An independent advisory group formed to investigate the controversial practice of shadow-flipping in B.C.’s real estate market has released a report outlining 28 recommendations aimed at protecting consumers.

Among them is a call to hike the maximum penalty for real estate agent misconduct from $10,000 to a much steeper fine of $250,000. The group also recommends increasing the maximum fine for brokerages from $20,000 to $500,000.

“Given the size of the potential rewards for misconduct in the current real estate market, current penalties… may represent little more than the cost of doing business,” the report reads.

On the specific matter of shadow-flipping, the report begins by lauding the B.C. government’s recent intervention in the industry, which included implementing new rules that require agents to get consent from sellers before re-assigning a contract for a home.

But the report warns that the measure only applies to licensed agents, which could drive the practice to unregulated parts of the market, such as “for sale by owner” business enterprises.

The advisory group recommends avoiding that outcome by making the consent rules apply to all forms of real estate contract, regardless of whether agents are involved.

Another recommendation is to ban agents from representing multiple clients on the same deal to ensure the best interests of all clients are properly considered.

That’s just one of the measures NDP housing critic David Eby said are long overdue in the province.

“There’s no way that a realtor can represent the interests of both a buyer and a seller in a transaction, especially in this real estate market,” Eby said.

The MLA said the only recommendation missing from the report is to explore ending the current system of allowing the industry to self-regulate through the Real Estate Council of B.C.

“Clearly there’s going to need to be a profound response from both the Real Estate Council and the government to fix these issues, to restore public confidence in this regulator,” Eby said.

“Failing that, then… self-regulation should end.”

The independent advisory group’s report addresses the self-regulation question, noting the approach is widely used across Canada in various professions and industries.

It also describes self-regulation as a “privilege, not a right,” which can be lost if proven ineffectual.

Following the release of the report, the Real Estate Council said it has created a committee that will establish timelines for swift adoption of the recommendations.

“We understand that for many British Columbians, buying or selling a home is the biggest financial transaction they will make in their lives,” executive officer Robert Fawcett said.

“It is a stressful, often emotional experience and they count on real estate professionals to provide them with the information, guidance and advice they can trust.”

To read the full report, click here.

With a report from CTV Vancouver’s Mi-Jung Lee and files from The Canadian Press