Consent Order

Kevin James Cheale, Kevin Cheale Personal Real Estate Corporation, Representative, RE/MAX Management Solutions, Kelowna, and

Mark Clifford Shillington, Managing Broker, RE/MAX Management Solutions, Kelowna

File 14-074 and 14-400

Consent Order: January 5, 2017

Summary of File 14-074

Kevin James Cheale provided rental property management services without a written service agreement in place. His actions contravened section 7(3)(a) of the Real Estate Services Act, and section 3-4 of the Rules.

Mr. Cheale deposited a security deposit cheque into his personal bank account, rather than the appropriate account with his brokerage. This contravened section 27(1)(a) of the Real Estate Services Act.

Mark Clifford Shillington failed to provide an adequate level of supervision for licensees of the brokerage, and failed to ensure that the business of the brokerage was carried out in accordance with the Act, Regulations, and Rules. This contravened section 3-1(1) of the Rules.

Mr. Shillington permitted a security deposit to be paid into the brokerage without a rental service agreement in place. Managing brokers are required to ensure that the brokerage maintains proper books, accounts, and records in accordance with the Act, Regulations, and Rules. Mr. Shillington's actions contravened section 25 of the Real Estate Services Act, and sections 3-1(3)(a) and 3-1(3)(b) of the Rules.

Summary of File 14-400

Mr. Shillington permitted Mr. Cheale to provide real estate services in the name of an unlicensed Personal Real Estate Corporation. Managing brokers have a duty to ensure that the business of their brokerage is carried out in accordance with the Real Estate Services Act, Regulations, and Rules. Mr. Shillington's actions contravened section 3-1(1) of the Rules.

Mr. Cheale failed to ensure that his Personal Real Estate Corporation met the Council's licensing requirements. By doing so, Mr. Cheale failed to act with reasonable care and skill, contravening section 3-4 of the Rules.

By providing real estate services through an unlicensed Personal Real Estate Corporation, Mr. Cheale contravened 7(3)(a) of the Real Estate Services Act.

Kevin Cheale Personal Real Estate Corporation received remuneration from RE/MAX Kelowna while unlicensed. This contravened section 7(3)(b) of the Real Estate Services Act.

Results

A discipline committee of the Council has ordered the following:

1. Mr. Cheale and Mr. Shillington are each reprimanded.
2. Mr. Cheale must pay a discipline penalty of $2,500.00 to the Council.
3. Mr. Cheale and Mr. Shillington are equally responsible for paying enforcement expenses of $1,500.00 to the Council.
4. Mr. Cheale must successfully complete the Rental Property Management Remedial Education Course.
5. Mr. Cheale must review the components on licensee standards and trust accounting requirements from the Managing Broker's Licensing Course with his managing broker.
6. Mr. Cheale must review with his managing broker the next service agreement he enters into on behalf of the brokerage for its compliance with the Real Estate Services Act, and Rules.

As Mr. Cheale has a Personal Real Estate Corporation, the licence of Kevin Cheale Personal Real Estate Corporation is also reprimanded, and is equally responsible for payment of the discipline and enforcement expenses.