ON Jun 23, 2017, The Ontario government launched a consultation on proposed changes to the rules around multiple representations in real estate trading in the province.
The Ministry of Government and Consumer Services will be reviewing the Real Estate and Business Brokers Act, 2002 (REBBA) and its regulations in two phases.
In this first phase of the review, the ministry is considering measures to address concerns raised about the practice of multiple representations and other related matters. Phase 2 will be a broader review of REBBA beginning in spring 2018.
The potential measures being considered in this first phase of the review of REBBA are intended to:
- Increase consumer confidence by minimizing the conflict of interest involved in multiple representation situations;
- Make it easier for consumers to better understand the nature of the agreements they are entering; and
- Strengthen consumer protection by modernizing the penalties for unethical behavior for contraventions of the Code of Ethics.
Read the complete proposal HERE
RECO welcomes this review and urges registrants and other industry stakeholders to contribute to the government’s consultation. In January 2017, RECO submitted its recommendations to government on multiple representations.
RECO’s recommendations are based on the following consumer protection principles:
- Conflict of interest situations should be prevented or prohibited;
- Financial incentives to act unethically should be eliminated or significantly reduced;
- Consumers should be provided with clear, consistent information regarding the nature of the relationship and services provided; and
- Appropriate tools and penalties should be available to respond to consumer harm.
This consultation is Phase 1 of the government’s review of the Real Estate and Business Brokers Act (REBBA). Phase 2 will be a broader review of REBBA beginning in the spring of 2018.
Fifth Estate did a program on Australia real estate open market compared to Ontario, Canada. Canada multiple representations and bidding wars are a secret. Australia is open in front of all.
As per Barry Kainth, multiple representations are also influenced by bidding wars. And, information about the offers, pricing, and client disclosures are limited.