Contact Us Licensee Login

 

REAL ESTATE COUNCIL OF BRITISH COLUMBIA DISCIPLINE DECISION

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:    Kenneth Joseph Cameron Davreux

File:   09-191, 09-444, 09-529, 10-107, 10-151, 10-238

Date of Consent Order:   September 17, 2012

Issue: Kenneth Joseph Cameron Davreux, managing broker, Desert Oasis Realty Ltd. dba Royal LePage Desert Oasis Realty, Osoyoos, entered into a Consent Order with the Council that, while licensed as managing broker with Desert Oasis Realty Ltd. dba Royal LePage Desert Oasis Realty, Osoyoos; Mountain Strata Management Ltd., Osoyoos; and 494888 B.C. Ltd. dba Strata Pro Property Management Services, Osoyoos, he committed professional misconduct within the meaning of section 35(1)(a) of the Real Estate Services Act by contravening the Act, the Regulation or the Rules, and demonstrated incompetence in performing any activity for which a licence is required, in that he: 

(a) in relation to 494888 B.C. Ltd. dba Strata Pro Management Services: 

(i) allowed his brokerage to provide strata management services to or on behalf of BH & R who was not a principal in relation to the strata management services and was not licensed in relation to those services, contrary to section 6-2 of the Council Rules; 

(b) in relation to Desert Oasis Realty Ltd. dba Royal LePage Desert Oasis Realty: 

(i) failed to respond in a timely manner to the Council’s request for information concerning the March 25, 2009 Office and Records Inspection Report, contrary to section 37(4) of  the Real Estate Services Act and section 2-19 of the Council Rules; 

(ii) failed to respond in a timely fashion to the Council’s requests for information concerning the Office and Records Inspection Report dated June 23, 2010, contrary to section 37(4) of the Real Estate Services Act and section 2-19 of the Council Rules; 

(iii) failed to respond to the Council’s requests for information concerning the Office and Records Inspection Report dated September 30, 2010, contrary to section 37(4) of the Real Estate Services Act and section 2-19 of the Council Rules; 

(c) in relation to Mountain Strata Management Ltd.: 

(i) permitted the brokerage to provide real estate services through an unlicensed individual by permitting KB, while unlicensed, to provide strata management services to brokerage clients, contrary to section 7(5)(a) of the Real Estate Services Act;

(ii) permitted a licensee, EK, licensed with another brokerage, to provide real estate services to brokerage clients, contrary to section 7(5)(a) of the Real Estate Services Act

(iii) paid remuneration to an unlicensed person in relation to real estate services provided by that person, contrary to section 6-1(1) of the Council Rules; 

(iv) permitted the brokerage to provide strata management services without there being a proper service agreement, as required by and contrary to section 5-1(5.1) of the Council Rules; 

(v) in relation to four strata corporation clients, failed to transfer Contingency Reserve Funds (CRF) within seven days after the end of the month in which the CRF money was received contrary to section 7-9 of the Council Rules; 

(d) in relation to 494888 B.C. Ltd. dba Strata Pro Property Management Services: 

(i) failed to respond to the request for information by the Council, contrary to section 37(4) of the Real Estate Services Act and 2-19 of the Council Rules; 

(ii) failed to transfer Contingency Reserve Funds (CRF) within seven days after the end of the month in which the CRF money was received, contrary to section 7-9 of the Council Rules; 

(iii) permitted the brokerage to provide strata management services without a proper service agreement, as required by and contrary to section 5-1(5.1) of the Council Rules; 

(iv) failed to take immediate steps to eliminate a trust account shortage and failed to provide notice to the Council of that shortage, contrary to section 7-5 of the Council Rules; and 

(v) failed to provide to a strata corporation client disclosure of remuneration received by the brokerage for the preparation of forms B and F, contrary to section 5-11 of the Council Rules. 

(e) in relation to 494888 B.C. Ltd. dba Strata Pro Property Management Services with respect to the former strata corporation client, Strata Plan 25xx, he: 

(i) failed to act only within the scope of authority given by the client when he circulated a letter dated September 21, 2010 to some strata lot owners in the strata corporation which implied that the client was not acting in compliance with the Strata Property Act, contrary to section 3-3(1)(c) of the Council Rules; 

(ii) failed to ensure that the brokerage provided in a timely manner all records referred to in section 8-2 of the Council Rules related to all trust accounts maintained on their behalf, as well as copies of all invoices verifying disbursements made on their behalf to the then former client’s new brokerage, contrary to section 8-7.1(3) and section 8-7.1(4)(b) of the Council Rules. 

(f) in relation to Mountain Strata Management Ltd. in respect to the brokerage’s former strata corporation client, Strata Plan xx95, he: 

(i) failed to ensure that the brokerage provided to the client bank statements and reconciliations for all trust accounts held on behalf of the client for the months of February, March and April 2010 no later than 6 weeks after the end of those months, respectively, contrary to section 7-9(7)(b) of the Council Rules; 

(ii) failed to act in accordance with the lawful instruction of the client when he, contrary to section 3-3(1)(b) of the Council Rules: 

a) failed to respond to its request for a copy of the month of February 2010 financial statements, as well as to requests to provide additional documentation relating to the financial statements for the months of March and April 2010; 

b) failed to respond to its requests for clarification as to why the mortgage balance on the financial statement differed from the balance shown on the bank statement, as well as having subsequently failed to remedy this error as per the client’s request; 

c) failed to enter into a new strata insurance policy on behalf of the client with a specific insurance company, as per the client’s written instruction dated April 24, 2010; and 

(iii) failed to ensure that the brokerage provided in a timely manner records referred to in section 8-2 of the Council Rules that relate to all trust accounts maintained on its behalf, as well as copies of all invoices verifying disbursements made on its behalf to the client’s new brokerage, contrary to section 8-7.1(3) and section 8-7.1(4)(b) of the Council Rules. 

Result: Kenneth Joseph Cameron Davreux was ordered to remove the strata management category from his managing broker’s licence and was ordered not to apply for a licence to provide strata management services for a period of five (5) years, or until September 17, 2017.  As a condition of re-licensing to provide strata management services, he must successfully complete the Strata Management Supplemental Course.  Further, he was ordered to pay enforcement expenses to the Council in the amount of $2,000.00.

P: Oct 24, 2012 R:  No