Manitoba

2 Winnipeg real estate agents disciplined after house buyer files complaint

A complaint filed by a Winnipeg homebuyer has resulted in two real estate agents being disciplined by their industry association.

'This house is not worth what I paid,' at more than 30% above list price, homebuyer says

A woman with dark hair and wearing a navy blue sweatshirt is seated at a table with a printed document in front of her.
After buying a house in 2022, Chantal Orsak filed a complaint with the Manitoba Real Estate Association, which imposed discipline against two real estate agents. (Justin Fraser/CBC)

A complaint filed by a Winnipeg homebuyer has resulted in two real estate agents being disciplined by their industry association. 

Chantal Orsak bought a house in 2022 but filed a complaint to the Manitoba Real Estate Association because she was dissatisfied with her real estate agent's handling of the purchase. 

The association notified Orsak in February of the outcome of a review by its investigating team — more than two years after her complaint was filed.

"I want the members of the public to understand and know my story, because there are individuals out there who are supposed to be helping and safeguarding you when you're making such a large purchase for the first time in your life, like a house," Orsak said.

In Feb. 10 letters, the MREA's director of professional standards informed Orsak that "disciplinary measures have been imposed" against her real estate agent, Paige Derksen Rodrigues, and the seller's agent, Marcia Bergen, both of Royal LePage Prime Real Estate. 

The letters say the discipline was imposed on each agent "as a result of her acceptance of a violation" of the real estate association's code of ethics and standards.

The letters do not say what the disciplinary measures were.

As a first-time house buyer, Orsak bought a one-and-a-half-storey house in Winnipeg's Lord Roberts neighbourhood. The house is more than a century old.

She paid $331,100 for the house, which was listed for sale at $249,900 — a difference of $81,200, or more than 30 per cent above the asking price. Sale documents indicate there were five other offers.

"This house is not worth what I paid.… Absolutely not," Orsak said, in light of issues with the condition of the house that she discovered after she took possession of it.

"I have suffered a great deal, not just financially, but emotionally and psychologically over this situation."

A large sign is black on top and white at bottom, and stands on the ground in front of a white and black building with a parking lot and snowbanks beside it.
The Manitoba Real Estate Association, which represents more than 2,700 members, says it receives about 30 complaints a year on average, with roughly 17 per cent resulting in disciplinary measures. (Darin Morash/CBC)

The letters say the two agents violated an article of the code of ethics regarding their duty to the client, which says an agent must "protect and promote the interests of his or her client" and has a "responsibility of dealing fairly with all parties to the transaction."

It also says that in cases where there are competing offers, a listing agent who is "acting as a dual agent shall not use the information contained in another offer to put either client at a competitive advantage." 

Being a "dual agent" refers to a real estate salesperson or brokerage representing both the buyer and seller in a transaction.

In Manitoba, that's referred to as "limited joint representation," said Marko Bilandzija, communications manager for the Manitoba Financial Services Agency,  which regulates real estate professionals and issues registration for real estate agents to practise in the province.

Joint representation is permitted in Manitoba under certain conditions. 

Orsak and the seller of the house signed a document acknowledging, and agreeing, that Royal LePage Prime Real Estate could be placed in a limited joint representation by representing more than one party in a sale, according to the purchase agreement.

That agreement says that "in the interest of fairness and confidentiality," the broker or salesperson must not disclose certain information, such as "the price and terms that any party may be prepared to agree to," or the terms of competing offers.  

The discipline document did not indicate whether the buyer, Orsak or the seller got a "competitive advantage."

'Fully complied' with investigation

In a statement provided to CBC News on behalf of the two real estate agents, Royal LePage said the company and its agents "strive to uphold the highest professional standards, and take allegations of misconduct seriously."

"We have full trust in the Manitoba Real Estate Association's judicial process. All parties have fully complied with the investigation conducted by the investigating team of the MREA," communications director Anne-Elise Cugliari Allegritti wrote.

The Manitoba Real Estate Association, which represents more than 2,700 members, told CBC it receives about 30 complaints a year on average, with roughly 17 per cent resulting in disciplinary measures. 

Kim Gandier, a spokesperson for the industry association, declined an interview, saying in an email that "all matters relating to MREA complaints and investigations are confidential and private."

Gandier said the association's complaints process "is a closed proceeding, which ensures fairness, maintains confidentiality and protects the integrity of our investigative process."

Orsak said the organization should be more transparent, noting the MREA doesn't put the disciplinary findings on its website.

ABOUT THE AUTHOR

Vera-Lynn Kubinec is a producer with CBC Manitoba's I-Team investigative unit, based in Winnipeg. vera-lynn.kubinec@cbc.ca