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Real Estate Council

Of Ontario

Regulatory Digest

January – June 2013

of 20 RECO Regulatory Digest January – June 2013

The Real Estate Council of Ontario (RECO) administers and enforces the Real Estate and Business Brokers Act, 2002 (REBBA 2002) and its regulations on behalf of the Ontario government.

REBBA 2002 requires registered real estate professionals to conduct themselves and their businesses in a manner that protects consumers in real estate transactions. Failure to do so could lead to regulatory action. Further, with few exceptions, anyone who trades in real estate must be registered under REBBA 2002. Trading in real estate without the benefit of registration or an exemption could lead to prosecution under REBBA 2002.

RECO‟s enforcement of REBBA 2002 helps to ensure public trust and confidence in Ontario‟s real estate profession.

The Regulatory Digest is an online resource that summarizes RECO‟s regulatory actions involving:

the Registrar issuing a Notice of Proposal to revoke, suspend, refuse to renew, or apply conditions to a registration;

offences related to REBBA 2002 and its regulations resulting in prosecution in the Provincial Offences Courts;

breaches of the Code of Ethics that are referred to a hearing in front of the Discipline Committee or Appeals Committee; and

mediation of complaints to a resolution agreeable to all parties.

Decisions are not published until the appeal period has expired or the appeal has been heard or abandoned. For the latest decisions, visit RECO‟s website (www.reco.on.ca).

RECO’s mission is excellence in the delivery of regulatory services that protect the public interest and enhance consumer confidence in the real estate profession.

RECO’s vision is public trust and confidence in Ontario’s real estate profession.

Contact us at: 3300 Bloor Street West West Tower, Suite 1200 Toronto, ON M8X 2X2 Tel: 416-207-4800 Toll Free: 1-800-245-6910 Fax: 416-207-4820 www.reco.on.ca [email protected] Twitter: @RECOhelps YouTube: RECOhelps

RECO‟s legal library


Registrar’s Proposals The Registrar may issue a notice of proposal if he or she believes that an applicant or registrant cannot be expected to be financially responsible, will not carry on business in accordance with law and with integrity and honesty, or make false statements in an application for registration. The Registrar may propose to revoke, suspend, refuse to renew or apply conditions to a registration. Registrar‟s proposals may be appealed to the Licence Appeal Tribunal (LAT). David Allen, Salesperson, and Graydon Hill Realty Ltd., Brokerage Toronto, ON Date of revocation: February 11, 2013 Type: Revocation of Registration Summary: • Graydon Hill Realty Ltd. and Mr. Allen, its sole officer and director, could not

reasonably be expected to be financially responsible in the conduct of business. • Past conduct afforded reasonable grounds for belief that Mr. Allen, and by

extension Graydon Hill Realty Ltd., would not carry on business in accordance with law and with integrity and honesty.

Results: Mr. Allen and Graydon Hill Realty Ltd. did not request a hearing before LAT. Both registrations were revoked.


Licence Appeal Tribunal A registrant may appeal a Registrar‟s proposal to the Licence Appeal Tribunal (LAT). The Tribunal handles appeals under several statutes that deal with both licences and registrations. A registrant seeking an appeal must provide written notice within 15 days of the proposal. Munir Ilyad Ahmad, Salesperson Thornhill, ON Date decision released: June 6, 2013 Type: Revocation of Registration Summary: • Past conduct afforded reasonable grounds for belief that Mr. Ahmad would not

carry on business in accordance with law and with integrity and honesty. Results: Mr. Ahmad requested a hearing before LAT. At the commencement of the hearing, Mr. Ahmad withdrew his appeal and his registration was revoked. Domenic Manicapelli, Salesperson Toronto, ON Date decision released: June 6, 2013 Type: Revocation of Registration Summary: • Past conduct afforded reasonable grounds for belief that Mr. Manicapelli would

not carry on business in accordance with law and with integrity and honesty. • Made false statement and/or provided false statements in an application for

registration and/or renewal of registration. Results: Mr. Manicapelli requested a hearing before LAT. After the hearing, his registration was revoked.


Provincial Offences Act Offences under REBBA 2002, other than violations of the Code of Ethics, may be prosecuted in the Ontario Provincial Offences Court. Individuals convicted of offences are subject to fines of up to $50,000 and/or prison terms of up to two years less a day. Corporations are subject to fines of up to $250,000. In addition to specified fines, convicted parties are also subject to a victim surcharge. The surcharge is collected by the Court for the Victims‟ Justice Fund. Aram Tokmak, Salesperson Thornhill, ON Date of conviction: January 14, 2013 Date of sentencing: January 14, 2013 Summary: • Accepted commission or other remuneration for trading in real estate from a

person other than the brokerage that employed him. • Failed to deliver a copy of an agreement dealing with the conveyance of an

interest in real estate to his brokerage at the earliest opportunity. • Failed to notify the Registrar in writing within five days of a change to information

(civil judgment) previously provided on an application for registration. Results: Mr. Tokmak pleaded guilty. He was fined $8,000 on the first count, $2,000 on the second count and $3,500 on the third count for a total of $13,500 and ordered to make restitution of $2,900. Thom Realty Limited, Brokerage Morrisburg, ON Date of conviction: January 15, 2013 Date of sentencing: January 15, 2013 Summary: • Failed to prepare a trust account reconciliation statement. • Failed to disburse funds in brokerage‟s trust account only in accordance with the

terms of the trust. Results: Mr. Barkley, on behalf of Thom Realty Limited, pleaded guilty to both counts. Thom Realty Limited was fined $6,000 per count for a total of $12,000.


Charles H. Barkley (a.k.a. Chuck Barkley), Broker Brockville, ON Date of conviction: January 15, 2013 Date of sentencing: January 15, 2013 Summary: • Failed to ensure that the brokerage prepared trust account reconciliation

statements. • Failed to ensure that the brokerage disbursed funds in brokerage‟s trust account

only in accordance with the terms of the trust. Results: Mr. Barkley, broker of record of Thom Realty Limited, pleaded guilty to two counts of failing to ensure that the brokerage complied with REBBA 2002. He was fined $6,000 per count for a total of $12,000. Charn S. Ghuman, Broker Guelph, ON Date of conviction: January 21, 2013 Date of sentencing: January 21, 2013 Summary: • Furnished false information in an application for registration. Results: Mr. Ghuman pleaded guilty to four counts of furnishing false information in an application for registration. He was fined $4,500 per count for a total of $18,000. Yuen Huang Chiu, Broker Toronto, ON Date of conviction: January 21, 2013 Date of sentencing: January 21, 2013 Summary: • Obstructed an inspector conducting an inspection. Results: Mr. Chiu pleaded guilty. He received a suspended sentence.


Golden Land Realty Inc., Brokerage Toronto, ON Date of conviction: January 21, 2013 Date of sentencing: January 21, 2013 Summary: • Obstructed an inspector conducting an inspection. Results: Mr. Chiu, on behalf of Golden Land Realty Inc., pleaded guilty. Golden Land Realty Inc. was fined $5,000. Olivia Szczepocki-Nathale, Unregistered Date of conviction: March 11, 2013 Date of sentencing: March 11, 2013 Summary: • Unregistered trading in real estate. Results: Ms. Szczepocki-Nathale, pleaded guilty to one count of performing the functions of a broker or salesperson while not registered under REBBA 2002. She was fined $1,500. Dreams Home Realty Ltd., formerly operating as Homelife Plus Real Estate Ltd., Brokerage Vaughan, ON Date of conviction: March 15, 2013 Date of sentencing: March 15, 2013 Summary: • Failed to disburse trust funds as soon as practicable. Results: Mohammad Reza Ghazvini, on behalf of Homelife Plus Real Estate Ltd., pleaded guilty to one count of failing to disburse trust funds as soon as practicable, after having received a request for a disbursement in the form of a court order. Homelife Plus Real Estate Ltd. was fined $3,000.


Darrel Joseph Falconi, Salesperson North Bay, ON Date of conviction: March 18, 2013 Date of sentencing: March 18, 2013 Summary: • Failed to notify the Registrar in writing within five days of a change to information

(criminal charge) previously provided on an application for registration.

Results: Mr. Falconi pleaded guilty. He was fined $2,000. Ali Suliman Sleiman, Salesperson Ottawa, ON Date of conviction: March 18, 2013 Date of sentencing: March 18, 2013 Summary:

• Failed to comply with a written request for information from the Registrar to

provide bank records in relation to a complaint.

Results: Mr. Sleiman pleaded guilty. He was placed on one year probation, ordered to pay $421,000 in restitution to a consumer, and fined $10,000. Mohammad Reza Ghazvini (also known as Reza Ghazvini), Broker Vaughan, ON Date of conviction: April 05, 2013 Date of sentencing: April 05, 2013 Summary:

• Furnished false documents in relation to a trade in real estate.

Results: Mr. Ghazvini pleaded guilty. He was fined $5,000.


Waseem Sattar Khan, Salesperson Mississauga, ON Date of conviction: June 4, 2013 Date of sentencing: June 4, 2013 Summary: • Failed to notify the Registrar in writing within five days of a change to information

previously provided on an application for registration. • Trading in real estate as a salesperson without the benefit of registration, while

registration was suspended for non-payment of insurance.

Results: Mr. Khan pleaded guilty and was fined $1,000 on the first count and $5,000 on the second count, for a total of $6,000. Sam Stogiannes, Unregistered Stoney Creek, ON Date of conviction: June 18, 2013 Date of sentencing: June 18, 2013 Summary: • Trading in real estate as a salesperson without the benefit of registration, while

registration was suspended for non-payment of insurance. Results: Mr. Stogiannes pleaded guilty and was fined $5,000. Alex Serabian, Salesperson Toronto, ON Date of conviction: June 24, 2013 Date of sentencing: June 24, 2013 Summary: • Failed to notify the Registrar in writing within five days of a change to information

(criminal charge) previously provided on an application for registration. Results: Mr. Serabian was found guilty. He was fined $3,500.


Discipline Committee & Appeals Committee Matters that involve alleged breaches of the Code of Ethics may be referred to the Discipline Committee for a hearing. Individuals found in violation may be ordered to take educational courses, pay a fine of up to $25,000, and may be required to pay fixed or imposed costs. Keywords are provided for each summary to help readers locate similar Discipline and Appeals decisions using the search feature available on RECO‟s website under “Complaints & Enforcement”. Massoud Mark Ghalyaee, Salesperson Richmond Hill, ON Date decision released: January 9, 2013 Summary of findings: • Induced the complainant to purchase a condo unit by agreeing to sell them a

parking space if they bought the condo. Breached an Agreement of Purchase and Sale with the complainant by transferring the parking space to a third party. The complainant indicated they would not otherwise have made the purchase were it not for the parking space agreement.

• Failed to return the complainant‟s $5,000 deposit for the parking space when he transferred the space to a third party.

• Conducted the transactions in a manner that resulted in the complainant having to seek compensation in Small Claims Court.

• Acted as the complainant‟s sales representative for the condo unit purchase without a Buyer‟s Representation Agreement.

• Failed to make any written agreement at the time of the condo unit transaction that the parking space would be transferred to the complainant.

• Failed to make any written agreement or notation about commission amounts or percentages, or the amount of commission rebates, for the condo unit transaction.

• Agreed to provide a commission rebate on the condo unit transaction to the Complainant and then failed to provide any rebate.

• Failed to disclose to the complainant in writing his property interest in the parking space.

Results: The Discipline Panel ordered Mr. Ghalyaee to pay a fine of $18,000, successfully complete the Real Estate Institute of Canada (REIC) “Ethics and Business Practice” course and the Ontario Real Estate Association (OREA) “Real Property Law” course within one year. Keywords: Conscientious and Competent Service, Disclosure (Personal Interest), Duty to Client, Financial Responsibility, Representation Agreements, Unprofessional Conduct, Written and Legible Agreements


Michael Noah Bosley (also known as Michael Bosley), Salesperson Lindsay, ON Date decision released: February 25, 2013 (Appeal) Summary of findings: • Failed to confirm whether the buyer, who he knew was the client of another

registrant, was subject to a Buyer Representation Agreement (BRA) with the other brokerage and ought to have only communicated with the buyer through that other registrant.

• Caused the buyer to breach the existing BRA with another brokerage, exposing the buyer to liability for a commission to the other brokerage and potential legal action.

• Falsified the Third Confirmation of Cooperation and Representation document by noting “The Listing Brokerage has entered into a Buyer Representation Agreement,” when no such agreement existed.

• Failed to take sufficient steps to fulfill his promise to the buyer that the liability for a commission to the other brokerage would be „sorted out later,‟ even after subsequently receiving a copy of the executed BRA between the buyer and the other brokerage.

Results: The Discipline Panel ordered Mr. Bosley to pay a fine of $25,000 and to successfully complete REIC‟s “Ethics and Business Practice” course within six months. He appealed the decision. The Appeals Panel modified the fine to $12,000 and affirmed the education requirement. Keywords: Conscientious and Competent Service, Dealing with Registrants / Third Parties, Duty to Client, Interference – Another‟s Clients, Procedural Issues, Representation (commission), Unprofessional Conduct Allan Douglas Shepheard (also known as Al Shepheard), Salesperson Merrickville, ON Date decision released: February 27, 2013 Summary of findings: • Failed to ensure that a Mutual Release was signed by the seller prior to entering

into another agreement on the property. • Exposed the seller to potential litigation by failing to ensure, or advise on, the

accurate completion of a Seller Property Information Statement (SPIS). • Discouraged the seller from leasing the property, but then proceeded to facilitate

another buyer („new buyer‟), a relative of Mr. Shepheard, to lease the property at a higher rent than what was being paid while the property remained in the name of the seller.

• Failed to ensure that a deposit was noted in the new buyer‟s Agreement, or properly advise the seller of the added risk associated with the no deposit requirement.

• Failed to properly advise the seller about an Amendment, including (i) the new buyer‟s Agreement being conditional and (ii) no provision in the Agreement


indicating that any amount paid by the seller to the new buyer not used to remediate the property‟s foundation would be returned to the seller (such as had been the case in an earlier Agreement).

• Facilitated an increase in the amount of the rebate payable to the new buyer to an amount above an estimate provided by the company working on the foundation.

• Increased the commission Brokerage B was entitled via the new buyer‟s Agreement when he was representing both the Seller and the new buyer when he knew they would not be paying any commission.

• Facilitated the rental of the property outside of his brokerage. • Deducted the amount he paid for old appliances from the amount he owed the

seller when they did not want those appliances. • Took „commissions‟ from the seller for having found the new buyer and tenants

when no agreement existed entitling him or his brokerage to commission. Results: By way of an Agreed Statement of Facts and Penalty and Waiver of Hearing ratified by the Chair of the Discipline Committee, Mr. Shepheard was ordered to pay a fine of $20,000 by February 7, 2014. Keywords: Conflict of Interest, Conscientious and Competent Service, Duty to Client, Financial Responsibility, Misrepresentation (negligence), Representation (commission), Unprofessional Conduct

Ali Hambaz (also known as Cyrus Ali Hambaz), Salesperson Thornhill, ON Date decision released: March 12, 2013 Summary of findings: • Failed to disclose the tenant‟s intended use of the property by not reducing it to

writing on the Agreement to Lease. Results: By way of an Agreed Statement of Facts and Penalty and Waiver of Hearing ratified by the Chair of the Discipline Committee, Mr. Hambaz was ordered to pay a fine of $9,000 and to successfully complete REIC‟s “Ethics and Business Practice” course by December 31, 2013. Keywords: Discovery of Facts, Duty to Client, Unprofessional Conduct, Written and Legible Agreements


Thomas Tewoldemedhin, Salesperson Toronto, ON Date decision released: March 12, 2013 Summary of findings: • Advised the buyers to sign the Home Inspection Waiver when he knew that a

further inspection of the furnace had to be completed and that they could withhold the Status Certificate Waiver if the furnace inspection yielded unsatisfactory results.

• Advised the buyers to sign the Status Certificate Waiver before the Status Certificate had been received and instructed them to leave the date blank so he could fill in the date once the condition had been satisfied.

• Failed to advise the buyers to retain their own lawyer to review the Status Certificate. Mr. Tewoldemedhin requested a lawyer, not retained by the buyers, to review the Status Certificate.

• Submitted the Status Certificate Waiver to the sellers‟ representative without the buyers‟ knowledge before they had an opportunity to view the document.

• Offered to contribute towards the cost of replacing the furnace without reducing the offer to writing.

Results: By way of an Agreed Statement of Facts and Penalty and Waiver of Hearing ratified by the Chair of the Discipline Committee, Mr. Tewoldemedhin was ordered to pay a fine of $10,000 within 180 days. Keywords: Conscientious and Competent Service, Duty to Client, Misrepresentation (negligence), Services from Others / Outside Professional Advice, Unprofessional Conduct, Written and Legible Agreements

Respondent, Salesperson Date decision released: March 27, 2013 Summary of findings: • The panel found that the respondent did not deliberately withhold relevant

knowledge or material facts relating to the condition of the property‟s septic system and that there was no evidence to indicate the respondent knew that the septic system had to be replaced as opposed to repaired.

• The panel found that the buyers were protected by the home inspection condition and the provision where the sellers agreed to deliver a repaired septic system by the closing date. In this case, the sellers clearly allocated the risk and costs of a non-functioning septic system on themselves. The clauses regarding the home inspection and the agreed upon repairs were not vague or unclear as to their respective intent.

• The panel found that the respondent did not fall below the acceptable standard of practice by “failing to insert appropriate clauses in the APS [Agreement of Purchase and Sale] with respect to the condition of the septic system to protect the sellers.” The sellers did not claim the respondent failed to act in their best interests.


Results: The Discipline Panel found the Respondent not in violation of the Code of Ethics and awarded costs in the amount of $3,390, inclusive of HST, to the respondent payable by RECO within 30 days. Keywords: Conscientious and Competent Service, Costs, Discovery of Facts, Duty to Client, Multiple Representation, Services from Others / Outside Professional Advice, Water / Well / Septic Issues, Written and Legible Agreements

John S. Cassan, Broker Mississauga, ON Date decision released: March 28, 2013 Summary of findings: • Failed to take reasonable steps to determine whether an apartment conformed to

city zoning by-laws and/or retrofit requirements, and advise the landlord of the risks of leasing an apartment in contravention of by-laws.

• Failed to adequately research the credit history of both tenants before executing the Agreement to Lease on the landlord‟s behalf.

• Failed to obtain a credit report on one of the tenants. • Failed to obtain independent income verification for the tenants. Results: By way of an Agreed Statement of Facts and Penalty and Waiver of Hearing ratified by the Chair of the Discipline Committee, Mr. Cassan was ordered to pay a fine of $8,000 and to successfully complete OREA„s “Land, Structures and Real Estate Trading” course by September 18, 2013. Keywords: Discovery of Facts, Duty to Client, Property Features, Unprofessional Conduct

Maninder Paul Singh Sandhu (also known as Manny Paul Sandhu), Salesperson Mississauga, ON Date decision released: April 12, 2013 Summary of findings: • Allowed, or failed to counsel against, the seller accepting the complainant‟s offer on

the property without ensuring that the offer was conditional on a previously accepted Agreement not proceeding, thereby exposing the seller to potential liability.

• Failed to be forthright with a registrant and/or the complainant regarding the status of the transaction.

Results: By way of an Agreed Statement of Facts and Penalty and Waiver of Hearing ratified by the Chair of the Discipline Committee, Mr. Sandhu was ordered to pay a fine of $11,000 and to successfully complete REIC„s “Ethics and Business Practice” course within 180 days.


Keywords: Conscientious and Competent Service, Dealing with Registrants / Third Parties, Duty to Client, Negotiations, Presentation of Offers, Unprofessional Conduct

Amarjit Singh Tamber (also known as Amar Tamber), Broker Toronto, ON Date decision released: May 7, 2013 Summary of findings: • Created a false employment letter, using an alias, on behalf of his relative,

knowing that the letter would be used to obtain financing from the financial institution to purchase a condominium.

Results: By way of an Agreed Statement of Facts and Penalty and Waiver of Hearing ratified by the Chair of the Discipline Committee, Mr. Tamber was ordered to pay a fine of $14,000 by October 31, 2013. Keywords: Conflict of Interest, Making/Furnishing False Information/Documentation, Misrepresentation (negligence), Mortgage Issues, Unprofessional Conduct

Barbara Gail Frueh (formerly known as Barbara Gail Stranks), Broker Barrie, ON Date decision released: May 7, 2013 Summary of findings: • Ms. Frueh gave a file containing trade documents which should have been stored

at the brokerage to a salesperson, failed to regain possession of the file and failed to have any knowledge of the whereabouts or continued existence of the file.

• Failed to include the amount of commission payable to the brokerage on the original Listing Agreement.

• Failed to document the cancellation of the Listing Agreement. Results: By way of an Agreed Statement of Facts and Penalty and Waiver of Hearing ratified by the Chair of the Discipline Committee, Ms. Frueh was ordered to pay a fine of $5,000 within 180 days. Keywords: Duty to Ensure Compliance – Broker of Record, Misrepresentation (negligence), Record Keeping / Business Records, Representation (commission), Written and Legible Agreements


Manish K. Sharma, Salesperson Rexdale, ON Date decision released: June 11, 2013 Summary of findings: • Failed to confirm the identity of a purported seller as the actual property owner prior

to entering into a Listing Agreement, thereby enabling a fraud to be carried out. Results: By way of an Agreed Statement of Facts and Penalty and Waiver of Hearing ratified by the Chair of the Discipline Committee, Mr. Sharma was ordered to pay a fine of $15,000 by February 14, 2014 and to successfully complete REIC„s “Ethics and Business Practice” course and OREA„s “Real Property Law” within 180 days. Keywords: Conscientious and Competent Service, Identity Theft, Making/Furnishing False Information/Documentation, Misrepresentation (negligence), Mortgage Issues, Unprofessional Conduct

Vasia Argiris, Salesperson Mississauga, ON Date decision released: June 11, 2013 Summary of findings: • Failed to craft lease agreements that were clear and complete by not including

clauses pertaining to the payment of utilities and a security deposit, as instructed by the landlord.

• Failed to retain copies of documents and/or provide copies of the lease documents to the landlord and tenants, as soon as possible.

• Failed to provide her brokerage with copies of the lease agreements or with the rent deposits received, so that they could be deposited into a Real Estate Trust Account.

• Failed to document the services the brokerage was providing to the landlord. • Collected her commission directly from the landlord, not through her brokerage. Results: By way of an Agreed Statement of Facts and Penalty and Waiver of Hearing ratified by the Chair of the Discipline Committee, Ms. Argiris was ordered to pay a fine of $12,000 within one year. Keywords: Conscientious and Competent Service, Delivery of Deposits and Documents, Duty to Client, Forms, Insufficient Copies of Documents, Representation (commission), Representation Agreements, Unprofessional Conduct, Written and Legible Agreements


Alan Kung Fai Tam (also known as Alan Tam), Broker Toronto, ON Date decision released: June 11, 2013 Summary of findings: • Failed to take due care to ensure that he had all important details about the offer,

specifically the price, and thereby failed to advise his seller clients appropriately. • Failed to use his best efforts to avoid a substantial error regarding the nature of

the offer. • Failed to properly review, or failed to retain and properly review, the consumer‟s

offer. Results: By way of an Agreed Statement of Facts and Penalty and Waiver of Hearing ratified by the Chair of the Discipline Committee, Mr. Tam was ordered to pay a fine of $12,500 by October 31, 2013. Keywords: Conscientious and Competent Service, Duty to Client, Misrepresentation (negligence), Negotiations, Unprofessional Conduct

Rob Golfi, Salesperson Hamilton, ON Date decision released: June 11, 2013 Summary of findings: • Failed to address a number of advertising violations as requested by the Deputy

Registrar in an Advertising Advisory notice. The notice required the registrant to make changes to websites and provide evidence of compliance.

• Failed to comply with a signed Acknowledgement & Undertaking, whereby he agreed to comply with the Advertising Advisory notice.

Results: By way of an Agreed Statement of Facts and Penalty and Waiver of Hearing ratified by the Chair of the Discipline Committee, Mr. Golfi was ordered to pay a fine of $10,000 by November 15, 2013. Keywords: Advertising, Misrepresentation (negligence)

Mohammad Imran Armani Bhatti (also known as Armani Bhatti), Broker Pickering, ON Date decision released: June 12, 2013 Summary of findings: • Made an inaccurate representation by signing as a witness to the seller‟s

signatures on the Cancellation and New Listing Agreement when he did not actually witness either signing.


• Failed to provide the seller with copies of the Cancellation and New Listing Agreement at the earliest practicable opportunity.

Results: By way of an Agreed Statement of Facts and Penalty and Waiver of Hearing ratified by the Chair of the Discipline Committee, Mr. Bhatti was ordered to pay a fine of $10,000 by April 30, 2014. Keywords: Conscientious and Competent Service, Duty to Client, Forms, Insufficient Copies of Documents, Making/Furnishing False Information/Documentation, Misrepresentation (negligence), Unprofessional Conduct Didier Louis Rottier, Salesperson London, ON Date decision released: June 21, 2013 Summary of findings: • Failed to review the second offer thoroughly and alert the sellers of the material

differences between it and the first offer, specifically excluding the refrigerator, stove and cherrywood lumber from the chattels.

• Failed to advise the sellers and/or amend the second offer to explicitly exclude the chattels from the Agreement of Purchase and Sale (APS).

• Undertook to reimburse the sellers for commission paid to the brokerage when he was in no financial position to do so.

• Failed to advise the sellers that he was in no financial position to satisfy the undertaking, and thereby failed to honour his obligations.

• Failed to compensate the sellers for the value of the chattels that he negligently included in the APS.

• Failed to satisfy his personal financial obligations, thereby compromising his ability to meet his financial obligations to the sellers.

Results: By way of an Agreed Statement of Facts and Penalty and Waiver of Hearing ratified by the Chair of the Discipline Committee, Mr. Rottier was ordered to pay a fine of $12,000 and to successfully complete REIC„s “Ethics and Business Practice” course by December 31, 2013. Keywords: Conscientious and Competent Service, Duty to Client, Forms, Financial Responsibility, Negotiations, Misrepresentation (negligence), Unprofessional Conduct


Respondent, Salesperson Date decision released: June 21, 2013 (Appeal)

Summary of findings: • The Panel concluded that the respondent did indeed present the details of the

consumers‟ conditional offer to an employee of the financial institution over the telephone.

• The Panel concluded that the respondent could not have misled the consumers or another registrant about the delivery of the conditional offer to the financial institution because he had no communication with them regarding the conditional offer.

• The Panel concluded that, as a result of the spoken evidence, the allegation that the respondent deliberately altered the acceptance date on an offer to mislead individuals was not proven.

Results: The Discipline Panel found the respondent not in violation of the Code of Ethics. The Registrar attempted to appeal the decision. The respondent brought a motion for an Order striking the Registrar‟s appeal. The Appeals Panel granted the motion and dismissed the appeal, without costs. Keywords: Competing / Multiple Offers, Duty to Client, Misrepresentation (negligence), Presentation of Offers, Procedural Issues


Mediation of Complaints Under certain circumstances, the Registrar may attempt to mediate or resolve a complaint. RECO does not have the authority to impose a resolution to monetary or contractual disputes, or to assess or award damages. Any exchange of money mentioned in the following summaries was agreed upon voluntarily by the complainant and respondent. Complainant: Seller Respondent: Broker of Record Date of release: February 7, 2013 Summary: • The seller asked to be released from a Listing Agreement due to a lack of

communication from the Broker of Record (BOR). • The BOR agreed to communicate more effectively; however, he became too

busy with the day-to-day operation of his brokerage to effectively market the property and communicate regularly with the seller.

• The BOR failed to live up to the agreement he made with the seller. • The BOR indicated that he always releases unhappy clients from their contracts

with the brokerage. • The Listing Agreement between the two parties had both an incorrect effective

date and cancellation date. • The MLS Advertisement displayed a picture of a neighbour‟s property instead of

the seller‟s property. Agreement: • The Broker of Record agreed to cancel the Listing Agreement.

Results: • The Complaint File Mediation was successful.

• The Registrar also issued a written warning and educational requirement to the

registrant.

Complainant: Seller Respondent: Broker of Record Date of release: February 7, 2013 Summary: • The seller‟s property sold on May 9, 2012 and closed on August 29, 2012.

During the negotiations, the seller‟s sales representative signed a Promissory Note agreeing to pay the seller $500 after the deal closed.

• After the closing date, the sales representative refused to pay the seller. • The sales representative claimed that prior to the closing of the seller‟s property

she paid $390 to have some of the rooms in the property painted. • The seller refused to reimburse the sales representative therefore the sales

representative did not honour the Promissory Note.


Agreement: • The sales representative agreed to pay the seller $200 and provided the seller

with receipts in the amount of $300 for the painting work completed.


• No further action was taken.

Complainant: Landlord Respondent: Sales Representative Date of release: May 6, 2013 Summary: • The landlord discovered that his property had been sub-leased by the sales

representative who leased the property for personal use, contrary to the terms of the original lease agreement, which prohibited any sub-lease agreement.

• The tenant with the Sub-Lease Agreement broke the lease and left the property without paying an outstanding hydro bill.

Agreement: • The sales representative agreed to pay the outstanding hydro bill.

• The sales representative agreed to pay the landlord the costs associated with the

original Lease Agreement commission of both first and last month‟s rent plus

HST.


• The Registrar also issued a written warning and educational requirement to the

salesperson.

Complainant: Seller Respondent: Sales Representative Date of release: June 24, 2013 Summary: • The seller asked to be released from a Listing Agreement due to an incorrect

listing price on the MLS Information sheet. • The listing brokerage failed to upload pictures of the property in a timely manner

to the MLS Information sheet. • The listing brokerage failed to sign the Listing Agreement. Agreement: • The Broker of Record agreed to cancel the Listing Agreement.


• No further action was taken.