Beefed up penalties among expected real estate reforms

Carolyn Rogers signals her probe of shadow-flipping and other real estate misconduct will call for major changes

Regulations are expected to curb shadow-flipping of homes

B.C. Real Estate Superintendent Carolyn Rogers has signalled she will recommend wide-ranging reforms of the real estate industry, including much tougher penalties to punish and deter realtors who are found to have engaged in predatory practices.

Her comments are contained in an interim report of an advisory group she was appointed to chair in the wake of revelations of misconduct by realtors in the overheated Vancouver-area real estate market.

The main example has been the practice of undisclosed shadow-flipping, where the home is resold to other, different buyers than the original one prior to closing – unbeknownst to the seller – allowing intermediaries to extract profits and realtors to collect more commissions, while ultimately driving up prices.

RELATED: Pace of house price gains in Fraser Valley now nearly rivals Vancouver

Rogers noted realtors are expected to solely defend their client’s best interests at all times and suggested the current ability of realtors to represent both sides of a transaction creates risk that advantage may be taken of some consumers.

“Abusing otherwise legal practices such as assigning contracts or acting in any way that fails to clearly disclose the interests of a licensee or puts those interests ahead of a client’s interests, cannot be tolerated,” Rogers said.

Her report indicates the Real Estate Council of B.C. should get more enforcement tools to regulate realtors, and that all contract assignments be reported directly to the council.

She said penalties for unethical behaviour must be increased significantly – potentially with additional commissions and profits confiscated – and those penalties must apply to more types of infractions.

Premier Christy Clark had previously promised the province will deliver reforms to take the profit out of shady practices.

Rogers also flags “blurred lines” between the Real Estate Council of B.C. and industry realtor associations, which have taken on quasi-regulatory functions.

“We are concerned that the trade associations have assumed the role of triaging consumer complaints and are doing so with no requirement for public transparency or reporting to the council,” she said. “We believe this must be cleared up.”

Also of concern, the report says, is that real estate licensees have reported misconduct to the media but not to official channels, apparently out of concern for repercussions.

B.C. Finance Minister Mike de Jong said he believes Rogers’ probe is on the right track and he’s particularly concerned about her findings of blurred lines between the regulating council and real estate industry associations.

“Is the regulatory structure itself equipped to properly protect the public interest?” de Jong asked.  “It needs to be clear to consumers and clients who has primary responsibility for that.”

He also acknowledged “the influence this red hot market is having on the industry.”

Real Estate Council of B.C. chair Marylou Leslie said the council fully supports the advisory group’s work.

Rogers’ advisory group is aiming to deliver a final report and recommendations in early June.

Just Posted

Agassiz fire chief retiring after 28-year career

Wayne Dyer passing on role to deputy chief and long-time colleage Gerald Basten

Four chances to see Chilliwack Symphony Orchestra’s Messiah in the Valley

Chilliwack Symphony Orchestra brings Handels’ Messiah to Chilliwack, Abbotsford, Langley, Aldergrove

Lots of laughs at Bozzini’s holiday concert in Chilliwack

Double bill performance features rock n’ roll duo Kitty & the Rooster, cabaret musician Shirley Gnome

Photos: The Contenders rock the Blue Moose Coffee Shop Friday

Valdy and Gary Fjellgaard came together as (The) Contenders to play music… Continue reading

Lawyer for Chinese exec detained by Canada says it’s ‘inconceivable’ she would flee

Meng Wanzhou was detained at the request of the U.S. during a layover at the Vancouver airport

Federal government plans examination of coerced sterilization

The Liberals have been pressed for a rapid response to recent reports on the sterilizations

Huitema, Cornelius named 2018 Canadian Youth International Players of the Year

Huitema was captain of Canada’s fourth-place team at this year’s FIFA U-17 Women’s World Cup

Canada not slowing emissions from oil and gas: environmental groups

New report released at the United Nations climate talks in Poland

Liberal Party moves Trudeau fundraiser from military base

The fundraiser is scheduled for Dec. 19, with tickets costing up to $400

Pipeline protesters arrested at B.C. university

Three protesters were arrested after TRU property allegedly vandalized with red paint

Family calls for change after death of B.C. man at St. Paul’s Hospital

Hospital beds for patients with both medical and mental-health issues are ‘very limited’: coroner

Goodale to ‘examine’ transfer of Rafferty to medium-security prison

Michael Rafferty was sentenced to life in prison in 2012 in the kidnapping, sexual assault and first-degree murder of Tori Stafford

‘Abhorrent’ condition of autistic B.C. boy shows flaws in care system: report

‘Charlie’ was underweight and ‘covered in feces’ when he was removed from his mom’s care

Most Read