OREA is recommending stronger penalties against real estate agents. They just made this recommendation. All this is great and it makes some sense, but you do remember that the Auditor General made this recommendation, RECO agreed and it was part of the TRESA legislation.
This is what OREA is saying:
“OREA refuses to stand idly by while a few individuals take advantage of consumers and tarnish the reputation of thousands of hard-working real estate professionals, Rick Kedzior 2024 OREA President”.
Consumer confidence in the real estate market is essential to the economy’s success, the ability of Ontarians to achieve the dream of homeownership, and the success of OREA Members in their businesses. This is impossible if consumers question the industry because of a few bad apples. When one unethical agent is caught breaking the law, it erodes consumer confidence in the home buying and selling process. OREA refuses to stand idly by while a few individuals take advantage of consumers and tarnish the reputation of thousands of hard-working real estate professionals.
ALLOWING ADMINISTRATIVE MONETARY PENALTIES FOR MINOR INFRACTIONS RECOMMENDATION
#7: Introduce new rules for for an AMP regime to address minor black-and-white infractions, including a requirement for fiscal reporting related to the collection and use of fines.
The existing disciplinary process at RECO for minor infractions is impeded by red tape that shifts the regulator’s focus away from egregious breaches of TRESA and the Code of Ethics. Instead of wasting disciplinary resources on a lengthy investigation into a minor infraction, RECO should be allowed to use AMPs for black-and-white, indefensible actions, like advertising violations. AMPs are a good intermediatory measure between a simple warning, and more serious enforcement tools like registration revocation, and will lead to a more efficient disciplinary process that ultimately benefits consumers.
TRESA already contains language in section 43.2 authorizing the Registrar to implement an AMP regime. However, that section still needs to be proclaimed into law by the Lieutenant Governor in Council (LGIC). OREA calls on the government to proclaim all necessary legislative and regulatory measures on AMPs. While we support AMPs, guardrails must be implemented, including a requirement for fiscal reporting related to the collection and use of fines.
British Columbia and Quebec both use AMPs to address minor or moderate non-compliance. In British Columbia, there are six categories of AMPs, ranging in fines from $1,000 (business infractions with low risk of harm to consumers) to $10,000 (contraventions related to licensing requirements).
AMPs are already in use within other professions and industries in Ontario, including energy marketing and retail services who violate rules of conduct, minor non-compliance on payday loans (i.e. failing to provide required loan dates), and for both minor and serious environmental infractions.
The use of AMPs is black and white for Ontario REALTORS®: nearly 80 percent of OREA Members support the use of AMPs, while just two in ten say they are opposed.
In Ontario, AMPs for minor infractions could have a limit of up to $2,000 for bad actors who commit minor, indefensible violations of real estate regulations, allowing RECO’s disciplinary resources to focus on the profession’s worst offenders.”
COMMENT
This isn’t a brand new idea from OREA. It was proposed, and acted upon, and it’s just about to be proclaimed in force. It is not an idea that comes from OREA despite the fact that they said twice: OREA refuses to stand idly by. Also, OREA members are not licensed, they are registered. OREA should know this. And, when it comes right down to the recommendation, that is #7, someone should proof read it, before it goes to press.
So, all in all, nothing new here, it’s already been done, just awaiting proclamation.
Brian Madigan LL., Broker