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QC brokers want FSBOs brought in-line

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Real Estate Professional | 02 Oct 2015, 08:15 AM Agree 1
Quebec government is looking at the state of the Act governing real estate brokerages
  • Milan | 02 Oct 2015, 12:17 PM Agree 0
    FSBO - for sale by owner has nothing to do with RBBA (Ontario)
    This is a free will of the owner to sell when they want and to whom they want, whichever way they want !
    Legality and such conduct is regulated by common Law and not the RBBA ! No?
    Why should the selling process by owners be regulated by the RBBA ?
    Broker of record
  • Derek | 02 Oct 2015, 12:32 PM Agree 1
    Milan,

    As I read it, this is specifically regarding the Companies which help, support, guide FSBO sellers. They are not looking to regulate the For Sale By Owner themselves, just the companies that provide services to those Sellers. As the lines between service and advice are blurred, Licensed Real Estate Brokerages are regulated and the FSBO companies are not.
  • Ian Hocking, Broker | 02 Oct 2015, 04:09 PM Agree 1
    As an active Broker I have no issue at all with a "Seller, Selling their own home", you definitely don't need a license for that. In that case the Seller is aware that although they may be exempt from the same rules and regulations as a Broker is they are not exempt from contract law and are responsible for whatever they sign. However, there is absolutely a blurry line in some instances between a company that is 'aiding' or 'providing advice' to a Seller and charging a fee for that service. Merely putting a picture of a home on a website , no issue really, however, some companies may provide services at the home, or telephone advice, which may include measuring the home, providing staging advice, photography and this could be construed as , "Furthering a Trade". Not sure exactly what the rules are in Quebec, but in Ontario the REBBA is quite specific about the 'Furtherance of a trade', I.E. You need a license. This is up to RECO to Police in Ontario but when you really dig into it there are certainly some questions regarding the thin grey line.
  • Mario | 03 Oct 2015, 09:22 AM Agree 0
    There are more regulations in the travel trade that handles a fraction of the funds through their trust account.
    Individuals selling travel without a travel agency and travel agent license have been brought to court and heavily fined by the consumer protection agency.
    Meanwhile, a real estate transaction that is 20 times more expensive, with potential costly repercussions, is less regulated.
    Go figure
  • RealtorDefined | 03 Oct 2015, 03:26 PM Agree 0
    Great article, very informative and direct to the point.

    It's right on the dot about the fact that the public has no protection or guarantee on the services of a FSBO, while real estate brokers have a code of conduct and are covered by a real estate indemnity fund and the professional liability insurance fund.

    “Essentially the for-sale-by-owner companies in Quebec are confusing the public by saying they’re coaches or advisors, yet aren’t offering the same protections or operating under the same legal framework as real estate brokers,” he says.

    Right on, sellers and buyers need to know this and most of all understood by the public in general!
  • judy | 04 Oct 2015, 02:53 PM Agree 0
    We can thank the Feds for this confusion! Giving FSBO's access to the MLS System has led the buying public to believe they are getting the protection and training of a professional realtor listing the home!
    In addition it doubles the work and liability of a selling agent for a fraction of the commission!
    Truly a big step backward for our industry and the consumer.
  • VJ Krishnan | 05 Oct 2015, 11:32 AM Agree 0
    As far as the FSBO goes, there is no standard in conducting a business. Buying a home or any real estate property not buying in the FLEA market. Every purchase needs a warranty and full satisfaction to the consumers during and after the purchase. It is not a few Dollar deal and nowadays it's in the multi-folds of hundreds of thousands Dollars. When a buyer buys a FSBO home, most of the time they ends up in an undisclosed surprise! It is not that FSBOs are intentionally doing this, but with the lack of knowledge and guidance. The FSBO companies never give those advices like the Realtors and charge certain amount before advertising. The Realtors on the other hand collects all the material defects and disclose it to their clients. There are so many cases in the purchase and sale of real properties ended up in litigation when these things are not taken care off!
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