B.C. real estate agent fined $35K for failing to ensure clients knew about special levy before condo purchase

The real estate agent for a downsizing B.C. couple who were shocked to learn that their new home came with a more-than-$60,000 special levy has agreed to face discipline for misconduct.

Suleman Yasin and his Sutton Group–West Coast Realty team, which called itself "The BC Elite Real Estate Group," were the agents for the couple in their purchase of a White Rock condo in 2018.

The couple was looking to relocate from Langley and opted to purchase a home in a four-storey, 39-unit, wood-framed condo building in White Rock that was built in 1986, according to a consent agreement posted on the BC Financial Services Authority website last week.

'BUILDING ENVELOPE' ISSUES

According to the agreement, the building's strata council identified issues with the "exterior building envelope" in 2016, which were documented extensively in various strata documents.

Among those documents were meeting minutes showing that the council had passed a motion to move forward with repairs to the building – estimated to cost $2 million – by obtaining two additional proposals to bring to owners. That was in January 2018.

In March of the same year, the buyers entered a contract of purchase and sale, promising to buy the property for $379,000, subject to conditions that included a review of strata documents.

The seller's agent sent the relevant documents to a member of Yasin's team identified in the consent agreement only as JD.

"At no time prior to the removal of the subjects were the buyers provided with the strata documents, nor did Mr. Yasin discuss the contents of the strata documents with them," the agreement reads.

"At all relevant times, Mr. Yasin understood that JD had discussed the contents of the strata documents with the buyers."

This was not the case, according to the consent agreement, which indicates that the buyers learned of the building envelope issues and the potential for a special levy to cover repair costs as they were moving into their new home.

THE SPECIAL LEVY

Owners approved the levy at a special general meeting in April 2019, voting in favour of spending $2,197,000, of which Yasin's buyers would owe $61,660.81.

"The buyers were unable to afford the levy and consequently listed the property for sale," the consent agreement reads.

They filed their complaint about Yasin with the BCFSA shortly after the special levy vote.

"Mr. Yasin told BCFSA that his normal practice was to provide his clients with strata documents via email and summarize any issues for the buyers, but said that in this case, the buyers did not use email," the agreement reads.

"He says he believed JD met with the buyers in person and reviewed the strata documents with them."

MISCONDUCT AND DISCIPLINE

Under the consent agreement, Yasin admitted that he and his Personal Real Estate Corporation had committed professional misconduct by failing to ensure that JD had made inquiries about the building envelope issues and communicated his findings with the buyers.

He also admitted that he failed to ensure that JD had "obtained, reviewed and provided" a complete set of strata documents to the buyers, and that he had failed to ensure that JD "had advised the buyers to seek independent professional advice regarding the potential risks associated with the building envelope remediation project."

As discipline for the misconduct, Yasin proposed that he and his PREC pay a combined $35,000 penalty to the BCFSA within three months, as well as $1,500 worth of "enforcement expenses" within two months.

He also proposed that he register for and complete the Real Estate Trading Services Remedial Education Course at UBC's Sauder School of Business.

The BCFSA accepted the proposal, noting that if Yasin fails to comply with any of its terms, the agency can suspend or cancel his licence.

Neither Yasin nor his PREC has any previous disciplinary record with the BCFSA, according to the consent agreement.