Consent Order

Published on
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Licensee
N/A
Brokerage at Time of Sanctioned Activity
Dorset Realty Group
Current Brokerage
Dorset Realty Group
Consent Order Date
2 May 2016

Summary

Dorset Realty Group was providing strata management fees to a strata corporation based on an agreement signed in 1999 which had not been amended to reflect the new legislation brought into force under the Strata Property Act and the Real Estate Services Act. The brokerage failed to ensure that there was a written service agreement in place between the brokerage and its strata corporation client containing the content required by sections 5-1(4) and 5-1(5.1) of the Council Rules. This was contrary to section 5-1(1) of the Council Rules.

Ronald Joseph Schuss, while licensed and acting as a managing broker at Dorset Realty Group, failed to ensure that there was a written service agreement in place between the strata and the brokerage that contained the content required by sections 5-1(4) and 5-1(5.1) of the Council Rules. He failed to ensure that Mr. Kim Schuss, a licensee providing strata management services to the strata, performed the delegated duties provided for by the agreement between the brokerage and the strata competently and without exceeding his authority. Mr. Ronald Schuss permitted Mr. Kim Schuss and the brokerage or one or both of them to withdraw unauthorized amounts for management fees from the strata's accounts. Mr. Ronald Schuss' actions were contrary to section 6(2) of the Real Estate Services Act and section 3-1(1)(c) of the Council Rules.

Mr. Ronald Schuss failed to ensure an adequate level of supervision of Mr. Kim Schuss's services to the strata in connection with a project underway at the strata. Mr. Ronald Schuss was unaware of or, in the alternative, failed to prevent Mr. Kim Schuss from expending funds from the strata's contingency reserve fund without prior approval of the strata council. He failed to ensure Mr. Kim Schuss made all relevant documents, accounts, and records of the strata available for inspection on request by a member of the strata council, as required by the agreement between the strata and the brokerage. Mr. Ronald Schuss's actions were contrary to section 6(2) of the Real Estate Services Act and section 3-1(1)(b) of the Council Rules.

Kim Ronald Schuss acted outside the scope of authority given by the strata by charging monthly management fees in excess of the amount provided for in the agreement between the strata and the brokerage. His actions were contrary to section 3-3(c) of the Council Rules.

Mr. Kim Schuss failed to act in the best interests of the strata, contrary to section 3-3(a) of the Council Rules. He failed to advise the strata to seek independent professional advice on matters outside of his expertise, by not recommending that the strata protect its interests by seeking professional advice about entering into a formal contract with a contractor undertaking work in connection with a project at the strata. This was contrary to section 3-3(d) of the Council Rules.

Mr. Kim Schuss failed to act in the best interests of the strata, by failing to provide accurate and timely information about the financial status of a project underway by the strata. He failed to ensure the strata was informed in a timely way of financial issues relating to the project, including increased costs. He failed to make all relevant documents, accounts, and records of the strata available for inspection on request by a member of the strata council, as required by the agreement between the strata and the brokerage. These actions were contrary to section 3-3(a) of the Council Rules.

Mr. Kim Schuss failed to act in the best interests of the strata and to act with reasonable care and skill. He failed to advise the strata to obtain or ensure a contractor obtained building permits required for a project underway at the strata. He failed to advise the strata to ensure the contractor had valid and subsisting WorkSafe BC and insurance coverage for the duration of the project. These actions were contrary to sections 3-3(a) and 3-4 of the Council Rules.

Mr. Kim Schuss failed to act only within the scope of the authority given by the strata. He expended funds from the strata's contingency reserve fund without prior approval from the strata council and released payments to a contractor without prior approval from the strata council. These actions were contrary to section 3-3(c ) of the Council Rules.

Damien Joseph Paul Roussin, while acting as managing broker at the brokerage, failed to ensure that the business of the brokerage was carried out competently and in accordance with the Real Estate Services Act and Council Rules. He failed to ensure that there was at all material times a written service agreement in place between the strata and the brokerage that was current and contained the content required by sections 5-1(4) and 5-1(5.1) of the Council Rules.

Mr. Roussin failed to ensure that Mr. Kim Schuss and Mr. Chan performed their delegated duties competently and without exceeding their authority. He permitted Mr. Kim Schuss, Mr. Chan, and the brokerage to withdraw unauthorized amounts for management fees from the strata's accounts. When Mr. Roussin became aware that management fees greater than those provided for in the 1999 agreement had been and were being withdrawn from the strata's accounts, he failed to remedy the problem. These actions contravened section 6(2) of the Real Estate Services Act and section 3-1(1)(b) of the Council Rules.

Mr. Roussin failed to ensure there was an adequate level of supervision for the strata management services Mr. Kim Schuss and Mr. Chan provided to the strata in connection with a project underway at the strata. Mr. Roussin was unaware of or, in the alternative, failed to prevent them from expending funds from the strata's contingency reserve fund without prior approval of the strata council. He failed to prevent them from releasing payments to a contractor without prior approval from the strata council. He failed to ensure that they made all relevant documents, accounts, and records of the strata available for inspection on request by a member of the strata council, as required by section 7 of the 1999 Agreement. Mr. Roussin's actions were contrary to section 6(2) of the Real Estate Services Act and section 3-1(1)(c) of the Council Rules.

Leo Ka Kit Chan, while licensed with Dorset Realty Group, acted outside the scope of the authority given by the strata, by charging monthly management fees in excess of the amount provided for in the agreement between the strata and the brokerage. This contravened section 3-3(c) of the Council Rules.

Mr. Chan failed to act in the best interests of the strata. He failed to provide accurate and timely information about the financial status of a project underway and to ensure the strata was informed in a timely way of financial issues relating to the project, including increased costs. He failed to make all relevant documents, accounts, and records of the strata available for inspection on request by a member of the strata council, as required by the agreement between the brokerage and the strata. His actions were contrary to section 3-3(a) of the Council Rules.

Results

A discipline committee of the Council has ordered the following:

  1. Dorset Realty Group, Ronald Joseph Schuss, Kim Ronald Schuss, Damien Joseph Paul Roussin and Leo Ka Kit Chan are each reprimanded.
  2. Ronald Joseph Schuss, Kim Ronald Schuss and Damien Joseph Paul Roussin must each pay a discipline penalty of $2,000.00 to the Council.
  3. Leo Ka Kit Chan must pay a discipline penalty of $1,000.00 to the Council.
  4. At their own expense, Ronald Joseph Schuss and Damien Joseph Paul Roussin must successfully complete the Broker's Remedial Education Course.
  5. At their own expense, Kim Ronald Schuss and Leo Ka Kit Chan must successfully complete the Strata Management Remedial Education Course.
  6. Ronald Joseph Schuss, Kim Ronald Schuss, Damien Joseph Paul Roussin and Leo Ka Kit Chan must each pay enforcement expenses of $1,250.00 to the Council.

PDF Files

Consent Order

Full consent order is available as a PDF.

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