TREB, realtor concerned about ‘consequences’ over Richmond Hill’s open house sign bylaw

The new bylaw is in conflict with RECO's rules

Yorkregion.com
July 18, 2019
Sheila Wang

As Richmond Hill council went ahead to allow real estate open house signs on a pilot program, local realtors and the Toronto Real Estate Board (TREB) cast doubt on the unconventional idea that bans information of the realtors and the brokerage on the signs.

Richmond Hill is the only municipality in the GTA that implements the restrictive open house sign bylaw, according the real estate board.

The nameless generic signs may lead to more confusion and raise serious safety concerns, said Von Palmer, who is TREB's chief communications and government affairs officer.

Palmer made the comment after the city council voted on July 9 to launch a six-month program to legalize the open house signs that only have the words “open house,” municipal addresses, date and time.

Councillors approved the pilot program after voting down the original motion -- put forward by Coun. David West -- that was intended to permit regular open house signs modelled after Vaughan’s sign bylaw.

It allows a maximum of five signs per open house, to be erected 24 hours prior to the open house, and for two hours after the completion of the open house.

Regional Councillor Carmine Perrelli, a 30-year real estate agent himself, introduced the idea of the generic open house signs for the purpose of discouraging self-advertisement.

Previously, Richmond Hill was the sole city forbidding the use of open house signs among the 25 GTA municipalities.

Palmer said while the TREB welcomed the legal option for the real estate signage, it was concerned about the “unintended consequences” of generic signs.

“From a safety point of view, anyone could put a sign directing me a certain house. How do I know who’s in that house and who I’m about to meet?” Palmer said.

Meanwhile, it will make bylaw enforcement more difficult due to the lack of information to track the realtors behind the signs, Palmer added.

Calling it a “creative government experiment,” Majid Zohari, an experienced realtor in Richmond Hill, said some councillors failed to put the residents’ interest in the first place.

“It’s gonna make the (sign pollution) situation worse. There is no name on the sign, so anybody can do that,” Zohari said.

The results of a poll conducted by the TREB between June 18 and 24 show that 83 per cent of Richmond Hill residents approved the use of open house signs.

Speaking from his experience, Zohari said it’s important and necessary for an open house sign to identify the realtor and brokerage so that potential homebuyers would know whom to call and what to research.

“You have to remember all the fiduciary duty to the clients. The fiduciary duty means we have to do the maximum effort to market the property,” Zohari said.

A much bigger issue, however, lies in the legality of the new sign bylaw.

The generic open house sign permitted in Richmond Hill is apparently not in compliance with the rules of the Real Estate Council of Ontario (RECO) which requires all real estate signs to clearly identify the realtor and the brokerage.

However, since this issue had never occurred before, it is still unclear what should take precedence when a municipal bylaw is in conflict with the rules of RECO.

“We’re seeking clarification from RECO whether RECO considers that a violation,” said Palmer.

City staff is expected to bring back a report by Nov. 30 when the pilot program expires. Residents, realtors are encouraged to contact the city with comments and complaints.