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Re: Real estate sales Example One of the agents here in Winnipeg Manitoba, has like a partnering lawyer which works like this: Whenever a sales agent makes a property sale, he automatically contacts his sort of a partner (lawyer) to work on the legal aspect on property sale / purchase. Poor buyers like us (couple), doesn't have any choice to choose our lawyer (who usually charges more reasonable fee/s). The issue behind this, is like we're dealing with a sort of a syndicated scheme - we have to agree with these unreasonable charges because we got no choice anyway. Is this legal? If not, will you send me some links (url) / documents supporting it? And if an agent insists, what could be the charges against him? Thank you.
Real Estate agents and Lawyers are both held to codes of conduct including professionalism and ethical behaviour.
Although there is nothing wrong with a realtor recommending a lawyer to complete a transaction, it would be completely unethical to force a client to use a particular lawyer as the decision to retain counsel is solely that of the client
Every person is free to choose the lawyer they want to represent them. They cannot be penalized for using a different lawyer and should not be pressured into using one particular lawyer.
Although it is not "illegal", it is unprofessional/unethical to take away a client's right to choose their lawyer and is in breach of the related codes of conduct.
Both realtors and lawyers have provincial regulatory bodies who oversee their behaviour and conduct and ensure compliance with their rules and regulations.
Complaints can be made to these bodies and they can face internal discipline for breaches
It should not matter whether you're rich or poor. There are lawyers who offer low rates for real estate transactions, and their fees are typically taken out of the proceeds of sale or added to the amount of the mortgage being borrowed, so whether or not you have a lot of money really shouldn't matter.
You can go with any lawyer you wish. You do have a choice. Do not let the realtor tell you different. And they should not be doing so.
If he insists on you using this one lawyer, clearly tell him he cannot do so, and it is against his code of ethics.
The Manitoba Real Estate Association regulates the profession
Here is a good link to a write up they have on hiring a lawyer.
It clearly shows that the choice of lawyer is yours, not the realtors
Since they are responsible for regulating the profession, complaints can be made to them the MREA about realtors and their conduct and they can discipline or reprimand realtors and brokers for their conduct
Here is a link to their FAQ page which has many valuable references as well as info on ethics and how to file a complaint if necessary
Please let me know if you require any clarification or have further questions as I am happy to chat further
I look forward to hearing from you