Kelowna realtor didn't mention 'extensive damage' to $1.3M home, suit claims
A Kelowna realtor who allegedly told a buyer that a home only needed $2,000 worth of repairs is being sued after the buyer discovered multiple cracks in the property plus a long list of other damage.
The buyer, Ning Gu, who goes by Connie Gu, alleges Kelowna realtor Xiao Yan Sun, who goes by Linda Sunny Sun, told her that she didn't need to see the home inspection report before the subjects were removed.
Gu filed a Notice of Claim at the Kelowna courthouse suing Sun and Linda Sunny Sun Personal Real Estate Corp. along with Edmonton-based realtor Xiaosong Lu, who goes by Leroy Lu, along with Lehomes Realty First and Laboutique Realty Ltd.
According to the suit, Gu was living in Calgary in 2021 when she considered moving to Kelowna.
She hired Lu as her realtor and they headed to Kelowna that summer to view properties where they met Sun.
The realtors showed Gu a property in the Upper Mission that she liked.
"They warned her that there were other offers being made and that she needed to act quickly if she wanted to purchase the property," the court documents say.
She made several offers with her last offer of $1,325,000 being accepted.
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A contract was drawn up subject to financing and a home inspection. The home inspection was done on July 28, 2021.
"Despite repeated requests by (Gu)... Lu and Sun refused or negligently failed to provide her with a copy of the home inspection report," the Notice of Claim reads.
The realtors assured her that the home inspection report only disclosed $2,000 to repair some doors, she said.
The buyer went ahead and removed the subjects and bought the property.
However, she then became aware of "extensive damage" that far exceeded the $2,000 her realtors "assured" her of.
For reasons unexplained, she said the home inspection report was only given over by Lu in February.
"Upon review of the Home Inspection Report, (Gu) realized that the report disclosed more extensive issues than what was disclosed to her by her realtors," the court documents read.
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The court document lists 19 separate issues.
The furnace tank and the water tank both need replacing, and neither the dishwasher nor the fireplace was working. The roof is also in need of repair.
The list continues:
"Driveway requiring repairs; exterior walls cracks requiring repairs; exterior door trim damaged; cement parging flaking out; unstable glass guardrail on the deck; common cracks on the porch; unstable glass guardrail on the balcony; carpet damage in the basement; common damage to basement walls; damaged bathroom door; caulking needed around the tub; shower faucet handle missing; damaged carpet in bedroom; light switches in bedroom needing replacement."
"(The buyer) would not have waived the conditions nor purchased the property had her realtors made her aware of the full scope of the issues as disclosed in the home inspection report," the notice of claim reads.
As Gu was still living in Calgary when she bought the property, she agreed to have Sun rent the property out for her.
However, she alleges Sun failed to do a pre-tenancy walkthrough with the tenants, which made it impossible to find out what damage the tenants may or may not have caused.
Gu also says Sun failed to get the tenants to take out insurance or get a damage deposit from them. She also made offers about the rent and waived rent without asking Gu.
"Throughout the tenancy, police attended at the property on multiple occasions. Despite this, and despite inquiries... as to the status of the rental property... Sun and Lu assured her that there were no issues related to the property," the documents say.
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Gu claims the realtors failed to act in her best interests, and failed to disclose the home inspection report, along with a literacy of other allegations.
She also claims LeHomes Realty First and Laboutique Realty failed to employ qualified or experienced realtors.
Gu is suing for the costs of repairing the property, the loss of its value, and for mental distress.
In July 2022, LaBoutique Realty Ltd., also operating as LeHomes Realty First, was fined $275,385 by the Financial Transactions and Reports Analysis Centre of Canada in connection with money laundering.
The federal government department said it had failed to submit a suspicious transaction report where there were reasonable grounds to suspect that transactions were related to a money laundering offence.
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When reached by phone, Lu said he wasn't aware of the court action. Sun didn't respond to our request for comment. Gu's lawyer also did not respond.
The defendants have yet to file a notice of defence. None of the allegations have been proven in court.
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