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PRE-SALE FEES ( new condo construction) targetted by RECO charges - Globe & Mail 2017/09/13 14:59  
The Globe & Mail Sep 13/17 has reported that Ontario's RECO (Real Estate Council of Ontario) has charged 3 Toronto condo realtors with a practice unique to overheated markets amidst the political fervour of an election on the horizon. Anything that appears to inflate housing costs, easily looks incendiary.

( Voodoo charges ? Those with memories about Ontario tenancy law may recall the legislated outlawing of so-called 'key money' long before current vacancy decontrol. "You need to buy that old rug for $ 1,000 if you want the lease . . " etc. Into whose packets goes undocumented gate-keeping fees ? Is it ever a good idea to let some sort of below-the-table skimming occur without any recorded furtherance to either parties, to the taxfolks, to auditors etc ? Do these alleged Pre-Sale viewing fees taint only realtors ? )

True or not here, that alleged practice - platformed by some degree of exclusionary access to pre-construction condo projects - involves charging substantial & undocumented fees exclusively to precede others in diligencing what may or not be bid for !

In effect, without any paper trail in a profession vulnerable to wide sources of funds of various "clean-ness' nor apparently recorded nor auditable through brokerages, the allegation is a STAND-ALONE FEE not applicable to sale price nor recorded allocation to developers, potential buyers nor the taxfolks.

True or not these charges, Jill Mahoney's Globe article cites a complaint that an undocumented $ 30,000 was paid to a broker to get front-of-the-line early access to the diligence & bidding processes !

Without prejudice to any specific charges against any individuals charged or not, RECO's Deputy Registrar Kelvin Kucey is quoted describing such a practice as being " . . . of grave concern to us because that appears to be nothing more than a shakedown . . ."


G&M Sep 13/17 subscribers only "Regulator charges three realtors in condo presale probe" by Jill Mahoney
https://beta.theglobeandmail.com/real-estate/ontario-regulator-charges-three-realtors-in-condo- presale-probe/article36242069/


G&M June 27/17 “Ontario government considers review of preferential condo sales” by Jill Mahoney https://beta.theglobeandmail.com/news/toronto/ontario-government-considers-review-of-preferential- condo-sales/article35483785/?ref=http://www.theglobeandmail.com&
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