REAL ESTATE COUNCIL OF BRITISH COLUMBIA
In the matter of the Real Estate Services Act
S.B.C. 2004 ch. 42
AND in the matter of a Consent Order pursuant to Section 41 of the Real Estate Services Act
Respondent: HOLLY CHRISTINE LUTHE
File: 320-04
Date of Consent Order: October 31, 2007
Complaint: Contravention of sections 35(1)(a) and 35(1)(c) of the Real Estate Services Act, and section 3-1 of the Council Rules/Professional misconduct, wrongful taking or deceptive dealing, managing broker responsibilities
Issue: Holly Christine Luthe, managing broker, Cedar Grove Realty Ltd., Prince George, committed professional misconduct within the meaning of section 35(1)(a) and (c) of the Real Estate Services Act and section 3-1 of the Council Rules in that she (a) as representative for a buyer in the proposed sale of property: (i) failed to advise the seller that the cheque provided by the buyer for the deposit had not been placed in the brokerage trust account and that the brokerage was not holding any funds in respect of the transaction; (ii) mislead the seller as to the fact that the funds were in trust when they were not; (iii) acted in a conflict of interest when she borrowed money and deposited that money to the brokerage trust account to fulfill the buyer ’s deposit obligations in relation to the contract; and (iv) attempted to mislead the Council on May 27, 2005 when she failed to inform the Council that the funds she indicated were in trust had only been deposited on May 27, 2005 and were not received as a lump sum deposit from the buyer as implied but were the proceeds from her own personal loan; and (b) as managing broker for the brokerage, she failed to (i) be actively engaged in the management of the said brokerage; and (ii) ensure that the said business of the brokerage was carried out competently and in accordance with the Act, Regulations, Rules and/or Bylaws.
Result: Holly Christine Luthe was suspended for ninety (90) days from December 19, 2007 to March 17, 2008 (inclusive) for professional misconduct as described above after an Agreed Statement of Facts, Proposed Acceptance of Findings and Waiver was entered into between the Real Estate Council and Holly Christine Luthe and a Consent Order was issued. Further, Holly Christine Luthe must, as a condition of continued licensing, successfully complete Chapter 2 (Real Estate Services Act) and Chapter 9 (Professional Ethics) of the Real Estate Trading Services Licensing Course, pay to the Council a discipline penalty in the amount of $2,500.00 and enforcement expenses in the amount of $750.00.
P:Dec 10, 2007 R: Dec 10, 2012