Opposition housing critic renews call for outside probe of realtors
REAL ESTATE CRISIS: NDP housing critic says it’s ‘ridiculous’ for industry to set tone of investigation
Opposition housing critic David Eby says it’s “ridiculous” that the self-regulating government agency that oversees B.C.’s realtors and brokerage firms has been tasked with striking an advisory committee to investigate allegations of systemic fraud and insider trading in Metro Vancouver’s hot real estate market.
Eby, MLA for Vancouver-Point Grey, said Tuesday that while he’s glad the government has “actually started to recognize” the existence of major problems in the housing market, a fully independent inquiry is needed, not a probe spearheaded by the Real Estate Council of B.C. with oversight from the superintendent of real estate.
“I’m glad the government has started to actually recognize there is a problem — that’s light years from where they were 72 hours ago,” Eby said Tuesday in reference to the council’s refusal to investigate matters he brought forward last month, including allegations that some realtors were taking advantage of assignment clauses for personal benefit.
“But the idea that you would ask the superintendent of real estate, who hasn’t issued a consumer protection press release since 2008, and a real estate council, whose lack of oversight has led to this crisis, to investigate themselves and their own failures, it’s ridiculous.”
On Tuesday, the real estate council announced the advisory group will be chaired by Carolyn Rogers, the CEO of B.C.’s Financial Institutions Commission, who also serves as the superintendent of real estate. Among her first tasks will be to recruit other members and to establish the scope of the investigation, the council said in a statement.
Eby said there are other avenues the government could use, including the Ombudsperson Act and the Public Inquiry Act. Both of those bodies could subpoena witnesses, subpoena evidence, take evidence under oath and be afforded the opportunity to “follow this where it goes,” he said.
“The problem with the model that has been proposed by the government is that it seems like the industry itself will get to decide where this goes and how far the investigation goes,” said Eby.
Finance Minister Mike de Jong said Tuesday he disagrees that an independent inquiry is needed.
“At this stage, what I want to do is get a more complete report from the council,” de Jong told reporters in Victoria. “One’s hope and expectation is that as a self-regulated profession, they (the real estate council) are up to the task of ensuring their members are conducting themselves appropriately and according to some pretty fundamental tenets of duty to clients. I’ll get that report quickly, I’ll get a response and then we will make some decisions.”
The council is expected to announce the members of its advisory group within the next two weeks and to report back with initial recommendations by April 8.