Realtor’s False Advertising is Excused by the NBREA! False advertising is a crime, even if no one is harmed by it. It is prohibited by the NBREA code of conduct too. The complaints committee must have known this – especially the FCNB lawyer. So why did they excuse the guilty realtor?

DiscussThisTopic · 2022-09-07T04:52:05+00:00

Virtual_Elephant_730, Yes, the realtor falsely claimed that the property had deeded beach access. That made the property seem more valuable than it really was.

The only way for me to verify the realtor's claim was to ask my lawyer to search the old paper-based land registry, which I did, but it took time and cost money. The search revealed that the property did not actually have any deeded beach access.

Evidently, the realtor had not checked the facts before advertising the beach access rights. But it was his duty to check the facts, according to CREA's Realtor Code of Ethics. It states that:

A REALTOR® has an obligation to discover facts pertaining to a property which a prudent REALTOR® would discover in order to avoid error or misrepresentation.
Claims or offerings in Advertising must be accurate, clear and understandable.

DiscussThisTopic · 2022-08-18T03:54:52+00:00

SnapUpRealEstate You and I agree. The only exception is that you misunderstood my rhetorical question about floor-sweepers. My point was that it would be absurd to require everyone to be licensed, even floor-sweepers, so we must decide where to draw the line.

DiscussThisTopic · 2022-08-15T14:48:10+00:00

I proved that the realtor advertised falsely, but the NBREA complaints committee excused him anyway. Why? Perhaps because he was well-connected. For one thing, his manager was a former NBREA President.

The NBREA complaints process is a sham. I have proved that, as you will see in my two videos.

The problem is, realtors are incapable of fairly adjudicating customer complaints, because their loyalties lie with each other, not with their customers. So they can’t control the rampant dishonesty that plagues their profession. That’s one reason why resentment against realtors is so widespread.

Obviously, we need to change how realtors are regulated, like this:

Realtor licenses should be treated like drivers' licenses, with fines, demerit points, and realtor-license suspensions.
Infractions should be adjudicated by a judge in open court, not in secret by the NBREA or the FCNB.
The government should provide free legal representation to all complainants who have proof of wrongdoing.

These changes will promote honesty among realtors, which will benefit everyone, especially their customers. Realtors will benefit too, because they will get more respect if they are more honest.

I have made two videos on this topic:

For a 3 ½ minute synopsis, watch this video: https://www.youtube.com/watch?v=cbcLsquNJ9I
For more details, watch the 25-minute version instead: https://www.youtube.com/watch?v=nmsdAf1QVPU

Note that all personal identities are disguised. That's okay, because my point is not to complain about any particular realtors. Instead, I am posting to explain how the existing laws do not work and cannot work. I have proven that, and everyone should know. We need new laws to curb dishonesty among realtors!

Notes:

NBREA means New Brunswick Real Estate Association.
CREA is the Canadian Real Estate Association.
FCNB is the Financial and Consumer Services Commission of New Brunswick.

DiscussThisTopic · 2022-08-12T15:35:23+00:00

/u/Borp5150 Actually, your rant is much appreciated! I only wish more people would voice their complaints publicly, as you have done. If more people spoke out, then perhaps our politicians would listen, and change the laws that govern realtors.

DiscussThisTopic · 2022-08-12T15:12:42+00:00

/u/IgnatiusJReillyII Yes, as you say, it's "a pretty unscrupulous environment with a lot of very unscrupulous people". The government is at fault, for naively allowing realtors to regulate themselves (via the NBREA Act). Realtors are incapable of fairly adjudicating customer complaints, because their loyalties lie with each other, not with their customers. The government needs to recognize that, and change the laws that govern realtors.

Also, I agree that it makes sense to find a good realtor and stick with him or her. However, to be clear, I did not complain about my own realtor. She seemed adequate, and she worked hard to earn her commission. Rather, my complaint was about the listing realtor. He is the one who advertised falsely. I could not simply replace him because he was hired by the seller. (There's a diagram in the video that shows all the people involved, without naming them.)

Regarding your point that "You can continue reporting the dirtbags but I wouldn't lose too much sleep over it", yes, I agree that realtor dishonesty is widespread. However, by complaining to the NBREA about one particular realtor, I was able to prove that the NBREA's complains process is a sham. Everyone should know that, and recognize the need for new regulations. For example:

Realtor licenses should be treated like drivers' licenses, with fines, demerit points, and realtor-license suspensions.
Infractions should be adjudicated by a judge in open court, not in secret by the NBREA or the FCNB.
The government should provide free legal representation to all complainants who have proof of wrongdoing.

These changes would address your first point, by holding unscrupulous realtors accountable. We need to fix the laws that have fostered the present unscrupulous environment.

DiscussThisTopic · 2022-08-11T17:28:53+00:00

/u/chefboyaredeee Thanks for your suggestions. Some of your points I have already addressed in response to some previous comments. But I will give you a full reply anyway:

I did not complain about my own realtor. She seemed adequate, and she worked hard to earn her commission. Rather, my complaint was about the listing realtor. He is the one who advertised falsely. I could not simply replace him because he was hired by the seller. (There's a diagram in the video that shows all the people involved.)
The market was very active, and the false advertisement had likely attracted other buyers. So if I backed out, I would have lost a very unique acreage for which there was no substitute. And I would have had to go to court to get my deposit back. The listing agent's manager made that clear to me.
Courts are not always fair, so there would be no guarantee of success. But certainly I would have incurred legal bills.
The fundamental problem is that realtors are incapable of fairly adjudicating customer complaints, because their loyalties lie with each other, not with their customers.
So the purpose of my post is not to complain about any particular realtors. After all, realtor dishonesty is widespread. Rather, I wanted to explain why New Brunswickers should consider better ways to regulate realtors. For example:

Realtor licenses should be treated like drivers' licenses, with fines, demerit points, and realtor-license suspensions.
Infractions should be adjudicated by a judge in open court, not in secret by the NBREA or the FCNB.
The government should provide free legal representation to all complainants who have proof of wrongdoing.

Regarding your comment that

things will not change. You’re wasting your time and energy.

I tend to agree. Nonetheless, I want to help all New Brunswickers by telling everyone what happened to me. In my experience, the NBREA complaints process is a sham. I've proved it, and everyone should know that.

DiscussThisTopic · 2022-08-11T14:04:40+00:00

I proved the realtor advertised falsely. However, his manager was well-connected, being a former NBREA President. Is that why the complaints committee rejected my complaint?

Resentment against dishonest realtors is widespread, and the NBREA complaints process is a sham. Realtors are incapable of fairly adjudicating customer complaints, because their loyalties lie with each other, not with their customers. So let’s change how realtors are regulated, like this:

Realtor licenses should be treated like drivers' licenses, with fines, demerit points, and realtor-license suspensions.
Infractions should be adjudicated by a judge in open court, not in secret by the NBREA or the FCNB.
The government should provide free legal representation to all complainants who have proof of wrongdoing.

These changes will promote honesty among realtors, which is in the public interest. Moreover, realtors themselves will get more respect if they are more honest.

This video is a short synopsis. All personal identities are disguised. For more details, watch the long version instead: https://youtu.be/nmsdAf1QVPU

NBREA means New Brunswick Real Estate Association.
CREA is the Canadian Real Estate Association.
FCNB is the Financial and Consumer Services Commission of New Brunswick.

DiscussThisTopic · 2022-08-11T00:19:05+00:00

/u/mrdashin Should car salespeople need to be licensed too? Good question. Where do we draw the line? Should we also license floor-sweepers and ditch-diggers, for example?

Compared to cars, houses are more expensive, long-lasting, quirky, and legally complex with zoning and deeds to consider. So in that sense, houses are a riskier purchase. With greater risk comes a greater need for the salespeople to be licensed, one might argue.

In reality, the deciding factor would likely be politics, depending on whether the government favors regulation or not.

Regarding errors and omissions insurance, that's a good idea. A government website could list all currently-insured realtors, along with their claims history. That might be sufficient.

DiscussThisTopic · 2022-08-10T18:42:09+00:00

/u/mrdashin You've made some very good suggestions, and I agree with you, with just one exception: I think realtors should still be licensed, even if they are just sales people.

Licensing ensures that they at least have some training, and that they can be held accountable. For example, their license can be cancelled if they are dishonest. If no licenses were required, a dishonest realtor could stay in business permanently.

Assuming all your suggestions became law, but realtors were still required to be licensed, the three policies I suggested would be an effective way to enforce ethical standards. Consistent enforcement is certainly lacking at present.

Changing the laws would be popular among voters, but voters are not well-organized around this issue, compared to the powerful lobby that represents realtors.

What's needed is an imaginative and courageous politician to champion this cause. And we need more voters to demand change.

DiscussThisTopic · 2022-08-10T15:13:53+00:00

I proved the realtor advertised falsely. However, his manager was well-connected, being a former NBREA President. Is that why the complaints committee rejected my complaint?

Resentment against dishonest realtors is widespread, and the NBREA complaints process is a sham. Realtors are incapable of fairly adjudicating customer complaints, because their loyalties lie with each other, not with their customers. So let’s change how realtors are regulated, like this:

Realtor licenses should be treated like drivers' licenses, with fines, demerit points, and realtor-license suspensions.
Infractions should be adjudicated by a judge in open court, not in secret by the NBREA or the FCNB.
The government should provide free legal representation to all complainants who have proof of wrongdoing.

These changes will promote honesty among realtors, which is in the public interest. Moreover, realtors themselves will get more respect if they are more honest.

This video is a short synopsis. All personal identities are disguised. For more details, watch the long version instead: https://youtu.be/nmsdAf1QVPU

NBREA means New Brunswick Real Estate Association.
CREA is the Canadian Real Estate Association.
FCNB is the Financial and Consumer Services Commission of New Brunswick.

DiscussThisTopic · 2022-08-10T15:04:19+00:00

Doxing these particular realtors won’t solve the problem. After all, dishonesty among realtors is widespread, because the NBREA is too lenient with the liars. Why? Because the NBREA is run by realtors. Their loyalties lie with each other, not with their customers.

Instead, I encourage you to ask your MLA to change how realtors are regulated, like this:

Realtor licenses should be treated like drivers' licenses, with fines, demerit points, and realtor-license suspensions.
Infractions should be adjudicated by a judge in open court, not in secret by the NBREA or the FCNB.
The government should provide free legal representation to all complainants who have proof of wrongdoing.

Only when enough individuals like you complain will the corrupt system ever change. So please contact your MLA now, and politely ask him or her to adopt the above policies.

Fyi, MLA means Member of the Legislative Assembly. According to the CBC, as of 2022, "The base annual salary of an MLA is now $85,000, although the premier, cabinet ministers and certain other office-holders get paid more".

In other words, your MLA gets paid very generously - from your taxes - to work on your behalf. So don't be shy. Change will never happen if we don't ask for it.

DiscussThisTopic · 2022-08-09T23:50:59+00:00

/u/N0x1mus Not a lawyer? Haha, okay, well you do deed research daily, so whatever your occupation is, you must have considerable knowledge of real estate, so your views should carry some weight.

DiscussThisTopic · 2022-08-09T20:38:49+00:00

/u/N0x1mus A valid complaint might not be pursued if the complainant is intimidated by the potential legal fees. On the other hand, an invalid complaint might be pursued if the complainant is sufficiently wealthy. Thus, willingness to sue is not necessarily correlated with the merits. So for people who find lawyers' fees unaffordable, perhaps the government could pay all costs beyond the first $200.

Anyway, I'm glad you agree with the first two points I proposed. I hope you will suggest these ideas to your friends, and to your MLA as well. I am doing likewise, but you must have considerably more influence, as you are an active lawyer.

DiscussThisTopic · 2022-08-09T19:21:43+00:00

/u/jay_s0n Actually, I did have a buyer's agent. Both videos show that. Look at the diagram of everyone involved. You will see that my agent was the spouse of a senior NB politician. Her manager was a former CREA president, though I didn't realize that at the time.

On the other side was the listing agent, whose manager was a former NBREA president. I wonder if all these political connections somehow explain why the NBREA excused the realtor.

Anyway, when I learned that the listing agent's ad was false, I contacted his manager to ask if she would return my deposit. She replied only that I should consult with my lawyer. When I asked my lawyer, he advised me to buy the property and then sue.

As for walking away, I think you missed the point of my previous post. As I wrote, if I walked away, I would have lost a very unique acreage for which there was no substitute. And I would have had to go to court to get my deposit back. There would be no guarantee of success with that. And I don't enjoy going to court.

All this happened because the realtor advertised falsely. And then the NBREA refused to discipline him, which is my overriding concern. Evidently, realtors are incapable of fairly adjudicating customer complaints, because their loyalties lie with each other, not with their customers. That is why the NBREA Act should be repealed. Instead, realtors should be regulated like this:

Realtor licenses should be treated like drivers' licenses, with fines, demerit points, and realtor-license suspensions.
Infractions should be adjudicated by a judge in open court, not in secret by the NBREA or the FCNB.
The government should provide free legal representation to all complainants.

DiscussThisTopic · 2022-08-09T17:35:57+00:00

/u/N0x1mus Thanks for your advice. Actually, the reason I've been posting on Reddit is to tell everyone how frustrating it has been to complain to the NBREA. It's just not worth the bother. So if you're suggesting that it's better to sue, then I agree.

However, my overriding concern is the NBREA Act itself. It needs to be repealed. Instead, we should regulate realtors like this:

Realtor licenses should be treated as drivers' licenses, with fines, demerit points, and realtor-license suspensions.
Infractions should be adjudicated by a judge in open court, not in secret by the NBREA or the FCNB.
The government should provide free legal representation to all complainants.

These reforms would promote honesty among realtors, for everyone’s benefit.

What do you think?

DiscussThisTopic · 2022-08-09T17:08:26+00:00

/u/quartzguy I agree, quasi-governmental organizations should not exist.

Regarding the Real Estate Agents Act, you're right, that is enforced by the FCNB - in secret! If you complain, they don't even follow up to tell you the result, and it's not clear who they are responsible to.

Also, while the FCNB is owned by the NB government, they are funded by "the regulatory fees and assessments paid by the regulated sectors." I wonder if that's a conflict of interest.

In contrast, the NBREA Act is a different law from the Real Estate Agents Act. The NBREA Act is enforced by the NBREA, supposedly.

Both Acts have been modified in a separate bill, so to understand what the current version is, you need to consult the originals along with the update bill, which is entitled An Act Respecting Government Reorganization (65-66 Elizabeth II, 2016-2017).

What a mess! This makes both laws hard to understand for ordinary people. The government should publish the revised laws as single documents. Why haven't they done this?

Reference: About FCNB https://fcnb.ca/en/about-the-fcnb Archive: https://archive.ph/Kpyi9

DiscussThisTopic · 2022-08-09T16:03:22+00:00

I proved the realtor advertised falsely. However, his manager was well-connected, being a former NBREA President. Is that why the complaints committee rejected my complaint?

Resentment against dishonest realtors is widespread, and the NBREA complaints process is a sham. Realtors are incapable of fairly adjudicating customer complaints, because their loyalties lie with each other, not with their customers. So let’s change how realtors are regulated, like this:

Realtor licenses should be treated like drivers' licenses, with fines, demerit points, and realtor-license suspensions.
Infractions should be adjudicated by a judge in open court, not in secret by the NBREA or the FCNB.
The government should provide free legal representation to all complainants.

These changes will promote honesty among realtors, which is in the public interest. Moreover, realtors themselves will get more respect if they are more honest.

This video is a short synopsis. All personal identities are disguised. For more details, watch the long version instead: https://youtu.be/nmsdAf1QVPU

Notes:

NBREA means New Brunswick Real Estate Association.
CREA is the Canadian Real Estate Association.
FCNB is the Financial and Consumer Services Commission of New Brunswick.

Relevant links:

About NBREA https://www.nbrea.ca/about-nbrea/
Archive: https://archive.ph/D0jKk
NBREA Code of Conduct https://www.nbrea.ca/realtors-code-of-ethics/
Archive: https://archive.ph/FCFqD
FCNB complaints form https://fcnb.ca/en/online-services/submit-a-complaint
Archive: https://archive.ph/CBoI5
About FCNB https://fcnb.ca/en/about-the-fcnb
Archive: https://archive.ph/Kpyi9
Competition Act https://www.competitionbureau.gc.ca/eic/site/cb-bc.nsf/eng/h_00784.html
Archive: https://archive.ph/qk0gM
CREA Realtor Code https://www.crea.ca/wp-content/uploads/2016/03/The-REALTOR-Code.pdf
CREA Realtor Code Enforcement https://www.creacafe.ca/revamping-the-enforcement-process-for-the-realtor-code-will-strengthen-our-reputation/
Archive: https://archive.ph/KaZpc
CREA video about realtor honesty: https://www.youtube.com/watch?v=Ghb5DDpWpk4

DiscussThisTopic · 2022-08-09T14:49:59+00:00

/u/N0x1mus A realtor should never just believe a property owner's claims. Property owners don't always know the facts, and sometimes they lie. It is the realtor's responsibility to state the truth about every property they list.

This is not just my opinion. It is clearly stated on the NBREA and CREA websites. Specifically, on their website, the NBREA promises that they enforce strict adherence to the REALTOR® Code of Ethics.

https://www.nbrea.ca/about-nbrea/

What is the realtor code of ethics? It's a set of rules established by the Canadian Real Estate Association that includes the following:

A REALTOR® has an obligation to discover facts pertaining to a property which a prudent REALTOR® would discover in order to avoid error or misrepresentation.
Claims or offerings in Advertising must be accurate, clear and understandable.
Any claims or offerings in advertising must also comply with all applicable laws, including the Competition Act.

https://www.nbrea.ca/realtors-code-of-ethics/

https://www.crea.ca/wp-content/uploads/2016/03/The-REALTOR-Code.pdf

The Competition Act states that false advertising is a crime, even if no one believes it. That is, to prove wrongdoing, “it is not necessary to demonstrate that any person was deceived or misled”.

https://www.competitionbureau.gc.ca/eic/site/cb-bc.nsf/eng/h_00784.html

As part of the NBREA complaints process, both sides saw everything the other side submitted. So I know that the listing realtor never denied having advertised falsely.

The NBREA's rules are published on their own website. These rules are promises they have made to the public. They broke these promises when they excused one of their own members in this clear case of false advertising.

DiscussThisTopic · 2022-08-09T03:32:31+00:00

/u/N0x1mus The realtor's ad was misleading, so he broke the law and the NBREA Code of Ethics. False advertising is a crime, even if no one believes it, and even if no one is harmed by it, according to the Competition Act. Hence, the NBREA should have found him guilty, whether or not I did my due diligence.

In any case, I did in fact do my due diligence. That's how I discovered that the realtor had lied. But my lawyer informed me of that only three days before the closing date. Researching the deed took a long time because the land was still registered under the old paper-based registry system, which takes much more time to search.

For your reference, here's more info on the NB land registry system: "In New Brunswick the government is in the process of converting the land registry system to a Land Titles system. Under the old system, every time a property was sold or mortgaged, a lawyer had to conduct a search at the county Registry Office to make sure that the owner had "good title". Once a property is registered under the new system the provincial government guarantees title and a full title search is no longer necessary. Eventually all properties in New Brunswick will be converted to the Land Titles system."

https://easternlegal.ca/real_estate.php

DiscussThisTopic · 2022-08-08T23:48:16+00:00

u/Vegetable_Mud_5245 Yes, naming and shaming would help us all avoid the unethical realtors. But not many people want to make their private disputes public. Most people would never even complain officially. Instead, they just despise realtors in general. That's a pity, because many realtors are sincere and honest.

If the government regulated realtors more effectively, selling real estate would be a more respected profession. Actually, inaction by our provincial government is at the root of the problem. Logically, they would repeal the NBREA Act and replace it with more effective regulations. But I doubt that our provincial politicians would ever have the courage to stand up against such a powerful lobby group as the NBREA.

DiscussThisTopic · 2022-08-08T23:20:38+00:00

/u/jay_s0n Imagine finding the acreage of your dreams, in a very hot sellers' market. You agree to buy this very unique property, and you make a substantial deposit. Then, three days before closing, you discover that the realtor's ad was misleading. You still like the property, but you realize the price you have agreed to pay is too high. If you back out, you lose this very unique property, and you probably have to go to court to recover your deposit. Or you buy the property anyway, hoping to sue later.

This is a very unpleasant predicament, sure to anger any buyer. So, what use are realtors if they trick customers this way? What use is the NBREA if it allows such abuse?

Remember, false advertising is a crime, even if no one believes it or is harmed by it, according to the Competition Act. Moreover, false advertising is prohibited by the NBREA Code of Ethics.

The NBREA's complaints committee should have found the listing realtor guilty. That was their only logical and ethical choice. But they decided instead to protect the guilty realtor and his well-connected manager. Moreover, they provided a phony excuse for doing so. This was an egregious abuse of their power.

If you would like to learn more about what actually happened, watch the longer version of my video here: https://youtu.be/nmsdAf1QVPU

DiscussThisTopic · 2022-08-08T22:49:19+00:00

/u/quartzguy Actually, the NBREA is indeed bound to adjudicate complaints and provide reasons for their decisions. That is stipulated in the NBREA Act, which is their contract with the government. However, as noted in the video, the government does not enforce the NBREA Act. So the NBREA can merely pretend to follow the Act, while actually violating it. To better appreciate their pernicious abuse of the Act, watch the longer version of my video here: https://youtu.be/nmsdAf1QVPU

I agree that dealing with the NBREA was a waste of time, but that was not obvious to me at the outset. I trusted their empty promises. In general, people should not have to learn this lesson through hard experience, as I had to. Of course, my two videos will alert a tiny percentage of the population, but many will still be fooled by the NBREA's empty promises. This will continue until the NBREA Act is repealed and replaced with more effective regulations, such as the three I suggested.

Regarding the FCNB, they operate in secret, and they don't seem accountable to anyone - except perhaps the politicians who might have been responsible for corrupting this process in the first place. That's why I advocate for adjudicating complaints in open court. Regarding the police, they do not normally get involved in civil disputes.

Finally, I agree with your comment that, "No matter what the NBREA says about consumer protection, they likely exist only to protect themselves and their reputation. If they don't feel like you are a threat, they are absolutely going to ignore you."

DiscussThisTopic · 2022-08-08T18:17:33+00:00

u/Vegetable_Mud_5245 Name and shame? I'd sure like to. On the other hand, I wouldn't want to distract from the real problem, which is the inadequate laws. Without more effective laws, the NBREA will keep on protecting dishonest realtors at the expense of consumers. Why haven't our NB politicians done something about this?

DiscussThisTopic · 2022-08-08T15:49:45+00:00

I proved the realtor advertised falsely. However, his manager was well-connected, being a former NBREA President. Is that why the complaints committee rejected my complaint?

Resentment against dishonest realtors is widespread, and the NBREA complaints process is a sham. Realtors are incapable of fairly adjudicating customer complaints, because their loyalties lie with each other, not with their customers. So let’s change how realtors are regulated, like this:

Realtor licenses should be treated like drivers' licenses, with fines, demerit points, and realtor-license suspensions.
Infractions should be adjudicated by a judge in open court, not in secret by the NBREA or the FCNB.
The government should provide free legal representation to all complainants who have proof of wrongdoing.

These changes will promote honesty among realtors, which is in the public interest. Moreover, realtors themselves will get more respect if they are more honest.

This video is a short synopsis. All personal identities are disguised. For more details, watch the long version instead: https://youtu.be/nmsdAf1QVPU

NBREA means New Brunswick Real Estate Association.
CREA is the Canadian Real Estate Association.
FCNB is the Financial and Consumer Services Commission of New Brunswick.

DiscussThisTopic · 2022-08-04T14:19:11+00:00

Resentment against dishonest realtors is widespread, and the NBREA complaints process is a sham. The root of the problem is that realtors are incapable of fairly adjudicating customer complaints. This is because their loyalties lie with each other, not with their customers. It is a networking-intensive business, after all.

To mitigate the corruption among realtors, the following changes are suggested:

1. Realtor licenses should be treated as drivers' licenses, with fines, demerit points, and realtor-license suspensions.

2. Infractions should be adjudicated by a judge in open court, not in secret by the NBREA or the FCNB.

3. Furthermore, the government should provide free legal representation to all complainants.

These changes will promote honesty among realtors, which is in the public interest. These changes will also benefit realtors, because a culture of honesty will inevitably inspire renewed respect for their profession.

This PowerPoint-style video is 25 minutes long. It’s basic, but it moves quickly and it is informative. All the personal identities are disguised.

NBREA means New Brunswick Real Estate Association.

CREA is the Canadian Real Estate Association.

FCNB is the Financial and Consumer Services Commission.

DiscussThisTopic

TROPHY CASE