Real Estate

Filling Claim with RECO for Errors & Ommisions

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  • Nov 26th, 2019 10:42 am
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[OP]
Member
Feb 26, 2014
453 posts
85 upvotes
Toronto

Filling Claim with RECO for Errors & Ommisions

Thought I would get some opinions here while we wait on the lawyer.

So my grandparents sold their house, closing is this Friday and my father is the power of attorney. They went to the lawyers last week to sign papers as my grandparents left the country this past weekend. During this time at the lawyers, they realized that the realtor did not indicate in the listing that their furnace/AC was rented. Now they need to buy it out and it's costing my grandparents over $7000.

BUT, my father and grandparents told their realtor that the furnace was rented on more than three occasions. My father actually saw the listing on bungol and saw that it didn't indicate the furnace was rented. So he called their agent and she said not to worry, bungol doesn't display this information, but the MLS listing does infact show it's rented, so my father took her word for it. Only problem, all these occasions were verbal, they don't have anything in writing.

They want the realtor to pay for the buyout as they feel like they were mislead and the fact $7k will go along way for my parents back home. My father doesn't trust the lawyer or realtor anymore (the realtor referred my grandparents to the lawyer and they seem to be friends) and the fact that the house is closing this Friday, he's contemplating waiting until the sale is complete to take action for the $7k. Is this a good idea?

I told them they could file a claim with RECO for Errors & Omissions, but the fact they don't have anything in writing and I would assume it would hurt their case. But at this point I told them who cares. Anyone have experience in this?
1 reply
Deal Fanatic
Jul 3, 2011
6218 posts
3412 upvotes
Thornhill
The Errors and Omissions coverage for Realtors does not provide for restitution. I believe RECO's mandate at present is still only disciplinary action for code of ethics violations but you can call or email them and ask if you can pursue restitution through them.

The thing is, even if you could seek restitution via RECO, they are notorious for cases taking a year or many to wind their way through its system so the best route for restitution would be via small claims court. RECO could still handle a disciplinary hearing.

Your lawyer, unless they're unethical should be advising you of your options friendship with the Realtor aside.

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