overall market stability. This comprehensive guide consolidates vital information, directives, and evolving best practices issued by leading Canadian and international real estate organizations during this critical period. As the global health crisis unfolded, so too did the strategies and recommendations for navigating the complexities of a pandemic-affected market, with paramount emphasis on health, safety, and operational resilience.
The real estate sector, traditionally reliant on in-person interactions and physical viewings, faced an immediate and urgent need for adaptation. Industry leaders and regulatory bodies swiftly mobilized to provide clear guidance, enabling professionals to continue serving their clients responsibly while strictly adhering to public health mandates. This article delves into the key statements and resources from prominent real estate boards, associations, and major brokerages across Canada and beyond, offering essential advice ranging from health protocols to critical contractual adjustments and the adoption of innovative digital solutions.
Navigating the Pandemic: A Collective Industry Response
The sudden onset of the pandemic demanded a unified response from the real estate community. Organizations at all levels collaborated to disseminate information, establish new guidelines, and advocate for their members. Their proactive approach helped professionals understand the evolving landscape and implement necessary changes to protect public health while ensuring the continuity of essential real estate services.
- The Canadian Real Estate Association (CREA): As the national voice representing over 150,000 Realtors, CREA provided critical, overarching advice on dealing with COVID-19. Their foundational guidelines encouraged the adoption of virtual solutions, emphasized stringent hygiene protocols, and guided members through the evolving legal and transactional environment. This advice served as a national benchmark, reinforcing the paramount importance of health and safety in all real estate activities. View CREA’s advice on dealing with COVID-19.
- National Association of Realtors (NAR): The leading association for U.S. Realtors offered an extensive FAQ document, addressing common concerns for its members. Topics covered included safe property access, revised open house policies, leveraging virtual tools, and navigating financial assistance programs. While specific to the U.S., many of its principles and recommendations resonated with Canadian professionals facing similar operational dilemmas.
- British Columbia Real Estate Association (BCREA): BCREA was highly proactive in addressing specific provincial challenges. They published detailed guidance on dealing with contracts and disclosure requirements, helping Realtors navigate the legal intricacies of transactions potentially delayed or complicated by the pandemic. Furthermore, their insights on what the COVID-19 virus meant for Realtors provided practical advice on day-to-day operations and client interactions within British Columbia.
- Ontario Real Estate Association (OREA): Under the leadership of President Sean Morrison, OREA communicated regularly with its members, emphasizing the urgent need for flexibility and the adoption of new, safer practices. Their initial messages underscored the gravity of the situation and the collective responsibility of Realtors to protect public health while striving to maintain market functionality. Read a message from Sean Morrison.
- Alberta Real Estate Association (AREA): AREA provided comprehensive updates specifically tailored for Alberta Realtors, offering resources to help them manage their businesses and client relationships effectively during the crisis. Their focus included ensuring operational continuity and strict adherence to provincial health guidelines.
- Saskatchewan Realtor’s Association (SRA): The SRA outlined a proactive plan to address COVID-19, focusing on robust member support, advocacy, and clear communication regarding best practices for property showings, client meetings, and the strategic use of technology.
- Toronto Regional Real Estate Board (TRREB): Representing a vast number of Realtors in Canada’s largest market, TRREB’s best practices page quickly became a primary resource. It provided practical steps for agents to minimize risk, including detailed guidelines for virtual viewings, enhanced sanitization protocols, and remote work strategies, all crucial for maintaining transaction momentum in a dense urban environment.
- Real Estate Council of British Columbia (RECBC): As a key regulatory body, RECBC offered authoritative advice for real estate professionals, focusing on ensuring compliance, upholding ethical conduct, and prioritizing consumer protection during the extraordinary circumstances of the pandemic. Their guidance was instrumental in ensuring professionals fulfilled their duties even amidst drastically changing operational norms.
- Real Estate Council of Alberta (RECA): Similarly, RECA addressed COVID-19 and real estate from a regulatory perspective, providing clear directives on professional obligations, license renewal processes, and maintaining stringent standards of practice under the new operational conditions.
Industry Leader Statements and Brokerage Support
Beyond the official pronouncements from regulatory bodies and associations, major real estate firms and their leadership also issued important statements to their networks and the public. These communications aimed to provide reassurance, outline specific brand-level adaptations, and offer guidance tailored to their operational ethos during the crisis.
- Re/Max Canada: Issued a statement for consumers, outlining their unwavering commitment during the COVID-19 crisis. This focused on reassuring clients about enhanced safety measures, the availability of services through alternative means, and the continued dedication of their agents to facilitate transactions safely.
- Royal LePage: President and CEO Phil Soper shared a personal note to colleagues, addressing the significant challenges faced by the industry and encouraging resilience, innovation, and adaptation within the Royal LePage network. His message emphasized strong support for agents navigating an unprecedented time.
- Sotheby’s International Realty Canada: President and CEO Don Kottick detailed how Sotheby’s International Realty Canada was helping clients. This often highlighted their strategic leveraging of high-end virtual solutions and bespoke client services to continue facilitating luxury property transactions while rigorously ensuring health and safety.
Adapting Contracts: Essential Legal Considerations for Ontario Realtors
The pandemic introduced significant legal uncertainties, particularly concerning property closings, financing, and existing contractual obligations. Real estate lawyer Mark Weisleder provided invaluable practical insights for Ontario Realtors, suggesting critical clauses to integrate into Schedule A of agreements of purchase and sale. These clauses were designed to proactively mitigate risks associated with COVID-19 disruptions and reflect a pragmatic approach to unforeseen challenges:
We suggest the following clauses (of course each transaction is unique and if you have specific questions please contact us directly).
INSERT THE FOLLOWING CLAUSES INTO SCHEDULE A
Electronic Funds Transfer for Payment: The Buyer shall pay the balance of the purchase price, subject to the usual adjustments by wire transfer. This clause normalized the use of wire transfers, significantly reducing the reliance on physical bank drafts and facilitating contactless financial transactions, which became essential for adhering to social distancing guidelines during closings.
Electronic Document Signing: The parties acknowledge and agree that all closing documentation can be signed electronically and forwarded by email or fax in accordance with the Electronic Commerce Act, 2000, S.O.2000, c.17. This was a crucial adaptation for enabling the remote signing of legally binding documents, ensuring that transactions could proceed efficiently without the need for in-person meetings. It fully leveraged existing legal frameworks for digital commerce to maintain transaction momentum.
Secure Key Exchange: The parties agree that the keys to the property shall be left in a lock box at the property and the code to the same is to be provided to the Buyer’s lawyer in escrow pending closing of this transaction. This innovative solution addressed the practical challenge of key handovers, allowing for a secure, contactless transfer of property possession without direct physical interaction between parties, thereby enhancing safety for all involved.
COVID-19 Related Closing Delays: The parties herein acknowledge and agree that they are required to close this transaction notwithstanding any impacts of COVID-19, save and except the closing of the Land Registry Office(s) and all financial institutions. In the event the closing cannot occur due to a shutdown/disruption of the Land Registry System and/or banking system, then the closing date shall be automatically extended to the fifth (5th) business day following the date upon which said systems have returned to operational status and can clear funds accordingly. This foresightful clause provided a critical safety net, acknowledging that core services like land registries and banks might experience unprecedented disruptions. It established a clear, automatic mechanism for extending closing dates if these essential systems were impacted, effectively protecting both buyers and sellers from default due to circumstances entirely beyond their control. This clause became a benchmark for managing the unique force majeure elements of the pandemic in real estate transactions, offering clarity and stability in uncertain times.
Key Developments and Evolving Best Practices
As the pandemic progressed, the real estate industry continued to adapt at a rapid pace. Daily and weekly updates reflected the changing public health landscape, government directives, and the industry’s proactive efforts to implement safer, more efficient operational models. The initial phase focused heavily on information dissemination, quickly followed by concrete actions to reshape operational norms.
March 20 Updates: The End of Traditional Open Houses
A significant and immediate shift in practice occurred as major real estate associations unequivocally called for an immediate halt to traditional open houses. This move recognized open houses as potential vectors for virus transmission and underscored the industry’s profound commitment to public health.
- BCREA Supports End to Open Houses During COVID-19 Crisis: The British Columbia Real Estate Association officially threw its support behind ending open houses. This decision highlighted the industry’s dedication to prioritizing the safety of Realtors, clients, and the wider community over conventional marketing and viewing methods, signaling a significant pivot in operational strategy.
- OREA Calls for End to Real Estate Open Houses During Ontario State of Emergency: The Ontario Real Estate Association echoed this sentiment, issuing a strong, urgent call for the cessation of all open houses across Ontario during the provincial State of Emergency. This directive was a clear and forceful signal that traditional methods of property viewing needed to be re-evaluated and promptly replaced with safer, contactless alternatives to mitigate public health risks.
- An Update from Zoocasa’s CEO: Zoocasa, a prominent real estate brokerage and technology-driven company, provided a crucial update from its CEO. This update likely detailed their internal adaptations, the increased reliance on digital tools, and comprehensive strategies for supporting both agents and clients during the challenging period. Such communications from leading brokerages offered valuable insights into how technology was being leveraged to maintain essential business continuity.
March 23 Updates: Addressing Commercial and Condominium Real Estate Specifics
As the pandemic evolved, guidance expanded to include specialized segments of the real estate market, such as condominiums and commercial properties, each presenting its unique set of challenges and requiring tailored legal and operational considerations.
- Coronavirus And Condominiums: Legal Obligations and Considerations: Lawyers David Thiel, Carol A. Dirks, Gareth F.G. Stackhouse, and Rachel Fielding of Fogler, Rubinoff LLP in Toronto published a crucial update discussing various legal obligations for condominiums to consider. This comprehensive guidance covered aspects such as common element usage, stringent rule enforcement, health and safety protocols for residents, and the broader implications for condo boards and property management during the pandemic, offering critical legal clarity.
- REALPAC Provides Detailed Daily Updates for Commercial Real Estate: REALPAC, the representative voice for Canada’s commercial real estate industry, launched an indispensable online portal providing detailed daily updates. This resource quickly became essential for commercial property owners, investors, and managers, offering critical insights into evolving market trends, government support programs, tenant relations, and best practices for managing offices, retail spaces, and industrial properties in a rapidly changing environment.
March 24 Updates: Real Estate Deemed Essential, But With a Virtual-First Mandate
This day brought pivotal announcements that clarified the official status of real estate services and dramatically intensified the call for virtual business practices across the industry.
- Century 21 Canada Launches Wellness Webinar Series: Century 21 Canada initiated a highly valuable live webinar series, streamed on its Facebook page every weekday at 1 p.m. ET. These sessions, explicitly open to agents from all companies, focused on crucial professional development and mental well-being strategies during the crisis. Today (March 24), Richard Robbins presented “Staying Positive and Productive During COVID-19.” Other featured presenters included industry luminaries such as Tracey Anderson, Alicia Berruti, Shannon Smith, Kathleen Black, and David Greenspan. This initiative highlighted the industry’s recognition of the immense mental and emotional toll on professionals and the urgent need for continuous learning and support in a rapidly changing environment.
- Ontario Government Deems Real Estate an Essential Service: The Ontario government made a critical announcement, officially deeming real estate agents, movers, banks, real estate lawyers, and insurers as essential services. This designation was absolutely crucial for allowing existing transactions to close and preventing a broader market collapse. However, the government also clarified that while essential, this did not imply “business as usual” for the industry. The full list of Essential Workplaces was made publicly available here, providing clear guidance on which sectors could continue operating under strict conditions.
OREA Urges Realtors to Cease All Face-to-Face Business: A Paradigm Shift
Despite the “essential service” designation, the Ontario Real Estate Association (OREA) immediately issued a forceful and unequivocal call for Ontario’s Realtors to halt all face-to-face business. This directive specifically included open houses, maintaining agent and public office hours, and particularly in-person showings of tenant-occupied homes, throughout the COVID-19 State of Emergency.
Sean Morrison, OREA president, explicitly stated, “Just yesterday, the Ontario government declared real estate an essential service, in order to permit transactions to close. I want to make it clear that this does not mean business as usual for Ontario’s Realtors. It’s time to stop all face-to-face business including open houses, maintaining agent and public office hours and in-person showings, especially in cases where a property is tenant-occupied.” He powerfully added, “As Realtors and community leaders, we must do our part to help limit the spread of COVID-19. Why put your health on the line – or the health of your client or community – for showings that can simply be postponed for a few weeks? It’s not worth the risk.” This profound message underscored the industry’s unwavering commitment to public safety even while ensuring critical transactions could proceed. OREA strongly encouraged its Realtors to proactively work with landlords and tenants to prioritize the health and well-being of the province’s home buyers, sellers, and families. This involved encouraging the widespread use of modern technology that facilitates remote interactions, such as virtual tours, video conference calls, and digital signing platforms.
The Toronto Regional Real Estate Board (TRREB) swiftly followed OREA’s guidance, issuing a comprehensive Frequently Asked Questions (FAQ) guidance document to its 56,000 members. This FAQ specifically addressed the implications of the provincial shutdown as it related to trading in real estate. The core message aligned perfectly with OREA’s stance: avoid all in-person business, including open houses and client showings, during the provincial state of emergency. This directive extended to interactions with home sellers, buyers, tenants, and business clients, effectively solidifying the industry-wide pivot to virtual-first operations as the new standard.
The Dawn of Virtual Real Estate: A Lasting Paradigm Shift
The rapid evolution of industry guidance and best practices highlighted a monumental and irreversible shift in how real estate transactions were conducted. The emphasis moved definitively towards virtual solutions, transforming what were once supplementary tools into primary modes of operation. Virtual tours, high-definition photography, interactive floor plans, immersive 3D walkthroughs, video conferencing for client consultations, and sophisticated digital signing platforms became not just convenient, but absolutely indispensable. This period dramatically accelerated the adoption of technology that had been slowly gaining traction, effectively forcing the entire industry into a new, dynamic era of digital engagement. Real estate professionals who readily embraced and mastered these advanced digital tools were far better positioned to navigate the immediate challenges, maintain robust client relationships, and ensure critical business continuity. This profound pivot not only addressed urgent public health concerns but also laid robust groundwork for a more efficient, accessible, transparent, and technologically advanced real estate sector in the long term, fundamentally reshaping client expectations and professional methodologies.
Beyond the Crisis: Enduring Lessons and Future Outlook
The COVID-19 pandemic served as an unprecedented catalyst for profound and lasting changes within the Canadian real estate industry. It compelled professionals at every level to fundamentally rethink traditional practices, vigorously prioritize health and safety above all else, and rapidly innovate through the strategic integration of advanced technology. The enduring lessons learned during this challenging period – particularly regarding the critical importance of adaptability, the immense power of digital tools for remote engagement, and the necessity of clear, consistent, and empathetic communication from industry bodies – will undoubtedly continue to shape the trajectory of real estate for years to come. While the immediate crisis presented immense and unforeseen challenges, it simultaneously fostered the emergence of a more resilient, technologically savvy, and health-conscious industry. This new, evolved real estate sector is now better equipped not only to navigate future disruptions but also to thrive by continuously enhancing the client experience through innovation and a renewed commitment to well-being. The collective commitment to safeguarding public health, coupled with an unyielding drive to maintain market functionality through pioneering innovation, unequivocally defined the real estate sector’s remarkable response to an unprecedented global event.