Uh Oh

[Doug Pretorius (ON) 9]

I'm being investigated by the Real Estate Council of Ontario. It's about time! An agent has finally filed a complaint against me! I was starting to wonder if I'd ever get the opportunity to explain how and why I'm not in violation of the brokers act

 

Any advice on exactly how to respond, from those who have been investigated before?

[Gordon Holtner 0]

Doug

 

I sincerely hope that nothing happens to you on this. I know you are in the right and will pull through this. Realtors are such trash maybe you should hire an investigator to dig up dirt on the realtor who filed the complaint. Just kidding!!! Unless you wanna play hardball. Kick some ass Doug.

[Doug Pretorius (ON) 9]

Thanks Gordon. Rest assured if you do flips and CAs in particular (possibly some other techniques) sooner or later the RE commission will come knocking on your door too, investigating some loser realtor's complaints.

 

It boils down to jealousy. Realtors are jealous because we're better them them, make more money than them, and don't need to be licensed.

[<Steve> 82]

Homes Everyday is not a real estate agency and I am not a real estate broker,

Seems clear to me as this quote is from your web site. In-addition, you represent yourself in deals and not the seller.

 

We are paid by the buyer through an assignment fee.

Again, you charge no commission to the seller.

 

Basically, the way I see it you are leasing (renting) the property from the seller with permission from the seller to sublease or assign.

 

Seems like this Real Estate Council is wasting there time.

 

That's my argument.

[Adam King (MI) 1]

Doug,

Don't lose sleep over it. In the past I have just shown them a letter describing what I do. If they keep pushing hire an attorney. Don't take this stuff personally and don't get pissed because that wont do you any good. People will continue to get upset and there's nothing you can do about it. But if it's harassment that's a different story.

 

Keep in mind that we get hit with this bullspit all the time. It's just a part of the game.

Good luck,

Adam

PS If these people aren't attorneys I wouldn't give the squat. I don't see how you could be under any obligation to do anything. Just my opinion.

[Gordon Holtner 0]

Hi Doug

 

I think Adam has the best advice for this. I think you should just have a letter drafted by you or your lawyer describing what you do like he said. I sincerely wish I'd met someone who knew how to Lp houses before We sold the house owned by my wife's parents that was partiallly owned by me and my wife. They lost over 15000 listing with a scumbag. Money that would have been better used to help them with their retirement.

That's why I believe this business is important and must go on.

 

 

Gordon Holtner

[Jason (AL) 1]

I reckon you don't hit the big-time until you've been

notified of some wanna-be investigation by some wanna-be

real estate folks.

 

 

Is this all these losers have to do....waste their

time (rather than out helping folks with real estate problems) with

some "investigation"?!

 

If I were a couple o' miles further up the road,

I'd come up there and handle them myself.

 

Don't sweat it man.

If I were you, I'd be laughing pretty hard at their petty

attempts.

What in the world are they going to do IF you are found...."guilty"?

 

 

Realtors.............................who needs 'em....

 

Later man.

Have fun with them if you can.

[transactionsengineer 0]

I assume that you are being investigated for violations of the Real Estate and Business Brokers Act - R.S.O. 1990, CHAPTER R.4 by practising without a license.

 

You can defend against this simply by using the Act to define what a broker is.

 

According to the Act, a “broker” means a person who, for another or others, for compensation, gain or reward or hope or promise thereof, either alone or through one or more officials or salespersons, trades in real estate, or a person who holds himself, herself or itself out as such; (“courtier”)

 

The key words that make you different are: "For Another or Others". You are seeking profit for yourself. The real estate broker has a trusted agency relationship with the seller or buyer of real estate. You have an adversarial relationship because you negotiate to buy and sell to benefit you. Your position is adversarial.

 

This is not a defense for just Ontario. Any English Commonwealth Country, including the United States, define a broker in a similar fashion.

 

New Jersey

 

Here is the rules for New Jersey and my response to a realtor who accused me of performing real estate functions without a license:

 

N.J. Stat. § 45:15-1 (2005)

§ 45:15-1. License required

 

 

No person shall engage either directly or indirectly in the business of a real estate broker, broker-salesperson or salesperson, temporarily or otherwise, and no person shall advertise or represent himself as being authorized to act as a real estate broker, broker-salesperson or salesperson, or to engage in any of the activities described in R.S. 45:15-3, without being licensed so to do as hereinafter provided.

 

N.J. Stat. § 45:15-3 (2005)

 

§ 45:15-3. Terms defined, license required for bringing action for compensation

 

 

A real estate broker, for the purposes of this article, is defined to be a person, firm or corporation who, for a fee, commission or other valuable consideration, or by reason of a promise or reasonable expectation thereof, lists for sale, sells, exchanges, buys or rents, or offers or attempts to negotiate a sale, exchange, purchase or rental of real estate or an interest therein, or collects or offers or attempts to collect rent for the use of real estate or solicits for prospective purchasers or assists or directs in the procuring of prospects or the negotiation or closing of any transaction which does or is contemplated to result in the sale, exchange, leasing, renting or auctioning of any real estate or negotiates, or offers or attempts or agrees to negotiate a loan secured or to be secured by mortgage or other encumbrance upon or transfer of any real estate for others, or any person who, for pecuniary gain or expectation of pecuniary gain conducts a public or private competitive sale of lands or any interest in lands. In the sale of lots pursuant to the provisions of this article, the term "real estate broker" shall also include any person, partnership, association or corporation employed by or on behalf of the owner or owners of lots or other parcels of real estate, at a stated salary, or upon a commission, or upon a salary and commission, or otherwise, to sell such real estate, or any parts thereof, in lots or other parcels, and who shall sell or exchange, or offer or attempt or agree to negotiate the sale or exchange, of any such lot or parcel of real estate.

 

A real estate salesperson, for the purposes of this article, is defined to be any person who, for compensation, valuable consideration or commission, or other thing of value, or by reason of a promise or reasonable expectation thereof, is employed by and operates under the supervision of a licensed real estate broker to sell or offer to sell, buy or offer to buy or negotiate the purchase, sale or exchange of real estate, or offers or attempts to negotiate a loan secured or to be secured by a mortgage or other encumbrance upon or transfer of real estate, or to lease or rent, or offer to lease or rent any real estate for others, or to collect rents for the use of real estate, or to solicit for prospective purchasers or lessees of real estate, or who is employed by a licensed real estate broker to sell or offer to sell lots or other parcels of real estate, at a stated salary, or upon a commission, or upon a salary and commission, or otherwise to sell real estate, or any parts thereof, in lots or other parcels.

 

A real estate broker-salesperson, for the purposes of this amendatory and supplementary act, is defined to be any person who is qualified to be licensed as a real estate broker but who, for compensation, valuable consideration or commission, or other thing of value, or by reason of a promise or reasonable expectation thereof, is employed by and operates under the supervision of a licensed real estate broker to perform the functions of a real estate salesperson as defined herein.

 

No person, firm, partnership, association or corporation shall bring or maintain any action in the courts of this State for the collection of compensation for the performance of any of the acts mentioned in this article without alleging and proving that he was a duly licensed real estate broker at the time the alleged cause of action arose.

 

No person claiming to be entitled to compensation as a salesperson or broker-salesperson for the performance of any of the acts mentioned in chapter 15 of Title 45 of the Revised Statutes shall bring or maintain any action in the courts of this State for the collection of compensation against any person, firm, partnership or corporation other than the licensed broker with whom the salesperson or broker-salesperson was employed at the time the alleged cause of action arose and no action shall be brought or maintained without the claimant alleging and proving that he was a duly licensed real estate salesperson or broker-salesperson at the time the alleged cause of action arose.

 

My Response - On a first read through, it seems to say that no one can buy or sell, lease, rent etc without being classified as a Real Estate Broker/agent.

 

But if this were the case, then no person could rent, (much less buy or sell their own home) without having a license. It would also keep investors from buying a home with the intent of resale for a profit or to rent. So there must be something in all these statutes which exempt people from having to have a license.

 

It is usually found in just 2 simple words hidden somewhere in the definition of a real estate broker.

 

Here they are... "for others". Remove those two words from any of these statute definitions of a realtor and automatically everyone even thinking about buy or selling or rent a home would need a license.

 

The words "for others" create an "agency" relationship between two parties. If you do something "for another's benefit" or in their best interest, you have formed this agency relationship. These words imply that the agent will do "what is in the best interest" of the party they are being employed (or paid) by. Since there is a legal responsibility to do what is in the best interest for another, then the State is allowed to oversee that action so as to prevent the person put into this "trusted" position to be capable of completing the transaction to a certain state standard and to be fair and work in the best interest of the paying party.

 

However, as an investor, I am not working "FOR ANOTHER"; I am certainly not in an "AGENCY" relationship. I am working "MY OWN" best interest and I am trying to negotiate the best deal for me, not the seller/buyer. I am in what is called an "ADVISARIAL" relationship. There is no licensed required since I am not working on behalf, or representation of ... another.

 

Read the statue again and find those two magic words that allow private investing without having a license.

 

Daniel Ng, JD/LL.B (Honours)

The Transactions Engineer

[Guest Neil D]

I'm being investigated by the Real Estate Council of Ontario. It's about time! An agent has finally filed a complaint against me! I was starting to wonder if I'd ever get the opportunity to explain how and why I'm not in violation of the brokers act

 

Any advice on exactly how to respond, from those who have been investigated before?

<{POST_SNAPBACK}>

I'm a Broker/investor, and you don't appear to be in violation of the act. As long as you didn't take ANY commission in relation to a home sale from the seller. Visit the reco.on.ca website for more info. They are heavily weighted to the consumer and against agents.

 

Investigations are informal phonecalls and letters. So if you have to go to a hearing -- take a lawyer. Be smart.

[Guest Neil D]

to the LLB's - if the claim was made by a realtor there is a high chance of dismissal. If the claim was made by a client/vendor you will be in Deep Deep trouble "I can get you a better price" is an unlawful claim in Ontario.

 

In the beginning of the act ther is a list of advertising prohibitions.

[transactionsengineer 0]

to the LLB's - if the claim was made by a realtor there is a high chance of dismissal.  If the claim was made by a client/vendor you will be in Deep Deep  trouble "I can get you a better price" is an unlawful claim in Ontario.

 

In the beginning of the act ther is a list of advertising prohibitions.

<{POST_SNAPBACK}>

 

Neil,

 

I am quite familiar with the advertising prohibitions of the act.

 

Where on Doug's site do you see an unlawful claim?

 

Doug has clearly mentioned that it is an agent who has made this claim against him.

 

 

Daniel

[Doug Pretorius (ON) 9]

Just wanted to update everyone. I haven't heard a word back from the Council since I sent my reply.

 

Hey Neil or Daniel, do you mind expounding on those advertising restrictions for me? I can't seem to find any mention of them in the copy of the act that I'm reading (the one at E-Laws).

[Gordon Holtner 0]

Doug

 

All bark no bite huh Doug. I am glad nothing has come of this.

 

Gordon Holtner

[transactionsengineer 0]

Here is the link on the Real Estate and Business Brokers Act

 

Scroll down to General and you will find a section on False Advertising.

 

Daniel

[pilot76180 51]

We had an agent submit a complaint against us to the Texas Real Estate Commision. Our attorneys have been dealing with it. Jsut response letters stating our position. The complaint was sent in a year ago, and the "investigation" is still ongoing. I'm not worried about it, what we do is definately within the law.

I think the perfect portrayal of what Realtors think of themselves, is in the movie American Beauty. The "King"! I am the King!

As far as the complaint, don't respond until they request it, and then, if you don't have counsel, be VERY vague in your response. If you give too much detail, and misword something, they may come down on you.