Province introduces proposed legislation which would ensure 'transparency' for families when buying or selling homes

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Published on Tuesday, May 20, 2014

myWestman.ca

The Manitoba government is proposing legislation, which they believe would ensure transparency and fair service for families when buying or selling homes.

"Our legislation will require agents to act in the best interests of families to protect their investments," said Ron Lemieux, Tourism, Culture, Heritage, Sport and Consumer Protection Minister, in a release.

Lemieux noted the housing market is constantly changing, which creates challenges for families as they buy or sell homes. He added that in some situations, homebuyers and sellers can face multiple bids or agents will represent both the buyer and the seller, which creates confusion over divided loyalties and uncertainty about what fees will be charged.

Lemieux says the proposed real estate services act would address these and other concerns and would also ensure real estate agents are working on a level playing field.  

Steps to help protect families when buying or selling a home would include:

* listing online all agents and any disciplinary findings against them, so prospective clients could search to confirm an agent is legitimate and if they have a clear record;

* requiring a service agreement that explains the role of the agent in helping their client and an upfront agreement about the agent's sales commission and fees;

* requiring agents to tell home sellers of all offers on their home in multiple-offer situations;

* requiring an agent representing the homebuyer and the seller to inform both clients of the possible conflict before a sale is finalized;

* establishing a new code of conduct that would guide responsible services and avoid conflicts-of-interest, like the advertisements and marketing of homes-for-sale would have to be accurate and truthful, clients information would have to be kept confidential and agents would be required to disclose to clients if they have a personal or family interest in a sale;

* establishing a stronger complaints and disciplinary process with broader disciplinary powers that would include mediation, suspension or termination of licence; and

* increasing the range of maximum fines to $100,000 for agents and $500,000 for brokerages from the current rate of $1,000 for agents and $2,000 for brokerages, and agents could also face up to two years in jail for breaching the act.

Real estate agents and brokers are regulated by the Manitoba Securities Commission, but their existing legislation is more than 60 years old, the minister noted.

Ray Brownlee, managing partner with Century 21 Westman.com believes the proposed legislation is a good thing for Manitobans.

"It encompasses a lot of things that we've been doing for many years," he said. "We have addressed the agency and what our relationship is specifically with our clients in that respect and that's very important. Now, that's encompassed in the act. Also, it discusses what exactly a real estate agent will do for the services they're offering.

"A number of things that are in this new amendment to the act have really been in place, but they're just modernizing it," he continued.

Meanwhile, the leader of the official opposition Brian Pallister says the current government hasn't done Manitoba homeowners any favours.

"I'm hesitant until we consult with the people from the industry and some Manitoba homeowners who were directly affected by this to endorse the bill," he said.

"You've just seen the highest increase in home insurance ever under this government with the expansion of the PST. Everybody pays eight per cent on their home insurance, so Manitoba homeowners are really paying a higher price for having this government in place," he continued. "I think this isn't the government that's going to protect Manitoba homeowners. They've taken 1,600 dollars off the kitchen tables of every Manitoba household on average with their increased taxes and fees. The expansion of the PST directly affects Manitoba households, but other taxes do as well. Taxes on benefits like life insurance and home insurance are expensive taxes Manitobans have to pay.

"Transparency is in everyone's best interest when it comes to real estate transactions yes, but… Manitobans know that this government has made things a lot harder on Manitoba homeowners over the last few years."

With files from Manitoba news release