Real Estate Industry
Consumer education is not a hallmark of Canada’s real estate industry. Purchasers are commonly warned that insisting on a home inspection may jeopardize their offer, and there is little, if any, formal training in building technology required to become a real estate agent. Explaining the potential pitfalls of a glass condo tower building may be in the best interest of the buyer, but not the agent. How much should real estate agents know about buildings, and how much of this should they divulge to prospective buyers? One way to approach an answer to this question is to compare what real estate agents charge for their services compared to the architects who design the buildings. Typically, real estate agents receive a 5% commission on their sales, whereas architects receive on average approximately 8% of the value of the building as their total fee, which is shared with their engineering consultants. Architects are obliged to know everything about the buildings they design and are professionally liable for errors and omissions. They must also provide expert opinions to their clients for all aspects of the buildings they design.
Why should real estate agents not be required to possess a competent knowledge about the buildings they are selling?
Buyer beware would not be considered an ethical position for architects and engineers serving the public. Compared to all of the work involved in designing and specifying the various components, assemblies and systems that make for a modern building, it is not unreasonable to expect real estate agents to be forthcoming with vital information about the durability and operating costs of the buildings they are selling. Explaining the potential problems associated with glass condo towers that have been identified by technical experts to their prospective buyers, would be no different than a general practitioner explaining the risks associated with certain medications and procedures to their patients. The real estate industry has not taken a proactive approach to such issues yet it is usually the first point of contact for consumers of real estate.
Why should real estate agents not be required to possess a competent knowledge about the buildings they are selling?
Buyer beware would not be considered an ethical position for architects and engineers serving the public. Compared to all of the work involved in designing and specifying the various components, assemblies and systems that make for a modern building, it is not unreasonable to expect real estate agents to be forthcoming with vital information about the durability and operating costs of the buildings they are selling. Explaining the potential problems associated with glass condo towers that have been identified by technical experts to their prospective buyers, would be no different than a general practitioner explaining the risks associated with certain medications and procedures to their patients. The real estate industry has not taken a proactive approach to such issues yet it is usually the first point of contact for consumers of real estate.
http://www.cbc.ca/toronto/features/condos/pdf/condo_conundrum.pdf
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