Fraud and fraudulent tactics: An obstacle to broker credibility

The vast majority of brokers and agency executive officers comply with the Real Estate Brokerage Act and its regulations, including those on professional conduct. However, a single high-profile case of fraud is enough to affect the credibility of all licence holders. 

Here are some of the most common cases, of which you must remain particularly vigilant, where compensation has been paid by the Real Estate Indemnity Fund (FICI) following a decision by the Indemnity Committee:

Misappropriation of funds:

• Appropriation: 
  • Rental income;
  • Security deposits;
  • Funds to be used as a down payment.

Fraud and fraudulent tactics:

• Price inflating;
• Undisclosed information (cannabis, mortgage, personal interest);
• Drop in property price assessment;
• Misrepresentation regarding compensation (promise to reduce or increase);
• Undervaluation of the sale or purchase price.

The FICI, a key role

When a client has been financially wronged by a broker who has voluntarily misled him in a brokerage transaction, whether by misrepresentation or by voluntary omission, the FICI steps in to compensate him. 

The OACIQ takes all the complaints received very seriously. This is why the maximum indemnity payable by the FICI has been increased from $35,000 to $100,000 per claim for all the cases where the acts were committed on or after May 10, 2018. 

An image to preserve, a public to protect

We salute all the brokers and agency executive officers who are doing outstanding work in the field. However: 

• Brokers: If you have any doubt about a practice, we encourage you to inform your agency executive officer or report it to Info OACIQ.
• Agency executive officers: We invite you to take all requests seriously and to follow up on them, whether the complaint is from consumers, your brokers or other agencies.

Public protection, which is the basis of your activities and the very mission of the regulator (OACIQ), requires you to do everything possible to prevent these behaviours.