Buyer’s Agent Should Attend Home Inspection

Agent Penalized for Failing to Attend Home Inspection

The Buyer’s representative sent her own relative to attend a home inspection on her behalf.

She arranged for the inspection. The Listing agent was not going to be in attendance, but later dropped by to see how things were going.

The inspector was there as was a man who was “related” to the Buyer’s agent, who gave him the lockbox combination. Apparently, she trusted him implicitly.

Well, that’s not good enough. He needed to be registered under the Act.

Decision of the Discipline Committee

It is agreed that the Buyer’s agent acted unprofessionally when she:

1. Permitted unsupervised access to the Property by providing the access code to the lock-box, thereby making the key to the Property available without the consent or approval from the Sellers or their representative, which is a violation of Sections 3, 5, 38 and 39 of the Code of Ethics.

2. Put the Seller’s home potentially at risk by allowing a non-registrant to access the home without supervision by a registrant, which is a violation of Sections 3, 5, 38 and 39 of the Code of Ethics.

3. Put her relative at the risk of liability, injury/or loss, which is a violation of Sections 3, 5, 38 and 39 of the Code of Ethics.

It is agreed that the Buyer’s agent breached the following sections of the REBBA 2002 Code of Ethics:

Fairness, Honesty, Etc.

3. A registrant shall treat every person the registrant deals with in the course of a trade in real estate fairly, honestly and with integrity.

Conscientious and Competent Service, Etc.

5. A registrant shall provide conscientious service to the registrant’s clients and customers and shall demonstrate reasonable knowledge, skill, judgment and competence in providing those services.

Error, Misrepresentation, Fraud, Etc.

38. A registrant shall use the registrant’s best efforts to prevent error, misrepresentation, fraud or any unethical practice in respect of a trade in real estate.

Unprofessional Conduct, Etc.

39. A registrant shall not, in the course of trading in real estate, engage in any act or omission that, having regard to all of the circumstances, would reasonably be regarded as disgraceful, dishonourable, unprofessional or unbecoming a registrant.

There was a $3,000.00 fine imposed on 6 January 2016.

COMMENT

This seems quite straightforward. Don’t cut corners, and you can’t delegate. The relative had no insurance and others were placed at risk. This is not a decision which can be made by the Buyer’s agent.

So, authorize someone else in your office to attend on your behalf.  They need to be registered. That’s a simple solution. But, it does mean that you might have to pay them.

If not, then you owe RECO $3,000.00. So, you could have likely paid someone $1,000.00 per hour and you would have been further ahead.

Brian Madigan LL.B., Broker

www.OntarioRealEstateSource.com

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