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Agency, owner lose license in ethical scandal

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Real Estate Professional | 27 Jan 2016, 08:15 AM Agree 0
Regulators caught the agency manager engaging in several ethical and legal breaches after conducting a review of his business
  • Mike MacLean | 31 Jan 2016, 04:20 PM Agree 0
    in 1987 I was a Realtor with an independent real estate office in Calgary when the Police walked in and shut the office down arresting the owner/manager which resulted in a lenghty jail sentence for trust fraud and much more. After he got out of jail the Calgary Real Estate Board gave him his licence back!!!! I was stunned seeing how 80 plus Realtors lost over a million dollars in commissions. In Alberta if your office goes under because of fraud none of the Realtors associated with the guilty brokerage don't get the good fortune of having their commissions insured. Twenty nine years later I still feel this is not fair to the Realtors. Just before Christmas 2015 Royal Lepage Foothills collapsed affecting 165 Realtors and now there are rumours those Realtors are going to loose commissions as well. I thing the industry needs to change so that unless the Realtor is directly responsible for the fraudualant act their commissions should be insured.

    Mike MacLean
    RE/MAX Real Estate (Cental)


    Hopefully the Realtors with this Brokerage won't loose the commissions they work so hard for.
  • challenger | 31 Jan 2016, 10:28 PM Agree 0
    Commissions are protected if you are in Ontario!
  • Radha Nagarajah | 02 Feb 2016, 09:19 AM Agree 0
    It is unfortunate that these 'bad apples' get their licences back. Only the other day, I noticed a Broker in Ontario whose licence was revoked by RECO a few years ago was back on the band wagon as a listing agent retaining his Broker title! I was stunned! In my opinion, when integrity and ethics are compromised, there should never be a 2nd chance. A leopard new changes it's spots!
  • Peter B. Ontario | 05 Feb 2016, 08:03 AM Agree 0
    Much of the prior concerns are true. Unethical Brokers or agents get their licence back easily. In other industries, individuals and companies go under on Monday and reform on Tuesday (slight exaggeration of timelines but you get the point). It;s a problem in most professions. Our associations make a big noise about ethics and integrity but there are just enough loopholes to allow the educated unethical ones to rear their heads time and time again at the cost of the entire industry's reputation. Our associations do what? Spend thousands of our dues on "think tank and surveys" to see how our latest round of adds are being perceived? If you want to improve the industry/profession, just:
    -ensure that brokers and agents that loose their licence due to fraud are disallowed from working in the industry for a minimum term (say, 5 years, but always ensure a fair process for them to defend themselves against charges, as in any fair society)
    -start to really look at advertising claims and performance claims and force remove all of those that are misleading to any reasonably intelligent reader.
    In other words:
    -If you "promise to buy the seller's house if not sold in XXX days", there has to be a disclaimer that the house will be bought for market minus XXX %.
    -if you slap a "sold for 100% in X days" rider, you MUST indicate that the sale was co-operative.
    -all sold signs MUST indicated a co-operative sales nature, where co-operative or "another MLS transaction". This will strengthen the view of the MLS system in general.
    -Testimonials that claim the "miracle agent sold the home even though the previous agent could not get an offer in XXX days" must indicate that the marketing characteristics of the property may have changed during listing periods, or something akin to that sentiment.

    So on and so forth. There's just too much bull**** going on and it seems to be getting worse, spurred on by "million dollar agent" seminars and programs that ride the line between truth and lies. You can smell them everywhere.

    Oh, speaking of rules and ethics, and this is for Toronto Board execs, your members must also comply with RECO rules on identification of roles in all advertising. Look into it, you can figure out the problem.
  • Nick Slezinski ReMax First | 09 Feb 2016, 10:20 AM Agree 0
    Something so wrong here after the huge $1 million, plus, loss of commissions by agents in 1987 and nothing was done to correct the loophole misappropriation of funds ! An agencies trust account should be sacred ! Why are we, as agents, paying the high fees which I am certain go toward compensation of management people at CREA, AREA, and CREB ? As a licensed agent myself, since 1975, this smells to high heaven ! How does TRUST MONEY from any licensed agencies account, meant for agent's commission simply go awry ? In addition to this, legal fees paid by CREB each year appear to be a waste of dollars and effort ! Changing contracts format every year by adding pages and pages is not the answer and never has been !! Let's use the legal funds for issues that matter to hardworking agents rather than fritter them away ! How could the same financial loss to agents come about , this time with Royal Lepage Foothills in the year 2015 ?? THIRTY SEVEN YEARS LATER !! My personal thoughts and opinion : An honorable local lawyer (I know there are many) should investigate/audit this latest trust account with RLF and assist all the agents pro-bono to ensure they receive 100 % of their unpaid commissions ! During this time, all the agencies I mention above, collectively, should set aside sufficient funds to compensate licensed agents during the "investigation period!" - Immediately , no waiting period ! Agents should not ever suffer commission losses ! 100% of any trust account losses should be be By the people we employ and trust to be in charge, including every "agency" who shares in our annual licensing dues and fees ! They should be 100 % responsible for all losses and compensate agents immediately ! We are over-managed, however, layer after layer of management is simply sucking the oxygen out of the system rather than provide assurance and insurance to all agents hard earned commissions ! UNBELIEVABLE to have history repeat itself but the implied appearance here is absolutely : "depends on whose ox is being gored !" Thank you !
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