Privitera v. Afshari
In a recent Ontario case, released October 9, 2025 Royal LePage successfully moved to dismiss a counterclaim brought by Maurizio Privitera in a dispute involving a residential property. The counterclaim arose after Panthea Afshari, a licensed real estate agent and broker affiliated with Royal LePage, sold and leased her property directly to Mr. Privitera, bypassing her brokerage.
The key facts: Afshari had initially listed the property with Royal LePage but cancelled the listing agreements on February 13, 2024. She then negotiated the sale and lease privately with Mr. Privitera, who was aware that the brokerage would be excluded and agreed to a “private” sale to avoid paying commissions. Deposits were paid to Afshari’s lawyer, and Royal LePage had no involvement in these transactions.
Mr. Privitera’s counterclaim alleged various wrongdoings by Afshari, including fraud, misrepresentation, and breach of contract, and sought to hold Royal LePage vicariously liable for her actions. However, the court found that Royal LePage had no knowledge of or involvement in the private transactions, and there was no significant connection between the brokerage and any alleged wrongdoing.
The court applied principles of vicarious liability, noting that an employer is only responsible for acts of an employee if those acts are closely connected to the employee’s role and create a foreseeable risk. Since Afshari acted in her personal capacity after cancelling the listings, Royal LePage could not be held liable.
The judge granted partial summary judgment in favour of Royal LePage, striking the counterclaim without leave to amend. The court also concluded the counterclaim was frivolous, vexatious, and an abuse of process. Costs were awarded to Royal LePage, with submissions to be made by the parties.
COMMENT: This case highlights the importance of understanding the limits of vicarious liability in real estate transactions, especially when an agent acts in a private capacity separate from their brokerage.
Brian Madigan LL.B., Broker
www.OntarioRealEstateSource.com