Log in as a…


Login

NEW!

We’ve partnered with CREA to help improve your member experience and give your information the best security possible.

You will be returned to OREA once you have successfully logged in.

Login as a Member

We can help

articleimage

June 21, 2022

Strong Majority of Ontarians Want Oversight of Real Estate Auction Companies to Strengthen Consumer Protection

Recent Abacus Data polling shows 70 per cent of Ontarians support regulation of real estate auction companies

TORONTO – When it comes to making the biggest financial purchase of your life, Ontario’s families deserve to have full confidence in the home buying and selling process, and that includes trusting that the professional by your side has the highest professional standards, training, and modern tools. However, current stipulations in the Trust in Real Estate Services Act (TRESA) exempt auctioneers from registration or licensing requirements – a loophole with frightening implications for unsuspecting consumers trying to buy a home.

The Ontario Real Estate Association (OREA) is calling on the re-elected Government of Ontario to eliminate the outdated auctioneer loophole and require owners of real estate auction companies to formally register with the Real Estate Council of Ontario (RECO). A recent survey conducted by Abacus Data on behalf of OREA shows that 70% of Ontarians support the regulation of auctioneers who would sell homes in an open bidding process.

“Real estate auction companies are springing up across Ontario, but auctioneers are not subject to the same regulatory framework or oversight traditional brokerages are, and that’s a huge consumer protection issue,” said OREA CEO Tim Hudak. “Consumers should have a right to choose how they want to buy and sell real estate, but they should also have a right to expect that they will be protected against dishonest actors.”

REALTORS® must take mandatory licensing education, pass a background check, protect deposits, carry insurance, and follow rules that are designed to protect consumers – or face fines and potentially lose their license. However, since auctioneers are exempt from these rules in Ontario, real estate auction companies operate with almost no oversight, using the farm auction loophole while marketing themselves like a traditional real estate brokerage.

“The government’s role in the housing market has always been to protect home buyers and sellers against bad actors. If an auction goes badly, consumers have very few remedies available to them,” said Hudak. “Ontario needs to close the outdated auction loophole in TRESA to stop any sidestepping of oversight and give prospective buyers and sellers the confidence that whoever they are working with has their best interests at heart.”

In other jurisdictions, such as Australia, where the practice of auctioneering real estate is more common, phantom bidding became such a problem that government had to step in and introduce tough penalties and fines to better protect consumers.

Outside Manitoba, Ontario is the only province in Canada that does not currently have a regulatory framework to protect consumers using auctions to sell property. The provincial government must take action to ensure all Ontarians who buy or sell real estate, regardless of method, have the same level of consumer protection in place to protect their largest investment – their home.


For more information contact:

Ontario Real Estate Association

Jean-Adrien Delicano

Specialist, Media Relations

JeanAdrienD@orea.com

416-445-9910 ext. 246


More News & Press Releases

articleimage

OREA Celebrates 100 Years of Realtors® Building Stronger Communities

Today, the Ontario Real Estate Association (OREA) is celebrating its 100th anniversary, commemorating the last century of organized real estate.

Read More
articleimage

OREA Statement Regarding Auditor General Report on the Real Estate Council of Ontario

TRESA replaced the decades-old Real Estate and Business Act, 2002 (REBBA) and made Ontario the North American leader when it comes to professional standards, training, and modern tools for real estate professionals. These changes are acting on many of the things recommended by the Auditor General in her report released today.

Read More
articleimage

Level Up Your Real Estate Career at the REALiTY+ Conference

Are you ready to take your real estate career to the next level? Hosted by the Ontario Real Estate Association (OREA), the REALiTY+ Conference is the only real estate conference in Canada offering special access to the biggest industry leaders to help you network and stay on top of emerging real estate trends. It’s all happening at the Beanfield Centre in Toronto on November 22-23, 2022.

Read More
Back to News & Press Releases
To MP Survey
OREA Contract