The Real Estate Council of Ontario (RECO) has fined salesperson Beau Spencer $25,000 and ordered him to complete an ethics course after finding he misrepresented the number of competing offers on a property and posted inaccurate tax information in an online listing. The decision was released by RECO’s Discipline Committee on March 20, 2025. Some information was anonymized by RECO to protect the privacy of some of the parties involved.
According to an agreed statement of facts, Spencer was both the seller and the seller’s representative for a multi-residential four-unit property located at 1-A Street in City A, Ontario. On May 18, 2023, he and his wife signed a seller representation agreement with his employer, Brokerage A, setting the listing price at $1,100,000 with a 4.5 percent total commission. The listing was posted to the local multiple listing service (MLS), stating that the annual property tax for 2023 was $3,192. In reality, the correct tax amount was $6,301.04.
On May 24, 2023, multiple offers were made on the property. At 6:48 p.m., an offer from one buyer was submitted at $1,075,000 with a June 28, 2023, closing date. Less than an hour later, a second offer from the eventual buyer, represented by another agent, came in at $1,050,000 with a July 24, 2023, closing date.
At 8:58 p.m., Spencer received a text message from a third agent indicating that their clients wished to make an offer but were in a meeting. Spencer replied with a suggested deadline of 10:15 p.m. He then contacted the two agents who had already submitted offers, telling them a third offer had been confirmed and asking if they wished to improve their bids. In reality, no third offer was ever received.
Following Spencer’s message, the eventual buyer’s representative sent a second, higher offer of $1,130,500, keeping all other terms the same. After reviewing it, Spencer asked if the buyer would consider removing conditions or moving to a quicker closing. A counteroffer was made adjusting only the closing date to June 28, 2023, which the buyer accepted. The sale closed as agreed, and Spencer earned approximately $28,137.50 in commission.
In August 2023, the buyer discovered that the annual property taxes were nearly double the amount stated in the MLS listing. The buyer notified Spencer of the discrepancy, but settlement negotiations between the parties were unsuccessful.
Spencer admitted that he breached the Real Estate and Business Brokers Act, 2002 (REBBA) Code of Ethics by including incorrect property tax information in the listing and by falsely stating that a third offer had been submitted. These actions were found to violate sections 3 (fairness, honesty, integrity), 37(1) (inaccurate representations), and 39 (unprofessional conduct) of the Code.
Under the agreed penalty, Beau Spencer must pay the $25,000 fine within 365 days and complete the Real Estate Institute of Canada’s “REIC 2600: Ethics in Business Practice” course within 90 days, providing proof of completion to RECO within 60 days thereafter.
