Re: Was RECO penalty enough in `Oklahoma' Deal?, REM March 2002.
This very interesting article deals with the writer's concern over the Real Estate Council of Ontario (RECD) penalty imposed on an individual, registered under The Real Estate and Business Brokers Act (Ontario). The panel found the agent guilty of violating various sections of its code of ethics and fined the culprit $7,500 plus $1,500 for costs. He was also suspended for three months and placed on probation for two years.
Writer Bob Aaron says, “Even though the vast majority of Ontario real estate agents are honest, other agents tempted to pull a 'Mugford' scheme have now received a signal from RECO that if they are caught, they won't lose their license.” The article concluded with “RECD must state loudly and clearly that the real estate professionals who participate in fraudulent transactions will permanently lose their licenses.”
It may well be that the penalty issued by the RECD panel was inadequate for the conduct of the agent. However, the panel had no power to cancel a nonexistent “license”. The REGISTRAR of the Real Estate and Business Brokers Act (Ontario) is empowered to grant REGISTRATION as a broker, or as a salesperson of a broker, to “trade in real estate”. Hence, the reference to the broker appearing before the RECO panel as a “registrant” is quite appropriate.
If the Registrar intends to refuse the applied for registration or proposes to cancel an existing registration he has to submit a proposal to do so to the applicant (or existing registrant) setting forth the reasons for the proposal. The applicant (or existing registrant) has 15 days from the date of the service of notice to file a request for a hearing before the Licence Appeal Tribunal (formerly the Commercial Registration Appeal Tribunal). After hearing the evidence, the appeal tribunal may authorize the Registrar to proceed with his proposal or order some other disposition, i.e. issue instruction to grant registration, and/or provide specific conditions of the registration. This is all pursuant to statutory requirements.
In any event, it is quite clear that RECO has no power to issue a “licence” of any kind or registration under the Real Estate and Business Brokers Act. Consequently it also has no power to cancel any licence or registration. The issue may also be raised as to whether RECD in fact has the authority or power to suspend an agent's “registration”, as it appears to have done in this case.
The presumption that real estate agents in Ontario are “licensed” is not uncommon, notwithstanding that each agent's certificate clearly states that he is “registered” under the Act. Hence RECO's reference to the agent involved as the “registrant” is quite appropriate. It is perhaps interesting to note that only three of the provinces in Canada, in their real estate statutes, require registration – Ontario, Saskatchewan and Manitoba. The Alberta Act provides for “Authorization” certificates. The Quebec Act provides for the “Certification” of agents trading in real estate. In the remaining provinces, the real estate acts all provide for the issuance “Licences”.
Jos. Strung, Realtor, Toronto
