Is My Realtor Scamming Me? How to Tell What's Normal—and What's a Red Flag

Something about your real estate transaction doesn't feel right.

Maybe you've been asked to sign a document you don't understand.

Maybe the commission isn't what you expected.

Maybe money is being requested.

Maybe your Realtor seems reluctant to answer a question.

Or perhaps you've discovered something about the transaction that you believe should have been disclosed earlier.

So you search:

“Is my Realtor scamming me?”

First, don't assume that something confusing or unexpected automatically means you've been scammed.

Real estate transactions involve contracts, commissions, deposits, conditions, disclosures and multiple professionals. Sometimes what appears unusual to a consumer has a legitimate explanation.

But you also shouldn't ignore legitimate concerns.

The better question is:

Can my Realtor clearly explain what's happening, and does that explanation match the documents and information I've been given?

Here's where to start.

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First: Verify That Your Realtor Is Registered

Ontario real estate agents and brokerages must be registered with the Real Estate Council of Ontario (RECO).

RECO maintains a public register consumers can use to check registration information, and RECO publishes certain enforcement information as well.

If you're about to work with someone—or something about their identity or brokerage affiliation concerns you—verification is a sensible first step.

Check RECO's Public Register and consumer resources

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Red Flag #1: You're Being Asked to Sign Something You Don't Understand

Real estate involves legally significant documents.

You might encounter:

representation agreements;

listing agreements;

Agreements of Purchase and Sale;

amendments;

waivers;

notices;

directions regarding deposits;

and other documents.

Being asked to sign documents is normal.

Being unable to get a clear explanation of what you're signing and why deserves attention.

For representation agreements specifically, RECO says the agreement should address matters including the scope of the engagement, services, remuneration, duration and termination provisions.

Ask:

What is this document?

What does it require me to do?

What does it require the brokerage to do?

How long does it apply?

What will I pay?

What happens if I want to terminate the relationship?

If you don't understand the legal implications, speak with a real estate lawyer before signing.

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Red Flag #2: The Commission Isn't What You Expected

This is an area where misunderstanding can quickly become suspicion.

There is not one government-mandated Realtor commission rate in Ontario.

RECO's current Information Guide states that the client and brokerage decide what the client will pay for services; the amount is not fixed or approved by RECO, a government authority, real estate association or board.

So a Realtor charging a particular commission isn't, by itself, evidence of a scam.

The important question is:

What did you agree to pay?

Your representation agreement should clearly explain the remuneration arrangement and circumstances in which the amount might change.

If the amount you're now being told you owe doesn't appear to correspond with the agreement, ask for a written explanation.

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Red Flag #3: You're Told That a Fee or Commission Is “Required by Law”

Be careful with statements suggesting a particular Realtor commission percentage is legally required.

RECO specifically states that remuneration is negotiated between the client and brokerage and isn't fixed or approved by RECO, government or a real estate board.

There may absolutely be fees you're contractually obligated to pay because you agreed to them.

That's different from saying the government mandates a particular commission percentage.

Ask to see where the obligation appears in your agreement.

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Red Flag #4: You Don't Know Where Your Deposit Is Going

Real estate deposits can involve significant amounts of money.

Don't rely solely on a text message containing banking or payment instructions.

Before transferring significant funds, confirm:

Who is supposed to receive the money?

What does your Agreement of Purchase and Sale say?

What instructions have you received from the appropriate brokerage or lawyer?

Have payment instructions unexpectedly changed?

If banking instructions suddenly change, independently verify them using trusted contact information rather than simply replying to the message containing the new instructions.

Real estate transactions can also be targets for impersonation and payment fraud. Treat unexpected requests involving money with particular care.

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Red Flag #5: Your Realtor Won't Explain Who They Represent

You should know whether you're a client and who is representing your interests.

Ontario permits brokerage representation and designated representation.

Under designated representation, one or more specific agents represent you and must promote and protect your best interests; the brokerage and its other agents have different obligations toward you.

This becomes particularly important when the same brokerage is involved on both sides of a transaction.

If multiple representation arises, additional disclosure and consent requirements apply.

Representation shouldn't be mysterious.

Ask:

Who represents me in this transaction?

You should be able to get a clear answer.

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Red Flag #6: You're Pressured Not to Read the Documents

Real estate can move quickly.

An offer may have an irrevocable deadline.

A competing-offer situation may require a fast decision.

A condition may be approaching its deadline.

That doesn't mean you should blindly sign documents.

There is a difference between:

“We have 30 minutes before the offer deadline, so we need to review this now.”

and:

“Don't worry about reading it. Just sign.”

If you don't understand something, ask.

If the question requires legal interpretation beyond your Realtor's expertise, obtain advice from your lawyer.

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Red Flag #7: Your Questions About Money Keep Getting Avoided

You should be able to understand the financial structure of the services you're purchasing.

For example:

How is the brokerage compensated?

What have you agreed to pay?

Could you personally owe a commission shortfall?

When is remuneration payable?

Are there circumstances in which the amount changes?

Are there fees in addition to commission?

RECO requires remuneration arrangements to be addressed in the representation agreement.

You don't need to be an expert in real estate compensation.

But you should understand your own financial obligations.

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Red Flag #8: The Realtor's Interests Seem to Be Coming Before Yours

This is more substantive.

RECO says that when you are a client, your representative owes duties that include undivided loyalty, disclosure, confidentiality and avoiding conflicts of interest. Your interests take priority over those of the brokerage, its agents and other parties.

That doesn't mean your Realtor has to agree with everything you want.

In fact, good representation sometimes requires telling a client something they don't want to hear.

But recommendations should be based on professional judgment and your interests—not simply on what produces the fastest transaction.

If you're concerned, ask your Realtor to explain the reasoning behind the recommendation.

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Red Flag #9: Important Information Isn't Being Disclosed

Clients are entitled to important disclosures.

RECO says representatives must tell clients what they know about the transaction or client relationship that could affect the client's decisions.

That doesn't mean your Realtor knows everything about a property.

Nor does it mean they're qualified to provide engineering, legal, accounting or other specialized advice.

But if you're concerned that material information known to your representative has been withheld, that's something to take seriously.

Document the concern and ask for clarification.

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Red Flag #10: Your Confidential Information Is Being Shared

Your motivation matters.

Your negotiating position matters.

How much you're willing to pay or accept matters.

RECO identifies confidentiality as one of the duties owed to clients and specifically notes that confidential information can include a client's motivation and the amount they're willing to pay or accept.

If you believe confidential information has been improperly disclosed, document exactly what occurred.

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What Isn't Automatically a Scam?

This part is just as important.

A Realtor recommending a price reduction isn't automatically doing something wrong.

A Realtor telling you your offer probably isn't competitive isn't automatically trying to make you spend more.

A Realtor receiving commission isn't evidence of wrongdoing.

A home failing to sell isn't proof that your Realtor failed to represent you properly.

Losing a competing offer doesn't mean the process was fraudulent.

And discovering that another agent from the same brokerage represents the other party doesn't automatically mean something improper has occurred.

Facts and documentation matter.

Don't jump from:

“I don't understand this.”

to:

“I'm being scammed.”

Instead, investigate the concern.

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Ask for the Explanation in Writing

If something doesn't make sense, this is one of the simplest steps you can take.

Ask:

“Can you please explain this to me in writing and show me where this appears in the agreement?”

That creates clarity.

It also gives you something concrete to review with your lawyer, brokerage or another appropriate professional if necessary.

Keep relevant:

emails;

texts;

representation agreements;

offers;

amendments;

receipts;

payment instructions;

and other transaction documents.

If a complaint is eventually necessary, documentation matters. RECO's complaint process asks consumers to provide details and supporting documents, such as agreements and correspondence.

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Talk to the Brokerage

Remember: your representation agreement is with the brokerage.

If you have a concern that hasn't been resolved with your Realtor, RECO's consumer guide recommends contacting the brokerage first. In many cases, the brokerage may be able to mediate or resolve concerns regarding an agent or services provided under the representation agreement.

You can ask to speak with the appropriate manager or Broker of Record.

This can be particularly useful when the problem may actually be a misunderstanding about:

the representation agreement;

commission;

services;

communication;

or brokerage procedures.

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When Should I Contact RECO?

If your concern relates to the conduct of an Ontario real estate agent or brokerage and hasn't been appropriately resolved, you can review RECO's complaints process.

RECO investigates complaints about agents and brokerages and can take various regulatory or disciplinary actions where appropriate.

RECO Complaints Process

One important distinction:

RECO does not cancel contracts or award compensation or damages. Those matters may require legal advice or civil proceedings.

So if your concern involves potentially losing money, terminating a contract, recovering damages or determining your legal rights, consider speaking with an Ontario lawyer.

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Don't Ignore Your Instincts—Verify Them

There's a useful middle ground between blindly trusting everything and assuming everything unusual is a scam.

Ask questions.

Read the documents.

Verify the people involved.

Confirm money-transfer instructions independently.

Ask for explanations in writing.

Speak with the brokerage when appropriate.

Get independent legal or professional advice when the issue goes beyond your Realtor's expertise.

And if the facts indicate a legitimate regulatory concern, Ontario has a process for raising it.

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If you're searching “Is my Realtor scamming me?”, something has probably caused you to lose confidence in the process.

That doesn't establish that your Realtor has done anything improper.

But it does mean you need clarity.

A professional real estate relationship should allow you to understand:

who represents you;

what you're signing;

what you're paying;

where your money is going;

what information is being disclosed;

and

why your Realtor is recommending a particular course of action.

When something doesn't make sense, don't be afraid to ask questions.

You should understand the real estate decisions you're being asked to make.

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Looking for a Real Estate Relationship Built Around Clarity?

At the Ana Bastas Real Estate Team, our approach is built around helping clients understand the strategy, documents and decisions involved in their transaction.

We believe informed clients make better real estate decisions.

If you're considering buying or selling in Ontario, we'd be happy to explain our process and approach to representation.

If you're currently represented by another brokerage, we will respect your existing representation relationship and contractual obligations.

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