March 6th - 2004

Findings

Seller broker A1 was found to be in breach of Rules 2 and 6 of the RECO Code of Ethics

Seller broker A1 was found to be in breach of Rules 2 and 6 of the RECO Code of Ethics because he:

  • Failed to monitor the transaction with respect to the deposit
  • Failed to revise the offer when a deposit of $5,000 was collected instead of the stated $10,000 or in the alternative, failed to ensure that the $10,000 was received.

Seller broker A2 was found to be in breach of Rules 2, 42 and 42.5 of the RECO Code of Ethics because she:

  • Failed to supervise staff and ensure that the correct deposit amount was stated
  • Misrepresented the amount held in trust on the date of closing to the prejudice of their client, the seller
  • Failed to protect the client’s interests by not ensuring that the terms of the contract were fulfilled

Penalties and costs

  • Seller broker A1 was ordered to pay a penalty of $2,500
  • Seller broker A2 was ordered to pay a penalty of $5,500
  • Both brokers were ordered to pay joint costs of $1250.

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