The Listing agent placed the listing on MLS at $799,000 and had some Buyers interested in the property.
Two other sets of Buyers surfaced with their own agents.
So, Offer #1 November 12, 2019, at 8:30 p.m., offer to purchase for $785,000
Offer #2 November 12, 2019, at 9:30 p.m., offer to purchase for $770,000
On November 12, 2019, at approximately 10:00 p.m., the Listing agent submitted an offer on behalf of her Buyers for $785,000. That offer was accepted by the Sellers on November 13, 2019.
Very nice! Wait for the other two Offers to be submitted, then, match the highest, and don’t tell anyone anything!
She failed to indicate how many bids there were. If that took place, someone else may up their price and her Buyers could lose out. Naturally, all of this came to light afterwards.
On 9 September 2022, RECO imposed a $10,000.00 fine and a requirement to take two Courses. The Listing agent was given a whole year to pay and also a whole year to complete two 90 minutes Courses.
Code of Ethics.
It is agreed that Molina failed to comply with the following sections of the Code of Ethics:
Broker and salesperson
2. (1) A broker or salesperson shall not do or omit to do anything that causes the brokerage that employs the broker or salesperson to contravene this Regulation.
3. A registrant shall treat every person the registrant deals with in thecourse of a trade in real estate fairly, honestly and with integrity.
Nature of relationships
17. If a registrant represents or provides services to more than one buyer or seller in respect of the same trade in real estate, the registrant shall, in writing, at the earliest practicable opportunity and before any offer is made, inform all buyers and sellers involved in that trade of the nature of the registrant’s relationship to each buyer and seller.
26. (1) If a brokerage that has a seller as a client receives a competing written offer, the brokerage shall disclose the number of competing written offers to every person who is making one of the competing offers but shall not disclose the substance of the competing offers.
Error, misrepresentation. fraud
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.
This was blatant. The Sellers might have got more money. They have a sale price which was under the Listing Price.
The other Buyers should have known that they were competing with two others and that the Listing agent who had the “inside track” represented one of them.
Although it didn’t arise in this case, if the Listing agent agreed to lower their overall commission if they were acting for the Buyers, than, this information was to be passed along to everyone else.
This reflects poorly on the industry as a whole. The RECO decision affording a whole year seems foolhardy. Also, the agent is encouraged to do this again. The commission was likely $39,250.00 less of course, the $10,000 fine which isn’t payable for a year, netting out $29,250.00. So, this agent will do this again, and just play “stupid”.
Brian Madigan LL.B., Broker