B.C. real estate agent with long history of litigation has accounts frozen in ‘urgent’ order

Amex-Fraseridge Realty's office on Victoria Drive in Vancouver is seen in this photo from a real estate listing. The property is subject to a court-ordered sale. (collierscanada.com)

A B.C. real estate agent and one of his companies have had their licences suspended and their accounts frozen amid an ongoing investigation by a provincial regulator.

The B.C. Financial Services Authority issued an “order in urgent circumstances” against Balpreet Singh Bal and his companies Bal Realty Services Inc. and Amex-Fraseridge Realty last week, and a redacted version of it was published online Monday.

The order sets out a litany of allegations that, on their face, suggest Bal and his companies have violated the provincial Real Estate Services Act and committed professional misconduct and conduct unbecoming of a licensee.

The allegations have not been proven, and the BCFSA’s investigation into them remains ongoing.

In deciding that an urgent order was necessary to protect the public while the regulatory process plays out, BCFSA hearing officer Gareth Reeves noted that Bal has recently been taking “significant steps” toward relocating to California.

“The matters before me appear to be complex, connected to other litigation, and numerous, which indicates the matter may take longer to get to hearing, exposing the public to prolonged risk of further misconduct by Mr. Bal,” read Reeves’ reasons for issuing the order.

“I find that the foregoing along with the evidence of Mr. Bal’s recent tendency to evade service combined with the varied and serious nature of the misconduct indicates that urgent action is necessary to protect the public interest and to prevent further misconduct. In my view, waiting until a discipline hearing in this matter would be detrimental to the public interest in that it would expose the public to further risks associated with the misconduct that has been prima facie demonstrated before me.”

Misuse of trust funds and CRA debts

According to Reeves’ reasons, the BCFSA’s investigation into Bal began with a complaint from a member of the public who alleged that Amex-Fraseridge was improperly withholding $2.75 million in its trust account.

The document indicates the funds were a deposit, which the complainant expected to receive if the company that intended to purchase the complainant’s Surrey property did not complete the transaction.

The transaction was not completed, despite Bal providing – through one of the complainant’s agents – a document “purporting to establish” that the company had $14 million worth of funds available to them in India with which to complete the transaction. Reeves’ reasons describe this document as an “intentional misrepresentation” by Bal, and evidence of “deceptive dealing.”

Bal has filed a civil claim alleging he is entitled to a commission from the complainant’s $2.75 million deposit entitlement, something the claimant disputes, according to the BCFSA document.

“There is no evidence currently before me that Mr. Bal is entitled to a commission as he says or that he is entitled to take his commission from the funds held in trust with Amex as he claims,” Reeves’ reasons read.

Additional evidence listed in support of the urgent order against Bal and his companies includes another case in which he allegedly entered a contract to sell his personal home to buyers for $2.35 million, despite knowing that foreclosure proceedings had commenced three months before the contract was signed and the home would likely face a court-ordered sale.

The contract called for a $600,000 deposit to be provided directly to Bal, rather than to a brokerage, and Reeves’ reasons indicate Bal admitted in an affidavit that he had used that money “for his own purposes,” and has not repaid it.

There is also a CRA-issued garnishing order against Amex-Fraseridge’s accounts, according to the BCFSA order. An auditor hired by the regulator swore in an affidavit that Bal “has been retaining funds” in the company’s trust account to avoid them being captured by the garnishing order.

“(The auditor) has indicated in her affidavit that the garnishing order should not prevent transfers into the accounts and therefore that Mr. Bal is likely holding the funds in the account to prevent seizure by the CRA,” Reeves’ reasons read.

“In my view, that demonstrates, on a prima facie basis, that Mr. Bal is using Amex’s trust account to avoid Amex’s creditors.”

Bal Realty is also subject to a garnishing order, according to the BCFSA document, which indicates that the company owed the CRA $126,602 in 2024, up from $98,543 the previous year.

Reeves did not find evidence of misconduct or conduct unbecoming by Bal Realty, but did conclude that the company “is insolvent and unable to pay debts as they become due.” The hearing officer also found that the company had failed to advise the provincial Superintendent of Real Estate of its insolvency as required.

BCFSA orders

As a result of the allegations against Bal and Amex-Fraseridge, as well as the evidence presented by the BCFSA in support of them, Reeves determined the urgent order was necessary to protect the public.

The hearing officer ordered the suspension of both Bal and Amex-Fraseridge’s licences. He also ordered Bal, Amex-Fraseridge and Bal Realty to “cease providing real estate services to any member of the public.”

All three entities must also deliver or provide access to “all books and records” in their possession or control related to their provision of real estate services, “including accounts and books of accounts, bank records, bank statements and any passwords to access password-protected devices or websites, computers and client information.

Bal must “cease being an authorized signatory on any bank account for any real estate brokerage in British Columbia,” and he and his companies must “cease all dealings” with six bank accounts related to Bal Realty and Amex-Fraseridge.

The assets in those accounts may not be withdrawn, and the bank that holds them must “freeze and hold any and all accounts held on deposit for or in the name of Bal Realty and Amex,” according to the document.

“I find that it is in the public interest to freeze the accounts sought by BCFSA to ensure that the funds in those accounts are protected from being moved out of the jurisdiction by Mr. Bal and to ensure that they can be appropriately released to the appropriate parties in the future,” Reeves’ reasons read.

“I am particularly concerned in this regard with the evidence of Mr. Bal’s unpaid judgments, the volume of litigation against him presently and over time, his steps taken to relocate to California, and the evidence tending to demonstrate that he had been evading service of late.”