Consent Order

Published on
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Licensee
Jing (Sandra) Li, Jing (Sandra) Li
Brokerage at Time of Sanctioned Activity
New Coast Realty
Current Brokerage
New Coast Realty, Richmond
Consent Order Date
22 May 2018

Summary

Jing (Sandra) Li failed to adequately supervise her unlicensed assistant, when she allowed her to provide real estate services in relation to two properties.

Ms. Li acted as a buyer's agent in the purchase and subsequent assignment of a property from her buyer client (the 'first buyer') to a director of New Coast Realty (the 'second buyer').

She did not draft or provide a copy of an assignment agreement to the seller (or the seller's agent) upon learning that the buyer was assigning the contract for the purchase of the property.

Instead, Ms. Li:

  • Drafted an addendum to the Contract of Purchase and Sale by the second buyer in order to remove all subject conditions and identify the second buyer;
  • Drafted a second addendum to the Contract of Purchase and Sale, signed by the first buyer to remove all subject conditions, when she knew that the Contract of Purchase and Sale was being assigned by the first buyer to the second, and that the second buyer would be providing the deposit;
  • Drafted an addendum to the Contract of Purchase and Sale which stated the first buyer was executing his right to assign the Contract of Purchase and Sale to the second buyer.

Ms. Li did not disclose to the seller (or the seller's agent) that the deposit provided to her brokerage was paid by the second buyer.

Ms. Li did not promptly prepare or provide a Disclosure of Interest in Trade form to the seller, the seller's agent, or the first buyer disclosing that the second buyer was an associate of New Coast Realty.

Despite having acted as the designated agent for the first buyer in the purchase of the property (and despite her professional relationship with the second buyer), Ms. Li drafted an assignment of the Contract of Purchase and Sale stating that she was offering no agency representation to the first or second buyer.

Before providing trading services, licensees have a duty to disclose the nature of the services they will be providing. Ms. Li failed in these duties.

Ms. Li acted as a buyer's agent for a director of New Coast Realty in the purchase of a property, and subsequently assigned the Contract of Purchase and Sale to herself.

Ms. Li drafted an addendum to the Contract of Purchase and Sale which reflected the change in the buyer's name to herself, but did not provide a copy of the addendum to the seller (or the seller's agent) or obtain the seller's signature on the addendum.

Ms. Li did not draft an assignment agreement or provide a copy of the assignment agreement to the seller, or the seller's agent.

Ms. Li acted as the listing agent for a director of New Coast Realty. Ms. Li failed to provide the buyer (or the buyer's agent) with a Disclosure of Interest in Trade form, disclosing that the seller was a director of New Coast Realty (the brokerage with which she was licensed).

Ms. Li, and other members of the Sandra Li Team, acted for the seller of a property. Ms. Li did not identify all members of the Sandra Li team as designated agents for the seller on the Multiple Listing Services contract or in the Contract of Purchase and Sale. Before providing trading services, licensees have a duty to disclose the nature of the services they will be providing. Ms. Li failed in these duties.

Ms. Li paid a referral fee to her seller client's friend, who had referred the seller to Ms. Li. She did not disclose this to the seller in a timely manner.

Ms. Li did not disclose to that seller client until over six months after the Contract of Purchase and Sale had been entered into that:

  • the buyer's agent's commission had decreased, and that as a result,
  • she and another team member would be receiving the balance of the commission.

Ms. Li acted as the seller's agent and did not disclose the nature of the representation she and her team were providing to the seller. Specifically, Ms. Li did not identify all members of her team as designated agents on the Multiple Listing Services contract, or on the Contract of Purchase and Sale.

Ms. Li acted for the seller of a property.

Ms. Li did not:

  • disclose to the seller that a member (or members) of her team were acting as agents for the buyer,
  • obtain the seller's prior written consent to act for both the seller and the buyer in this transaction,
  • ensure that the seller entered into a limited dual agency agreement, and
  • ensure that all members of her team were identified on the Contract of Purchase and Sale.

Ms. Li and her team members acted for both the buyer and seller without first obtaining the seller's written consent to do so. Licensees have a duty to take reasonable steps to avoid any conflict of interest, and to promptly and fully disclose any existence of a conflict of interest. Ms. Li failed in her duties.

Ms. Li did not ensure that the seller provided the buyer with a B.C. Housing Owner Builder Disclosure Notice prior to any offer being made, as required under the Homeowner Protection Act.

Results

A discipline committee of the Council has ordered the following:

  1. Ms. Li's licence is suspended for 45 days, from May 31, 2018 to July 14, 2018, inclusive. She must not act as an unlicensed assistant during the time of her licence suspension.
  2. Ms. Li is reprimanded and must pay a discipline penalty of $10,000.00 to the Council.
  3. At her own expense, Ms. Li must successfully complete the Real Estate Trading Services Remedial Education course.
  4. Ms. Li must pay enforcement expenses of $10,000.00 to the Council.
  5. Ms. Li must review with her managing broker, and must submit a written confirmation from her managing broker that they have reviewed and discussed the following within 30 days of this order:
    1. The proper way to document an assignment, by having the parties enter an Assignment of Contract of Purchase and Sale;
    2. The correct use of an addendum (to document) or to change the terms of the contract between the buyer and the seller;
    3. The definition of "associate" in terms of herself and her brokerage;
    4. Her disclosure requirements when acting on behalf of an associate of the brokerage and;
    5. Her disclosure obligations under Section 5-10 of the Rules.
  6. Ms. Li must submit a written acknowledgement on what she learned as a result of this process within 30 days from the date of this Order.

As Ms. Li has a personal real estate corporation, the licence of Sandra Li Personal Real Estate Corporation is also suspended, reprimanded, and equally responsible for paying the discipline penalty and enforcement expenses.

PDF Files

Consent Order

Full consent order is available as a PDF.

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