When Should the Suspension Be Served?

RECO needs some help on this.

When it comes to “breaking and entering”, that is, giving out the lockbox number to a client, there should be a minimum $15,000.00 fine plus a suspension of three months. If you are suspended for three months, then those three months will be March, April and May, Your cell phone needs to be turned over to the Brokerage during that time. No calls, no contact, no advertising, no interaction on Facebook. You are not entitled to any referral fees or delayed compensation for that period.

Right now, the RECO fine for this is about $4,500.00. That’s like a referral fee! Compensation should also be ordered in favour of the Seller.

When the overall fines were increased with the maximum individual fine being raised from $25,000.00 to $50,000.00, I thought all the lockbox business would come to an end.

Fines were frequently in the range of about $7,500.00. But, now as in 2022, fines appear to have dropped. Does RECO now take this matter less seriously? Is everybody doing it, so now it’s OK?

Here’s my Proposal:

Give out the lockbox code to someone who is a non-registrant

Fine:                     $15,000.00

Payable:               Immediately, 10 days effectively to pay.

Unpaid Fine:       immediate suspension due to unpaid fine to continue until fine is paid in full

Suspension:         3 months

When:                  next March, April and May

Compensation:    $5,000.00 to the homeowner

Brokerage:          obligation to oversee cell phone during any suspension

                             Obligation to pay $5,000.00 fine

                             No opportunity for reimbursement, so that means SUPERVISE

That should smarten some people up!

Brian Madigan LL.B., Broker


Comments 3

  1. I don’t agree with a Brokerage being fined- it’s obvious that the Brokerage does not know.
    As for the $15,000 – I think it should be $5,000 and more if it re-occurs.
    Why will the Seller benefit from this. It will cause sellers greed and opportunity to find fault.

    1. Post

      You raise some good points. It really shouldn’t be necessary for for the Brokerages to pay and the Sellers to receive compensation, but the present system does not really operate as a deterrent.

  2. I absolutely agree the brokerage should be fined as well. The BOR’s job is to oversee the agents, to ensure everyone is operating from inside the rule book. Without that duty and accountability, it is the Wild West out there, rather like it is right now.

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