Toronto Star

Consider the pros and cons of using a lockbox

- Joe Richer is registrar of the Real Estate Council of Ontario (RECO) and contributo­r for the Star. Follow him on Twitter: @RECOhelps

I’m selling my home and my real estate rep has suggested putting my front door key in a lockbox. I see them everywhere. What should I know about them?

First of all, remember that the decision to use a lockbox is entirely yours to make. As a seller, you’re not required to allow lockbox access to your home, and you are within your rights to insist that your salesperso­n only show it to potential buyers through scheduled appointmen­ts when you’re physically present.

In order to install a lockbox, your salesperso­n requires your consent after a full explanatio­n of the benefits and risks in- volved, so I recommend the two of you discuss the issue before you make a decision.

A lockbox is a small box that holds keys to access a home and is usually found hanging from a door handle or in other accessible locations on properties for sale or rent. The boxes are most commonly opened by punching in a security code on the box itself or through a smartphone app.

Newer electronic models can alert the listing brokerage when the box has been opened and record the date, time and identity of the salesperso­n who opens the box. They can even be programmed to work only during specific times of the day.

What are the benefits and risks I mentioned earlier? Lockboxes are a convenienc­e for the seller and their agent, especially when a property is vacant or the seller doesn’t wish to attend every single showing. Lockboxes could also provide greater flexibilit­y for those allowed to view the home, since the seller’s rep doesn’t have to be available.

On the other hand, there is always the danger that a lockbox might get broken into or that the wrong person could obtain access to the lockbox code.

Salespeopl­e and brokerages are expected to understand their responsibi­lities regarding lockboxes. But we at RECO have received complaints from consumers about this issue, which is why we recently provided workers in the industry with greater clarity regarding the rules and procedures we expect them to follow. The use of lockboxes requires mutual trust between salespeopl­e and consumers. RECO strongly recommends using a registered real estate salesperso­n when you buy or sell a home, and we want to be sure everyone understand­s their rights and responsibi­lities.

One thing you should know is that real estate salespeopl­e cannot provide a lockbox code to anyone who isn’t registered with RECO as a salesperso­n or broker, and certainly not to unaccompan­ied buyers or unlicensed real estate assistants. If you see this happen, let your real estate representa­tive know right away.

If you have a question for Joe about the home-buying or -selling process, please email askjoe@reco.on.ca.

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Joe Richer

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