British Columbia Real Estate Market Receives Bigger Penalties For Shadow-Flipping Recommendation
British Columbia real estate market must implement bigger fines for deals where the realtors are representing both the seller and the buyer in a transaction. Through a letter, Carolyn Rogers of the Independent Advisory Group informed the BC's head of Real Estate Council of the report conducted by the team. Rogers said that they are also thinking about self-regulation in a multi-billion dollar industry context.
The group, which reviewed the BC real estate, was informed in February in response to a number of shadow-flipping practices revelations. In shadow flipping, realtors make use of contract assignments in order to increase commissions via reselling a property several times. Oftentimes, these transactions do not benefit the original seller.
The revelations were accompanied by double-ended deals clarifications and recent reports that suggested a few companies' predatory sales strategies, according to a feature from the CBC.
The British Columbia had acted on the matter to crack down shadow-flipping. Rogers, on the other hand, said that the group she leads would continue to monitor the effectivity of the regulation changes. However, she said that her group will take on dual agency's effect, where a particular agent fulfills the role of both a seller and a buyer, in the province.
Rogers further said that the public came to believe that the real estate council's administered penalties are low for the ill-behaving realtors. She continued by saying that the group has faith that the penalties for uncalled for behavior had to be changed and increased.
The BC real estate report also questioned the power of most trade organizations, which oftentimes represent the sector in question, according to a feature from the CKNW.
In an interview held on the show "On The Coast", Stephen Quinn asked Rogers if she thought that the BC Real Estate Council should immediately implement the recommendations in the report, she quickly replied that legislative changes are needed.
"The Council is, in some cases, limited by the legislation it's there to enforce. It doesn't have free rein to make all the rules," Rogers replied.
A final BC real estate report is set to be finalized before June.