Can a real estate agent skip out on their offered rebate?
In an active market, salespersons and brokers looking to stand out may offer rebates and other incentives to entice prospective buyers and sellers to work with them. Ontario real estate professionals are allowed to use this type of sales promotion, which can provide savings to the client.
If you want to work with a salesperson because the rebate they are offering is appealing, there are a few things you should consider before committing.
Under the regulations that brokers and salespeople have to follow, they must treat everyone they deal with fairly and honestly, and be responsible in their financial commitments. In other words, if they make a commitment or agreement having to do with their business, they must live up to it.
First, the real estate rep must clarify the details of the rebate. Will it come to you through the brokerage after closing, or can you expect the payment to be presented to you by your rep, after they’ve been paid by their brokerage? Having a clear understanding will help avoid a misunderstanding or conflict later on.
Second, if a real estate professional makes you a promise, expect to get the details in writing. When a rebate is agreed upon in a signed, written document, it could be included as part of your representation agreement with your salesperson or broker, or it could be a separate document altogether.
Either way, before you sign anything, read and thoroughly understand it. If you aren’t sure about an agreement you are entering into, seek independent legal advice.
If you ultimately sign the agreement, that paper trail will document the rebate and serve as a reference for verifying the terms.
Even with everything in writing, disagreements can arise.
If you can’t resolve the dispute with your representative, then the next step is their broker, who is in charge of making sure employees comply with provincial legislation and the brokerage policies. Also, remember that your representation agreement is with the brokerage and not your individual representative.
If the issue is not fixed after speaking with the broker or you are still unsatisfied with the outcome, then RECO wants to hear about it. Last month, I outlined how RECO can help you settle disputes with your real estate representative, and described our process and possible outcomes.
In some cases, once we assess the circumstances and evidence, a complaint may be appropriate for dispute resolution. This is a method that is sometimes referred to as “mediation” and it’s a great way to focus on resolving the problem through mutual agreement between the parties involved.
Depending on the circumstances, when we receive a complaint, we also may take steps to discipline or sanction the salesperson or brokerage.
One last note about rebates: the cheapest deal isn’t necessarily the best deal. A rebate is tempting, but it’s always smart to meet with several real estate professionals before hiring one.
Ultimately, you should be comfortable with your representative’s experience and services — not just their rebate offer. Joe Richer is registrar of the Real Estate Council of Ontario (RECO). He oversees and enforces all rules governing real estate professionals in Ontario. Email questions to askjoe@reco.on.ca. Find more tips at reco.on.ca, follow on Twitter @RECOhelps or on YouTube at youtube.com/RECOhelps.