Holiday Closure

The OREA office will close for the holidays at 12 p.m. Tuesday, December 24th.  Normal business hours will resume on Thursday, January 2nd.  Happy Holidays!

Holiday Closure

The OREA office will close for the holidays at 12 p.m. Tuesday, December 24th.  Normal business hours will resume on Thursday, January 2nd.  Happy Holidays!

March 6th - 2004

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The following RECO Complaints, Compliance and Discipline Appeals decision has been condensed and can be viewed in its entirety on the RECO web site at www.reco.on.ca.

The following RECO Complaints, Compliance and Discipline Appeals decision has been condensed and can be viewed in its entirety on the RECO web site at www.reco.on.ca.

The case
This case involves two brokers (Seller broker A1 and A2) employed by “Seller Brokerage Firm A”. Seller broker A1 acted as the listing broker for the seller of a business franchise.

The agreement of purchase and sale stated that the deposit in this transaction was $10,000 to be held by Seller Brokerage Firm “A”. As of the date of closing, the seller’s lawyer did not receive a commission statement indicating the commission owing or the amount of a deposit being held.

Seller’s lawyer called Seller Brokerage Firm “A” requesting a commission statement and was informed that a statement would be forthcoming.  The lawyer received a statement indicating that $10,000 was held in trust by Seller Brokerage Firm “A". Based on this information, the seller’s lawyer proceeded to close the transaction.

Shortly after closing, Seller Brokerage Firm A issued a cheque in the amount of $5,506.00 in accordance with the commission statement. However, when the seller cashed the cheque it was returned as non-negotiable.

Meanwhile, the secretary at Seller Brokerage Firm A prepared a statement indicating the closing date based on the information in the agreement of purchase and sale which stated a deposit of $10,000.  When Seller broker A2 went to complete her files she discovered there was only $5,000 in the trust account.  She contacted the buyer’s representative who confirmed that only $5,000 had been delivered as a deposit because the rest had been withheld by the buyer’s lawyer pending repairs on the premises.  Seller broker A2 then had a new commission statement issued showing that only a $5,000 deposit was being held. 

The seller’s lawyer received the revised commission statement from Seller Brokerage Firm A indicating that only a $5,000 deposit was held. As a result, the seller encountered difficulties obtaining payment of the balance owing from the buyers and will likely have to commence a court action to collect the $5,000 shortfall.

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Jean-Adrien Delicano

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