In 2017, the Ontario government proposed a ban on the practice of double-ending in real estate. In real estate, the term ‘double-ending’ refers to when a real estate agent represents both a buyer and a seller in a transaction.
The Current Practice of Double-Ending
Under the current rules, realtors are allowed to double-end a deal if it is agreed to in writing. This does have the potential to lead to a conflict in interest. That’s because a seller would like to receive the highest price for their home while a buyer would want the best possible price. If the real estate agent isn’t sure of how to handle the situation, they may end up misrepresenting one, or both clients.
This type of transaction happen roughly 3% of the time because most real estate agents, including those on The Dennis Team, try to avoid them.
A real estate agent’s job is to provide the best advice to their clients when selling and buying a home. When double-ending a deal, the real estate agent has to switch from being a real estate coach to a real estate referee to avoid this conflict of interest. Therefore, you may not be getting the best possible advice.
The Proposed Ban
Under the proposed ban, salespeople would no longer be allowed to represent both the buyer and seller, or more than one potential buyer in a trade. There would be some limited exceptions if a private agreement between family members is arranged or for real estate agents in a very small market area.
The proposed model is similar to how many provinces across Canada approach multiple representations in real estate deals, including British Columbia, Alberta, Nova Scotia, and Manitoba.
OREA In Support of the New Legislation
They have been advocating for stricter penalties for violations of REBBA (Real Estate and Business Brokers Act, 2002). They would like to see the fines doubled to $50,000 for individual realtors and up to $100,000 for brokerages.
Because Every Move Matters
The realtors on The Dennis Team are completely in support of the proposed ban. We want to ensure that all real estate deals are completed with a client’s best interest in mind. Our realtors are always available to further discuss real estate double-ending or answer any other real estate question you may have. We pride ourselves on providing the best information because every move matters. Contact us today!