October 5th - 2005

RECO Decision: Watch what you say

The following RECO Complaints, Compliance and Discipline Appeals decision has been condensed and can be viewed in its entirety In the Regulatory Activity, Discipline and Appeals section of the RECO web site at www.reco.on.ca.

The following RECO Complaints, Compliance and Discipline Appeals decision has been condensed and can be viewed in its entirety In the Regulatory Activity, Discipline and Appeals section of the RECO web site at www.reco.on.ca. A chart summarizing the RECO CCD Decisions is posted under Legal Pamphlets on the My OREA web site, available from www.orea.com.

The case
This case involves violations of several rules regarding ethical behaviour, advertising, competence and professional conduct under the RECO Code of Ethics. A complaint was made to RECO by a consumer (Seller A) about the registrant.

The violations occurred when Seller A, who had a property listed on the MLS system, received a letter from the registrant. In the "solicitation letter,” entitled You Deserve the Best Chance at Selling Your Property for the Highest Possible Price!, the registrant makes assertions with no proof to support his statistics. For example, in a heading entitled Consider my Track Record, the registrant states: "I will sell over 200 homes this year where industry average is approximately 6 homes sold per year. Further, 61.4% of the homes I sell are homes just like yours – homes that were for sale and did not sell." He also promotes his own program by making the promise that "outspending area REALTORS and Real Estate Companies in City A to promote your property through my maximum exposure program will be just one powerful reason why you will get the highest possible price for your home."

In addition to many other unsubstantiated claims, the registrant promotes his firm as City A’s leading REALTOR, based on the total number of homes sold by Broker A, and as Canada’s #1 Real Estate Advertiser, based on an award received from the Canadian Daily Newspaper Association. The award the registrant received, however, was the Canadian Daily Newspaper Association Classified Award for Excellence for the best black and white re-sale home advertisement in Canada. He also refers to his “team” by a name that is not registered with RECO.

The RECO panel determined that the registrant acted in an unprofessional manner and breached Rules 1, 20, 21, 42 and 46 by:

  • Soliciting a property that was already actively listed on the MLS system
  • Representing himself in many claims as #1 advertiser when the award he received was for a specific ad
  • Failing to keep documentation to support unreported claims
  • Failing to practice with the Member’s name as registered with Council
  • Failing to supervise staff to ensure tasks are performed accurately and appropriately

Rule 1 – Ethical Behaviour-A Member shall:

(5) deal fairly, honestly and with integrity with the public, other members and third

parties.

Rule 20- Name -A Member shall only practice using the Members name as registered with the Council.

Rule 21- Advertising- A Member shall ensure that all advertising and promotion by or on behalf of the Member, including for Properties and services, is not false, misleading or deceptive.

Rule 42- Competence -A Member shall render conscientious service with the
knowledge, skill, judgment and competence, in conformity with this Code of Ethics and the standards which are reasonably expected of Member’s. When the Member is unable to render such a service, either alone or with the aid of another Member, the Member shall decline to act.

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.

The penalties and costs
The registrant was ordered to pay a penalty of $3500.00 within 30 days of the decision of the Discipline Committee.

There was no order of costs in this proceeding.

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Ontario Real Estate Association

Jean-Adrien Delicano

Manager, Media Relations

JeanAdrienD@orea.com

416-445-9910 ext. 246

Ontario Real Estate Association
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