Beefed up penalties among expected real estate reforms

Carolyn Rogers signals her probe of shadow-flipping and other real estate misconduct will call for major changes

Regulations are expected to curb shadow-flipping of homes

Regulations are expected to curb shadow-flipping of homes

B.C. Real Estate Superintendent Carolyn Rogers has signalled she will recommend wide-ranging reforms of the real estate industry, including much tougher penalties to punish and deter realtors who are found to have engaged in predatory practices.

Her comments are contained in an interim report of an advisory group she was appointed to chair in the wake of revelations of misconduct by realtors in the overheated Vancouver-area real estate market.

The main example has been the practice of undisclosed shadow-flipping, where the home is resold to other, different buyers than the original one prior to closing – unbeknownst to the seller – allowing intermediaries to extract profits and realtors to collect more commissions, while ultimately driving up prices.

RELATED: Pace of house price gains in Fraser Valley now nearly rivals Vancouver

Rogers noted realtors are expected to solely defend their client’s best interests at all times and suggested the current ability of realtors to represent both sides of a transaction creates risk that advantage may be taken of some consumers.

“Abusing otherwise legal practices such as assigning contracts or acting in any way that fails to clearly disclose the interests of a licensee or puts those interests ahead of a client’s interests, cannot be tolerated,” Rogers said.

Her report indicates the Real Estate Council of B.C. should get more enforcement tools to regulate realtors, and that all contract assignments be reported directly to the council.

She said penalties for unethical behaviour must be increased significantly – potentially with additional commissions and profits confiscated – and those penalties must apply to more types of infractions.

Premier Christy Clark had previously promised the province will deliver reforms to take the profit out of shady practices.

Rogers also flags “blurred lines” between the Real Estate Council of B.C. and industry realtor associations, which have taken on quasi-regulatory functions.

“We are concerned that the trade associations have assumed the role of triaging consumer complaints and are doing so with no requirement for public transparency or reporting to the council,” she said. “We believe this must be cleared up.”

Also of concern, the report says, is that real estate licensees have reported misconduct to the media but not to official channels, apparently out of concern for repercussions.

B.C. Finance Minister Mike de Jong said he believes Rogers’ probe is on the right track and he’s particularly concerned about her findings of blurred lines between the regulating council and real estate industry associations.

“Is the regulatory structure itself equipped to properly protect the public interest?” de Jong asked.  “It needs to be clear to consumers and clients who has primary responsibility for that.”

He also acknowledged “the influence this red hot market is having on the industry.”

Real Estate Council of B.C. chair Marylou Leslie said the council fully supports the advisory group’s work.

Rogers’ advisory group is aiming to deliver a final report and recommendations in early June.

Just Posted

Emergency services were on the scene of an apparent stabbing Friday afternoon (June 11) in the 2400 block of Countess Street in Abbotsford. (Photo: Kaytlin Harrison)
Two suspects arrested after apparent stabbing in Abbotsford

Incident occurs Friday afternoon in 2400 block of Countess Street

submitted
City of Mission hosting a virtual and in-person open house to explore Silverdale plan

It’s the first neighbourhood planning area of the larger Silverdale Comprehensive Planning Area

Hutch Hotels Ltd., which owned the former Alder Inn (which was demolished in November 2020), is among the defendants in a lawsuit related to an alleged impaired-driving crash in January 2017. The civil suit also names S & L Kitchen and Bar in Abbotsford. (Black Press file photo)
Two Fraser Valley bars named in lawsuit related to alleged impaired-driving crash

S & L Abbotsford and Alder Inn being sued by passenger in 2017 rollover collision

With a lot of summer traffic expected, RCMP are setting up traffic blitzes throughout the Eastern Fraser Valley to curb dangerous driving behaviour in cone zones. (Submitted by Road Safety at Work)
See orange cones? Better put down your phone!

12 roadside workers died, 207 were injured in B.C. during last 10 years

Stock photo from Pixabay
Abbotsford Police warn about scam phone calls that display their name

Caller claims victim’s identity has been compromised and they need to send money

t
How to tell if a call from ‘CRA’ is legitimate or a scam

Expert says it’s important to verify you really are dealing with the CRA before you give out any info

Unofficial holidays: Here’s what people are celebrating for the week of June 13 to 19

Flag Day, Garbage Man Day, International Panic Day all coming up this week

British Columbia-Yukon Community News Association’s 2021 Ma Murray Awards were handed out during a virtual ceremony on Friday, June 10. (Screen grab)
Black Press Media winners take gold at B.C. and Yukon journalism awards

Publications received nods in dozens of categories

Prime Minister Justin Trudeau greets campers while visiting McDougall, Ont. on Thursday, July 19, 2018. THE CANADIAN PRESS/Frank Gunn
71% of B.C. men say they’d prefer to go camping with Trudeau: survey

Most British Columbians with plans to go camping outdoors say they’d prefer to go with Trudeau or Shania Twain

Members of the Department of Fisheries and Oceans’ Marine Mammal Response Program rescued an adult humpback what that was entangled in commercial fishing gear in the waters off of Entrance Island on Thursday, June 10. (Photo courtesy Marine Mammal Response Program)
Rescuers free humpback ‘anchored’ down by prawn traps off Vancouver Island

Department of Fisheries and Oceans responders spend hours untangling whale

Chilliwack cocaine trafficker Clayton Eheler seen with a tiger somewhere in Asia in 2014. Eheler was sentenced to nine years jail in 2018, but was released on bail in October 2020 pending his appeal of conviction.(Facebook)
Director of civil forfeiture seeks $140,000 from Fraser Valley drug dealer’s father-in-law

Clayton Eheler’s father-in-law Ray Morrissey caught with money in Fort St. John by B.C.’s gang unit

A Comox Valley shellfish operator pleaded guilty and was fined $10,000 in provincial court in Courtenay earlier this year. Record file photo
B.C. clam harvester fined $10,000 for Fisheries Act violations

Charges against three others were stayed in Courtenay Provincial Court

Frank Phillips receives a visit from his wife Rena at Nanaimo Seniors Village on their 61st wedding anniversary, March 31, 2020. Social visits have been allowed since COVID-19 vaccination has been offered in all care homes. (Nanaimo News Bulletin)
B.C. prepares mandatory vaccination for senior care homes

180 more cases of COVID-19 in B.C. Friday, one more death

Lorraine Gibson, 90, received a COVID-19 immunization at the South Surrey Park and Ride vaccination clinic. (File photo: Aaron Hinks)
Surrey has had 25% of B.C.’s total COVID-19 cases

Surrey recorded 4,012 cases in May

Most Read