Canada Housing Market

Recent revelations about two real estate brokers manipulating bidding wars have shed light on a disturbing trend within the industry. Christine Girouard and Jonathan Dauphinais-Fortin, formerly associated with RE/MAX, are currently under investigation by the real estate governing board of Quebec (OACIQ) for allegedly orchestrating bogus offers on properties they were selling. Their actions not only violated professional ethics but also distorted the integrity of the real estate market. This incident serves as a stark reminder that fake bidding wars and manipulations are more prevalent than we might think, even extending beyond the borders of Quebec.

The Unsettling Case of Girouard and Dauphinais-Fortin

The investigation revealed that Girouard and Dauphinais-Fortin allegedly involved friends and family members to submit false offers on their listed homes. These deceitful bids aimed to create an illusion of competition among genuine buyers, ultimately driving up property prices. Their unethical behavior has not only resulted in the termination of their contracts by RE/MAX but has also sparked an investigation by the OACIQ, the real estate governing board in Quebec.

The Impact on the Real Estate Industry: RE/MAX Quebec promptly distanced itself from the two agents, emphasizing that such conduct contradicts their values and the rules established by the OACIQ. This incident underscores the importance of trust and transparency in real estate transactions, which form the foundation of successful partnerships between brokers and clients. The actions of a few rogue individuals tarnish the reputation of an entire industry and undermine the diligent work carried out by the majority of ethical professionals.

Offer Transparency: A Solution to Combat Manipulation

The case involving Girouard and Dauphinais-Fortin highlights a crucial flaw in the bidding process: the lack of transparency. Currently, offers remain confidential, leaving prospective buyers to speculate on the appropriate bid to secure a property. This opacity creates a breeding ground for manipulation and artificially inflated prices. To counteract this, implementing offer transparency measures becomes imperative.

Terry Kilakos, founder of North East Real Estate, stresses the need for transparency in incoming offers. Buyers should be informed about the competing bids to make informed decisions. By disclosing the details of competing offers, buyers would be able to assess the true market value of a property and avoid being coerced into overpaying due to fabricated competition.

The Wider Issue: Manipulation in Ontario

While the Girouard and Dauphinais-Fortin case shocked the real estate community in Quebec, it is crucial to acknowledge that similar incidents occur elsewhere, including Ontario. Instances of fake bidding wars and manipulations have been reported in different markets. This highlights the urgent need for comprehensive measures across the country to protect homebuyers from unscrupulous practices and maintain the integrity of the real estate industry.

The case involving Girouard and Dauphinais-Fortin sheds light on the darker side of real estate, exposing the prevalence of fake bidding wars and manipulations. To combat such practices, the implementation of offer transparency measures becomes crucial. By providing buyers with access to the details of competing offers, we can restore trust in the real estate market and protect consumers from unscrupulous tactics. It is imperative that the real estate industry, regulatory bodies, and policymakers work together to create a fair and transparent environment that upholds the integrity of property transactions and safeguards the interests of homebuyers.