Consent Order

Donald Frederiksen allowed licensees at O.J. Realty & Property Management (O.J. Realty) to provide rental property management services when O.J. Realty did not have a proper written services agreement or waiver in place. He did not ensure that the business of the brokerage was carried out competently and in accordance with the Act, regulations, rules and bylaws.

After receiving a notice of termination of services, Mr. Frederiksen and O.J. Realty permitted the brokerage to withdraw two months of management fees without the authority to do so.

Mr. Frederiksen failed to ensure that the business of O.J. Realty was carried out competently and in accordance with RESA and the rules, and did not ensure there was adequate supervision of related representatives.

Mr. Frederiksen:

• Permitted a related representative of O.J. Realty to use a tenant's security deposit as payment for rental arrears without the knowledge or consent of the client;
• Did not ensure that O.J. Realty had a valid rental property management services agreement in place prior to the brokerage providing rental property management services to a client;
• Permitted O.J Realty to enter into a tenancy agreement with a tenancy commencing in April 2012, when the tenancy for the property did not actually commence until May, 2012.
• Allowed O.J. Realty to enter into a tenancy agreement and recorded the monthly rent as $795 when the owner's ledger recorded the monthly rent amount as $875.

Results

A discipline committee of the Council has ordered the following:

1. Mr. Frederiksen is reprimanded, and must pay a discipline penalty of $2,500.00 to the Council.
2. O.J. Realty & Rental Property Management Inc. is reprimanded, and must pay a discipline penalty of $2,500.00 to the Council.
3. At his own expense, Mr. Frederiksen must successfully complete the Broker's Remedial Education Course.
4. Mr. Frederiksen and O.J. Realty & Rental Property Management Inc. are equally responsible for paying enforcement expenses of $1,500.00 to the Council.