BC realtor promised client a Kelowna condo, instead bought himself a house
A BC realtor who duped his neighbours out of $200,000 in an investment deal on a Kelowna condo spent the money on his own home.
According to a Jan. 24 BC Supreme Court decision, realtor Alden Ashneil Chand promised his neighbours substantial quick returns on their investments but failed to deliver after they handed the money over.
"Mr. Chand’s misconduct in this case is particularly repugnant," BC Supreme Court Justice Francesca Marzari said in the decision, describing his behaviour as high-handed.
According to the decision, the story starts in 2018 when Amandeep Kaur Rahil and Jagvir Singh Rahil met Chand because he lived across the road from them in Surrey.
The couple were originally from India and Amandeep spoke no English at all and his wife could understand some English but not read it.
The Rahils found their neighbour was friendly so when Chand told them he'd just become a realtor and asked if he could put a for sale sign outside their home for the exposure they agreed, even though they had no intention of selling.
Amandeep worked as a driver and asked Chand if he had any driving work. Chand said as they let him put the sign up he'd help them out.
Chand then pitched a real estate deal to the couple.
He said if they could come up with $10,000 to $15,000 he would invest it in a property he was selling in Surrey and they would get a cut of the property when it sold.
"He told the Rahils they could trust him on this, because they had helped him out as a realtor," the decision said.
The couple withdrew their children's education savings and handed over $15,000. They signed the contract in their living room.
About a month later, Chand told them he'd sold the property for $340,000 which had netted them a $20,000 profit.
The couple asked for the money, but Chand instead said they should take the $35,000 and invest it in a property in Kelowna. He said he needed an additional $200,000 to purchase the Kelowna condo.
The couple told him they couldn't afford it, but he suggested taking a line of credit on their home.
"Mr. Chand reassured the Rahils that the interest would not be very much because they would get their money back within a month," the Justice said. "He repeatedly told them to trust him, and words to the effect that, 'I just started my business, I am not going to cheat you.'"
Trusting Chand the couple organized a $200,000 line of credit secured against their home.
However, Chand used the money to buy himself a house in Abbotsford. The couple didn't find this out until seven months later.
The realtor then told them he'd received an offer on the Kelowna apartment for $217,000. As they invested $235,000 they told him not to accept it.
Two months later he said there was a new offer of $227,000 and the couple told him to take it.
While they would lose money they were struggling with the interest payments on the line of credit.
However, he didn't agree, saying there would be a better offer soon.
READ MORE: BC realtor deceived client, put in higher offer and made $1M
More months went by and then Chand said he'd got an offer of $232,000. The couple told him to take it and he agreed.
However, the realtor kept delaying things.
"By March of 2019, Mrs. Rahil still had no documents to assign the contract for the Kelowna Property, and Mr. Chand said he would make an appointment with a lawyer and would let them know when to come in and sign the papers," the decision read.
The couple went to India for a month and when they got back, Chand told them, "I have a big surprise for you."
"The Rahils were excited, believing they would be getting their investment funds returned with a good profit, and this was the surprise," the Justice said.
However, Chand turned up at their house with his laptop and showed them photos of the house he'd just bought in Abbotsford.
He said he'd bought the property for them, and while it was in his name he would transfer it to them later.
"They were shocked because they had repeatedly told him they could not afford to sustain their line of credit, and had not asked him to purchase this house. They demanded their money be returned. Mr. Chand implied that they were ungrateful and should be excited about the house he had bought them. He left without any agreement to return their money," the Justice said.
They repeatedly called him and demanded their money back. He told them to stop calling.
Sometime afterwards they took legal action.
Chand argued he'd used the Rahil's money as an investment for them in the Abbotsford house, which would last five to 10 years. But he also changed his tune and said the couple had bought him the house and were "very happy for me."
The Justice didn't buy any of it.
"I find that Mr. Chand lied about purchasing the Kelowna property for the Rahils as an assignment, or at all. I find that he lied about having various offers on the Kelowna property," the Justice said.
The couple hired lawyer Karen P. Maki who placed a Certificate of Pending Litigation against the Abbotsford home. The couple hoped to have $275,000 returned when Chand sold the house.
"Mrs. Rahil testified that she instructed her counsel to remove the Certificate of Pending Litigation provided that her counsel received an undertaking and held $275,000 of the sale proceeds of the Abbotsford Property in trust to settle her claim," the Justice said.
However, the Certificate of Pending Litigation was lifted and the house sold, but the couple didn't get their $275,000.
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After the sale, there was just $88,000 being held in a trust account for them.
The couple got a new lawyer.
The new lawyer was "unable to determine" how the Certificate of Pending Litigation was removed in the circumstances.
"Mrs. Rahil blames herself for the loss of the family’s savings for their children’s education, and the burden they have carried since 2018 paying interest of over $1,000 (a) month," the Justice said. "She says her husband also blames her in this regard. She has struggled with depression and anxiety, and is on leave from work due to this condition."
The decision said the couple have paid more than $40,000 in interest on their line of credit.
Ultimately, the Justice ordered Chand to pay the $257,000 to cover the money he took from them and interest.
The Justice also awarded punitive damages of $25,000 saying Chand's behaviour was a "marked departure from ordinary standards of decent behaviour."
It's unclear when, but the decision said Chand lost his realtor licence because of the court case.
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