Quebec real estate agents are increasingly facing disciplinary action after being accused of “financially abusing” their clients, according to CTV News.
Specifically, some agents have been accused of profiting from buying homes from vulnerable or elderly homeowners below market value and then reselling them at much higher prices, as found over the past few years by a disciplinary committee of the Organisation Regulatory Authority of Quebec (OACIQ), which oversees real estate brokers in the province.
The article describes the practice as “blatant financial exploitation,” according to Jacinthe Roy, executive director of the leading seniors' association Reseau FADOQ. It also quotes Paul-René Roy, president of the Association of Retired Persons of Quebec (AQRP), as saying his organization considers the practices “highly inhumane and unprofessional.”
Conflict of interest complaints up 12% in one year
In addition, OACIQ spokesperson Joan Beauvais explains that if a real estate agent wants to buy a property from a potential client, they should not sign an agency agreement, since contractually they must represent the client's interests above all, including their own needs. This is called dual agency, and as of 2022, it is not allowed in the state.
In an email to REM, OACIQ confirmed that the number of complaints from the public about conflicts of interest had soared, from just over 31% in 2021 to just over 43% the following year (then decreasing to 11.3% in 2023). One example cited in the article is of a real estate agent who bought properties from two clients and made a $500,000 profit. An investigation was launched following the complaint, leading to a $150,000 fine for conflicts of interest.
According to OACIQ, after a conflict of interest case is investigated, the board decides whether to refer a complaint to a disciplinary committee. Over the past three years, the proportion of requests for assistance received by OACIQ has increased by about 2%.
“(Real estate agents) must carry out their duties ethically and in compliance with the Real Estate Brokerage Act, for the benefit of buyers and sellers.”
In response to this issue, the Quebec Association of Real Estate Brokers (QPAREB) released the following statement on July 3rd: “QPAREB firmly condemns the illegal actions that have been or may have been committed by certain real estate brokers, as reported today and in various media forums over the past few months. Real estate brokers must at all times carry out their duties ethically, in full compliance with the Real Estate Brokers Act, in the interest of buyers and sellers.”
QPAREB President Serge Broussault continued:
“We take this situation very seriously. We have taken note of the actions reported in the media and are determined to find a lasting solution that will ensure that our professional activity is conducted in an exemplary manner. Over the past few months, we have been working on a plan that will guarantee the professionalism of all our members, fully complementing the oversight role of OACIQ.”