Pei Huang, while licensed with Regent Park Fairchild Realty Inc., acted for the seller of a business, including the assignment of a lease. He failed to clarify with (or disclose to) the buyers the nature of the representation he was providing them. In doing so, Mr. Huang contravened sections 3-3(a), 3-4 and 5-10 of the Rules.
During the transaction, Mr. Huang provided real estate services without informing his managing broker or his brokerage. Licensees may only provide real estate services on behalf of their brokerage. Mr. Huang’s actions contravened section 7(3)(a) of the Real Estate Services Act and section 3-2(2)(a) of the Rules.
Licensees may only accept remuneration for real estate services from their brokerage. Mr. Huang accepted payment directly from his clients, contravening section 7(3)(b) of the Real Estate Services Act.
Mr. Huang did not promptly deliver to his brokerage the money he received for the real estate services, as required by section 27(1)(a) of the Real Estate Services Act.
Mr. Huang received and held funds from the buyer, and did not deliver them promptly to his brokerage. This contravened section 27(1) of the Real Estate Services Act, which requires licensees to promptly pay or deliver all money received for real estate services to their brokerage.
In the course of the transaction, Mr. Huang made payments for property repairs, collected rents, and issued receipts. These are considered rental property management services, and Mr. Huang was not licensed to provide rental property management services. Mr. Huang’s actions contravened section 3(1)(a) of the Real Estate Services Act.
A discipline committee of the Council has ordered the following:
- Mr. Huang’s licence is suspended for 180 days, from March 24, 2017 to September 20, 2017, inclusive. Mr. Huang will not provide services as an unlicensed assistant during this time.
- Mr. Huang must pay a discipline penalty of $5,000.00 to the Council.
- At his own expense, Mr. Huang must successfully complete the Real Estate Trading Services Remedial Education Course.
- Mr. Huang must pay enforcement expenses of $1,500.00 to the Council.
Full consent order is available as a PDF.