Real estate regulators warn agents to play by the rules

Toronto, February 12 (CINEWS): Following the scandalous exploitation of a loophole in British Columbia that has contributed to the obscene rise in real estate rates, Ontario’s real estate regulators are considering a warning to agents not to indulge in assignment flipping where agents buy the property at a relatively low price and then immediately flips it for a much higher price, in many instances homes in B.C have been flipped multiple times beforesold-over-asking actual closing.
“The reporting out of B.C. certainly has been pushed to the front burner of our attention and we’re certainly monitoring what’s going on,” said Kelvin Kucey, deputy registrar of regulatory compliance for Ontario’s real estate council.
Ontario’s regulator is considering issuing a registrar’s bulletin, a formal notice to industry members, reminding them that agents must disclose their interests in a prospective sale to everyone involved in the transaction, along with disclosing any information that could potentially affect the value of the property.
“If this is a concern as a seller that somebody may be buying the property at a lower price than what you think, maybe you need to ask some more questions with regards to what the basis of the market analysis is and then don’t stop at the first analysis that you get,” he said.
Toronto’s over-heated real estate market continues to be a growing source of concern and any threat of a possible scam that could pull down the market is being taken very seriously.
In another development, starting next week, Canadians in the market to buy a home costing above $500,000 to $999,000 would need to come up with a ten per cent down payment on any portion of a mortgage insured by the Canadian Mortgage and Housing Corporation.
Many real estate brokers don’t really see this market cooling strategy working to stabilize prices. It is honestly, too little. Those more impacted by this would be first time home owners buying their first home, those who’ve built up equity in their homes over the past 15 years won’t feel the pain.
A report by the Canadian Centre for Policy Alternatives, for example, found that about 10 per cent of homeowners under 40 would be bankrupted if housing prices dropped 20 per cent.
The C.D. Howe Institute similarly calculated that about half a million first-time homeowners, mainly young people with lower-than-average incomes, could be left ruined if the historically low interest rates that have fuelled drastic jumps in house prices went up, or they faced a personal financial crisis.
The C.D. Howe Institute similarly calculated that about half a million first-time homeowners, mainly young people with lower-than-average incomes, could be left ruined if the historically low interest rates that have fuelled drastic jumps in house prices went up, or they faced a personal financial crisis.

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