case summaries

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.

administrative penalties

March 2009 – May 2009
Two Administrative Penalties with the following breaches:

  • 1 breach of failing to act in accordance with a client’s lawful instructions [s.2(b) of the Code of Conduct, as it was then]
  • 1 breach of failing to act in the client’s best interest [s.2(a) of the Code of Conduct, as it was then]
  • 1 breach of failing to provide relevant information to the client [s.2(e) of the Code of Conduct, as it then was]
  • 1 breach of failing to ensure the business of the brokerage is carried out competently and in accordance with the Act [s.21(1) of the Real Estate Act Rules]
Consent Agreements

May 2009

Lawrence Steinke, Broker

STEINKE & COMPANY REALTY LTD.

Issues:
  • Participation in the creation of a contract or document that he knew or ought to have known was not legally binding, confusing or did not reflect an agreement already in place [s.6(c) of the Code of Conduct, as it was then]
  • Failure to use best efforts to ensure that his role in the real estate transaction was clearly understood by the parties to the transaction [s.3 of the Code of Conduct, as it was then]
Facts:
  • Mr. Steinke assisted in the sale of approximately 102 acres of undeveloped land in October 2004. 
  • The property was encumbered by a deferred reserve caveat in the name of the County of Parkland. 
  • Mr. Steinke was aware of interest in the land, and contacted the corporate seller regarding its intention to sell.
  • Initial contact between the complainant seller and Mr. Steinke was very brief and focused primarily on the seller’s intention to sell and the sale price. 
  • There was no evidenced discussion regarding the representative capacity of Mr. Steinke in the impugned transaction.
  • Mr. Steinke completed an offer to purchase, which correctly identified the legal description of the land, but misstated the area of the land to be conveyed, such as to reduce the stated parcel size by the amount of the deferred reserve caveat. 
  • While all parties were aware that the entirety of the land would be conveyed, and that the land totaled 102 acres (more or less) the representation in the offer to purchase was not factually correct.  
  • The seller refused to complete the sale on the original terms, pointing to the inconsistency in the stated area of the land. 
  • The seller claimed to have been misled as to the area of the property to be conveyed and the resulting value of the parcel. 

Results: The Hearing Panel ordered Lawrence Steinke to pay a fine of $3,500, costs in the amount of $1,000 and complete an educational requirement.

 

Jennifer Harrison, real estate associate

Formerly registered with Arteam realty inc. o/a royal lepage arteam realty.

Issue:
  • Made representations and/or carried on conduct that was reckless and/or intentional and that misleads or deceives any person or is likely to do so [s.42(a) of the Real Estate Act Rules]
Facts:
  • Ms Harrison was registered with Arteam Realty Inc. o/a Royal LePage Arteam Realty at all material times.
  • Ms Harrison did not renew her authorization for the 2008-2009 licensing year and as such she is not registered to trade in real estate with any brokerage.
  • Ms Harrison was representing a buyer who was purchasing two condominiums for investment purposes.
  • The buyer’s Offers to Purchase were subject to conditions.
  • When Ms Harrison prepared the condition removal documents for the two properties, she initially only included one of the conditions that was to be removed.
  • After she received the signed condition removal documents from the buyer, she noticed that she forgot to include both conditions on the document.
  • Ms Harrison maintains she contacted the buyer to advise him of the error and of the need to send the documents back to him as she needed to add the missed condition onto the documents and get his signature again.
  • Ms Harrison claims the buyer’s response was that he asked her to add the missed condition to the document herself without his need to sign again as he was out working in the field.
  • The buyer told a RECA investigator that he did not recall telling Ms Harrison that she could add the financing condition onto the document herself.
  • Ms Harrison added the financing conditions onto the condition removal documents without having the buyer sign the documents acknowledging the change.
  • The condition removal documents for both properties had the appearance that the buyer signed the documents reflecting removal of the financing condition when in actuality, at the time he signed the documents, this condition did not appear on either of the documents.
  • Ms Harrison listed herself and signed as a witness on the condition removal documents for both properties when in fact she did not witness the buyer’s signature on either document.

Results: The Hearing Panel ordered Jennifer Harrison to pay a fine of $2,000 and costs of $500.

 

Disciplinary Action

April 2009

Lindsay wayne read, appraiser

Centract Settlement services.

Issue:
  • Acting as a real estate appraiser without proper authorization, contrary to s.17 of the Real Estate Act (the “Act”)
Facts:
  • From October 1, 2004 to September 30, 2005, Mr. Read was authorized as an appraiser by the Real Estate Council of Alberta (“RECA”).
  • On September 30, 2005, Mr. Read did not renew his licence through RECA and did not become authorized again through RECA until July 9, 2008.
  • Between October 1, 2005 and July 9, 2008 inclusive, Mr. Read completed over 900 appraisals of residential property.
  • Between October 1, 2005 and July 9, 2008 inclusive, Mr. Read received a salary and bonus in consideration for completing these appraisals

Results: The Hearing Panel accepted Mr. Read’s Admission of Conduct Deserving of Sanction with regards to a breach of s.17 of the Act. The Hearing Panel ordered that Mr. Read pay a fine in the amount of $11,000 and costs in the amount of $2,646.58.

 

Harrison Tse, Former real estate associate


Issue:
  • Failure to cooperate with an investigator with the Real Estate Council of Alberta who was conducting an investigation [s.38(4) of the Real Estate Act]
Facts:
  • Between January 2006 and May 2008, RECA investigators made repeated requests to Mr. Tse for information. In spite of several phone conversations and letters and communication with Mr. Tse’s lawyers, Mr. Tse provided no information. 
  • Without the information, RECA could not move forward on an investigation of the allegations in question, although several contraventions were noted in the transactions.
  • Because of the lack of information and co-operation from Mr. Tse, a file was opened regarding his non-co-operation

Results: The Hearing Panel found Harrison Tse’s conduct deserving of sanction and ordered him to pay a fine of $10,000 and costs in the amount of $3,974.22.

The Hearing Panel also ordered that the Executive Director not approve any future application from Harrison Tse for an authorization to trade in real estate until he has cooperated with the investigation by the Real Estate Council of Alberta to the satisfaction of the Executive Director.

 

Lifetime withdrawals

May 2009

Suresh Agarwal, Mortgage associate

The professionals group inc.

On May 6, 2008, Suresh Agarwal, former mortgage agent most recently registered to The Professionals Group Inc. in Edmonton, applied to the Real Estate Council of Alberta (RECA) to withdraw from industry membership in accordance with section 54 of the Real Estate Act. At the time of his withdrawal application, Mr. Agarwal was the subject of conduct proceedings to determine whether or not he was involved in fraudulent mortgage transactions.

Mr. Agarwal’s application to withdraw was approved by RECA and results in a voluntary lifetime prohibition from industry membership. By virtue of operation of the Real Estate Act, conduct proceedings are discontinued. There has been no hearing and no finding of facts in this matter. Mr. Agarwal’s withdrawal application does not constitute an admission of misconduct.

 

Ronald Dobbin, real estate associate

1173471 Alberta Ltd. o/a Sutton Central.

On May 6, 2008, Ronald Dobbin, former associate registered with 1173471 Alberta Ltd. o/a Sutton Central in Calgary, applied to the Real Estate Council of Alberta (RECA) to withdraw from industry membership in accordance with section 54 of the Real Estate Act. At the time of his withdrawal application, Mr. Dobbin was the subject of conduct proceedings to determine whether or not he had falsified signatures on a document.

Mr. Dobbin’s application to withdraw was approved by RECA and results in a voluntary lifetime prohibition from industry membership. By virtue of operation of the Real Estate Act, conduct proceedings are discontinued. There has been no hearing and no finding of facts in this matter. Mr. Dobbin’s withdrawal application does not constitute an admission of misconduct.

 

Barbara Hong, real estate associate

Polaris Realty (1995) Ltd. o/a Realty Executives Polaris.

On May 6, 2008, Barbara Hong, former real estate associate registered with Polaris Realty (1995) Ltd. o/a Realty Executives Polaris in Edmonton, applied to the Real Estate Council of Alberta (RECA) to withdraw from industry membership in accordance with section 54 of the Real Estate Act. At the time of her withdrawal application, Ms Hong was the subject of conduct proceedings to determine whether or not she failed to explain her role in a dual agency situation, participated in the creation of false documents, knowingly or recklessly misrepresented the potential market value of a property, allowed a non industry member to perform tasks that only a licensed person should perform and failed to act in a client’s best interest.

Ms Hong’s application to withdraw was approved by RECA and results in a voluntary lifetime prohibition from industry membership. By virtue of operation of the Real Estate Act, conduct proceedings are discontinued. There has been no hearing and no finding of facts in this matter. Ms Hong’s withdrawal application does not constitute an admission of misconduct.

 

James Leahy, REal estate Broker

Protec Property Management Realty Ltd.

On May 6, 2009, Mr. James Leahy, former broker registered with Protec Property Management Realty Ltd., applied to the Real Estate Council of Alberta (RECA) to withdraw from industry membership in accordance with section 54 of the Real Estate Act. At the time of his application, Mr. Leahy was the subject of conduct proceedings to determine whether or not he allowed negative trust balances on client ledgers, failed to notify RECA of fund trust shortages, and charged administration fees as a hidden amount on invoices.

Mr. Leahy’s application to withdraw was approved by RECA and results in a voluntary lifetime prohibition from industry membership. By virtue of operation of the Real Estate Act, conduct proceedings are discontinued. There has been no hearing and no finding of facts in this matter. Mr. Leahy’s withdrawal application does not constitute an admission of misconduct.

 

Hai Quang Nguyen, REal estate associate

Impact Real Estate Group Ltd. o/a Residential One Real Estate.

On May 6, 2008, Hai Quang Nguyen, real estate associate formerly registered with Impact Real Estate Group Ltd. o/a Residential One Real Estate and most recently registered to Unison Realty Group Ltd. in Calgary, applied to the Real Estate Council of Alberta (RECA) to withdraw from industry membership in accordance with section 54 of the Real Estate Act. At the time of his withdrawal application, Mr. Nguyen was the subject of conduct proceedings to examine whether or not Mr. Nguyen misrepresented the terms of a mortgage assumption, acted fairly and with integrity when dealing with non-clients, proceeded to act in a transaction knowing his role was unclear to the parties, failed to advise his broker that he was facilitating a transaction outside his brokerage and failed to provide trade documents to his broker.

Mr. Nguyen’s application to withdraw was approved by RECA and results in a voluntary lifetime prohibition from industry membership. By virtue of operation of the Real Estate Act, conduct proceedings are discontinued. There has been no hearing and no finding of facts in this matter. Mr. Nguyen’s withdrawal application does not constitute an admission of misconduct.

 

Patricia Roque, REal estate associate

Polaris Realty (1995) Ltd. o/a Realty Executives Polaris

On May 6, 2008, Patricia Roque, former real estate associate registered with Polaris Realty (1995) Ltd. o/a Realty Executives Polaris in Edmonton, applied to the Real Estate Council of Alberta (RECA) to withdraw from industry membership in accordance with section 54 of the Real Estate Act. At the time of her withdrawal application, Ms Roque was the subject of conduct proceedings to determine whether or not she failed to fulfill her fiduciary duty, participated in illegal activity, drafted false documents, failed to cooperate with investigations and traded in real estate without a licence.

Ms Roque’s application to withdraw was approved by RECA and results in a voluntary lifetime prohibition from industry membership. By virtue of operation of the Real Estate Act, conduct proceedings are discontinued. There has been no hearing and no finding of facts in this matter. Ms Roque’s withdrawal application does not constitute an admission of misconduct.

 

February 2009

Giampiero Sartori, REal estate associate

Comox Realty Group

On February 4, 2009, Giampiero Sartori, a former real estate associate registered with Comox Realty Group in Calgary, applied to the Real Estate Council of Alberta (RECA) to withdraw from industry membership in accordance with section 54 of the Real Estate Act.

At the time of his withdrawal application, Mr. Sartori was the subject of an ongoing RECA conduct proceeding. The conduct issues related to a failure to cooperate with a serious RECA investigation.

Mr. Sartori’s application to withdraw was approved by RECA and results in a voluntary lifetime prohibition from industry membership. By virtue of operation of the Real Estate Act, conduct proceedings are discontinued. Mr. Sartori’s withdrawal application does not constitute an admission of misconduct.

 

Gregory delaine, REal estate associate

D.J. Hay Enterprises Ltd.

On February 4, 2009, Gregory Delaine, a former real estate associate most recently registered with D.J. Hay Enterprises Ltd. in Calgary, applied to the Real Estate Council of Alberta (RECA) to withdraw from industry membership in accordance with section 54 of the Real Estate Act.

At the time of his withdrawal application, Mr. Delaine was the subject of an ongoing RECA conduct proceeding. The conduct issues related to the following:

  • his provision of property management services without a licence
  • his use of misleading property management agreements
  • his mismanagement of trust money
  • his potential receipt of commission or other remuneration other than through the brokerage

Mr. Delaine’s application to withdraw was approved by RECA and results in a voluntary lifetime prohibition from industry membership. By virtue of operation of the Real Estate Act, conduct proceedings are discontinued. Mr. Delaine’s withdrawal application does not constitute an admission of misconduct.

 

 

 

 

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REAL ESTATE COUNCIL
OF ALBERTA

4954 Richard Road SW, Suite 350 Calgary, AB  T3E 6L1

Phone (403) 228-2954
Toll-free 1-888-425-2754
Fax (403) 228-3065
www.reca.ca

Executive Director
BOB MYRONIUK

Director of Audit and Investigations
JOSEPH FERNANDEZ

Director of Corporate Services
DALE CAWSEY

Director of Industry Standards
KIRK BACON