Consent Order

Breach of Sections 31(1)(c) and 38 of the Real Estate Act, Section 9.12 of Regulation 75/61 under the Act/Misconduct/Notice and Disclosure/Negligence

Sudarshan Rana, currently unlicensed who, while licensed as a salesperson with Amex-Delridge Realty, Surrey had misconducted himself within the meaning of Section 31(1)(c) of the Real Estate Act in that he:

1. failed to advise the Real Estate Council and the Superintendent of Real Estate in a pre-screening application for a real estate licence and the application for licensing that his real estate licence in the Province of Ontario had been revoked for deliberately misrepresenting the material facts to third parties, in circumstances where he knew it would benefit him personally if he could induce his clients by falsehoods to act to their detriment.
2. when acting as a limited dual agent, after drafting a Contract of Purchase and Sale, he did not advise the seller that he had "flipped " the property to himself.
3. provided a gift letter to a bank indicating that he received a gift from an individual which he knew was untrue or misleading for the purpose of obtaining 100% financing.
4. did not advise the lender that he was in fact buying the property for a lesser sum than was indicated on the Contract of Purchase and Sale.

Mr. Rana was negligent within the meaning of Section 9.12 of Regulation 75/61 under the Act in that when acting as the limited dual agent he:

1. did not complete the notice and disclosure to the seller in the proper form prior to making his offer, contrary to Section 38 of the Act;
2. did not look after the best interests of the seller in that he had the seller sign two addenda, one leaving appliances and providing for a carpet allowance from the seller, without advising the seller that he, Rana, would be the ultimate purchase of the property;
3. did not turn the Contract of Purchase and Sale whereby he agreed to purchase the property from the seller in to his agent until after all the paperwork had been completed by the conveyance lawyer.

Results

The Hearing Committee 's decision had been to suspend Mr. Rana for a period of one (1) year. The Committee further ordered that as a condition of relicensing, he be required to successfully complete Chapter 9 (Professional Ethics), Chapter 10 (The Law of Contract), Chapter 11 (Contracts for Real Estate Transactions), and Chapter 12 (Law of Agency) of the Real Estate Salesperson 's Pre-Licensing Course prior to the reissuance of his salesperson 's licence. The Superintendent of Real Estate appealed the Council 's decision to the Commercial Appeals Commission with respect to the issue of penalty and the Commission allowed the appeal and cancelled Mr. Rana 's licence for three (3) years commencing from August 1, 2001, and upheld the remedial education ordered by the Council. It shall also be a condition of relicensing that his licence be restricted to his employing agent for a period of one (1) year from the date of licence reissuance and that he be under the direct supervision of the employing nominee(s) who has accepted the terms of supervision noted below.

The Hearing Committee further ordered that Mr. Rana provide his employing nominee(s) with a copy of the decisions and a copy of the decision of the Ontario Commercial Registration Appeal Tribunal, that the nominee(s) shall acknowledge receipt of same in writing to the Real Estate Council and that during the one (1) year supervisory period the nominee(s) shall provide the Real Estate Council with quarterly reports indicting that the nominee(s) has reviewed Mr. Rana 's contracts and other work in general, and that to the best of the nominee 's knowledge, Mr. Rana has complied with the Real Estate Act and Regulations. The employing nominee(s) shall immediately report to the Council anything of an adverse nature with respect to Mr. Rana 's activities.

In the event that Mr. Rana changes agents during the one year supervisory period, the one year term shall start afresh and the new nominee(s) shall be given a copy of the decisions and a copy of the Ontario decision by Mr. Rana and the new nominee(s) shall provide the Real Estate Council with quarterly reports as noted above.

Mr. Rana applied for leave to appeal the decision of the Commercial Appeals Commission to the Court of Appeal and his application was dismissed on May 20, 2004.

P:September 7, 2004 R:no