Thursday, December 25, 2008

CONSUMER PROTECTION Act and Real Estate in Ontario


The Consumer Protection Act, like the previous legislation. the Business Practices Act. is designed to prohibit unfair practices in sales to consumers.

Although the Act does not affect representations made during the course of selling "real property,'' it does apply to real estate brokerages when representations are made during the course of selling goods and services'' to consumers.

A seller or buyer who complains, under this Act. that there has been an unfair practice in the selling of the registrant's
services, may cancel the contract sue for damages, and/or one a complaint with the Consumer Protection

Branch of the Ministry of Government Services. The type of contract that may be cancelled would therefore be a ''service'' or representations agreement.

Real property, as such, is not included in the definition of goods, however, registrants are affected when providing services: e.g.. listing, representing buyers, appraising, and arranging financing. For example. if a listing or buyer representation agreement is obtained through the use of an unfair practice as deamed by the Act the seller or buyer is entitled to rescind the contract.

An unconscionable consumer representation made in respect of a particular transaction is determined by various considerations. An unconscionable consumer representation occurs if the person making the representation or the employer knows or ought to know: ''

. that the proposed transaction involves or does not involve rights, remedies. or obligations if the indication is false or misleading;

that uses exaggeration. innuendo, or ambiguity as to a material fact or fails to state a material fact if such use or failure deceives or tends to deceive; or

* that misrepresents the purpose or intent of any solicitation of or any communication with a consumer.

Unfair Practices

Unfair practices are grouped under False and an unconscionable consumer representations. A false, mts fading, or deceptive consumer representation includes, but is not limited to, a representation: . that the goods or services have sponsorship, approval. performance characteristics, and benefits or quantities that they do not have; . that the person who is to supply the goods or services has sponsorship. approval, status, affiliation, or connection that he/she does not have;

* that a specific price advantage exists, if it does not;

. that misrepresents the authority of a salesperson,
representative, employee, or agent to negotiate the
final terms of the proposed transaction;

. that the consumer is not reasonably able to
protect his/her interests because of his/her
physical infirmity, ignorance, illiteracy , inability to
understand the language of an agreement, or
similar factors;

. that the price grossly exceeds that at which similar
goods or services are readily available to like

. that the consumer is unable to receive a
substantial benefit for the subject matter of the
consumer representation;

. that there is no reasonable probability of payment
of the obligation in full by the consumer;

. that the proposed transaction is excessively onesided
in favour of someone other than the

. that the terms and conditions of the proposed
transaction are so adverse to the consumer as to
be inequitable;

* that he/she is making a misleading statement of
opinion that the consumer is likely to rely upon to
his/her detriment; or

that he/she is subjecting the consumer to undue
pressure to enter into the transaction.
Session .3 * Legislation & Current Issues

Complaint Procedures

The consumer may complain of unfair practices, for
example. in the case of a seller who claims to have
signed a listing because of undue pressure. Several
alternatives are available in such cases

The seller may rescind or cancel the contract which would terminate the listing upon giving a written notice to the agent, personally or by registered mail, within six months after the agreement was signed

The seller is also entitled to any remedy available
at law including damages that may be ordered by
a court for fraudulent or negligent
misrepresentation or for breach of the duties of
an agent.

If rescission is not possible (property is sold and a
selling agent may be entitled to payment under
the agreement), the seller can recover the amount
of commission paid that exceeds the fair value of
the service. or damages. or both. The court can
also award exemplary or punitive damages.

The seller has another avenue that involves filing a
complaint with the Consumer Protection Branch of
the Ministry of Government Services. An
investigation, search of business premises, removal of
records for copying, and other administrative
procedures may follow. Such a complaint may include
the issuance of an order by the Director of the

Consumer Protection Branch requiring compliance. A
breach of the Act or failure to comply with the
Director's order may result in prosecution. To access
the Consumer Protection Branch

I hope this finds you happy and healthy,


  1. At present online is very essential for all kinds of work.Government should be taken this facility.You can buy or sale our property via online.

  2. If you want to sale or buy a real must get help in online and other facility.Thanks a lot for all information.