June 10th - 2007

RECO decision: Deal fairly other members

The following RECO Complaints, Compliance and Discipline Appeals decision has been condensed and can be viewed in its entirety on the RECO Web site at http://www.reco.on.ca/.

The following RECO Complaints, Compliance and Discipline Appeals decision has been condensed and can be viewed in its entirety on the RECO Web site at http://www.reco.on.ca/.
 
The Case
This case involves violations of several rules regarding ethical behaviour, negotiations, and unprofessional conduct under the former RECO Code of Ethics. Buyer A and Buyer B entered into a Buyer Agency Agreement with a Buyer Representative. When Buyer A and Buyer B noticed a development of town homes with Seller Broker B ‘for sale’ signs bearing Sales Representative B’s name, they called Sales Representative B for information and spoke with him directly. Sales Representative B asked Buyer A for his facsimile number so that he could fax the requested information to him.
 
When their Buyer Representative made some inquiries about the property and discovered that it was not listed on the MLS®, he contacted Sales Representative B who indicated that he would be willing to work with another broker. The Buyer Representative asked Sales Representative B about the amount of commission he would be willing to offer a cooperating broker, and also requested that the information be delivered to him via facsimile. The Buyer Representative provided all of his contact information to Sales Representative B who told the Buyer Representative that he would call him back.
 
Sales Representative B, however, did not call the Buyer Representative back as promised. The Buyer Representative contacted Sales Representative B again with additional questions and reiterated his facsimile request, to which Sales Representative B replied that the Buyer Representative would have to pick up the documents from his office. But when the Buyer Representative asked Sales Representative B when and where he could pick up the requested documentation, Sales Representative B said that he would follow-up with him. Once again, Sales Representative B did not call the Buyer Representative back.
 
When Buyer A and Buyer B questioned their Buyer Representative about the status of the property, he advised his clients that he was in the midst of attempting to obtain the information from Sales Representative B. Shortly after, the buyers advised their Buyer Representative that they had received a facsimile directly from Sales Representative B with all of the requested information. Sales Representative B also told Buyer A that their closing date would not be a problem and that if they did not use another agent, the price would be reduced and he would also be able to include a few upgrades.
 
The Buyer Representative called Sales Representative B to advise him that he should not be communicating directly with his clients and Sales Representative B denied knowing Buyer A and Buyer B were his clients. Sales Representative B said his office faxed the information to the individuals who requested the information.
 
The Buyer Representative told his broker, Buyer Broker A, about what had transpired between their clients and Sales Representative B. Buyer Broker A immediately contacted Seller Broker B (Sales Representative B’s employer) to advise of the situation. Buyer Broker A faxed their Buyer Agency Agreement for Seller Broker B to review. In the meantime, Sales Representative B met with Buyer A and provided him with a blank builder’s offer to purchase and other documentation. Buyer Broker A received confirmation from Seller Broker B that they received a copy of the Buyer Agency Agreement and, further, that Sales Representative B was aware that the Buyer Agency Agreement was valid. Ultimately, Buyer A and Buyer B chose not to make an offer on the property.
 
The RECO panel determined that Sales Representative B acted in an unprofessional manner and breached the following Rules of the old RECO Code:
 
Rule 1 Ethical Behaviour
A Member shall: (5) deal fairly, honestly and with integrity with the public, other Members and third parties.
 
Rule 13 Negotiations
A Member shall not negotiate with or make Offers to the Client of another Member respecting matters in which the other member is representing the Client without the knowledge, consent and involvement of the other Member.
 
Rule 46 Unprofessional Conduct
A Member shall not engage in an act or omission relevant to the practice of the profession that, having regard to all the circumstances, would reasonably be regarded by Members or the public as disgraceful, dishonourable or unprofessional.
 
Penalties
Sales Representative B was ordered to pay an administrative penalty of $2,000.00. The panel also ordered him to enrol in the OREA Real Estate College’s Avoiding Risk and Liability course and provide proof of successful completion within 90 days.

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