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
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