Agent’s Breach of Fiduciary Duties (No Commission)
There are numerous circumstances where an agent subject to discipline is indeed found guilty or negotiates a settlement or a resolution to the Disciplinary charges with RECO.
The fines are then “agreed to” and “accepted” by the agent, unless there is a challenge, a hearing and a decision, which then would be subject to appeal. Nevertheless, there is an opportunity to defend and a final resolution.
The average fines seem to run in the $3,000.00 to $5,000.00 range. Payment is made to RECO. No payments are redirected to the victim.
This would be unlike the Human Rights Tribunal which would assess an amount but transfer that amount upon payment to the victim of the infraction.
In the RECO Discipline cases, “there is nothing in it for the complainer”, except the satisfaction found with being correct.
So, if an agent generates a $25,000.00 commission, a $3,000.00 fine might simply be considered as a “cost of doing business”.
I have suggested that these commissions be forfeited. But, who gets them: RECO? That doesn’t seem fair! It is either the Seller or the Buyer who is “out the money”.
In this same situation, there may indeed be a civil action against the registrant for breach of fiduciary duties and forfeiture or return of the commission charged. In most agency situations, an agent in breach is disentitled to a commission. Those civil trials are expensive and time consuming.
Rather than have the victim institute civil action for recovery of the commission payment, it would seem reasonable for RECO to have the power of restorative justice and be permitted to order the forfeiture of the commission and its return to the offended party. It would save time in Courts and make the system more efficient.
RECO already has the “expertise”.
Brian Madigan LL.B., Broker