Photo: CTV News Montreal
Quebec’s real estate brokerage regulatory body, the Organisme d’autoreglementation du courtage immobilier du Quebec (OACIQ), has opened an investigation after a Montreal newspaper revealed two brokers allegedly made bogus offers on houses in a bid to obtain artificially high bids for the properties.
TV star broker and partner fired by Re/Max D’Ici
As a result of the article in La Presse, Re/Max D’Ici in Repentigny, Que. has fired the brokers Christine Girouard and Jonathan Dauphinais-Fortin.
Source: Instagram, christine_avendu
Girouard is one of the stars of the hit TV show Numeros 1 on the Casa channel, a French-language version of HGTV. The show, which follows the exploits of several brokers, was the third most popular on the network in 2021 among the 25 to 54-year-old demographic.
Alleged scheme to boost property prices
According to documents uncovered by La Presse, Dauphinais-Fortin, who is part of Girouard’s real estate team, made at least two bogus offers on properties last year as part of an alleged strategy to increase bids on properties that Girouard had under contract.
One of the homes was listed by Girouard in Repentigny, north of Montreal, for $399,700 in February 2022.
A couple who had been outbid on several other properties made an initial offer of $410,000 on the property but were told within hours by their broker that another offer had been made.
Not willing to lose out on the house and fearing that higher interest rates were coming, they decided to boost their offer to purchase by $40,000 to $450,000. They took possession of the property in June 2022.
What they didn’t know was that Dauphinais-Fortin’s former wife had allegedly made the second offer. It was for only $370,000, almost $30,000 less than the listing price and $40,000 less than the initial bid by the buyers.
OACIQ confirms inquiry and Re/Max Quebec condemns actions
An OACIQ spokesperson confirmed to Real Estate Magazine that an inquiry has been opened in the wake of the revelations made by the La Presse but said that it generally does not comment on specific cases to ensure that the disciplinary process is not involuntarily influenced.
Re/Max Quebec declined an interview request by Real Estate Magazine but sent a statement that salutes Re/Max D’Ici’s decision to end its contract with the two brokers.
“Our entire network is shocked by these actions,” the statement said.
“Such behaviour goes against our values and OACIQ rules and places a shadow on the rigorous work of the members of our industry.” It noted that the work of brokers must be based on a relationship of trust with clients.
The statement went on to say that Re/Max Quebec will cooperate fully with the OACIQ investigation.
Pattern of alleged fraud
La Presse also found that Girouard and Dauphinais-Fortin, who are now married, allegedly used the same strategy in May 2022 for another property in Repentigny.
During that month, a couple signed a contract with Girouard to sell their house for a listing price of $580,700, although they hoped the property would sell for $635,000.
Two weeks later, with no activity on the property, Girouard cancelled the contract and made another so that the house would appear as a new listing on Centris.ca, Quebec’s version of Realtor.ca. The listing price was dropped to $549,700, and soon after, the seller received two promises to purchase for $605,000 and $607,000.
However, unbeknownst to the seller, a third offer to purchase was allegedly made on the property for only $500,000 by Dauphinais-Fortin, with a long-time friend of the broker named as the potential buyer.
In this case, the strategy did not result in higher bids, and the property did not sell. The homeowner is now attempting to sell the house on his own using the FSBO brokerage Du Proprio.
Legal consequences: Fraud charges and potential prison sentence
Legal experts contacted by the newspaper said the alleged bogus offers constitute fraud and carry a potential maximum prison sentence of 14 years, according to the Criminal Code of Canada.
Buyers affected by the alleged bogus offers can make claims for damages due to fraud to OACIQ. The maximum compensation is $100,000.
La Presse also discovered that Girouard may have contravened several articles of Quebec’s Real Estate Brokerage Act by her statements on camera during episodes of the Numeros 1 TV show. In one episode, she described her approach as: “Okay, I bluff; it’s my job. That’s what I’m hired for.”
On May 26, the OACIQ recommended to its disciplinary committee that there is enough evidence to conclude the two brokers’ licenses should be temporarily suspended. The disciplinary committee will discuss the matter on May 31.
Danny Kucharsky is a contributing writer for REM.
As a realtor, I’m really glad they got caught. This probably happens every day around Canada and it’s only luck if they get caught. Generally, we are treading water if we try to call out another realtor about this even if we suspect it.
Why is that? Why can’t you accuse another realtor? What you are saying is that basically everyone is corrupt and no one dares to speak up…
Permanent expulsion is the appropriate penalty if these allegations are proven. These two ethically challenged individuals should not be practicing, period.
Marc
100%
They should be charged with fraud and get the maximum penalty! As a fellow realtor I’m disgusted by this. The 1% or less type of people that would do this give all the realtors a bad name!
How many thousands of honorable realtors will be hurt by these FOOLS?
DISGUSTING! May their new address be the “Big House”!
Realtors across the country will pay for their misdeeds longer than they will spend any time in jail; and the financial loss will be in the millions.
I had the same experience. I made an offer on a condo .Immediately the agent that had the inscriptions told me that it was not enough and there was an other offer. I pad 40,000$ more than my neighbor who move in at the same time as I did. I made a complain the oaciq to no evail. I wanted to see the other offer as a proof that there was an other offer. They refused. The law should be change. A month after the inscription agent made a publicity saying that I paid the highest price for a condo in my complexe. The seller was the only client of Remax, I was never represented. The agents are working together ,it’s Kim Gray Bond and Felix Laforest. They made 5 % of the sale because they pretended that they were represented me and the seller in the same time. Major conflict of interest. But you know what..they are allowedto do that. The laws about Remax real-estates should be reviewed. I will never again deal with remax. I will be better serve by my self. I will go with du proprio.
In Ontario they’d be fined 15 grand or so, sent to an ethics course for that and allowed to continue uninterrupted. But if on their application to become an agent they failed to dislcose they were arrested for shoplifting a candy bar, they’d be barred forever from becoming an agent.
Weird but more true than we would want to believe.
Correct me if I’m wrong but fraud in Quebec is fraud in Ontario too.the criminal code is the criminal code.
Lock them up
These are honest French speaking people.
How many more do things like this and will never be caught. And they say realtors work equally for both the buyer and seller, lol, I will never again work with a realtor! The system is rigged when everyone earns a commision based on a % of the price and not a fixed amount.
I had meet Ms Girouard in a RE convention in 2022. I was shocked how conceited she was, no class whatsoever !
I assume those allegations of fraud with the consequences they will have to assume will surely humble her back to reality.
Interesting
Glad they were caught