Double ending didn’t die!
You all remember that CBC exposé that shone a bright light on some Realtors who were demonstrating extreme breaches of ethics while representing both buyers and sellers on the same transaction. It was very upsetting to those of us who work so hard to carve out professional and ethical businesses and especially when we are in Multiple Representation (double ending) with our clients. Most of you know that I believe it was far too “tempting” for some to stray from that straight line where you are committed to getting the highest price possible for your seller, while, at the same time, getting the LOWEST price for your buyer. Competing objectives AND more money in the pocket of the Realtor are the “perfect storm” for some. I prefer to refer my buyer to another agent if I am working for the seller. But that’s just me. That said, RECO has come up with some new and positive legislation that should deter the (very few) Realtors who are not complying with the rules and regs behind Multiple Representation (Double ending) by raising education standards, heightening financial penalties for any transgressions, even “disbarring” Realtors, and developing a consent form for both Sellers and Buyers to sign in the event they want to have their Realtor of choice handle both sides of the transaction, despite the potential conflict of interest inherent in representing both sides.
I thought this was fair position in view of the fact that some sellers have complete (and aptly placed) trust in their agents to handle the transaction in a responsible and ethical manner. As long as those who are not compliant are suitably punished for their “transgressions”, I am satisfied. It is a question of cleaning up the industry wherever need be. Multiple Representation is not permitted in some provinces; however, I think this is a fair compromise knowing what we are trying to achieve. The official announcement from TREB is outlined below. Now we are just awaiting legislation to detail and confirm the changes.
What do YOU think about double ending? Have we gone far enough in protecting consumers? Let me know your thoughts. They matter!
TREB Welcomes Legislation on Multiple Representation in Real Estate Transactions -www.TREBhome.com Toronto, Ontario, October 6, 2017 – The Toronto Real Estate Board (TREB) welcomes the provincial announcement on proposed changes to the Real Estate and Business Brokers Act, 2002 (REBBA) pertaining to conflict of interest issues that arise in multiple representation situations in real estate transactions. “TREB is pleased that the Ontario Government is listening to the advice provided by the industry and is working to bring forward a workable solution. Throughout 2017, TREB has demonstrated its commitment to consumer protection and efficiency for real estate transactions in meetings with the Ministry of Government and Consumer Services, and provided input on their ongoing consultations regarding potential changes to REBBA,” said TREB President Tim Syrianos. Phase One of the current provincial review is focusing on issues associated with multiple representation situations, consumer understanding of real estate transaction agreements, and penalties for unethical behaviour. TREB supports the move towards a mandatory designated representation model where the brokerage would be required to designate different representatives from that brokerage to represent each client in the same transaction. However, the industry is working with the government to allow for flexibility in the rules to allow two clients in the same transaction, such as a buyer and seller or more than one buyer, to work with the same REALTOR® as an impartial facilitator, with consumer consent. This will provide for consumer choice. “The detail still needs to be sorted out and the legislation still has to go through the legislative process, including public consultations. However, the government has committed to moving forward with a model similar to what the industry is advocating for,” said TREB CEO John DiMichele. “The vast majority of TREB Members are ethical and comply with the Real Estate and Business Brokers Act. TREB looks forward to continuing to work with the province on all aspects of this and other important issues under REBBA such as raising educational standards and requirements,” said Syrianos.
If you (or someone you know), are looking for a Realtor who cares MORE about focusing on you, your concerns, goals and the successful purchase or sale of YOUR unique home, than they care about their volume of transactions and awards, please let me know the best way for me to connect. I would love to offer my highly personal service. Contrary to that old expression, not only IS this business, but it IS personal! And, please, I encourage you to ask me any questions you may have about this post. I value your input and appreciate the time you took to read it.