A Realtor’s Malpractices
I became a victim of the malpractices of a licensed realtor with following details.
Facts in Issue:
On Nov.18, 2016, I signed a listing agreement with your agent Kosta Michailidis working with Better Homes and Gardens Real Estate Signature Service to rent out my property. During the following 3 months from signing the contract there was no response. Upon completion of three months, Kosta emailed me to renew the listing and advised to lower the rent from $2200 to under $1800. I agreed to rent for $1780.
On March 18, 2017, he called me that he had found a tenant for me. I was told that the tenants are a family of 5, husband, wife, 20 year old son and 2 younger children; 3 adults are all employed; husband operates a professional Tattoo shop nearby; wife and the adult son work at 2 jobs each with combined net family income of over $8000 per month.
He mentioned that the tenants’ agent told him that “they are great people”.
I was not provided any documents regarding the tenants’ background check except a verbal statement over the phone. I assumed that he had completed all the necessary screening, as a licensed professional agent.
On March 20, 2017, I received the lease agreement from him via email and signed it back.
During the last 11 months following the start of the lease, the checks from the tenants have constantly been returned as NSF. I had to call and drive one and half hour to their shop. Very often, they did not pick up or return my calls. Sometimes they let me go there to pick up the rent, but when I went, they had no money for me. They were late for the payment every month. They gave me all kinds of excuses and many times the husband was very argumentative.
I had been collecting the rent every month with sweat, blood and tears. I was charged for late Mortgage payments, fees for their NSF cheques and high interest for borrowing money to pay Mortgage. Neighbours called me for the tenants’ bad behaviour and Gas company contacted me for unpaid gas bills on the address.
In February, 2018, I asked the tenants if they want to renew the lease, they never responded. Again, the check of the month was returned as NSF. After consulting with Board,I served the tenants N4 and N8 forms, they became very angry and aggressive and have refused to pay further rent.
When I tried to consult with Kosta, as this crises was created by him, he did not give me any pertinent advice; all he said were “Oh my God!” “I can’t believe it!” “Get a lawyer to write a letter scare the shit of them!” He told me that I could not evict the tenants before the end of lease for late payment (which was not true according to the Board).
At the beginning of March, 2018, after I filed the eviction with the Board, I put an ad on Kijiji. Within one hour I received a call, offering me the asking price $2000 and willing to provide all documents I requested (Employment ID, T4, credit record, previous landlord’s reference). When I increased the price to $2200, I still received 3 other emails from people who are very interested. When I mentioned it to the agent during a phone conversation, he sounded very upset , “You cannot do that!” “It’s misleading customers because the tenants have not been evicted…” “You don’t know what kind of tenants you would get from Kijiji…” (The fact is, he listed my property on MLS for over 4 months, the only response he received were from tenants who have been proved pro house flippers!) When I consulted with the Board, the information he gave to me was wrong again; the Board said “you can advertise and you can show…”.
To prepare for the Board hearing, I requested from him the tenants’ background documents. He emailed it me on March 6th. 2018. I was very surprised about the following facts:
– I noticed the names on the lease agreement were the wife and the 20- year-old son. The name of the husband, who is the major payor/occupant, is not on the lease agreement. (I texted the agent asking why, he said that he did not remember the reason).
– There is no credit check done on husband. This is unusual since he is the only applicant who provided a proof of income. (I texted the agent asking why, the agent answered “because his name is not on the lease”. – Really? This agent prepared the lease agreement and put names on the lease!) I asked the agent if he had asked the husband’s credit record, he did not answer the question.
– The only employment and proof of family income letter was written by the husband.
– The only formal document, a CRA’s business statement is from year of 2014 (3 years before). Moreover, this gross business income shows $50,000. (Even the whole amount is contributed only to the husband, the amount cannot afford paying rent of $1780 plus utilities monthly.)
– There is no proof of income or employment for wife and son, except a letter written by the husband.
– The 2 people on the lease do not have good credit scores. (On the phone, the agent told me that their credit scores were all good).
The agent kept answering my questions in an elusive manner or refused to answer. I believe, knowing the husband had a bad credit score, the agent purposely put the 20-year-old son’s name on the lease in case questions were asked of why anyone would rent to poor credit rated tenants. When he emailed me to sign the lease, how could I tell the two applicants with the same last name were not husband and wife?
Furthermore, I believe he has the husband’s credit record, but he did not want to send to me. (This may be found out from the tenants’ agent – has she ever sent to my agent the husband’s credit score? or, did my agent ever asked for the husband’ s credit score?) It does not make sense that my agent, would not have asked the husband, who is the main applicant/occupant, for his credit score.
On March 06, 2018, after the agent sent to me the application form tenants submitted to him last year, I saw their previous address, which is within 5 minutes walking distance. I asked the agent if he ever tried to contact the tenants’ previous landlord regarding their rent payment history. He answered, “Even, if I asked them, they may say very nice about the tenants because they want to get rid of them…” So the answer was no.
I requested my agent to find out the listing agent’s name on that address from MLS. He sent to me the listing. I called the listing agent on the address. (My agent refused to call for me.) I was shocked, “The tenants still owe their previous landlord over $12,000 rent after the Board’s order”! Since as an agent he can locate the listing info and easily find out previous payment history, but he did not bother doing it!
He verbally told me positive things about the tenants and convinced me to agree to rent to them. He never mentioned, sent or reviewed those documents with me before letting me sign the lease agreement.
During the very stressful time dealing with tenants, I called the agent for his professional advice, he suggested again and again that I should sell my property and maybe purchase another one. He said, under the present situation, the best way is to sell it, so the tenants have to move out. He does not care what tenants I have, because when most landlords are fed up by tenants, they would agree to sell the place, so the agent can make commission.
It’s apparent that he signs up whoever comes to him and he quickly endorses them up to customers without verifying any information but selecting what he needs to qualify them as tenants; when they turn out to be bad tenants, he pushes the landlords to sell the properties.
This agent could avoid detection of his malfeasances; according to him, most of his customers are new immigrants (like me) and many are living overseas; those landlords would not have ideas about what he is doing.
He refused to communicate with me after March 06, 2018 when I asked him questions about the tenants’ background documents. He said that I “accuse his honesty” and recommended me “to seek legal action”.
When I contacted the manager of his brokerage company to report what happened, the manager, on the agent’s behalf, told me that the $2011I paid, was only for them to market my house!
Their marketing was just putting a listing on MLS! The contents of this listing, that he used, was taken from the listing when I bought the house, years earlier!
The manager was saying as an agent, they don’t do background checks or verifying information as it was the customer’s responsibility! The fact is, the agent never sent to me or asked me to verify anything. Also, how do they expect customers who do not speak English or living over seas to verify tenants’ background information? If this is his company’s common policy, should they inform customers before signing listing agreement with them?
Summary
The agent was very unprofessional and failed to provide the service which I paid for. The service fee of $2011 was paid to him with the understanding that he was the licensed and experienced expert who would save me the time and work in finding good tenants.
He failed to perform due diligence in providing me with vetted and acceptable tenants. He failed to fulfil the most basic functions in verifying information of tenants. The documents he collected from tenants were not acceptable and deceiving. He misled me with his advice regarding the problems encountered with my tenants. His lack of business ethics was revealed in the facts that by putting me into the extremely stressful situation, he kept pushing me to sell the property so he could make a sales commission. The cavalier attitude of his and his manager shows that they do not care about customers but to make commission.
I truly believe I was exploited by this agent, who is extremely unethical and grossly incompetent, in the marginal services he provided.
My request
I want to know if there is any regulation in governing agents’ work related conduct? Is there any regulatory clauses or policies to protect customers’ rights in facing bullying and deceitful agents?