Barry Kainth is exposing the wrong doings in Canada real estate one case at a time. The quest for change in the system doesn’t end until it is achieved. Barry Kainth says that all real estate organizations, real estate boards, groups, real estate councils and government should work hard to look after Public Interest and keep that under focus.
Here are our previous coverage published in Public Interest
A new unethical business practice has come under the radar. The Law Society of Upper Canada is charging a new levy charge $73.45 from the buyers and the sellers. The LSUC is charging it via the lawyers of the consumers.
Why did the LSUC start charging the levy charge?
What happens to the money that is generated via levy charge?
Who proposed the idea of charging extra money from consumers?
No one knows answers to these questions. Clients are extremely unhappy with the thought that they have to pay the charge.
Barry considers this practice unethical because it is the extra money grabbed from the Real Estate client unnecessarily. The attempt of grabbing more money from consumers and their lawyers is not just by The Law of Upper Canada, but also by real estate groups, real estate associations, and real estate boards.
The Ontario Government never approved this charge and it implemented by Law Society approval only.
Real Estate Transaction Levy Charge <- Here you’ll find the structure under which levy charges are charged.
Let’s look at the total stats of home sales in Canada from April 2016 to April 2017
**The figures mentioned in the table are approximate figures. They may differ from the actual numbers.
Now, if we consider levy charge per transaction, i.e. let’s say $73.45 per transaction, then the total amount made in the month of April 2017, just by levy charges is
$73.45 x 45500 = $3,341,975
If we take average number of homes sold in a year, the average comes out to be 44500 then the monthly average for a year comes to
$73.45 x 44500 = $3,269,525
If we multiply this by 12 then the yearly income generated just from levy charges is
12 x $3,269,525 = $39,222,300
That’s the amount generated by charging $73.45 levy charges per transaction.
Whenever in any business this much money is generated using unethical ways, then that money is used, or say, wasted in unnecessary activities. Such money is used to lobbying government, advertising, promote themselves that only benefits themselves as groups, associations, and boards. There’s no hope of the use of this money for the general public.
There is a connection or influence from real estate industry and The Law Society. There is a strong possibility that some members of the committee work in these capabilities on real estate boards and law society committees.
Under the sections ‘Honesty and integrity’ and ‘Highest Professional Standard’, you’ll get the hint to what extent OREA, Boards and RECO are connected: What to Expect from a Real Estate Professional
Read our detailed overage on OREA influence in RECO Elections: Politics and Real Estate Profession Should never Mix: OREA Shouldn’t Interfere in RECO.
You’ll find enough evidence of the influence there.
The levy charge by The Law Society of Upper Canada may sound a low amount for an individual, but if you look at the bigger picture, the amount is huge. The people who collect this amount have the right to leverage it for their benefits.
Barry Kainth has always worked in favor of the public. He has brought many such issues in front so that people can know about them. He wishes for boards, associations, real estate societies and the Ontario Government to look after Public Interest. Working hard in public interest should be the priority. A house purchase is the biggest investment that is made and when organizations stop looking after Public Interest, the line should be drawn and these organizations should have penalties from the Ontario and Federal Government of Canada.
If you find any suspicious activities going on in any real estate organization, please reach out to your Elected Officials, Media and raise your voice. Law Society please re-consider implementation of Levy Charges in Ontario Real Estate.