REAL ESTATE COUNCIL OF BRITISH COLUMBIA
In the matter of the Real Estate Services Act
S.B.C. 2004, c. 42
AND in the matter of a Disciplinary Hearing held pursuant to Section 41 of the Real Estate Services Act
Respondent: MICHAEL HANUS
File: 518-06 and 07-309
Hearing Date: February 18 and 19, 2009
Decision of Council: March 30, 2009
Complaint: Contravention of sections 35(1)(a) [professional misconduct – contravention of Act or Rules], and 27(1)(a) [promptly pay or deliver to brokerage] of the Real Estate Services Act, and sections 3-2(2) [keep managing broker informed], 3-3(1)(a) [act in best interest of clients], 3-3(1)(h) [use reasonable efforts to discover relevant facts], 5-3(1) [signing agreements on behalf of clients] and 5-4(b) [promptly deliver copy to brokerage] of the Council Rules
Issue: Michael Hanus, representative, West Coast Realty Ltd. (Vic) dba Sutton Group-West Coast Realty (Vic), Victoria, while licensed with Camosun Properties Ltd. dba Re/Max Camosun, Victoria, committed professional misconduct under section 35(1)(a) of the Real Estate Services Act in that (a) in relation to the purchase of property on Humboldt Street, Victoria, while acting for buyers, he: (i) contravened section 3-3(1)(a) of the Council Rules by failing to act in the best interests of his clients, when he did not ensure the clients received and acknowledged information regarding the title search, mostly particularly the restrictive covenant on the title prior to removing subject conditions; (ii) contravened section 3-3(1)(h) of the Council Rules by failing to use reasonable efforts to discover relevant facts about the property, namely a restrictive covenant registered on the title to the property which limited the use of the property and which rendered the property unsuitable for the buyers ’ use; (b) in the proposed purchase of property on Craigflower Road, Victoria, while acting for the buyer: (i) contravened section 5-4(b) of the Council Rules by failing to promptly provide a copy of the contract to the brokerage; (ii) contravened section 27(1)(a) of the Real Estate Services Act by failing to promptly pay or deliver to the brokerage the deposit of $5000.00 paid under the contract being money received from, for or on behalf of a principal in relation to real estate services; (iii) contravened section 5-3(1) of the Council Rules by failing to obtain written authorization from the buyer prior to signing a release on behalf of the buyer; (iv) contravened section 3-2(2) of the Council Rules by failing to keep his managing broker informed that the deposit had been received by Mr. Hanus but inadvertently not turned in to his brokerage until some time later when Mr. Hanus was advised by the buyer that the buyer did not wish to proceed with the purchase.
Result: Michael Hanus was suspended for twenty-one (21) days from May 27, 2009 to June 16, 2009 (inclusive) for professional misconduct as described above. In addition, he was required to successfully complete the disciplinary education assignment applicable to Chapter 9 (Professional Ethics) of the Real Estate Trading Services Licensing Course, to enrol in and attend the first available CPE course “Real Estate E&O Insurance Legal Update 2009″ and to pay enforcement expenses to the Council in the amount of $3,000.00.
P: Jun 1, 2009 R: Jun 1, 2013