There are two new Brokerages which are coming forward to replace iPRO, a Brokerage which appears to have stolen $11 million plus from its trust account.
If you as the Buyer’s agent have uncertainty with these “new” Brokerages, or in fact, any other Brokerage, then, consider the following clause:
“The Seller directs the Buyer to deliver the deposit to the Listing Brokerage, retained by the Seller, to be held in trust in accordance with the Trust in Real Estate Services Act, 2002 (Ontario). The Seller covenants that the deposit will be placed in the Brokerage trust account and guarantees the safekeeping of such funds. In the event of any loss, misappropriation, or failure of the Brokerage to account for or return the deposit, the Seller shall be immediately personally liable to the Buyer for the full amount of the deposit, and the Buyer shall not be required to await recovery through the Real Estate Council of Ontario or any other process.”
This way, the risk of loss is shifted completely to the Seller in the deal. After all, they were the ones who “selected, appointed, chose etc.” the Listing Brokerage. That was not a Buyer’s choice! The Seller should take full responsibility. They are the ones benefitting from the low fees.
Brian Madigan LL.B., Broker