Earlier this year, the Real Estate Council of B.C. has commissioned an independent inquiry on the practice, with an initial report expected by April and the full recommendations by the end of May.
In light of this development, Richmond-based real estate firm Metro Edge Realty has begun offering a no-shadow-flipping guarantee to consumers.
“Instead of saying ‘let's let it go’ and ‘it's not a big deal,’ well, it's a big deal to someone who lost. So instead of waiting, we're being a proactive company,” CEO Kevin Lynch told CBC News.
The arrangement is aimed at preventing unscrupulous individuals from making bank via the practice, which would otherwise allow an agent to enjoy the benefits of multiple commissions from a single property.
The company said that it hopes its new arrangement would allow sellers to get the highest potential prices for their properties.
Shadow flipping, wherein an agent offers a sales contract to multiple prospects at progressively greater prices, has been recently cited by federal officials and industry players alike as a main factor driving real estate price increases in Canada’s most active markets.