Consent Order

Michael Patrick Dumont, as managing broker of Okanagan Strata Management Ltd, failed to ensure that the brokerage's trust accounts and records were properly maintained, as required by section 3-1(3) of the Rules. Mr. Dumont failed to be actively engaged in the management of the brokerage, contravening 3-1(1)(a) of the Rules, and section 6(2) of the Real Estate Services Act.

During the Council's inspection of Okanagan Strata Management Ltd.'s books and records, the auditor observed discrepancies in the brokerage's accounting. Mr. Dumont failed to ensure that:

• the brokerage maintained and retained financial records in connection with its business and did not prepare monthly banking reconciliations within the required time frame,
• the brokerage maintained a liability listing and reconciled the pooled rental trust account accurately and appropriately,
• the brokerage reconciled trust accounts in a timely manner and in accordance with the Rules,
• the brokerage provided a monthly trust bank statement and reconciliations within the required time frame,
• the brokerage promptly paid deposits into the trust account, and
• rental management service agreements included a description of the records to be kept by the brokerage on behalf of the client, and a provision relating to the use and disclosure of personal information.

These actions contravened sections 8-2 and 8-3 of the Rules.

Mr. Dumont did not ensure that the brokerage took immediate steps to eliminate a negative balance in the long-term pooled rental trust accounts, and failed to ensure that the brokerage notified the Council about the negative balance within the required time frame. This contravened section 7-5(2) of the Rules.

He failed to promptly respond to the Council's correspondence, contravening section 2-19 of the Rules.

Results

A discipline committee of the Council has ordered the following:

1. Mr. Dumont is reprimanded and must pay a discipline penalty of $2,500.00 to the Council.
2. Mr. Dumont must pay enforcement expenses of $1,500.00 to the Council.