Realtor fined by B.C. regulator after property photos digitally altered

A real estate sign advertising a sold listing is shown in an undated file photo.

A British Columbia Realtor has been fined thousands of dollars after a property listing was found to contain photos that were digitally altered to hide peeling paint and show furnishings that did not exist.

The B.C. Financial Services Authority conducted a hearing into the complaint last week against Lori Evans, upholding a $6,000 penalty against the Kelowna-based Realtor after she asked the financial regulator to reconsider the fine.

"It is clear that the photographs of the property posted on MLS as of May 15, 2023, were digitally altered to show furnishings that were not actually present in the property, and more importantly to show the property in a better state of repair than it in fact was in," chief hearing officer Andrew Pendray concluded.

"Simply put, the photographs represented the property in a way that was not entirely accurate."

The evidence presented at the hearing indicates the prospective buyer – whose identity is protected in the published decision – made three offers on the Christina Lake, B.C., cabin in May 2023 without first visiting the site in person.

Buyer 'shocked' by property

The buyer's third offer of $490,000 was accepted and the purchase agreement stipulated that the furnishings that were shown in the photos – including a refrigerator and a stove – were to be included in the sale, according to the BCFSA decision.

When the buyer visited the property with his family days after concluding the sale, he was "shocked to find that the property did not resemble that which had been advertised on the Multiple Listing Service," according to the decision.

The buyer filed a complaint with the regulator, saying property defects were removed from the photos and the furnishings shown on the listing site were not the same as those inside the cabin.

Copies of subsequent text messages between the buyer's representative and the list agent "appear to acknowledge that all of the MLS photos were edited with the bedroom photos virtually staged," according to the decision.

"The fact that the listing pictures were digitally staged was not communicated in any form at any time prior to the offer or the viewing," the buyer told the regulator.

"I had no choice but to rescind the deal as the listing agent refused to speak with the seller on these matters."

'False and misleading'

The buyer's complaint to the financial services authority sought reimbursement for his family's time and travel costs "due to the false and misleading advertising of the listing agent."

The regulator contacted the Association of Interior Realtors about the complaint, and an investigation revealed the listing was altered after the sale with a notice saying: "Bedrooms virtually staged and photos have been edited to remove most personal belongings."

In her defence, Evans told the BCFSA that she was "representing the best interests of her seller client" and "she considered that the buyer was familiar with the property as the buyer's family had previously owned it" years earlier.

Evans also said the buyer's first two offers on the property, starting at $400,000, were submitted before any photos of the interior of the property had been published.

The buyer countered that he raised his final offer on the cabin based on the condition of the property shown in the altered photos.

Real Estate Services Act

The regulator upheld the earlier findings, saying the Realtor twice contravened the B.C.'s Real Estate Services Act; first, by failing to act with reasonable care and skill in respect of a listing; and second, by publishing real estate advertising of the property when she knew, or reasonably ought to have known, that the advertising contained a false or misleading statement or misrepresentation.

The regulator issued a penalty of $5,000 for the first contravention, and $1,000 for the second.

"It is clear that the photographs of the property posted on MLS as of May 15, 2023, were digitally altered to show furnishings that were not actually present in the property, and more importantly to show the property in a better state of repair than it in fact was in," Pendray concluded.

"Regardless of whether (the buyer) relied on the photographs, I consider that any prospective purchaser who viewed the MLS listing of the property would have been left with the impression that the property was in a better state of repair than it in fact was, due to the digitally altered photographs."