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: SUTTON GROUP – GURDEV SANDHU REALTY
GURDEV SINGH SANDHU
DALBIR SINGH SANDHU
WALTER MIELKE
File: 340-05
Date of Consent Order: May 14, 2008
Complaint: Contravention of sections 35(1)(a) [professional misconduct/contravention of act or rules], 35(1)(d) [professional misconduct/incompetence], 6 [brokerage must have managing broker], 25 [brokerage records], 27(2) [payment into trust], 30 [withdrawals from trust], 31 [payment of licensee remuneration] of the Real Estate Services Act, sections 3-1 [managing broker responsibilities], 3-3(1)(i) [avoid any conflict of interest], 3-4 [duty to act with reasonable care and skill], 4-3 [restrictions relating to home and other personal offices], 5-8 [disclosures under this division], 5-9 [disclosure of interest in trade], 5-10 [disclosure of representation], 5-11 [disclosure of remuneration], 5-15 [when licensee remuneration can be paid out of trust account], 7-2 [commission trust accounts], 7-4 [other trust account requirements], 8-2 [trust account and general account records], 8-3 [pooled trust account records], 8-4 [general records], and 8-9 [records must be kept up to date] of the Council Rules
Issue: 688039 B.C. Ltd. dba Sutton Group – Gurdev Sandhu Realty, Vancouver, committed professional misconduct within the meaning of section 35(1)(a) of the Real Estate Services Act in that it: (a) failed to have a managing broker, or a person designated by it, keep, review, date and initial proper monthly trust asset and liability reconciliations, including reconciliations of the commission trust account, in accordance with sections 7-4 and 8-3 of the Council Rules; (b) failed to record its general bank account transactions in its books, failed to prepare monthly reconciliations of the general bank account, and failed to keep them up to date, in accordance with section 25 of the Real Estate Services Act and sections 8-2 and 8-9 of the Council Rules; (c) in deal number #060053, failed to promptly pay on receipt into the brokerage trust account a deposit cheque received from a buyer on April 5, 2006 until April 19, 2006, in accordance with section 27(2) of the Real Estate Services Act; (d) paid remuneration to co-operating brokerages from the commission trust account or the brokerage ’s general bank account and not the brokerage trust account, contrary to sections 30 and 31 of the Real Estate Services Act and sections 7-2 and 5-15 of the Council Rules; (e) failed to retain proper disclosure of interest in trades as required by section 8-4 of the Council Rules, including deal #050187 relating to an August 24, 2005 Contract of Purchase and Sale, deals #050205 and 050203 relating to December 20, 2005 Contracts of Purchase and Sale, deals #060032 and 060033 relating to March 2006 Contracts of Purchase and Sale, and deals #050007, 060018, 060030 and 060030; (f) in deals #060032 and 060033 relating to March 2006 Contracts of Purchase and Sale, failed to take reasonable steps to avoid a conflict of interest in accordance with section 3-3(1)(i) of the Council Rules; (g) in deal #060053, failed to promptly disclose to a buyer, while in a dual agency relationship, the amount of remuneration to be earned by the brokerage, pursuant to sections 5-11 and 5-8 of the Council Rules; and (h) in deal #060010, failed to promptly disclose, while acting as an agent for a buyer, the amount of remuneration to be earned by the brokerage, pursuant to sections 5-11 and 5-8 of the Council Rules.
Issue: Gurdev Singh Sandhu, representative, Par Excellence Management Inc. dba Sutton Group – Killarney Realty, Vancouver, while licensed with Sutton Group – Gurdev Sandhu Realty, Vancouver, committed professional misconduct within the meaning of section 35(1)(d) of the Real Estate Services Act in that he: (a) failed to ensure he complied with section 4-3 of the Council Rules regarding his personal office in that he permitted signage which suggested that real estate services were being provided and he promoted this office on his brokerage business cards; (b) failed to make proper disclosure as required by sections 5-9 and 8-4 of the Council Rules: (i) in deal #050187 relating to an August 24, 2005 Contract of Purchase and Sale, being a purchase by an associated company in which he held a majority interest; (ii) in deals #050205 and 050203 involving December 29, 2005 Contracts of Purchase and Sale to buyers in sales involving an associated company, as seller, in which his wife held a 25% interest; and, (iii) in deals #060032 and 060033 relating to March 2006 Contracts of Purchase and Sale to buyers in transactions where the brokerage was in a limited dual agency, involving an associated company, as seller, in which his wife held a 25% interest; (c) in deals #060032 and 060033 relating to March 2006 Contracts of Purchase and Sale, acted as a limited dual agent in transactions involving an associated company in which his wife held a 25% interest, and as a result, failed to take reasonable steps to avoid a conflict of interest, in accordance with section 3-3(1)(i) of the Council Rules; (d) in deal #060053, failed to promptly disclose to a Buyer, while in a dual agency relationship, the amount of remuneration to be earned by the brokerage, pursuant to sections 5-11 and 5-8 of the Council Rules; (e) in deal #060010, failed to promptly disclose, while acting as an agent for a buyer, the amount of remuneration to be earned by the brokerage, pursuant to sections 5-11 and 5-8 of the Council Rules.
Issue: Dalbir Singh Sandhu, representative, Par Excellence Management Inc. dba Sutton Group – Killarney Realty, Vancouver, while licensed with Sutton Group – Gurdev Sandhu Realty, Vancouver, committed professional misconduct within the meaning of section 35(1)(d) of the Real Estate Services Act in that he, in deal #060053, failed to act with reasonable care and skill prior to the seller signing the listing agreement, in accordance with sections 3-4 and 5-10 of the Council Rules.
Issue: Walter Mielke, associate broker, Par Excellence Management Inc. dba Sutton Group – Killarney Realty, Vancouver, while licensed as managing broker with Sutton Group – Gurdev Sandhu Realty, Vancouver, committed professional misconduct within the meaning of section 35(1)(d) of the Real Estate Services Act in that he demonstrated incompetence by failing to fulfill his responsibilities as managing broker for the performance of the duties imposed on the brokerage by its licence within the meaning of section 6 of the Real Estate Services Act and section 3-1 of the Council Rules and without restricting the generality of the foregoing he: (a) failed to ensure Gurdev Sandhu complied with section 4-3 of the Council Rules regarding his personal office and, in particular, he failed to ensure the brokerage signage suggesting that real estate services were being provided was removed and he failed to ensure that advertising promoting this office on brokerage business cards was corrected; (b) failed to ensure that the telephones of the brokerage were consistently answered in the name of the brokerage instead of “Sutton Group – Killarney ”; (c) failed to ensure he or a person designated by him kept, reviewed, dated and initialed proper monthly trust asset and liability reconciliations, including reconciliations of the commission trust account, in accordance with sections 7-4 and 8-3 of the Council Rules; (d) failed to ensure that the brokerage recorded its general bank account transactions in its books, prepared monthly reconciliations of the general bank account, and kept them up to date, in accordance with section 25 of the Real Estate Services Act and sections 8-2 and 8-9 of the Council Rules; (e) failed to ensure the brokerage promptly paid on receipt into the brokerage trust account all money held or received from, for or on behalf of a principal in relation to real estate services, including deal #060053, in accordance with section 27(2) of the Real Estate Services Act; (f) failed to ensure the brokerage paid remuneration to co-operating brokerages from the brokerage trust account instead of the commission trust account or the brokerage ’s general bank account; contrary to sections 30 and 31 of the Real Estate Services Act and sections 7-2 and 5-15 of the Council Rules; (g) failed to ensure that related licensees to the brokerage made, and the brokerage retained, proper disclosure, including deals #050187, 050205, 050203, 060032, 060033, 050007, 060018, and 060030, as required by sections 5-9 and 8-4 of the Council Rules; (h) failed to ensure a brokerage representative promptly disclosed to a buyer, while in a dual agency relationship in deal #060053, and to his buyer/client in deal #060010, the amount of remuneration to be earned by the brokerage, pursuant to sections 5-11 and 5-8 of the Council Rules; and (i) failed to ensure that the brokerage took reasonable steps to avoid a conflict of interest, in accordance with section 3-3(1)(i) of the Council Rules in deals #060032 and 060033 relating to March 2006 Contracts of Purchase and Sale, and in particular, failed to ensure that the brokerage withdrew any agency representation in these circumstances.
Result: Sutton Group – Gurdev Sandhu Realty was reprimanded 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 Sutton Group – Gurdev Sandhu Realty, and a Consent Order was issued. Further, Sutton Group – Gurdev Sandhu Realty was ordered to pay a discipline penalty to the Council in the amount of $1,000.00, and ordered to undergo an audit of its books and records on or before July 31, 2008 should it continue to be licensed as a brokerage at that time, with the costs of that audit to be borne by Sutton Group – Gurdev Sandhu Realty. Further, Sutton Group – Gurdev Sandhu Realty was ordered to pay the Council ’s audit costs in the amount of $1,050.00. In addition, Sutton Group – Gurdev Sandhu Realty and Walter Mielke were jointly and severally liable to pay enforcement expenses to the Council in the amount of $3,000.00.
Result: Gurdev Singh Sandhu was suspended for twenty-one (21) days from July 2, 2008 to July 22, 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 Gurdev Singh Sandhu, and a Consent Order was issued. Further, Gurdev Singh Sandhu was required to successfully complete the disciplinary education assignment applicable to Chapter 12 (Law of Agency) of the Real Estate Trading Services Licensing Course and to pay enforcement expenses to the Council in the amount of $1,000.00.
Result: Dalbir Singh Sandhu was reprimanded 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 Dalbir Singh Sandhu, and a Consent Order was issued. Further, Dalbir Singh Sandhu must successfully complete the disciplinary education assignment applicable to Chapter 9 (Professional Ethics) of the Real Estate Trading Services Licensing Course.
Result: Walter Mielke was reprimanded 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 Walter Mielke, and a Consent Order was issued. Further, Walter Mielke must successfully complete the disciplinary education assignment applicable to Chapter 2 (Mandatory Requirements under the Real Estate Services Act) of the Broker ’s Licensing Course, and Walter Mielke and Sutton Group – Gurdev Sandhu Realty are jointly and severally liable to pay enforcement expenses to the Council in the amount of $3,000.00.
P: June 16, 2008 R: Jun 16, 21013