Shadow flipping banned by Richmond real estate firm

A Richmond-based real estate company is garnering attention by offering a no-shadow-flipping guarantee to its clients.

'Instead of waiting we're being a proactive company," says Metro Edge CEO Kelly Lynch

Kevin Lynch, CEO of Metro Edge Realty says his company will not allow its real estate agents to engage in the practice of shadow flipping. (Jacy Schindel/CBC)

A Richmond-based real estate company is garnering attention by offering a no-shadow-flipping guarantee to its clients.

"Instead of saying 'let's let it go' and 'it's not a big deal,' well, it's a big deal to someone who lost," said Metro Edge Realty CEO Kevin Lynch. "So instead of waiting, we're being a proactive company."

(Jacy Schindel/CBC)

Shadow flipping involves a real estate agent reselling a property numerous times at increasingly higher prices before finally closing the deal.

The agent collects multiple commissions by using an assignment clause in the real estate contract that allows for the flipping. Sellers lose out because they do not realize the highest potential price for their property, and buyers ultimately end up paying more.

The Real Estate Council of B.C. has appointed an independent advisory group to investigate the practice of shadow flipping. The review will examine how the council identifies and responds to alleged misconduct and whether conduct requirements are adequate and effectively enforced.

​The independent panel is expected to provide an interim report by the beginning of April, and a full report with recommendations by the end of May. 
 

Comments

To encourage thoughtful and respectful conversations, first and last names will appear with each submission to CBC/Radio-Canada's online communities (except in children and youth-oriented communities). Pseudonyms will no longer be permitted.

By submitting a comment, you accept that CBC has the right to reproduce and publish that comment in whole or in part, in any manner CBC chooses. Please note that CBC does not endorse the opinions expressed in comments. Comments on this story are moderated according to our Submission Guidelines. Comments are welcome while open. We reserve the right to close comments at any time.