OREA urges province to revamp realtor rules, allow open bidding process

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The Ontario Corporeal Estate Association is making more than three dozen recommendations to the awkward government on how it should update the rules governing realtors, including allowing for a uncountable open bidding process for buyers and sellers.

In a report Thursday, the dispose says the Real Estate and Business Brokers Act (REBBA), which was put in put ones finger on in 2002, is in need of a revamp.

«The average price of a home in 2002 was $275,000 in Toronto and scad deals were closed by a fax machine,» said Tim Hudak, chief chairman of the board of OREA, which has more than 70,000 members.

«This legislation is out of assignation.»

One of the suggestions includes permitting realtors to disclose details about a struggling offer to another bidder, if all sides involved agree.

The group demands allowing this would result in a more «transparent» multi-offer convert that would give buyers more information to make their vanquish offer, and sellers the knowledge that they have received the to the fullest extent offer for a property.

Currently, most buyers and sellers participate in a dodge bidding process where buyers go in with an offer, in the hopes that they are not outbid. If they are, they are then invited to raise their bid, but without knowing the details about the alternate step.

«Whether consumers decide to consent to a transparent multiple offer development or not, they should have the choice under REBBA,» according to the 33-page narrative.

The report follows a year-long review of the legislation by a task force feigned up of the heads of the country’s top real estate brokerages including Sotheby’s Worldwide Realty Canada, Royal LePage Canada and Re/Max Integra.

The report also introduces tougher rules be introduced against those who operate as real state «consultants,» in an effort to avoid being required to register and train as realtors.

Hudak says his categorize has seen a growth in the number of people who act or pass off as realtors, but do not operate underneath the same legal and ethical rules. He says newcomers from Chinese and Korean communities comprise been the biggest targets by these consultants.

«There is a strong consumer sanctuary case to be made to clear up this grey area and stop the outlawed activity,» he said. «If you’re going to trade in real estate, you need to be represented.»

Among the 37 recommendations, the report suggests:

  • Reverting the total covey of hours required to complete a realtor licence to 255 hours, from the newly decreased 120 hours (set to put in an appearance into effect in 2019).
  • Requiring builders and developers to register under the act to carry pre-construction properties.
  • Doubling the maximum fines for those who break the REBBA maxims of ethics to $50,000 for salespeople and brokers and $100,000 for brokerages.
  • Allowing realtors to consolidate their businesses, which is permitted in B.C., Quebec, Alberta, Saskatchewan, Manitoba and Nova Scotia.

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