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Written on May 17th, 2016

There has been a lot of discussion and media attention with regards to “shadow flipping”.  Well-earned negative attention as it could also be called “Shallow flipping” because any realtor involved in this sordid way of doing business is shallow and not thinking through the long-term damage that this type of behavior creates both personally and professionally. Here’s what it is all about

Basically, shadow flipping or contract assignment creates an opportunity for Realtors to make multiple commissions and investors to make tax-free money on homes that are not yet in their possession. As best described by Lauren Sundstrom from Vancitybuzz: “Buyers can sell or transfer their interest if there’s an “assignment clause” in the contract and the house is then re-sold for more money, allowing the buyer to turn a profit and the real estate agent to get multiple commissions.” If that sounds like too much jargon here’s how it works in layman’s words.


  1. A Realtor sell your house for $1,000,000 to buyer A.
  2. Before your contract is completed, the realtor gets buyer A to flip the property to buyer B for $1,250,000. This is all done without you knowing.
  3. The Realtor if representing both the original seller and buyer earns a full commission of approximately $37,000 (double end deal).
  4. The Realtor then brokers the sale between buyer A and buyer B who are both most likely his clients therefore earning another $37,000.
  5. The original seller loses over $250,000 in unrealized sales, buyer A makes $250,000 selling to buyer B.
  6. The Realtor earns $74,000 and leases a Ferrari!
  7. If you ask me this is a sad way to make a buck and it is only a very tiny percentage of the market.


“I have an old fashioned take on what it means to be your Realtor. I believe in honesty, confidentiality and most important I want clients to feel that they have someone who they know is only out for their “best interest”; someone who will not forget about them if a sale is taking longer than expected; someone who will continue to think of new ways to expose your house to as many qualified buyers as possible; and finally someone who understands the economics of pricing and market values based on sales and data. You have my word on it.”


New mortgage rules came into effect February 15th, requiring Canadians to make a larger down payment on a mortgage. Previously, potential homeowners were required to put a minimum of 5% down on a mortgage. The new rules require potential homeowners to put 5% per cent down on the first $500,000, and then an additional 10% on any dollar value above that. The new rules are designed to slow the growth of red-hot housing markets like Vancouver and Toronto.


If you are thinking about a mortgage I always recommend using a Mortgage Broker. Using a mortgage broker doesn’t cost you anything but gives you the opportunity to find the best mortgage to fit your needs. Industry language and jargon around mortgages can be difficult to understand.  Consequently, using a Mortgage Broker you can trust is critical. I recommend Scott Snider at Invis. A call to Scott is free and it is always in your best interest to get as much information and help as possible.

Scott Snider – Invis. Cell:604 612 2228,  email :scottsnider@shaw.ca


With the Aussie open finished for the year and the least favourite of my Slams creeping up (French Open) it brings back memories of my almost childlike attempts to play on red clay with the best clay courters in the world. The night before the draw I would literally mentally scroll down my list of the worst first round opponents I could be drawn against. In Paris you wanted to stay away from any opponent who had a name that sounded anything like Guillermo, Horacia, Diego, let alone Sven, Niklas or Lars as by default those names implied clay court maestros.  The goal was to be drawn against someone named Robert, David, Steven, or unfortunately Grant! Those names implied guys who hated high bouncing clay court tennis; guys who grew up at North Shore Winter Club playing on cement; guys who would rather serve and volley than rally 20 times in a row; and finally guys who just played the event because “they could “but had their hearts set on the fast low bouncing grass courts of Wimbledon.

  • Roland Garros (French Open) – Thumbs down
  • Wimbledon – Thumbs Up

Hey, that’s just my opinion!