Home : Blogs : Elizabeth Blair : Mortgage Blog

A question to all realtors in Canada

A realtor I work with, recently told me that they MUST send the names of three people, to their clients, if they are looking for financing.

I researched this with RECO and they advised that there is no such rule or requirement set by RECO who governs the real estate industry.

Would anyone tell me please where this might have come from?

Emails only please to: eblair@mortgageedge.ca

Posted by Elizabeth Blair on 08/02/2009 09:46 AM

Comments (6)

Realtors in the ActiveRain Channel

This post has been included in Ontario Information
Post is included in group: Realtors®
Post is included in group: Posts to Localism
Post is included in group: Mississauga. Erin Mills. Eagle Ridge
Post is included in group: Dedicated Bloggers
Post is included in group: Addicted to Active Rain

6 Comments on A question to all realtors in Canada

AUG

Elizabeth, this comes from fear of prosecution. If a realtor recommends only one company, a client could come back and sue them. Theoretically. In actuality, there is no such rule.

Never believe another Agent. One thing for sure, they are only half as smart as the think they are.

I believe that this is more of a CYA policy. We do this to avoid the appearance of steering a customer to a particular lender. Believe that it probably was instituted as a result of kickbacks or referall fees.

Elizabeth, I to got that many years ago. now the ones that know me only hand out 1 and its mine. There is no such rule, but most owner tell there realtor's to do that. The new ones that i meet, i tell them to hand mine out first if they are handing out 3 and that seems to work.

Hi Elizabeth,

I was always told to recommend at least two professionals to clients, be it lawyers, home inspetors or mortgage brokers due to the fact that if you only recommended one, and that one turned out to be crooked or not do a good job, it not only reflected badly on you, but you could also implicate yourself in a lawsuit. Recommending at least two and leaving the decision up to them reduces the liability on your part and gives the client a greater sense of control over the transaction.

Elizabeth - I'm with Jim on this one it's a "CYA policy"

Leave a response…

Name:

Email:
(optional)

Comment:

What does the graphic say?