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Agents face heat over referral fees

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Real Estate Professional | 08 Apr 2015, 09:12 AM Agree 0
Agents are fending off allegations that accepting bank referral fees undermines the industry and harms clients.
  • DiscountMortgageCanada | 08 Apr 2015, 12:07 PM Agree 0
    They need to change this as Realtors cannot pay non Realtors a referral fees or a bird dog fees as this is illegal. This would level the playing field!
  • | 08 Apr 2015, 12:16 PM Agree 0
    Where is the back up for the facts in this story? Another example of story writing with an agenda to discredit real estate agents. Questionable practice for a publication that sells itself to Realtors.
  • Dick Brady | 08 Apr 2015, 12:38 PM Agree 0
    In Ontario, for a Licensed Sales Representative to accept a referral fee from a Third Party without proper disclosure to their Client is contrary to RECO rules & regulations and I believe the penalty would far out-way the potential profit.
  • dave wylie | 08 Apr 2015, 01:07 PM Agree 0
    It always amazes me when realtors are being ripped in the press it is usually some top producing someone or other speaking with guaranteed anonymity...... Let's get your sources out of the closet or find another story......... You make a living off of realtors, read the Offer of Purchase and Sale, that issue is firmly addressed ..... We are not perfect but neither is the press, or any other profession, but we strive to improve each and every day........
  • Robert | 08 Apr 2015, 01:24 PM Agree 0
    It certainly seems we as Realtors are open season for bashing. I've never seen so much controversy over commissions, fees etc. and our job in general. I have spoken to Agents in other provinces and countries and it is not an issue.

    It's simple. If you want to use us this is what we charge. If not, use Kijiji. We own and pay for TREB's website. No different than Canadian Tire having their own website.

    If you want to sell on your own, go ahead. But don't expect to use our hard work and data from our website that we pay for, not the public, to benefit the sale of your home privately. And I still say shame on those Brokerages that are charging $1,000 to do so. They should start their own company website to market these listings. This business model is for Agents who cannot provide value and worth to their service. So much so that they must doubt their own ability to protect the consumer that a "mere listing" is that. The brokerage washes their hands of any fudiciary duties. Seems like a double standard in our industry that will only fix itself once these brokerages are taken to court at some point and the public hears about how vulnerable they are.

    I just don't understand how the public feels they are privileged to our information on our website that we pay for. And as far as the Competition Bureau goes, one person put it right, every industry should then be required to provide the same information. Sales, costs and profits - public and private sector companies.

    It is a form of Racial/Company profiling and Discrimination. The Lawyers who went after us in the first place obviously did it for some type of personal advancement. I suspect they are sitting on a yacht in the Bahamas smoking cigars laughing at the entire scenario.

  • Georges Gaucher | 08 Apr 2015, 02:56 PM Agree 0
    In Québec, a mandatory form from OACIQ must be signed by the client acknowledging he/she is aware the real estate agent will get a referal commission if the client uses the referred financial institution by the agent. Without that signed document, the agency cannot hand over the referral cheque. Something for other jurisdiction to consider?
  • DoYourHomeworkBeforeWritingArticles | 08 Apr 2015, 08:26 PM Agree 0
    Everyone needs to read the Buyer Rep Agreement and Listing Agreement....'Finders Fee' discloses this exact fact....referral fees may be collected by the Realtor/Brokerage.
  • john | 22 Apr 2015, 12:43 PM Agree 0
    Banks offer points for client referrals which can be redeemed for travel etc. and the disclosure has the fine print buried in the body of a consent form.
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