B.C. realtor fined $35K for not disclosing $2M in strata building maintenance
A B.C. realtor who failed to disclose to a buyer that a condo building needed $2 million worth of maintenance has been fined $35,000.
According to an April 5 B.C. Financial Services Authority decision, Suleman Yasin was working with Sutton Group–West Coast Realty as the lead of a team called, The B.C. Elite Real Estate Group.
However, his performance was far from stellar when he oversaw the sale of a condo in White Rock to a retired couple.
The decision says in the past couple of years the condo's strata had taken multiple steps to address issues with the building's envelope. In 2018, the strata decided to spend more than $2 million on rot and deterioration of the building.
That year, Yasin and a member of his realtor team – referred to as JD in the decision – began looking for a condo in White Rock for the retired couple.
The buyers entered into a contract to purchase a condo for $379,000 with subjects.
One of those subjects was a review of strata documents including meeting minutes, and financial and engineering reports.
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Prior to the completion date, the seller’s real estate agent sent the strata documents by email to JD.
A day later the buyers signed to remove the subjects.
"At no time prior to the removal of the subjects were the buyers provided with the Strata Documents, nor did Mr. Yasin discuss the contents of the Strata Documents with them," the Financial Services Authority said in the decision.
Two months later the sale was completed and the buyers began to move in.
A member of the strata council then spoke to the buyers asking them if they were aware of an upcoming rain screening of the building which came with an estimated $50,000 cost.
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The buyers contacted Yasin who said he wasn't aware of any issues.
Two weeks later, the buyers received the strata documents which had been sent by mail from JD.
The following year the strata agreed on a $2.2-million building envelope repair.
The buyers were unable to afford the extra cost and sold the condo for $400,000, less $61,000 credit for the levy the strata charged for the maintenance work.
Yasin told the Financial Services Authority that his normal practice was to email clients strata documents and review any issues.
However, Yasin said the buyers didn't use email and he believed that JD had met with the buyers and reviewed the strata documents.
The Financial Services Authority said Yasin failed to ensure that JD had reviewed the strata documents prior to the sale which amounted to professional misconduct.
Yasin signed a consent agreement admitting to his conduct and was fined $35,000 and ordered to pay $1,500 in costs.
The decision does not mention if JD will be subject to any disciplinary action.
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It appears the buyers lost about $40,000 on the purchase of the condo, and there is no mention of whether any of the $35,000 fine will go to them.
CORRECTION: This story was updated 4:15 p.m. Tuesday, April 18, 2023, to clarify that the Yasin failed to ensure that JD had reviewed the strata documents.
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