Raj Kumar Gupta, Century 21 In Town Realty, Vancouver

Respondent:     RAJ KUMAR GUPTA

File:   07-073

Date of Consent Order:   August 14, 2008                      

Complaint: Contravention of sections 35(1)(a) [professional misconduct], 7(3)(a) [providing real estate services outside of brokerage], 27(1)(a) [money received from a principal in relation to real estate services], and 27(4) [separate written agreement] of the Real Estate Services Act, sections 3-2(2)(a) [keeping managing broker informed], 3-3(1)(i) and (j) [avoid conflict of interest] and 3-4 [duty to act with reasonable care and skill] of the Council Rules and section 40 of the Real Estate Development Marketing Act   

Issue:   Raj Kumar Gupta, representative, Nechako Real Estate Ltd. dba Century 21 In Town Realty, Vancouver, committed professional misconduct within the meaning of section 35 of the Real Estate Services Act by contravening section 35(1)(a) of the Real Estate Services Act in that: (a) in relation to a Contract of Purchase and Sale dated February 17, 2006 regarding property at 68^th Street, Surrey between Raj Kumar Gupta and the buyers and ten sellers, Mr. Gupta failed to take reasonable steps to avoid a conflict of interest in that he was a principal in the transaction and acted as a buyer ’s agent in the purchase, contrary to section 3-3(1)(i) and 3-3(1)(j) of the Council Rules; (b) in relation to an Assignment of Purchase Contract dated February 25, 2006 between Raj Kumar Gupta and HG as Assignors and RA as Assignee, and/or in relation to three Assignments of Purchase Contracts dated February 22, 2006 between Raj Kumar Gupta and HG as Assignors and RA, AB and GB as Assignees, Mr. Gupta: (i) received assignment fees and deposits directly from the Assignees which fees and deposits ought to have been paid into trust with the brokerage, contrary to section 27(1)(a) of the Real Estate Services Act; (ii) failed to ensure that the parties entered into a separate written agreement that money held or received from the Assignees would be paid or delivered to other than the trust account of the brokerage, contrary to section 27(4) of the Real Estate Services Act; (iii) provided real estate services separate from his brokerage, contrary to section 7(3)(a) of the Real Estate Services Act; (iv) failed in his duty to keep his managing broker informed of the real estate services he was providing to HG, contrary to section 3-2(2)(a) of the Council Rules; (v) failed to advise RA, AB and GB to seek independent legal advice regarding the Assignment of Contract and the payment of the deposit directly to himself as the Assignor, contrary to section 3-3(1)(i) of the Council Rules; (vi) failed to act with reasonable care and skill when he did not record the full details of the Agreement between himself and HG as Assignors and RA, RA and/or GB as Assignees, contrary to section 304 of the Council Rules; (vii) failed to use reasonable care and skill by marketing subdivision lots when there was no disclosure statement filed with the Superintendent of Real Estate, contrary to section 40 of the Real Estate Development Marketing Act; (c) failed to take reasonable steps to avoid a conflict of interest, contrary to section 3-3(1)(i) and section 3-3(1)(j) of the Council Rules in five transactions in which he was a principal and acted as limited dual agent in relation to his purchase of the properties; (d) failed to take reasonable steps to avoid a conflict of interest, contrary to section 3-3(1)(i) and section 3-3(1)(j) of the Council Rules when he, while a principal in the transaction, acted as a limited dual agent in relation to seven properties he owned.  

Result: Raj Kumar Gupta was suspended for one hundred and eighty (180) days from October 1, 2008 to March 29, 2009 (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 Raj Kumar Gupta, and a Consent Order was issued.   Further, Mr. Gupta was ordered to successfully complete the disciplinary education assignments applicable to Chapter 2 (Real Estate Services Act), Chapter 9 (Professional Ethics) and Chapter 12 (Law of Agency) of the Real Estate Trading Services Licensing Course, enroll in and attend the first available CPE course  “Professionalism It Pays! Be Safe or Be Sued! ” or  “Legal Update ”, to pay a discipline penalty in the amount of $5,000.00 to the Council and to pay enforcement expenses to the Council in the amount of $1,000.00.  

P: Sep 17, 2008 R:   Sept 17, 2013