The major objective of the present study is to analyze the real estate brokerage industry in British Columbia with respect to its organization, structure, and conduct. The industry has been criticized for overly high real estate commission rates, an excessively large sales force which contributes to high turnover, heavy competition leading to unethical practices and low wages for some salesmen. These allegations led to a provincial inquiry that was to examine many of the problems faced by the industry. The federal government created further controversy with the enactment of the new Combines Investigation Act. The Act prohibited the setting of minimum or fixed commission rates that had been a traditional practice of the real estate industry. In view of the public concern over issues relating to real estate, the present study proposes to examine the basic structure and performance of the industry so that one may have a clearer understanding of the problems that it faces. The study utilizes two approaches to investigate the current situation of the industry. On the one hand it encompasses a statistical survey of real estate agents and salesmen in British Columbia, and on the other it uses primary and secondary sources to analyze the conduct of the industry. The statistics concerning the real estate industry is derived mainly from three surveys conducted during the summer of 1975. The real estate brokerage industry in British Columbia has reached a period when many changes are needed to revitalize its operations. Since the industry has always been a self-regulatory system, these changes would be most effective if they are initiated from within. Until now, the industry has not made any serious attempts to instigate new policies which will improve the relation of agents and salesmen, to curb the size of the sales force by using responsible hiring practices, or to encourage more comprehensive brokerage services by endorsing a. flexible commission rate system. Many of the criticisms mentioned above can be corrected by concerted effort of industry leaders. The recommendations made by the present study are directed toward the brokerage industry and deals with many of the aforementioned issues. The writer believes that reforms must be instigated soon, before lack of public confidence in the industry necessitates government intervention. / Business, Sauder School of / Graduate

In recent years the real estate business has been subject to a great deal of criticism concerning the organization and management of the business. However, there has been limited evidence to support the criticisms. It was the purpose of this thesis to analyze data which had been collected concerning the real estate business and determine if the business is poorly organized and managed. If the evidence supported the criticisms, an attempt would be made to determine whether improvements were possible within the existing structure of the business or whether imporvements will depend on a change in the structure. Information concerning the real estate business was collected and analyzed under the following headings: (a) Organization of the Real Estate firms. (b) Recruiting, Selecting and Training Real Estate Salesmen. (c) Compensation Plans for Real Estate Salesmen and Managers. (d) The Real Estate Salesmen - Characteristics and Work Habits. The data for this study was collected from the members of the Vancouver Real Estate Board. A total of 192 firms employing 1200 salesmen were included. This represented 66% of the firms and 97% of the salesmen in the study area. The geographic area included Vancouver, District of North Vancouver, West Vancouver, Burnaby, Richmond, Surrey, Port Moody and Coquitlam. In order to collect the required data, two questionnaires were used. One questionnaire was completed by the agent or manager, the other was completed by the salesmen. In addition, each manager or agent was interviewed. The Vancouver Real Estate Board handled the mailing of the questionnaires, each of which was accompanied by a covering letter from one of the executive members of the Board soliciting full cooperation. A total return of 152 usable firm questionnaires representing a 79.1% was received. The return form the salesmen was considerably lower. Only 415 usable questionnaires, representing a 37.5% return were received. The data was coded and tabulated by the I.B.M. 7040 computer. Based on the data obtained it was found that the real estate firms were poorly managed. In particular the areas of recruiting, selecting, training, compensating and supervising salesmen were poorly handled. At present the real estate firms appear to hire unlimited numbers of salesmen without due regard to their chances of succeeding in the real estate business. This has resulted in an excess number of salesmen entering the real estate business. Many of the new recruits have left the real estate business after a short period of time, resulting in a high turnover of salesmen. In addition to the excess number of salesmen, many of the new recruits are entirely unsuited to the real estate business. The real estate firms have failed to provide proper training for their salesmen. The pre-licensing course, which new recruits are required to complete does not include sales training. Because of the high turnover of salesmen and the fact that the salesmen are not paid a salary, the firms appear unwilling to train their salesmen. Without proper training the salesmen require considerably more time to become efficient. During this "Trial and error" period the salesmen earn a relatively low income! This has further increased the turnover of salesmen. Many of the problems facing the real estate business appear to be related to the form of compensation used for the salesmen. At present all salesmen are paid on a straight commission basis. This has limited the firms monetary costs for salesmen and enabled the firms to employ large numbers of salesmen without concern as to their success. The commission plan has also made it very difficult for new salesmen to remain in the real estate business because of the low income for the initial few months! The salesmen were analyzed to determine what type of men and women enter the real estate business! It was found that the average salesman enters the real estate business in his late thirties and the average number of years experience in the real estate business is six and one-half years. The average salesman earns approximately $4,950 per year, however, they must work approximately sixty hours per week to earn this income. The salesmen enjoy few fringe benefits such as medical insurance, pension plans or group life insurance so the income of $4,950 represents their total monetary return. There appears to be a need for substantial improvements in the real estate business and these improvements are possible within the existing structure of the business. Many of the improvements can be made by the individual managers and agents without any support from the other agents. Improvements are possible in the firm's recruiting, selecting and training methods. A change in the form of compensation would require the support of the majority of the agents since the local real estate boards usually establish standards of compensation. However, the agents need not wait until group action is taken, many improvements are possible and necessary on an individual basis. / Business, Sauder School of / Graduate

Since the mid-sixties, and more particularly, since the beginning of 1972, housing prices in major urban centers across Canada have risen so sharply that it has become almost impossible for most Canadians to acquire adequate housing accommodation within their means. The rate of increase in the cost of land for housing, in comparison with other housing cost components, has been tremendously high. Why is the cost of land and housing so high in a land-rich country like Canada, and what could be done to control the rising cost of land and housing is the concern of this study. This thesis argues that the existing system, whereby, land is owned, planned, serviced, developed, and marketed, has built-in drawbacks and weaknesses that give rise to many problems which contribute to the high cost of urban land for housing. It is suggested that the value of urban land mostly represents the value created due to the general growth of the urban community and public development planning decisions. The benefits from such value increments in urban land rightlyabelong to the urban community. But in the existing system, in which land is predominantly owned by private owners and developed at the will of private owners and developers, these value increments in urban land remain in the hands of the private owners. It is argued that such profits from increments in land value due to community growth attract all forms of speculative practices that, to a very large extent are responsible for increasing the cost of land for housing. This is also responsible for the problem of conflict of interest at all levels or public development planning decision-making. It is further argued that in the existing system authority for public planning and development control is too fragmented in the light of present-day regional urban reality. It is irrational, inefficient, and costly to the public interest at large. The thesis suggests that to control the high prices or urban land and housing, the existing system must be modified so that the benefits from the socially-created value in urban land can be channelled back to the advantage of the community instead of being left to the sole advantage of the private owners. It argues that this can be achieved by large-scale public acquisition of land far in advance of need for its development, comprehensive planning on regional scale, servicing, and selling or leasing of such public land for development. Acquisition of land far in advance of need for development by public agencies will eliminate speculation and reduce the cost of urban land for housing. The thesis presents a general description of the existing urban land development system with particular reference to the Greater Vancouver Region in British Columbia. The system is identified as consisting of two main components: one being the private market mechanism in which land is privately owned, developed and marketed; the other being the public development planning, development controls, and development decision-making process. The role of private development market and the role of various public agencies in the development of urban land is described. The effects of public development planning decision-making at the general urban growth on the value of land is discussed. The problems of land speculation, conflict of interest at all levels of public development planning decision-making, and fragmented public planning authority and their effects on the cost of land and housing described. The experiences of Edmonton, Red Deer, and Saskatoon with public acquisition and development control of land and their success in keeping the price of land and housing under control are cited. In conclusion the concept of public involvement in the ownership of land and its development is recommended and some measures and steps to be adopted for successful implementation of public land assembly, land banking, and development controls are suggested. / Applied Science, Faculty of / Architecture and Landscape Architecture (SALA), School of / Graduate