Broker suspended and ordered to pay fines for failing to disclose facts relevant to the transaction
After admitting his guilt before the OACIQ Discipline Committee, a real estate broker was ordered suspension periods for a total of 30 days and fines totalling $2,000.
Recap of the facts
In this case, the clients of the offending broker are the sellers. During a transaction, instead of disclosing the full content of an inspection report of which he was aware, the broker simply told the buyer’s broker “that there was mould in the attic.” However, this report mentioned the presence of mould stains in the basement and recommended replacing the affected drywall to observe the interior condition of the wall and insulation.
The broker also failed to modify, in particular, his selling client’s declarations to report this situation. By doing so, he was negligent in not disclosing all the information he held and both his selling client and the prospective buyer have suffered consequences.
A real estate broker must never conceal this kind of information. He must ensure to make it available to the parties engaged in the transaction. The broker must not try to interpret the facts or decontextualize them. He must be transparent.
The Discipline Committee also pointed out that its role is not to determine the civil liability of the various stakeholders engaged in the transaction, but to determine whether the broker has committed an ethical fault and how important that fault is. Therefore, although the prospective buyer may not have taken his own inspector’s remarks seriously and his broker did not seek to obtain a copy of the first inspection report, the seller’s broker nonetheless violated his ethical obligations.
Click here to read the full disciplinary decision:
A professional authorized by the OACIQ must at all times act with utmost transparency and integrity. He has a duty to advise and inform all the parties involved in a transaction objectively. That obligation extends to all the material facts relevant to the transaction without any concealment.
Want to learn more on broker duties and obligations? Please read the following articles published by the OACIQ:
- My broker’s ethical duties and obligations
- Existing inspection report: What is the proper procedure for the real estate broker?
- Factors that may affect the decision of a buyer
- An inspection protects you
- Five things your broker must do or say
Want to check a broker’s licence history to see if he has ever been the subject of a disciplinary decision for example? Consult the Register of licence holders on the Organization’s website.
About the Discipline Committee
The Discipline Committee hears ethical complaints brought against real estate brokers or agencies and imposes penalties on those found guilty at public disciplinary hearings. Created under the Real Estate Brokerage Act, the Discipline Committee is completely autonomous and independent from the Board of Directors and staff of the OACIQ.