Ontario Realtors now have Former Ontario Progressive Conservative leader Tim Hudak as CEO of the Ontario Real Estate Association.
The new CEO of OREA is on a tour of the 39 Real Estate Boards in Ontario. Hudak has come to the conclusion that the Real Estate Council of Ontario must be condoning Rip Off Realtors.
Here’s a quote from a recent meeting with the Sault Ste. Marie Real Estate Board
“I think RECO’s doing a very poor job (province wide). You read about some serious violations of the real estate agents code and people get a slap on the wrist. It’s pretty serious stuff if you rip off somebody. If you rip somebody off, you want their licenses pulled or suspended,” Hudak told his audience.
If Hudak were to tour the Alberta Real Estate Boards, he would most likely come to the same conclusion.
The path to becoming a Realtor is fairly simple. Take and pass the Realtor’s course. The local Real Estate Offices will fight with each other to recruit you to their office.
When I got my Real Estate Licence in 2002, the local offices held a mini trade show for our class of 36. Each local office wanted us to come join them. They say Join because Realtor’s are Independent Contractors that work for themselves under the banner of Remax, Royal LePage, Century 21 or a hundred other brokerages. Realtors are required to Join all the different Real Estate Associations, The Calgary Real Estate Board and some local Real Estate Office.
As Realtor’s we are motivated to help people buy and sell homes to receive commissions. These commissions then pay the Real Estate Associations, Real Estate Boards and the local offices their fees. All these entities get paid before the Realtor gets paid.
What’s the real problem?
Now if you understand without Realtors and a lot of Realtors, these Real Estate Associations, Real Estate Boards and the local offices would be out of business quicker than ice cream melts on a hot sunny day.
Ontario has Rip Off Realtors just like Alberta has Rip Off Realtors not because of the reason’s Tim Hudak thinks. It’s because Real Estate Associations, Real Estate Boards, and the local offices want Quantity of Realtors before Quality of Realtors.
Do the Math.
As a Real Estate Association, Real Estate Board and the local office, would it be better to have 1 Realtor doing 35 transactions a year or 35 Realtors doing 1 transaction each a year?
One Realtor means One Monthly Fee paid to Real Estate Associations, Real Estate Boards, and the local offices. 35 Realtors doing one transaction each means 35 Monthly Fees to Real Estate Associations, Real Estate Boards, and the local offices.
The Brokerage Model is a Recruitment Model that Encourages More Realtors doing fewer deals while providing more monthly fees to the Real Estate Associations, Real Estate Boards and the local offices.
This Brokerage Model as a Recruitment Model to obtain the highest number of Realtors paying monthly fees leads to a lot of Part Time Realtors doing less than a few deals a year. The car industry wouldn’t let a mechanic touch your car if they only fixed a few cars a year. Yet we are to trust the biggest single purchase for most people to Realtors that the industry licenses and they do only a few deals a year.
Realtors Code of Ethics and Standards of Business Practice
While the Code of Ethics establishes obligations that may be higher than those mandated by law, in any instance where the Code of Ethics and the law conflict, the obligations of the law must take precedence.
A REALTOR® ‘s ethical obligations are based on moral integrity, competent service to clients and customers, and dedication to the interest and welfare of the public. The Code has been amended many times to reflect changes in the real estate marketplace, the needs of property owners and the perceptions and values of society. For more than forty years, through a variety of updates, the CREA Code of Ethics is unchanged in demanding high standards of professional conduct to protect the interests of clients and customers and safeguard the rights of consumers of real estate services.
I think if the industry associations and brokerage offices had to follow Realtors Code of Ethics that put Customers First, we might see a change that places a higher value on the Quality of Realtors over the Quantity of Realtors and weeds out Tim Hudak’s Rip Off Realtors.