>> Charlsie: This
is "Marketplace."
Real estate agents,
caught on camera.
>> I can coach you, kind of on
how to, what price to put.
>> Ten agents, ten hot
neighbourhoods, bidding wars
spark secret deals.
>> I think he purposely blocked
our offer.
>> Charlsie: In this hot market
is your agent rigging the deal?
>> I use my power in order to
get you the house.
>> Charlsie: And wait until you
see how homes get sold
down under.
>> Property is going,
going, sold!
>> Charlsie: This is your
"Marketplace."
>> These are very nice
houses here.
>> Charlsie: We're out
house hunting.
>> There's not much that comes
up on the street so it goes
really quickly.
>> Charlsie: But we're not
actually looking for our
dream home.
>> The property is -- offering
is not listed.
We're going to have to ask
the agent.
>> Charlsie: We're under cover.
Hidden cameras rolling, on the
look out to see if real estate
agents are breaking the rules.
When you're fighting for the
perfect house, it's up to
agents to do what's right for
buyers and sellers.
>> But here's the thing.
In most of Canada, agents are
allowed to represent both
sides of a sale.
And earn commission on both
sides, too.
>> Charlsie: In Canada's
hottest markets that can be
as high as $78,000 on the
average sale.
A huge incentive for agents
to do what's called double
end a deal.
And sell to a buyer
of their own.
But exactly how common
double ending is,
that's an industry secret.
>> Until now, with the help
of insiders, we get our hands
on this.
Stats the public never
gets to see.
>> For the first time, we can
see the number of homes an
agent sells, what they sell
for, and most important,
how many of those sales
are double ended.
The average among top sellers
in and around Toronto?
10%.
But for some, 20%, 30%, even
40% of their sales are double
ended what the numbers don't
tell us, though, is how many of
those sales are aboveboard.
For that, you need to be on the
inside of a deal.
We've already found the places
we want to buy.
All homes in Toronto's hottest
neighbourhoods.
All likely to end up in
a bidding war.
>> Charlsie: The agents
greeting us at the door?
Top sellers.
Part of teams that double ended
at least 20% of their deals
this year.
Others, we were tipped off to.
>> Will they agree to double
end a sale for us?
>> Charlsie: We tell each one
we're not working with an agent
of our own.
Two of the ten say that's not
a good idea.
>> Charlsie: But the majority
are eager to represent us.
>> Charlsie: Signing us on is
allowed, as long as the seller
agrees to and it looks like
they often do.
When we check some of Toronto's
hottest neighbourhoods,
we find one in ten sales
are double ended.
What's not allowed?
Sharing the amount of competing
bids with your own buyer.
>> Charlsie: But at this house
we haven't even finished our
tours when the agent makes
us this offer.
>> Charlsie: What price to put?
Does that mean he'll help us
make the highest bid?
>> Charlsie: Hmm, beating
the guy like that doesn't
sound fair.
To find out if a line's been
crossed, we head to the Real
Estate Council of Ontario.
Kelvin Kucey, RECO's
deputy registrar, he's in charge
of discipling agents.
>> If there's ever a concern
about how a trade transpires
that's what we're here for.
We find there's noncompliance
with the rules we will
prosecute to the fullest extent
of the law.
>> So what will he think about
the offer we caught on camera?
>> I can coach you kind of how
to -- what price to put.
>> That's a problem.
He's placing himself in
a fiduciary conflict, for sure.
>> A conflict.
>> Yes.
>> For sure.
>> For sure.
>> No doubt about it?
>> Certainly from our
perspective, yeah.
>> Charlsie: This agent broke
the rules by promising to help
us beat the other bid.
Wait until he sees what
other promises we catch
on hidden camera.
>> Charlsie: It's a backroom
deal, over in 20 seconds, but
if he makes good on it could
mean the difference between
losing the house and making
the winning bid.
>> We didn't beg,
we didn't plead.
It was yeah, I'll tell you.
>> That obviously is a concern,
if that's how they see that
they are representing
the interests of both sides
of the trade.
>> Charlsie: This next agent?
Boasts.
His team double ends
all the time.
>> Charlsie: And why might that
be a good stat to know?
>> Charlsie: And when we follow
up, he reveals he'll work with
his colleagues to help ensure
we get the house.
>> I don't know if he's going
to do a first time shot, kind
of the highest you can go and
you don't get a second chance.
But he will definitely give us
a second chance.
That's 100% certain.
We will get
a better opportunity.
We have our trickings where
we can just on the borderline
of legal.
But we'll definitely try to
help you out there.
>> Interesting.
>> Charlsie: Can you believe
this language?
Tricks.
Just on the borderline
of legal.
>> Well, it's this type of
conduct, and that type of
vernacular which places
the real estate profession
into disrepute.
>> This is more than disrepute.
These agents are breaking the
real estate act, and their code
of ethics.
[ Doorbell rings ]
>> Charlsie: But one after
another, they take the risk
and promise to disclose
secret bids.
>> Charlsie: After only five
minutes one agent even tells
us the exact number
we're up against.
>> Good inside info for us, but
not so good for the other buyer.
>> What would the penalty be
for something like this?
>> We would be looking at maybe
a $3,000 to $5,000 fine and if
there's recidivism or a repeat
pattern, we can go up to as
high as $25,000.
>> $3,000 or $5,000 on a house
that is probably going to go for
more than $890 doesn't seem
like much.
Are the fines steep enough?
>> Well, in our experience, the
fines are more than adequate.
>> Charlsie: Even so, there's
a slim chance of getting caught.
That's because bidding wars
go down in secret.
So buyers will never know why
they lost a house.
Unless they go searching
for answers.
>> We were looking for
two years.
>> Wow.
>> We wanted to make sure
we were moving to the
right house, right?
The right area?
We're pretty picky.
This is it.
This is the one.
>> What a property.
>> Beautiful, eh?
>> Charlsie: This was supposed
to be Kevin Waylands
forever home.
The perfect place to raise
his family.
>> Charlsie: You lost this one.
>> Yup.
>> Charlsie: He was devastated
when he discovered it sold
to another buyer for $30,000
less than he tried to offer.
>> The listing agent himself
had also brought the buyer
forward, and that's when we
thought -- that's why our offer
wasn't accepted.
>> Charlsie: What do you
make of that?
>> I think he purposely blocked
our offer so that he would get
double commission.
>> Charlsie: Suspicious?
Kevin tracks down the owners
that sold the house.
>> I told them that, you know,
we were offering $30,000 over
and he's like what?
I said yeah, we tried to get
our offer through, and you
wouldn't, your agent wouldn't
respond to our pages.
And he even said himself,
he said well that's ridiculous,
because my agent was in the
office, so there's no reason
that he shouldn't have
got your pages.
>> Charlsie: So you lose the
house, the sellers lose out
on the money, and --
>> The listing agent walks away
with a big smile and
a big Bankroll.
>> Charlsie: The owners who
sold this house aren't the only
ones losing out.
Studies show when the same
agency represents both buyer
and seller, properties sell
for $1.4% less.
On the average home in Toronto,
that can add up to $11,000.
Remember, on our undercover
house hunt, these agents were
hired by sellers to get them
the highest price, but that
doesn't stop this agent from
offering to help us save.
>> Charlsie: So he'll make sure
we don't overpay.
Not good for the seller,
but it could mean double
commission for him.
It's not in the best interests
of the seller, who's trying to
get the most for their property.
>> The seller is entitled to
get as much as they possibly
can for the property, and
there's the inherent conflict
that we spoke about.
>> Charlsie: At this house,
we expose another way agents
break the rules to score
double commission.
Shut other buyers out, and rush
our offer through.
>> Charlsie: This agent double
ended close to 40% of her deals
this year.
>> I have control on both sides.
>> I have a problem with this.
The power is in the consumer.
And clearly on the basis of
that, we have people out there
who think otherwise and
certainly that would be a cause
for grave concern, and this
would be, if this took place,
we would be prosecuting and
we would be looking
for maximum penalties.
>> Charlsie: Really?
Maximum penalties.
>> Yes.
>> Charlsie: She wasn't
the only one.
Six out of the ten top agents
broke the rules.
So why allow agents to double
end at all?
>> The way it works now
is effective as long as
everybody's being honest and
working with integrity.
>> Charlsie: So what we just
showed you is that everyone's
not working with honesty
and integrity.
>> Well and you're going to
give me a list of those names,
aren't you?
>> Actually we're not sharing
names or showing faces.
That's because we've been
told behaviour like this
is industry-wide.
Who knows how many others have
lost thousands in profits.
Or like Kevin, the home
of his dreams.
>> It was the perfect house for
us, but we're -- I am trying to
move on to where we are.
And our son is doing really
well where we are now.
It's just -- that was,
that was the house.
That was it.
>> Charlsie: To find a better
way, we're going down under.
Real estate deals like you've
never seen before.
>> This is how it works.
>> Charlsie: You can't afford
to miss this.
>> Charlsie: The real deal on
your "Marketplace."
Canada has one of the most
secretive real estate markets
in the world.
Closed door bidding means
agents can cash-in by breaking
the rules, while buyers and
sellers lose out.
But does it have to be this way?
Nope.
Just follow us to the other
side of the world.
We're going down under.
In Australia, real estate deals
go down like you've never
seen before.
>> We've got a beautiful day
for an auction here.
Let's get the show on the road,
for example.
>> Charlsie: These houses
are up for sale.
>> If you want to buy the house
today, this is how it works.
You better be the one holding
that very last bid.
>> Charlsie: The crowds outside?
Hopeful buyers making
their bids.
>> $920 once.
>> Charlsie: Bidding wars here
happen right out in the open.
>> Property going, going, sold!
>> Charlsie: In Melbourne's
hottest neighbourhoods, about
90% of houses are sold by
auction, almost 1,000 homes
on this day alone.
>> Good luck today.
>> Charlsie: And on the action,
real estate agent and
auctioneer Elliot Gill.
>> This really has been our
pleasure over the last couple
weeks to bring this fantastic
property to market.
>> Charlsie: He's here with his
team, looking for the best
price on the first of five
houses they'll auction today.
>> They call Melbourne the
auction capital of the world.
We love it because it's really
transparent and a buyer can see
exactly what their competitors
are doing.
The law prohibits false bids
and bidders from attempting to
prevent others from bidding and
provides fines for this conduct.
>> Charlsie: Yup, no funny
business here.
>> This is the one you should
be digging deep on, folks.
>> Charlsie: Another different
down under?
Noticeably absent from
the auction, buying agents.
Why don't people have them?
>> Because people are able
to get all of the information
available to them here.
There isn't as much
of a need for it.
>> Let's get the show
on the road!
>> Charlsie: Unlike back home
in most of Canada, sales history
and comparables here are
available for free online.
So everyone here is already
in the know and ready to bid.
>> At $920, $60,
can I make it, sir?
>> Charlsie: As this auction
heats up --
>> At $1 million, $20 would
be your bid.
>> Charlsie: -- we meet the man
leading the charge for consumer
protection in real estate.
Minister Victor Dominello.
>> If we empower the consumer,
we have a stronger marketplace.
>> Get this, there's no double
ending down under.
Aussie lawmakers banned it more
than a decade ago.
>> People are not confident
in the transaction, then that
undermines the whole system.
>> Charlsie: So from your
perspective it's just black
and white.
It just should not happen.
>> Well, from my perspective,
if we try to reintroduce a law
that enabled that to happen,
I'm sure there would be very
much a loud voice from the
consumers saying why are you
doing this.
It doesn't exist now and I think
that's a good place to be.
>> Charlsie: And as for their
open bidding?
>> If you were to suddenly tell
Australians we're going to do
away with the auction process,
what do you think their response
or reaction would be?
>> And I think they'd be
rioting up side those
gates now.
>> Charlsie: No rioting here.
>> Seems fair, you can actually
see his bidding.
>> I can get a feel for that
there's eight people interested
in the property, so when you're
thinking about that and you
want to re-sell it, you have
strong interest.
>> Charlsie: In Canada we do
things pretty differently.
>> Yes.
>> Charlsie: Everything's
in secret.
>> That's crazy.
That is so crazy.
>> It's not right, is it?
>> Charlsie: Yeah,
it's very different.
>> We love Canada, we love
Canadians, so you know,
more power.
>> Charlsie: Does it seem
strange to you?
>> Does seem strange.
>> It's got a fantastic
location, but all the home
really does need is your name
on the contract today.
>> Charlsie: Auctions like this
usually last about 15 minutes.
15 tense minutes.
>> Welcome sir, there's your
competition, front and centre.
>> Elliot and his team make
sure no bids are missed.
>> $20, $30, $40?
$40 it is.
$60?
Thank you.
At $1.6 million -- 
>> Charlsie: And prices go up
and up.
>> $70, good bid!
$71, $72, $73, $74, $75 
>> Charlsie: The sellers are
hoping to get over $1.1 million.
>> $1.19 million.
First time, second time,
first final call.
$5,000.
$1,095 -- and a half, and a
half, there's your competition.
One million ninety-five
and a half.
>> Charlsie: Now it's down to
just two bidders.
>> $198.
>> Welcome back.
Make is 1.2, sir?
>> $1.
>> $1.2, good bid, sir.
Need to let you know -- $500.
>> Welcome back.
$1.25.
I'll call the property
three times.
First call, second call, third
and final call.
Absolutely sure?
>> $500.
>> Welcome back.
>> Charlsie: We take our
findings to the government.
>> Why not just get rid of
double endings?
>> I would be open
to the suggestion.
>> Charlsie: "Marketplace" has
got your back.
>> Charlsie: How not to buy a
house on your "Marketplace."
Caught on camera.
Real estate agents
breaking the rules.
>> Charlsie: In an effort to
double end a deal, and double
their commission while
you lose out.
Six out of ten.
The majority of agents said
I will bend the rules.
What do you make
of our results?
>> If 60% of real estate
agents, which is sort of what
you're asserting, are prepared
to be non-compliant with the
rules, perhaps we need to
tighten what we're doing on an
across-the-board basis.
>> Charlsie: As for the agents,
most tell us they did
nothing wrong.
Some say they were merely
passing on their professional
expertise, though one admits
it happens all the time.
So what's RECO going
to do about it?
Turns out there's not much
they can do.
>> If people are finding
themselves in that situation we
welcome complaints.
>> Charlsie: Most people won't
know when something went wrong,
and I think our test clearly
shows that this is happening
behind closed doors.
>> Well, we can only discipline
on the basis of who complains,
so we're more akin to a fire
department as we are
to a police force.
We respond to the call as
opposed to having the resources
to go out and look for
misconduct or noncompliance.
>> Charlsie: So why not
eliminate double ending?
>> Certainly from the
perspective of the consumers
that are hurt, they want that
gone and that's really
something that the government
really has to think
seriously about.
>> Charlsie: And since the
government has the power to ban
double ending, we take our
findings to them.
Marie-France Lalonde
is Ontario's Minister
of Government and
Consumer Services.
Does she think double ending
should go?
The complaint system
doesn't work.
Why not just get rid of it?
>> At this point what I would
say is that RECO has
that authority and
that responsibility.
>> Charlsie: They told us that
you're the ones who give them
the tools, you're the ones
who set the law.
Sounds like you're passing the
buck to RECO and RECO's passing
the buck to you.
>> Well, we have confidence
in their ability,
and their leadership.
>> But why not just get rid of
double ending?
>> I would be open to the
suggestion, but I think that
currently, under our
legislation, the regulation
is there to protect
those consumers.
>> Charlsie: So the minister
is okay with things the way
they are.
But if you're not, Melbourne
might be the place for you.
>> At $1,202,500.
Calling again for the third,
possibly the final time.
Are we done?
We're selling the property.
No late surprises!
We're selling, sold!
Congratulation,
welcome to Burnley.
>> Charlsie: This house sells
for $1.2 million, out in the
open, for buyer and seller
to see.
>> Charlsie: You are the seller.
>> Yes.
>> Charlsie: And you
were watching?
>> Yeah, we were actually
watching through these
slats here.
We could hear everything that
was going on.
It was very exciting.
>> Charlsie: On this side of
the world, at least, everyone
gets a fair shake.
>> Charlsie: Next week
on "Marketplace,"
millions of followers,
dozens of daily posts.
>> Kim Kardashian, on your
phone, talking to you.
>> Charlsie: But are they
letting you into their lives or
just cashing-in?
>> About $75,000 for
a single post.
>> Charlsie: The murky new
world of celebrity
endorsements.
