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Expired listings and privacy laws

Expired listings and privacy laws: A warning for REALTORS®

In today’s uncertain real estate market, listings are expiring or being terminated more frequently than we’ve seen in years. For example, freehold properties in Toronto have been terminated or expired approximately 39 per cent more than this time last year. Some agents see this as a window of opportunity—a moment to swoop in and pitch their services to what they assume must be a motivated seller.

 

But here’s the truth: if a seller indicated “no” to post-expiry contact, which applies to expired, terminated or cancelled listings, reaching out isn’t just pushy, it could be a serious breach of privacy. This instruction is also carried forward to the MLS listing itself, providing other agents with clear guidance on whether post-expiry contact is permitted or not.

 

When the line is crossed
 

Recently, I encountered a disturbing series of events that perfectly illustrate the issue with one of our brokerage’s listings. After the listing expired, several agents contacted the homeowner—one by calling their personal cell phone (addressing them by name), and others by door-knocking the property. Footage from the seller’s security cameras showed two agents approaching from a nearby park and visiting only that one house—it was clear that no other doors on the street were knocked. This pair even asked to come inside the property. Another agent misleadingly told the seller that relisting the property two days after expiry wasn’t allowed, casting doubt on the seller’s confidence in their previous agent.

Let’s be clear: this is completely unacceptable.

 

Understanding the legal boundaries
 

In Ontario, the Ontario Real Estate Association’s (OREA) listing agreements include a specific clause asking sellers whether or not they wish to be contacted by other agents once their agreement ends. The majority of sellers, understandably, say no. When that answer is marked “no,” it’s not a suggestion. It’s a legally binding instruction tied to a contract.

The Privacy Commissioner of Canada has consistently supported the view that contacting sellers after expiry, especially using private information obtained through MLS access, violates privacy rights. A 2006 bulletin from OREA highlights a case in which the Privacy Commissioner ruled that using expired listing data to solicit business without the homeowner’s consent is not permitted. Once a listing has expired, the purpose for which the personal information was collected has ended, and using that information to solicit the individual breaches privacy legislation (you can read more about it in OREA’s bulletin).

 

Aside from the legalities, let’s talk about reputation.  What do you think a seller is going to do after being hounded by agents who shouldn’t be contacting them? They’ll post about it on social media. They’ll tell their neighbours. They’ll share their frustration at dinner parties. Worse, they’ll lose trust, not just in you, but in our industry as a whole.

When agents disregard privacy instructions, they reinforce every negative stereotype about real estate: that we’re pushy, self-serving and opportunistic.

 

To read the full article on the Real Estate Magazine.........'CLICK HERE'

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