Who are the unscrupulous agents in Toronto’s real estate market?
It all depends on who you’re asking.
Some real estate agents engage in unethical behaviour, industry veterans recognise. But so do buyers and sellers.
The machinations of Toronto’s blazingly hot market are receiving a lot of scrutiny these days. Last week, an undercover investigations conducted by CBC’s current affairs program Marketplace and the real estate industry’s efforts to get their own message out before the broadcast aired.
RECO, which enforces the Real Estate Business Brokers Act 2002 and its Code of Ethics on behalf of the provincial government, fostered consumers to complain if they suspect skullduggery in a dwelling deal.
This week, they’re likely fielding a lot of new grievances after that reminder. I’ve heard from several buyers with their own tales.
In the Marketplace investigation, the reporter went to open houses and posed as a buyer without an agent. She asked the agents at the open houses what they could do for her. One considered that she hire an agent to act for her. But others told things along the lines of “I will block other gives” and “I will make sure you get the house.”
That type of behaviour is a clear violation. RECO can fine the agent or, in severe cases, revoke their registration.
But real estate agents who adhere to the rules point out that patrons may be the ones pushing to bend them.
Mr. Carr, a broker, tells in an e-mail that he has encountered buyers who are openly willing to break any regulation that would prevent them from winning a bid war.
” Some of those buyers is not simply willing to break the rules but in many cases offer cash incentives .”
Sellers, he adds, may ask an agent not to disclose a significant flaw about the house. That falls under the category of wrong-doing as well.
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When Mr. Lackie, an agent, represents buyers he always presents the offer in person- preferably in front of the marketer- so he can establish a rapport.
” I want to get in front of the marketer and explain why my patrons are the best people to buy the house .”
When he represents the sellers, he also promotes the purchaser’ agents to present their gives in person rather than mailing them by e-mail or fax. If he does receive gives electronically, he adds them to the queues so the marketer can examine them.
” There’s no room for backroom wheeling and dealing .”
But Mr. Lackie has had occasions where dwelling hunters have approached him and asked if he would be able to get inside information or skew a bid conflict in their favor. He asks them to leave.
” If someone has asked me that, that’s a red flag .”
He won’t violate the Code of Ethics and he doesn’t want a client that would pushing him to do so. He also figures if they’re willing to operate in that behaviour, they likely won’t be honest or loyal in their relationship with him either.
People who say they desperately want any particular dwelling should let their bid reflect that, he adds. He says that motive sometimes clarifies the gives that blow all the other tournament away.
” If you utterly have to have it, show that in the amount you’re willing to pay for it. It’s as simple as that .”
Mr. Maranger, an agent, tells multiple representation combined with multiple people gives is a veritable minefield. His team has policies in place so that agents can gracefully navigate various scenarios. One policy is that no secret debates are allowed.
” It drives me crazy when an agent during international negotiations asks ,’ May I talk with you in private?’ My response is always ,’No’ .'”
Mr. Maranger asks the agent to step into the room and be talking about him and the client together.
The team also casks to provide in closed envelopes, presented in their own boardroom. If one members of the team is going to make an offer on behalf of a buyer, they present first, never last. That route the seller and the other agents can be assured that the contents of another envelope was never disclosed to their own team member.
As for the consumers, brokers and agents lodging their complaints with RECO, many complain that the investigatory process is too slow and criminal penalties too lax. Many are calling for stricter monitoring of the industry in Ontario.
Initial post appeared in Globe And Mail
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