Realtors® Should NOT Be
Handing Out Legal Advice
Your insurer doesn’t want it and won’t cover your errors. Your Broker doesn’t want it. And frankly, your clients often suffer from advice given that ends up getting them into trouble at the Landlord Tenant Board. Bad advice is also the source of many RECO complaints and LTB claims by a tenant.
Here’s a free PowerPoint to help you and your client understand the level of due diligence and process that must be used when acting as a listing agent for a rental property. What Realtors learn through RECO, OREA or their Board is simply not sufficient and in many cases incorrect. Most Realtors use an old paradigm that mimics the process of “selling” a property, but it is entirely inappropriate and in fact dangerous to have irrevocable offers examined one at a time, and relying on a Form 400 to protect the landlord.
Being a landlord in Ontario is not about passive income. It’s a business. And it’s a complicated, dangerous business because provincial governments have chosen to protect tenants at the expense of your investor clients.
The Residential Tenancies Act is changing constantly. The Landlord Tenant Board procedures are completely different than they were just a year ago, as the LTB has gone completely digital. Hearings are virtual. Filing is through an online portal.
In my former paralegal practice I heard Realtors boasting of their knowing, speaking about the Landlord Tenant Act, which hasn’t existed since 1998. That’s frightening to me. Sellers are being sued with increased frequency as they can’t close because vacant possession is not possible seeing that they have not understood the eviction process. Many Realtors have a fundamental misunderstanding of lease term, renewal, Form 400s, raising rents and evictions.
The best post-sales gift you can give to your investor client who plans on being a landlord is one of our courses, specifically, the Landlord Essentials 3 Pak. This will turn them into an expert at a very reasonable price. Harry Fine has been training Realtors for over 15 years, initially as a RECO approved provider in the era prior to RECO taking training in-house. Since that time, Harry has trained directly to brokerages, both live and using Zoom.
Take the better way when clients or prospective clients are looking for answers about residential tenancy law. Either refer them to a licensed paralegal who can become part of their team, or provide them with the link to our courses that are easy to understand, up-to-date and very comprehensive.