– 3 Changes Affecting Consumers – (REBBA Reform)
3 THINGS YOU NEED TO KNOW
About the new Rebba reform
WHAT IS REBBA
REBBA is the acronym for Real Estate Business Brokers Act & it is the framework for which every registered REALTOR® needs to work within/abide by when trading in real estate in Ontario.
WHY DOES IT NEED TO CHANGE?
The current REBBA Act has not changed since 2002 when it was created — that’s over 15 years ago!
Back then, deals were done primarily with fax machines & dial tones. The average price of a home in Burlington was in the $200,000 price range & things were vastly different.
NO DOUBLE ENDING
The concept of Mandatory Designated Representation came into effect last year & this provides the government the ability to enforce a “no double ending” rule.
Double ending is when one Real Estate Brokerage represents both the buyer & seller in a transaction. The argument made was that it is unfair to other buyers when one Brokerage (typically one REALTOR®) knows all of the details & may coach their parties to choose their offer over another.
The thing is, this has happened. I am not going to deny it. But what the media hasn’t shown are all of the ethical REALTORS® who are trying to make the changes necessary to protect consumers.
The solution should be removing unethical REALTORS® from the industry, not removing consumer choice.
If you want to use your REALTOR® who you trust & have built a relationship with that should also be your choice.
REDEFINE “TRADE”
Address & redefine the term “trade” in REBBA. This one word has loopholes in the current Act that has allowed some unregistered individuals to operate outside of the law.
These people are representing themselves as professionals in the industry & target new Canadian communities.
The definition of “trade” should be clarified & elaborated on to eliminate any grey areas.
MULTIPLE OFFER TRANSPARENCY
Anyone who has lost out in a bidding war will be excited to know that REALTORS® have requested transparency when in multiple offer situations.
Currently REALTORS® are entitled to know the number of offers, which REALTOR® is bringing the offer & if there are any adjustments to the commission which improves the terms for a Seller.
What we can’t find out is the one thing everyone wants to know… How much were the other offers for? How much did the winning offer pay to buy the home?
We are requesting that consumers be able to consent to transparency in the offer process. If everyone agrees, a transparent process could allow buyers to make their true best offer with confidence.
Whether consumers decide to consent or not, they should at least have the choice & that’s what we are advocating for.
FINAL THOUGHTS
Overall REALTORS® across Ontario are trying to adjust education, strengthen enforcement from RECO, address professional standards & ethics.
All of this to protect consumers & regain our professionalism because better REALTORS® means better service for you.
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Keeping It Genuine,
Your REALTORS®,
The Edwards Team of Todd Real Estate Ltd., Brokerage
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