Consent Order

REAL ESTATE COUNCIL OF BRITISH COLUMBIA

In the matter of the Real Estate Act

R.S.B.C. 1996, c. 397 As Amended

AND in the matter of a Disciplinary Hearing held pursuant to Section 31 of the Real Estate Act

Complaint: Breach of s. 15, 16(1), 17, 31(1)(a) and 31(1)(c) of the Real Estate Act and s. 12.01, 9.12 and 9.16(b) of Regulation 75/61 under the Act/negligence, misconduct

Issue: Delta Summit Realty Inc., Surrey:

1. breached section 15 of the Act and section 12.01 of Regulation 75/61 under the Real Estate Act by failing to keep such proper and up to date books, records and accounts;
2. breached section 16(1) of the Real Estate Act in that it failed to pay into its trust account monies received from a tenant on behalf of an owner;
3. breached section 17 of the Real Estate Act in that it improperly withdrew funds held in a pooled trust account on behalf of the owners to pay net rents thereby causing a trust shortage;
4. breached section 9.16(b) of Regulation 75/61 under the Act in that it failed to have a nominee in active charge of the business of the agent.

Issue: Peter David Martin, nominee, Delta Summit Realty Inc., Surrey, and as property manager, misconducted himself within the meaning of section 31(1)(c) of the Act in that he:

1. failed to disclose in a timely manner that he had collected judgment from a tenant with respect to the property;
2. failed to account to the owner with respect to all monies received and disbursed with respect to that property;
3. breached section 31(1)(a) of the Real Estate Act in that he misappropriated funds which were received by him in his capacity as a licensee;
4. was negligent within the meaning of section 9.12 of Regulation 75/61 under the Act in that he failed to ensure that the funds were paid into the trust account of the agent.

In connection with a second property, Mr. Martin:

1. breached section 31(1)(a) of the Real Estate Act in that he misappropriated trust funds in order to pay his rent to the owner of the property;
2. misconducted himself within the meaning of section 31(1)(c) in that he failed to advise the owner of the property that he rented that he had not deposited his own funds into trust at all or in a timely manner to pay the rent for the property

In connection with a third property, Mr. Martin misconducted himself within the meaning of section 31(1)(c) of the Act in that he breached the terms of the property management agreement contract in that he charged a "lease up " fee when he had no authority to do so.

In connection with two additional properties, Mr. Martin was negligent within the meaning of section 9.12 of Regulation 75/61 under the Act in that he failed to account for security deposits that were supposed to be collected from tenants.

In connection with another property, Mr. Martin was negligent within the meaning of section 9.12 of Regulation 75/61 under the Act in that he:

1. failed to advise the property owner in a timely manner that the roof was leaking and required repair or replacement,
2. failed to ensure that the leaking roof was repaired or replaced in a timely manner and
3. failed to ensure that the tenants in the property were paying the monthly rent in a timely manner.

Mr. Martin as nominee of Delta Summit Realty Inc., misconducted himself within the meaning of section 31(1)(c) under the Act in that he:

1. permitted the improper withdrawal of trust funds from the trust account of Delta Summit Realty Inc. hereby creating a trust shortage; and
2. failed to ensure that Delta Summit Realty Inc. kept proper and up to date books, records and accounts.

Results

Peter David Martin's licence was cancelled. No application for licensing as a representative under the Real Estate Services Act would be considered by the Council until January 1, 2008. In addition, the Council would not entertain an application for licensing as a managing broker under the Real Estate Services Act for a period of five years until January 21, 2010. In addition, Delta Summit Realty Inc. and Mr. Martin were jointly and severally assessed costs in the amount of $5,614.00.