Trends in Real Estate Education

"If you have the ability to conceptualize, to understand the theoretical underpinnings of real estate, you're in a stronger position to adapt to change. Take the case of contract law. Realtors need to keep abreast if they're to write and implement contracts effectively. This is a critical component of the brokerage industry. Realtors have to understand the basics of contract law." Robert Laing, Executive Director of Professional Programs, Faculty of Commerce, UBC.

Real estate industry leaders have long been aware that lifelong learning is essential for success. For example, a recent report by the Real Estate Directions Task Force* confirms the need for ongoing professional education, specifically for the residential real estate sector. Two issues in particular have caused much discussion: agency relationships with consumers and employer/employee relationships in the workplace. These, together with new technology, increasing information, and new legislation, have had an impact both on the practice of real estate and on the structure of real estate offices and organizations.

The Task Force addressed the factors affecting members of the real estate brokerage industry. However, the industry also comprises a broad range of other specialists, including appraisers and assessors, property managers, land developers, and mortgage brokers. In fact the dollar volume of industrial, commercial and investment transactions, together with the transactions of government agencies, is significant compared with the dollar volume generated by the sale and purchase of residential real estate. Real estate professionals in these special fields also face the challenges posed by a rapidly evolving marketplace, by new technologies, and by the growing demand for more and better education. To be effective, therefore, education for the entire industry must satisfy what at times appears to a bewildering variety of needs.

"Historically, there were two aspects to real estate education," says Derwyn Owen, consultant for the Real Estate Program, Kwantlen University College, School of Business. "The University of British Columbia offered a Diploma in Urban Land Economics, and various professional associations such as the Appraisal Institute of Canada offered courses that led to specific designations. Traditionally, each played an important role, but there were gaps in a practical sense for purposes of accreditation. Academic institutions didn't recognize professional designations, and the various associations weren't making any coordinated effort to bridge that gap."

Fortunately, this situation has been changing over the past ten years. Three industry-driven initiatives in particular have resulted in innovative and highly flexible educational programs: The British Columbia Real Estate Association's (BCREA) Continuing Professional Education program (cpe); the Bachelor of Business in Real Estate, a collaboration between UBC and the Open University; and Kwantlen University College's Diplomas in property management or in real estate development and feasibility. Together, they offer new and established practitioners valuable opportunities to acquire knowledge and enhance skills during any stage of their career.

In 1987, BCREA hosted a symposium attended by representatives from government, industry associations, and several post-secondary institutions. The consensus was that as the business of real estate becomes more complex, due in part to legislative changes, technological advances and greater consumer awareness, it is absolutely essential for Realtors to attend seminars on a continuing basis. It was this need for professional education that gave birth to the popular cpe program.

Since 1988, Realtors throughout BC have attended half and full day cpe workshops on topics ranging from agency disclosure to contract law, from computers in real estate to the specifics of selling condominiums. Li Read of Remax Realty on Saltspring Island, is a good example of someone who takes advantage of cpe courses. Read entered the businessten years ago. A former teacher of high school French, she's found the courses to be of great help. "I like them because they're voluntary. They're designed specifically for Realtors, and they're short, accessible, and informative. I can apply what I've learned immediately."

While cpe remains one valuable arm of continuing education for the real estate industry, UBC's and Kwantlen's programs add yet another dimension to real estate education in this province. "Thirty years ago when I entered the field there really was nothing in the way of a formal distance degree program for real estate in this province," says Bob Mikitka, past Governor of the Real Estate Foundation. "UBC offered a Diploma in Urban Land Economics, a very valuable program. It's interesting to me that a significant percentage of the people who have stayed in the industry a long time have earned the Diploma in Urban Land Economics. But now practitioners will have a formal education degree, which in my view is the major change in real estate education in this province. They'll be able to earn a degree while they work." Mikitka is referring to the Bachelor of Business in Real Estate(BBRE), developed by UBC in collaboration with the Open University, approved by the UBC Senate in November 1998, and scheduled to start in September 1999.

"Bob Mikitka and others pushed for years for a distance academic degree," says Don Taylor, past president of the Real Estate Institute of British Columbia (REIBC) and a current Governor of the Real Estate Foundation. "In 1994 REIBC conducted a survey that identified a need for such a program. We wanted it to be accessible in a variety of ways, and we believed it should be an applied degree, one that would provide a good foundation in business practices and principles as well as a solid knowledge of theory." "The BBRE is a distance degree oriented to practitioners," says Robert Laing, Executive Director of Professional Programs, Faculty of Commerce, UBC. "It's designed to satisfy the requirements of real estate professional associations. The degree is a natural progression from the Diploma in Urban Land Economics. The Diploma may satisfy the bulk of students who are seeking professional designations or some form of career advancement. But many of them will want to further their education by earning the BBRE. In fact, several professional associations do require a degree, for example the Appraisal Institute of Canada."

Laing stresses that the BBRE is very flexible. Students who take the Diploma in Urban Land Economics can now use it as credit towards the BBRE. In effect, it ladders into the degree program. Unlike other undergraduate programs, the BBRE concentrates on the specialized courses first, because people in industry need to acquire certain kinds of knowledge quickly. They can then complete the remaining requirements with general business courses and electives in the arts. Laing adds that the students in regional colleges can also earn credit toward the degree. "The only stipulation is that one half of the credits must come through UBC, otherwise students can earn the degree through the Open University."

Kwantlen University College, too, recognizes the need for a degree program with an emphasis on practical skills appropriate for the industry. In the past, Kwantlen has provided courses to members of the Fraser Valley Real Estate Board(FVREB). "We learned that FVREB's members wanted us to create a program that would serve the areas south of the Fraser River, because it's difficult for Realtors who live and work there to attend UBC. Fraser Valley also encouraged us to collaborate with UBC," says Jim Gillis, Dean of Continuing Education.

"Realtors with the FVREB didn't want any more one-off courses," says Derwyn Owen. "They made it clear that they wanted courses that would be accredited and transferable to the distance-degree program offered by UBC and the Open University. In response, we've designed a two-year diploma at Kwantlen in property management and in real estate development and feasibility. We've also negotiatedan agreement with UBC to have the courses apply as credit to the BBRE. The university received us very well. Students who earn a diploma can ladder into UBC and earn their degree. They also have the option to finish their studies through the Open University. In fact, the flexibility doesn't end there. Kwantlen's students can apply the diploma credit toward our Bachelor of Business Administration."

From the Foundation's point of view, these three programs reflect a spirit of partnership and cooperation that benefits the students, the industry, and post-secondary institutions. The cpe courses meet the ongoing need for upgrading practical knowledge and skills for Realtors. UBC's distance degree and Kwantlen's Diplomas will help employees in every sector of the industry adapt to a myriad of changes.

"Educators and practitioners are well aware of the transitions taking place in the industry," says Don Taylor. "Just look at the brokerage side of things." Consumers in the future will want specific services, and they'll buy them from the most knowledgeable, most effective people. For example, a client may contract a broker simply to negotiate the price of the purchase instead of acting as the purchasing broker, as has been the case. This is already occurring. That's the future. With these additions to real estate education, practitioners will be better equipped to face that future.

*The Report on the State of the Real Estate Industry in BC is available through the Real Estate Foundation.