Toronto’s housing market is quite simply out of control these days. The city is now the second most expensive place in the country to buy a house, and real estate agents are taking advantage of the high prices to make as much money as they can.
There’s even a real estate brokerage that is trying to make money off houses it didn’t sell.
It's now suing its own former client after it failed to sell their house.
HomeLife Eagle Realty Inc. is suing one of its own customers after a $900,000 sale for their house fell through.
The brokerage claims that it signed a contract with the seller stating that if the house received a satisfactory offer they would collect a commission, even if the deal didn’t work out.
In total, the brokerage is suing for $25,000 plus HST. To complicate matters even more, the brokerage also provided “customer service” to the person who was trying to buy the home as well.
Doing so is legal, but considered problematic and unethical by many because it represents a huge potential for a conflict of interest.
The house was eventually sold by another brokerage, but for much less money, $699,800 instead of nearly a million dollars.
HomeLife Eagle Realty still says that it is entitled to collect a commission on the house because of the contract it claims it signed with the owner.
None of the allegations made have been proven in court yet.
Source: Global News