Case summaries are published in accordance with section 55 of the Real Estate Act. For full versions of the disciplinary decisions summarized below, visit www.reca.ca and click Complaints & Outcomes > Disciplinary Outcomes > Decisions, are publicized to enhance the transparency of RECA’s disciplinary process and to assure consumers that there is an effective framework in place to deal with breaches of the Real Estate Act. To obtain further information about RECA’s policies and procedures, please call 1-888-425-2754.
Audit administrative penalties
April 2009 – May 2009
The Triton Group Inc. o/a Sutton Group Taber Realty (April 2009)
The brokerage failed to submit to the Real Estate Council of Alberta the required accounting documents not later than three months after the end of the brokerage’s fiscal year. Breach of s.91(4) of the Real Estate Act Rules.
$1,000
Dumasi Real Estate Inc. (April 2009)
The brokerage failed to submit to the Real Estate Council of Alberta the
required accounting documents not later than three months after the end of the brokerage’s fiscal year. Breach of s.91(4) of the Real Estate Act Rules.
$1,000
TRC Realty Management Inc. (April 2009)
Pursuant to section 90 of the Rules made pursuant to the Real Estate Act, the
Brokerage is required to report to Council at their fiscal year end with regard
to the operation of its accounts in which money is held in trust. The Brokerage failed to report the operation of its accounts in which money is held in trust to the Real Estate Council of Alberta. Breach of s.90 and s.91(4) of the Real Estate Act Rules
$1,500
CMS Canada Corporation o/a Paladin Group CMS (May 2009)
The Brokerage failed to submit to the Real Estate Council of Alberta the
required documents not later than three months after the end of the brokerage’s
fiscal year. Breach of s.92(1) of the Real Estate Act Rules.
$ 500
1128632 Alberta Ltd. (May 2009)
The Brokerage failed to submit to the Real Estate Council of Alberta the
required documents not later than 3 months after the end of the brokerage’s
fiscal year. Breach of s.91(4) of the Real Estate Act Rules.
$1,000
administrative penalties
May 2009-
June 2009
May 2009
Lyle Magnuson, broker
Magnuson Realty Ltd.
- Failure to provide competent service (s.41(b) of the Real Estate Act Rules)
- Mr. Magnuson failed to provide sufficient or any advice to his buyer clients concerning whether GST would be owed prior to their signing the purchase contract or at all. The buyers found out they owed GST (approximately $31,000) after they waived all conditions.
- $3,000 Administrative Penalty
June 2009
Patricia Bedry, associate
Tempo Real Estate Ltd. o/a Royal LePage Benchmark
- Discouraged a client, customer or a party to a trade in real estate or deal in mortgages from seeking legal counsel or expert advice (s.42(d) of the Real Estate Act Rules)
- Despite being aware that a property was listed, Ms Bedry presented her buyer client’s offer to a seller without the knowledge, presence or consent of the seller’s representative. Notwithstanding that the seller pointed out he did not have his representative present and thus no one was protecting his interests in the transaction, Ms Bedry continued with the negotiation and completion of the offer to purchase. Ms Bedry failed, without reasonable excuse, to provide any notice of the completed offer to purchase to the listing brokerages until the next day despite her ability to contact the listing brokerages or designates.
- $1,500 Administrative Penalty
Consent Agreements
June 2009
Randall Mader, associate broker
856442 Alberta Ltd. o/a Quest Realty
Issues:
- Interfered with a contractual arrangement related to real estate [s.7(h) of the Code of Conduct, as it was then]
- Failed to be professional in his dealings with other industry members [s.7 of the Code of Conduct, as it was then]
Facts:
- On or about December 8, 2005, XYZ Homes entered into a real estate listing contract with real estate associate, Mr. R, for the sale of vacant land.
- The property was immediately placed on the Multiple Listing Service® (MLS®).
- On or about January 2, 2006, Randall Mader showed his buyer client, Mr. B, the property. Mr. B was looking for land to purchase with the intention of building a new home on the land.
- When this showing took place, Mr. R’s real estate signs along with the signs of XYZ Homes were on the property.
- On or about January 2, 2006, Mr. Mader presented an offer to purchase on behalf of Mr. B to Mr. J. Mr. J was one of the principals/owners of XYZ Homes.
- On or about January 2, 2006, final acceptance was reached between the parties for the purchase of the property.
- After final acceptance, Mr. Mader attended at XYZ Homes’ office again and presented a commission agreement that, if signed, would entitle Mr. Mader to a set amount of commission.
- Mr. Mader presented the commission agreement to Mr. J for his signature and Mr. J told him he thought his father (who was also a principal/owner of XYZ Homes) had a listing agreement with Mr. R, so he would check what the agreement was and agreed that whatever the agreement was between Mr. R and his father, Mr. Mader would be paid the same amount.
- Mr. Mader maintains that during his original conversations with Mr. J, he asked Mr. J twice if the property was listed for sale with a real estate associate and Mr. J told him it was not.
- Mr. J advised a RECA investigator that when the commission agreement was presented to him for his signature, he told Mr. Mader he would not sign it as the property was listed with Mr. R.
- Mr. Mader did not contact Mr. R to determine if Mr. R had any arrangement with XYZ Homes regarding the sale and/or listing of the property.
- Mr. Mader also did not check MLS® to see if the property was listed.
- Mr. Mader maintains that he accepted Mr. J’s word that the property was not listed as he had done business with Mr. J and his father for more than 20 years.
- Mr. R, the property’s listing agent, became aware of Mr. B’s real estate purchase contract and contacted Mr. Mader asking him for a copy it.
- Between January 2, 2006 and February 7, 2006, Mr. J asked Mr. Mader on two or three occasions to provide the purchase contract and Mr. Mader failed to do so.
- Mr. Mader told Mr. R he wanted to see a copy of Mr. R’s listing agreement for the property first before he would provide the purchase contract to him.
- Mr. Mader also told Mr. R if he wanted a copy of the purchase contract, he could contact Mr. J and request it.
Results: The Hearing Panel ordered Randall Mader to pay a fine of $2,500, costs in the amount of $250 and complete an educational requirement.
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