You have to ascertain if the agent is truly negligent or has committed something as severe as fraud.

All Ontario real estate agents are under the rules and regulations of the Real Estate and Business Brokers Act 2002 or REBBA 2002.

All brokerages, salespeople are governed by The Real Estate Council of Ontario (RECO). The first step is to have a carefully prepared report, after review of all documents and investigation in the facts, of the conduct of an agent or agents.

There are many, some prepare sloppy paperwork. They do not check facts such as parking regulations or other zoning. Some do not investigate and clients find out that they bought on a floodplain or conservation land.

Some agents, in haste push clients to forego a home inspection resulting in finding horrendous problems upon taking possession.

Some agents hear facts such as the rumour that a property was a former marijuana grow op and do not disclose to their buyers.

Some agents cross the line with fiduciary responsibity to clients when in a multiple representation or dual agency situation.

And the list goes on.

There are few experts in this field. Barry Lebow is one of them

The person in charge of a brokerage is known as the broker-of-record and they are responsible for the actions of each person who works for them. Sue an agent and you must sue the brokerage, even if that agent moves to another or leaves the industry.

Yes, all registrants in Ontario are covered by Errors and Omissions insurance. Certain litigation firms work for the insurors and are seasoned veterans of defending agents in negotiation or court.

The lawyer needed is a litigator but that lawyer should be familiar with real estate and Ontario agency law. Some lawyers work extensively in that area.

It depends on the amount of the claim. For small claims, up to $25,000 the best way is Small Claims Court. You may present yourself, but that is tricky. You may use a lawyer, that gets expensive or you may use a paralegal, which saves some costs.

For larger claims, you have to weigh the pros and cons. A lawsuit is expensive with litigators charging $500 to $700 (or more) per hour and then there is the extended period of actually getting to court, a system which is usually backlogged.

For claims up to say $50,000 more or less, it may be difficult but the costs to pursue may be impractical. Most litigators will give you a base consulting cost to discuss the merits of a case. Best advice, speak to a litigator, a lawyer who comes by recommendation.

In theory yes, but being practical, no. A court case from the beginning to actually coming to court can take years. By then, RECO will not deal with an outdated complaint. The danger is in reporting an agent, then RECO does not set out a strong disclipine and their action is used in defence in court. If RECO does not clamp down on a registrant then the courts may take that into consideration.

A broker can work on their own, a salesperson must work under a licensed brokerage. Many brokers do work for brokerages but that is their option. Becoming a broker in Ontario requires more education and the passing of examinations for broker status.

No, Realtors are licensed members of real estate boards and have access to the MLS system. In Ontario, all Realtors belong to: 1) their boards, 2) the Ontario Real Estate Association and 3) the Canadian Real Estate Association. Non-Realtor brokerages do not have MLS privileges.

The report should be concise, reflect the actions of what a reasonable agent would have done. It has to set in precise terms the regulations of REBBA 2002 and the non-compliance.

A report can be two-fold, one about the conduct of the agent and the second phase measuring a loss in value. A property could be stigmatized, which was unknown when the offer was made. At that step, I do an analysis about the stigma factor or what is known as the diminution of value.

If the problems lie with costs to cure say extensive water damage then contractors quotes have to be obtained and the costs of other professionals.