Consent Order

Karlheinz (Karl) Willi Neff failed to act in the best interest of his clients, the prospective purchasers of a manufactured home property, when he failed to disclose that the property did not have a CSA approval sticker or equivalent from the BC Safety Authority. Mr. Neff's actions contravened section 3-3(a) of the Council Rules.

Mr. Neff failed to disclose a material latent defect (the lack of a CSA approval sticker or equivalent) in writing, separate from an agreement giving effect to a trade in real estate, as required under section 5-8(1)(a) of the Council Rules. Mr. Neff's actions were contrary to section 5-13(2) of the Council Rules.

Mr. Neff advised the Council that the manufactured home had a CSA approval sticker when he listed the property. In fact, he learned after listing the property that the CSA number provided by the seller was not valid and a CSA sticker was not applied for and obtained until after the sale in which he acted as a dual agent. Mr. Neff's statement to the Council was misleading within the meaning of section 35(1)(g) of the Real Estate Services Act.

Results

A discipline committee of the Council has ordered the following:

1. Karlheinz (Karl) Willi Neff is reprimanded.
2. At his own expense, Mr. Neff must successfully complete the Real Estate Trading Services Remedial Education Course.
3. He must pay a discipline penalty of $5,000.00 to the Council.
4. He must pay enforcement expenses of $1,250.00 to the Council.

As Mr. Neff has a personal real estate corporation, these orders also apply to Karl Neff Personal Real Estate Corporation.