B.C. Realtor suspended six months, fined for professional misconduct
A B.C. Realtor has been suspended for six months and ordered to pay fines for professional misconduct after helping his cousin, another real estate agent, obtain commissions they weren’t entitled to.
Craig Steven Lau of Macdonald Realty Westmar in Richmond was ordered to pay nearly $18,000 in fines and costs after admitting to professional misconduct. This was after a Real Estate Council of B.C. investigation of a complaint about excess commissions paid by one of his unnamed cousin’s clients discovered the scheme between them.
According to a recent decision, Lau was still new to the industry when, in 2017, he was contacted by his cousin, who asked that he allow his name to be used as the buyer’s agent on three listings in Squamish, even though the cousin represented both buyers and sellers in all three transactions.
Lau agreed and was paid a small commission for his participation but gave the rest to his cousin who profited most. The decision shows his cousin's listings agreements set out his commission as listing agent but using his cousin from another real estate firm allowed him to collect thousands of dollars in additional commissions.
One of the clients noticed and complained his agent, the cousin, “had concealed his actions as a ‘dual broker both for the seller and buyer… and collected an ‘underground commission under the name of Steven Lau.”
In that case, Lau collected more than $8,000 in commissions for doing nothing but gave his cousin $6,800 in cash upon completion. Then they did it two more times before the complaint was investigated and the activities discovered. In another sale, Lau got $10,683 but paid his cousin $9,080 in cash. In the third case, Lau got $9,665 in commission and planned to keep $2,500 but by that time, the council was investigating and he never gave his cousin his excess commissions.
Lau personally returned the excess commissions to the client in the original complaint.
The council found Lau's brokerage was unaware of the deception.
New laws since 2017 prohibit Realtors from acting for both buyers and sellers.
In addition to the licensing suspension for six months and the fines, Lau was ordered to complete an ethics course and will be under enhanced supervision by his broker.
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