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Department staff flag wholesaling, misrepresentation and CHFA disclosure questions in complaints briefing
Summary
DCP staff told commissioners that complaints continue to focus on wholesaling and misrepresentation; the department’s attorney said checking a CHFA box on listings raises complex fair-housing questions and staff will research guidance.
Department staff briefed the commission on complaint trends and enforcement challenges, highlighting wholesaling, misrepresentation of property features and contract drafting problems as frequent causes of cases.
Jason (department staff) characterized wholesaling as a growing problem that generates many consumer complaints; staff noted enforcement is difficult because deceptive practices are often oral or leave little documentary evidence. Commissioners said vulnerable, older homeowners are frequent targets and discussed increasing broker accountability when salespeople commit violations.
Staff and commissioners also described common misrepresentation issues — inaccurate square footage, unpermitted additions advertised as bedrooms and sloppy contracts lacking clear dates. Speaker 10 suggested licensees could benefit from a contracts-focused course to reduce such errors.
Annalie Savillard, staff attorney for the department, raised a legal concern about listing or checking the type of financing (for example, CHFA) on listing forms. She said doing so could implicate fair-housing rules that bar discrimination on the basis of funding source and that the issue produced strong disagreement at an instructor seminar. Annalie said the department would research the question and consult supervisors and the real estate team to produce guidance.
Commissioners asked staff to return with more definitive guidance after legal review. No new enforcement policy or statutory change was adopted on the record during the meeting.
