Agent Fails to check Renovations Carried out With Permits

This a brief summary of a RECO Discipline case.


It is agreed that Fred Flintstone acted unprofessionally when he:

1. Failed to take reasonable steps to verify material facts, in contravention of section 21(1) of the Code of Ethics, by checking with the appropriate municipal and provincial authorities and with the Corporation, before the Buyers submitted the Offer, and after the Offer was submitted during the three (3) Amendments made to the APS:

a) The identity of the legal titleholder to the Property and to list that entity or person’s name in the APS;

b) [intentionally blank]

c) That the Individual and/or the Company had obtained all permits and/or inspections necessary to ensure that all renovations to the Property by the Individual and/or the Company were to the standards set out in municipal by-laws and provincial legislation, or in the alternative, if the renovations were not in compliance with said by-laws and legislation, to insert conditions appropriate for the protection of his buyer clients in the APS;

d) Failed to verify with the Corporation that the extensive renovations to the Property undertaken by the Individual and/or the Company were performed in accordance with the by-laws of the Corporation and with the consent of its Board of Directors, thereby failing to act in his buyer and seller client’s best interests, and practicing incompetently, unethically and unprofessionally.

2. Failed to treat his buyer and seller clients fairly, to act in their best interests, and to provide them with conscientious and competent service by failing to conduct independent inquiries into the status of property taxes, permits and compliance with governing municipal by-laws and provincial legislation with respect to the Property, thereby contravening sections 4, 5, and 38 of the Code of Ethics.

It is agreed that Flintstone breached the following sections of the Code of Ethics:

Best Interests

4. A registrant shall promote and protect the best interests of the registrant’s clients.

Conscientious and Competent Service, Etc.

5. A registrant shall provide conscientious service to the registrant’s clients and customers and shall demonstrate reasonable knowledge, skill, judgment and competence in providing those services.

Material Facts

21(1) A broker or salesperson who has a client in respect of the acquisition or disposition of a particular interest in real estate shall take reasonable steps to determine the material facts relating to the acquisition of disposition and, at the earliest practicable opportunity, shall disclose the material facts to the client.

Error, Misrepresentation, Fraud, Etc.

38. A registrant shall use the registrant’s best efforts to prevent error, misrepresentation, fraud or any unethical practice in respect of a trade in real estate.


Fred Flintstone, the Respondent, be ordered to pay a penalty of $9,000.00 on or before April 30, 2016.

In addition to the above penalty, Respondent must enroll in the Legal Issues in Real Estate Course provided by the Real Estate Institute of Canada and provide proof of successful completion of the course on or before April 30, 2016.

In addition to the above penalties, the Respondent must provide to the Registrar a short essay in an electronic word processing format, not less than 500 words in length, outlining what he has learned about his responsibilities to clients and customers from the educational courses set out above.


The agent here acted on both sides of the deal, so, most of the information which was subsequently discovered was reasonably available.

Brian Madigan LL.B., Broker

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