Real Estate Recruitment: What Agencies Need to Know
When it comes to the real estate recruitment process, agencies must ensure they’re hiring trustworthy candidates. Real estate agents are at the centre of large-money deals; any unethical and illegal behaviour will reflect poorly on the agency, undermining reputation, which is crucial in this industry. Here are some recent criminal issues facing the real estate industry.
A recent CBC Marketplace investigation revealed that Canadian real estate agents are steering buyers away from low-commission homes, which is illegal.
In one test, Marketplace posed as buyers looking for a home with a low commission rate and spoke with three real estate agents. One agent was upfront about the commission issue and offered to help with the purchase. Another said the house was overpriced by $200,000 and said the owners weren’t willing to negotiate. While the third agent said she couldn’t book a showing and the property might have tenants.
Marketplace conducted a second test by calling fifty real estate agents in five areas across Canada, half posing as homeowners looking to sell and the other half as buyers. When the team asked agents if they could cut the commission they pay to buying agents, nearly 90 per cent warned against doing so.
Before the pandemic, a report from a panel of experts estimated that nearly $47 billion worth of dirty money was being washed through Canadian real estate. A related report from the Canadian Security Intelligence Service in 2020 concluded that criminals are engaging “the assistance of corrupt or unwittingly-used professionals, such as…real estate agents.”
Canada’s anti-money laundering watchdog, FINTRAC, found the compliance rate for training employees to detect money laundering or suspicious transactions as well as client identification was only around 50 per cent among real estate companies.
Furthermore, real-estate money laundering audits fell by 64 per cent while home prices increased dramatically. Money laundering can cause significant spikes in the prices of homes, threatening to keep law-abiding Canadians out of the market. Real estate agencies cannot afford a backlash from the public looking for someone to blame for inflated prices.
We Know Your Industry
Triton has the expertise and tools to optimize the real estate recruitment process. Our comprehensive online background checks will disclose any potential criminal charges, verify application information, and check certifications.
Our credit check verification can help determine an applicant’s financial behaviour, providing information on their financial status, credit rating, reported bankruptcies, collections, liens, and more.
To learn more call 1-855-256-8883 or visit our website.