Kenneth York Leong, Oceanridge Realty Ltd., Vancouver

Respondent:     KENNETH YORK LEONG
                                               OCEANRIDGE REALTY LTD.

File:   08-187

Date of Consent Order:   June 21, 2010                    

Issue: Oceanridge Realty Ltd., Vancouver, entered into a Consent Order with the Council in which it consented to an Order that it committed professional misconduct within the meaning of section 35(1)(a) of the Real Estate Services Act in that it: (a) contravened section 25 of the Real Estate Services Act and sections 8-2, 8-3 and 8-4(2)(a) of the Council Rules in that it failed to keep proper books, accounts and other records for the period between April 1, 2008 and November 12, 2008; (b) contravened section 27(2) of the Real Estate Services Act in that it received the sum of $1,000 of the security deposit from a tenant with respect to a rental property situated at Pacific Avenue, Vancouver, B.C. and failed to deposit same in the brokerage rental property management trust account and instead deposited same to the brokerage general account; (c) contravened section 27(2) of the Real Estate Services Act in that it received the sum of $7,154.22 re the first client on August 5, 2008 and failed to deposit same in the rental property management trust account of the brokerage but instead deposited same to the general account; (d) contravened section 27(2) of the Real Estate Services Act in that it received the sum of $1,500 on October 23, 2008 re the second client and failed to deposit same in the brokerage rental property management trust account but instead deposited same to the general account; (e) contravened section 30(1)(g) of the Real Estate Services Act in that it transferred funds from the brokerage rental property management trust account to the brokerage general account as fees in the amount of $2,732.09 going back for approximately a ten-year period without the instructions of the principal of the Chancellor Boulevard account; (f) contravened section 5-1 of the Council Rules in that it failed to have written service agreements with respect to all rental property management clients or written waivers of such agreements; (g) contravened sections 5-1(4)(g) and 5-1(5)(d) of the Council Rules in that a written service agreement for the management of rental property on Main Street, Vancouver, B.C. did not contain the following required clauses: (i) security deposits, pet damages and other deposits that are to be dealt with, as required under section 5-1(5)(d) of the Council Rules; and (ii) a provision respecting the use and disclosure of personal information, as required under section 5-1(4)(g) of the Council Rules; (h) contravened section 7-5(2) and (3) of the Council Rules: (i) by failing to take immediate steps to eliminate trust shortages in the brokerage rental property management trust account until it was brought to their attention by the Council; and (ii) by failing to notify the Council of the said trust shortages; (i) contravened section 27(5) of the Real Estate Services Act in that it failed to ensure that no money, other than money referred to in subsections (1) and (2) of section 27 of the Real Estate Services Act was paid into its brokerage trust account; and (j) contravened section 3(1) of the Real Estate Services Act in that it conducted strata management services, as defined in section 1 of the Real Estate Services Act, when only licensed to provide trading and rental property management services.   

Issue: Kenneth York Leong, managing broker, Oceanridge Realty Ltd., Vancouver, entered into a Consent Order with the Council in which he consented to an Order that he committed professional misconduct within the meaning of section 35(1)(a) of the Real Estate Services Act in that he: (a) failed to fulfil his responsibilities as managing broker for the performance of the duties imposed on the brokerage by its licence within the meaning of section 6(2)(b) of the Real Estate Services Act; (b) contravened section 3(1) of the Real Estate Services Act in that he conducted strata management services, as defined in section 1 of the Real Estate Services Act, when he was only licensed to provide trading and rental property management services; (c) contravened section 3-1(1)(a) and (b) and section 3-1(3)(a) and (b) of the Council Rules in that he: (i) failed to ensure the business of the brokerage was carried out competently and in accordance with the Real Estate Services Act, Regulation, Rules and Bylaws by permitting the brokerage to conduct strata management services when it was not licensed to do so; (ii) failed to ensure that the said brokerage kept proper books, accounts and other records, as required by section 25 of the Real Estate Services Act and sections 8-2, 8-3 and 8-4(2)(a) of the Council Rules; (iii) failed to ensure that monthly reconciliations were reviewed, dated, and initialed by him as the managing broker, as required by section 7-4(2) of the Council Rules; (iv) failed to ensure that monies received in connection with rental properties from three clients were deposited into the rental property management trust account of the brokerage, as required by section 27(2) of the Real Estate Services Act; (v) failed to ensure that he had instructions from the principal of the Chancellor Boulevard account before transferring funds from the rental property management trust account to the general account of the brokerage as fees in the amount of $2,732.09 going back approximately for a ten-year period, as required by section 30(1)(g) of the Real Estate Services Act; (vi) failed to ensure that the brokerage had written service agreements with all rental property management clients, as required by section 5-1 of the Council Rules or written waivers of such agreements; (vii) failed to ensure that a written service agreement between the brokerage and the owner of the property on Main Street, Vancouver, B.C. contained clauses with respect to security deposits, pet damage deposits, and other deposits that are to be dealt with, as required by section 5-1(5)(d) of the Council Rules, and a provision respecting the use and disclosure of personal information, as required by section 5-1(4)(g) of the Council Rules; (viii) failed to ensure that funds not connected with the trade in real estate services were not deposited into the trust account of the brokerage, as required by section 27(5) of the Real Estate Services Act; (ix) failed to ensure that the brokerage reported trust account shortages to the Council, as required by section 7-5(3)(b) of the Council Rules; (x) failed to ensure that the brokerage took immediate steps to eliminate trust shortages in the brokerage rental property management trust account until it was brought to his attention by the Council, as required by section 7-5(2) of the Council Rules; (d) contravened section 3-1(3)(a) of the Council Rules in that he failed to ensure that the trust accounts and records of the brokerage were maintained in accordance with the Real Estate Services Act, Regulation, Rules and Bylaws; and (e) contravened section 2-19 of the Council Rules by failing to respond promptly to the inquiries of the Council in connection with this matter.   

Result: Oceanridge Realty Ltd. was reprimanded and ordered to pay a discipline penalty to the Council in the amount of $2,000.00.  

Result: Kenneth York Leong ’s managing broker ’s licence was suspended for thirty (30) days from August 18, 2010 to September 16, 2010 (inclusive) but during the suspension period he is eligible to be licensed as an associate broker or representative and he was ordered to successfully complete the Trading Services Remedial Education Course.  

Result: Oceanridge Realty Ltd. and Kenneth York Leong were ordered to be jointly and severally liable to pay audit costs to the Council in the amount of $1,575.00   and were ordered to be jointly and severally liable to pay enforcement expenses to the Council in the amount of $1,000.00.  

P: Jul 28, 2010 R:   Jul 28, 2015