By Toronto Real Estate Board
In a meeting with the Ministry of Government and Consumer Services, the Toronto Real Estate Board (TREB) demonstrated its commitment to consumer protection and efficiency for real estate transactions. TREB met with Ministry officials to provide input on their ongoing consultations regarding potential changes to the Real Estate and Business Brokers Act.
“TREB is happy to work with the Province to ensure that the rules governing the real estate industry are modernized and adjusted to ensure consumer protection and an efficient marketplace for real estate professionals and the public,” said Tim Syrianos, President of the Toronto Real Estate Board. “We also believe that consumers deserve to be treated with fairness, honesty, and integrity when purchasing a home, often the biggest financial decision in most people’s lives.”
The provincial Ministry of Government and Consumer Services is currently reviewing the Real Estate and Business Brokers Act, 2002. Phase One of this review is focusing on issues associated with multiple representation situations, consumer understanding of real estate transaction agreements, and penalties for unethical behaviour.
“TREB supports, in principle, the proposal to move towards a mandatory designated representation model. This approach is consistent with numerous other Canadian jurisdictions, and we believe that it will allow for the efficient operation of the marketplace, while ensuring consumer protection,” said Syrianos.
Under Mandatory Designated Representation (MDR), where a circumstance arises that a buyer and seller are represented by the same real estate brokerage, the brokerage would be required to designate different representatives from that brokerage to represent each client. A salesperson/broker within a brokerage would be prohibited from representing both the buyer and the seller, or more than one buyer, in the same trade, but there should be provisions to allow for consumer choice in how and by whom they are represented when working with their brokerage and licensed representative.
“The vast majority of TREB Members are ethical and comply with the Real Estate and Business Brokers Act. There should be a review for consistency in enforcement and disclosure of fines and penalties. Any actions in this area should be evidence-based. With this in mind, we look forward to continuing to work with the Province on all aspects of this and other important issues such as raising educational standards and requirements,” said Syrianos.