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 Member Information > Disciplinary Decisions. 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.
administrative penalties
June 2008 - August 2008.
- 1 breach regarding unauthorized activity [s.17(c) of the Real Estate Act]
- 1 breach regarding notification of industry members [ s.40(1) of the Real
Estate Rules]
- 2 breaches regarding year end reporting [s.90 of the Real Estate Rules]
- 1 breach regarding broker responsibilities [ s.21(1) of the Real Estate
Rules]
- 1 breach regarding industry member prohibitions [s.42(g) of the Real
Estate Rules]
- 4 breaches regarding absence of trust transactions [ s.92(1) of the Real
Estate Rules]
- 1 breach regarding accepting a commission or other remuneration from an
person except the brokerage with which they are registered [s.24(1)(c) of
the Real Estate Rules]
Consent agreements
June 2008 to August 2008
Lucia Bermudez-Prado, ASSOCIATE
real estate associate then registered with Unison Realty Group Ltd. and currently
registered with Seventh Level Management Ltd O/A Keller Williams Realty South.
Issues:
- Failure to render competent service [s.6(c) of the Code of Conduct, as it was
then]
- Failure to fulfill fiduciary duty [s.2(k) of the Code of Conduct, as it was then]
Facts:
- Lucia Bermudez-Prado was registered as an associate with Unison Realty Group
Ltd at all material times and is currently registered with Seventh Level
Management Ltd o/a Keller Williams Realty South.
- Lucia Bermudez-Prado, then a new industry member, assisted Client A in a sale
and purchase in November 2005.
- The sale of the Client A’s home concluded, however Client A lacked sufficient
funds to close on the new purchase.
- As a result Client A was required to rent accommodations in a rapidly
appreciating housing market.
- The sales agreement of the Client A’s home concluded first and was made
subject to two seller’s conditions.
- The seller’s conditions were that the seller find new accommodation and
financing for the new purchase.
- Client A appears to have been relying on insurance proceeds from the settlement
of 2 claims, a motor vehicle accident claim, and a critical illness benefit claim, to
assist with the new purchase.
- Prior to the waving of conditions, it became apparent that the disability benefit
would not come through.
- Ms. Bermudez-Prado had reservations regarding the completion of the
transaction in light of the failure of the critical illness claim, but proceeded on the
complainant’s assurances that the personal injury claim had settled.
- Ms. Bermudez-Prado permitted and facilitated the waiver of seller’s conditions on
the sale without directing Client A to advice regarding the availability of insurance
funds, and despite the fact that the financing conditions in the new purchase
agreement had not been strictly met.
- Insurance monies never became available to the clients and they could not
complete the purchase for want of funds.
Results:The Hearing Panel found Ms Bermudez-Prado’s conduct deserving of sanction and
ordered her to pay a fine of $2,500; costs of $1,000 and complete an educational
requirement.
Abby Khalil, associate
real estate associate registered with Calgary Independent Realty o/a C.I.R.
at all material times and current real estate associate registered with
Calgary Independent Realty o/a C.I.R.
Issues:
- Participated in fraudulent or unlawful activities in connection with real estate or
mortgage transactions [s.7(c) of the Code of Conduct, as it was then]
- Failure to provide all documentation or trade records to the broker [s.23(3) of the
Rules, October 1999 – September 2006]
Facts:
- In 2002/2003 Abby Khalil acted as real estate agent for Client A in the purchase
of a property.
- She also acted as agent in the subsequent sale of that property.
- The property was the subject of a purchase contract in August of 2003.
- The contract fell through when the buyer did not come to view the property and did not provide a deposit. However, the contract had been signed by all parties
before it fell through.
- In 2005 Client A complained to RECA that Ms. Khalil had violated REA legislation
by not providing appropriate advice to him regarding the price of properties, and
by pressuring him into purchases.
- The complaint was dismissed for lack of evidence although an advisory note was
issued to Ms. Khalil regarding her witnessing a client’s signature when she had
not seen the client sign.
- Client A sued Ms. Khalil and the brokerage in civil court. As a result of the civil
claim three documents were released to Client A by Ms. Khalil and her
brokerage. Upon examination of the documents, Client A found three initials that
were purported to be his, but that he states were not written by him.
- He submitted this evidence to RECA and requested that the investigation be reopened.
- The documents were sent to handwriting experts. The experts stated that it was
very likely that two of the sets of initials were not Client A’s.
- The third initial may or may not have been written by him.
- The handwriting experts were unable to state whether Ms. Khalil had written any
of the initials.
- Ms. Khalil has no recollection of having created the initials, or of who did.
- She agrees that the documents were in her possession, and not easily
accessible to people other than herself or her employees.
- None of the documents were turned into her brokerage, but were rather kept at
her home office by Ms. Khalil, until such time as they were requested for a court
action.
Results:The Hearing Panel found the Ms Khalil’s conduct was deserving of sanction and ordered her to pay a fine of $4,000 and costs of $1,000. The Panel also ordered that Ms Khalil
submit to supervision by her broker for a period of a year from this decision as a
condition of her authorization to trade in real estate.
Barry Meckelberg, associate
real estate associate formerly registered with Envision Property Management
Ltd. and currently registered with Consolidated Real Estate Services Inc.
Issues:
- Failure to comply with associate broker and agent responsibilities [s.23(b)
of the Real Estate Rules, October 1999 – September 2006]
- Participation in the creation of a document he knew or ought to have
known was false or misleading [s.4(d) of the Code of Conduct, as it then
was]
Facts:
- Mr. Meckelberg was first licenced as an associate September 18, 1997.
He has no prior complaint history with RECA.
- In the summer of 2005, Mr. Meckelberg was registered with Envision
Property Management Ltd.
- On May 18, 2005 Mr. Meckelberg moved to Consolidated Real Estate
Services Inc.
- Outside of his activity at Envision and Consolidated, Mr. Meckelberg was
marketing service as a condominium manager.
- He presented himself to prospective clients under the trade name
Absolute Management and Realty.
- He did not advise that he was registered with either Envision or
Consolidated and did not advise his broker of his activity.
- In the course of his marketing his service he offered to collect money on
behalf of an owner.
- From one client he did receive cheques for the current Condo Corporation
operating and reserve funds and set up new Condo Corporation accounts
with the funds.
- During the marketing of his management service he advised a prospective
client that his insurance through REIX covered his activity outside of the
brokerage.
- This was not correct and was not confirmed by Mr. Meckelberg before he
made this representation.
Results: The Hearing Panel found Mr. Meckelberg’s conduct to be deserving of sanction
and ordered him to pay a fine of $2,000, costs of $750 and complete an
educational requirement.
Kurt Weber, associate
former mortgage associate registered to TD Mortgage Brokerage Inc. o/a
Canada Trust Mortgage Brokerage Services at all material times..
Issues:
- Participating in fraudulent or unlawful activities in connection with real
estate or mortgage transactions [s.7(c) of the Code of Conduct as it then
was]
- Facilitating a commission for a trade other than through the brokerage to
which the recipient was registered [s.21(1)(c) of the Rules as it then was]
Facts:
- Mr. Weber was a mortgage agent authorized to deal in mortgages with TD
Canada Trust Mortgage Brokerage Services. He ceased his authorization
with the Real Estate Council of Alberta (hereafter “RECA”) on or about
September 30, 2005. He has not been authorized to deal in mortgages or
authorized in any other industry governed by REACA since this date.
- In or around February 2004, Associate A was representing Client B in his
search for a residential property with an assumable mortgage to purchase.
- Client C became interested in a property that did not have an assumable
mortgage.
- Associate A along with Associate B devised a plan to have an individual
purchase the property, obtain a mortgage on it and have Client C
purchase the property from this individual and assume the mortgage.
- Mr. Weber was recruited by Associate B, a real estate associate formerly
registered and currently under an interim suspension pursuant to s.53(1)(a) of the Real Estate Act to purchase a property as a qualifier
- Mr. Weber participated in this transaction in this regard.
- Mr. Weber applied for a high ratio mortgage through Home Loans Canada
and was approved.
- In his mortgage application, he warranted that he was going to be residing
on the property and that there was a deposit in the amount of $10,105
being provided.
- Mr. Weber in fact had no intention of residing on the property and no
deposit was ever provided for this transaction.
- On or about May 2004, title to this property transferred from Mr. Weber to
Client C
- Mr. Weber paid to Associate B an amount of money for Associate B’s
involvement in the transaction by depositing the funds into Associate B’s
bank account.
Results: The Hearing Panel finds Mr. Weber’s conduct deserving of sanction and orders
him to pay a fine of $10,000 and costs of $250.
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