QUICK HITS

 

• On Jan. 16, BCFSA confirmed B.C. Realtor, Ismail Jamal Jinnah, lost his license and was fined $10,000 after investigators found he manipulated a “vulnerable” client into selling her home.
• The investigation revealed Jinnah exploited a close personal relationship, pressured the client against her wishes and misled regulators about the nature of their relationship.
• In addition to the fines and license cancellation, Jinnah has been ordered to pay $67,000 in enforcement expenses.

 

A B.C. Realtor has lost his license and is facing a $10,000 fine after the province’s regulator found he manipulated a client into selling their home.

Ismail Jamal Jinnah behaved in a “predatory” manner when he took advantage of his personal relationship with a client to convince her to sell her home and earn an “above-market” commission, according to a December decision from the BC Financial Services Authority (BCFSA).

 

Summary of misconduct

 

The case centred on two real estate transactions in 2015. Jinnah established a “close, personal relationship” with a client who owned a detached home and despite her opposition, repeatedly pressured her to sell it, advising her it was a smart financial move. Jinnah failed to disclose his personal relationship with the client and convinced her to switch properties with another individual.

According to hearing documents, Jinnah’s client “trusted him, relied upon him, and was reasonably left with the impression that Mr. Jinnah was looking out for her best interests. Rather than looking out for her best interest, Mr. Jinnah refused to accept that (she) did not want to sell her house. He pressured and manipulated her to essentially switch properties…”

Hearing Officer Thelma O’Grady says the former Realtor took advantage of his client, “who, because she was in a close relationship with him and trusted him, was vulnerable. This type of behaviour can only be described as predatory.”

The decision also highlighted Jinnah’s financial gains, which totalled $39,000 in commissions. Additionally, he charged above-market fees without sufficient explanation and failed to adequately market the property, instead selling it directly to the second individual involved.

 

Investigation and regulatory violations

 

During a subsequent investigation in 2021, Jinnah attempted to mislead the regulator by mischaracterizing his relationship with the client. The decision emphasized the deliberate nature of his deception, “Mr. Jinnah’s statements… were a deliberate attempt… to mislead the investigative process.”

Jinnah was found guilty of breaching multiple sections of the Real Estate Services Rules and the Real Estate Services Act (RESA).

 

Impact on client 

 

The misconduct, described by O’Grady as “very serious,” involved Jinnah’s failure to act in the best interests of his client, a breach of conflict-of-interest rules and a deliberate attempt to mislead regulators during the investigation. “Taking advantage of a vulnerable client who is relying on you to act in their best interest is one of the most serious types of misconduct for a real estate licensee,” the decision states.

The decision also noted the emotional and financial harm caused to the client, who suffered anxiety, depression and embarrassment “for letting herself be coerced by Mr. Jinnah.”

“The actions of Jinnah to use a close personal relationship to manipulate a client into selling their home is unacceptable and demonstrates a clear disregard for the established ethical expectations for licensees and the regulatory regime that is designed to protect consumers,” said Jon Vandall, senior vice president of compliance and enforcement at BCFSA. “This behaviour was so predatory and egregious, BCFSA is issuing the maximum penalty available.”

 

Fines and penalties 

 

In addition to cancelling Jinnah’s licence and the $10,000 penalty, Jinnah was also ordered to pay more than $67,000 in enforcement expenses.

“Sanctions should be both protective and preventative,” O’Grady wrote. “They should be aimed first and foremost at achieving compliance and secondly at deterring repeat offences… and by others in the industry or by those considering entering the industry.”

Although Jinnah hasn’t practiced real estate since March 2024, BCFSA confirmed his license had been cancelled on Jan. 16. and that the misconduct would be reflected in his professional record.

 

Implications for the real estate industry

 

“Public interest is served by setting a penalty that communicates to Mr. Jinnah, the public, and other licensees that it is unacceptable for licensees to take advantage of clients and to mislead the regulator during an investigation,” O’Grady concluded.

Jinnah has the right to appeal the decision within 30 days.

Real estate services dominated consumer complaints in British Columbia last fiscal year, according to the inaugural Consumer Complaints and Investigations Report 2023-2024 from the BC Financial Services Authority (BCFSA). 

 

Real estate services complaints by the numbers

 

The sector accounted for the largest share of complaints received and resolved between Apr. 1, 2023, and Mar. 31, 2024. Of the 1,711 complaints submitted to BCFSA, 1,234 were real estate-related—more than 70 per cent of all grievances. 

The regulator also resolved 1,690 real estate complaints during this period, with a focus on clearing a backlog of cases inherited after BCFSA’s integration with the Real Estate Council of BC and the Office of the Superintendent of Real Estate in 2021.

Over the past three years, BCFSA says it has reduced its overall inventory of real estate complaints from 1,538 in August 2021 to 609 open complaints as of Mar. 31, 2024.

 

 

 

Top themes 

 

The report underscores key areas of consumer dissatisfaction, with misrepresentation being the leading complaint theme, accounting for 20 per cent of real estate-related grievances. According to BCFSA, these cases often involved inaccurate or incomplete property information, such as incorrect measurements, zoning details or tenancy disclosures.

Other concerns included:

• Deceptive or unbecoming conduct (17 per cent): Actions undermining public confidence in the industry.
• Unlicensed activity (17 per cent): Instances of individuals or companies conducting real estate transactions without proper licensure.
• Failure to fulfill duties to clients (15 per cent): Breaches related to confidentiality, material disclosure, and overstepping authority.

 

How complaints are resolved

 

BCFSA employs a multi-step approach to managing complaints, assessing each for risk and prioritizing those with potential consumer harm. In fiscal 2023-24, resolution methods included:

Formal enforcement actions: Monetary penalties (21 cases), with one including license suspension or cancellation)

Informal enforcement actions: Voluntary compliance agreements (27 cases), letters of advisement or warnings (248 cases)

Other outcomes: In 895 instances, complaints were dismissed due to insufficient evidence.

BCFSA regulates real estate agents, brokers, property managers and strata managers, and can also investigate and take action if an unlicensed person or company is performing real estate activities that require a licence in B.C.

Read the full report here. 

A B.C. Realtor has been fined $10,000 for allowing her clients to view a home unsupervised in Maple Ridge.

Nan (Nancy) Wang, a representative with Metro Edge Realty, was disciplined by the BC Financial Services Authority (BCFSA) following an investigation into the 2021 incident. Wang was found to have committed professional misconduct and conduct unbecoming of a licensee under the province’s Real Estate Services Act, according to a consent order issued on Nov. 6, 2024.

 

What happened?

 

The misconduct stemmed from a property viewing on Jul. 17, 2021. Rather than attending the showing with her client, Wang gave the client her Sentrilock access card, which allowed them to view the home alone.

After the viewing, the sellers found that both the front and back doors had been left unlocked. When the listing agent confronted Wang about the situation, she initially claimed that the client had been accompanied by an unlicensed assistant who had used the access card. She later admitted this wasn’t true, apologized to the listing agent and sellers and accepted responsibility for her actions.

In a written statement to BCFSA investigators, Wang confirmed the details of the incident, acknowledging that she had allowed the client to view the home without her supervision and apologized for her misconduct.

 

Professional standards breached

 

In the consent order, Wang admitted she failed to act in the best interest of her clients by “failing to attend the viewing of the Property to provide her knowledge and advice about the proposed purchase transaction,” failed to act honestly by misleading the listing agent and endangered “the safety of the Property by not being there to ensure it was secured after the viewing.”

 

Why the fine was reduced

 

The initial penalty for Wang’s misconduct was $20,000; BCFSA ultimately reduced it to $10,000. This decision took into account several mitigating factors, including her early acknowledgment of the misconduct, her apologies to those involved and her cooperation throughout the investigation. She also completed remedial education.

Wang has been a licensed real estate agent since 2012 and has no record of disciplinary action, according to the consent order. She has three months to pay the fine, and failure to comply could result in her license being suspended or cancelled. 

Sunshine Coast, B.C. (Canva)

 

QUICK HITS

 

• Two B.C. Realtors were fined over $200,000 for failing to disclose key restrictions in a 2017 waterfront property sale on the Sunshine Coast.
• Acting as dual agents, they marketed the cabin as “legal non-conforming” without informing buyers of its seasonal-use limitations on Crown foreshore land.
• The B.C. Financial Services Authority found their actions misleading, ordering penalties and remedial education for violating disclosure and client care standards.

 

Two Realtors in B.C. are facing more than $200,000 in fines for failing to disclose information to clients related to a 2017 oceanfront property sale on the Sunshine Coast. 

According to a consent order by the B.C. Financial Services Authority (BCFSA), Joel Patrick O’Reilly and Denise Anne Brynelsen with Royal LePage Sussex in Sechelt acted as dual agents, representing both the buyers and sellers in the sale. 

 

Property in question

 

The waterfront property included an 800-square-foot cabin and a dock, both built on Crown foreshore land in Pender Harbour, B.C. Foreshore land, the area between high and low tide, is subject to strict provincial regulations. 

According to the consent order, the cabin had initially been built as a shed in the 1960s. Over time, the previous owners remodelled it into a residence, without obtaining permits. In 2010, the sellers signed a tenure agreement with the provincial government, acknowledging that the cabin was only allowed to be used as a seasonal residence. The government had also communicated that the foreshore tenure was temporary and subject to renewal or revocation.

The sellers did not share this information with the agents at the time of listing.

Professional misconduct

 

O’Reilly and Brynelsen eventually learned of these restrictions, not through the sellers, but through an inquiry on behalf of a prospective buyer. A foreshore tenure consultant confirmed the cabin was “not legalized” and classified as a “non-conforming use,” and “that structures on Crown foreshore are generally not approved.” 

Despite being made aware of the cabin’s non-conforming status through a government email in 2017, O’Reilly dismissed these concerns, writing in an email to the sellers he thought there was “zero chance of a government agency removing the cabin.”

The agents marketed the cabin as “legal non-conforming” without disclosing the provincial restrictions or the seasonal limitation. On MLS, the property was described as “freehold nonstrata” and highlighted the cabin as a “completely renovated beach cottage.” 

According to the consent order, the buyers, who eventually purchased the cabin for $900,000, asked about foreshore tenure and the possibility of rebuilding. The agents assured them that the tenure transfer would be straightforward and that the cabin’s legal non-conforming status allowed rebuilding within its existing footprint.

 

After the sale

 

After the sale, the provincial government refused to transfer the foreshore tenure to the new owners until the cabin was removed. The buyers filed a complaint with BCFSA in 2019, ultimately building a new home on the property in 2023.

In the consent order, O’Reilly and Brynelsen admitted to advertising the property with “false and/or misleading representations” and failing to disclose “material information” regarding the cabin’s use. They also admitted to providing inaccurate information to the buyers and neglecting to conduct necessary verifications about the property’s restrictions.

As a result, the agents were found to have violated the Real Estate Services Act’s requirements for accuracy, honesty and client care in advertising, disclosure and due diligence. 

They each agreed to pay a $100,000 penalty and $2,500 in enforcement costs to BCFSA, and are required to complete a real estate trading services remedial education course.

 

“The licensees’ failure to disclose information was harmful to their clients”

 

“It is imperative that licensees disclose all pertinent information to their clients about a property or transaction,” said Jonathan Vandall, BCFSA’s senior vice president of compliance and enforcement in a press release. 

“In this case, the licensees’ failure to disclose information was harmful to their clients. The penalties handed down are reflective of the severity of their misconduct and serve as a reminder to all real estate licensees about the importance of disclosing crucial information to clients.”

 

The BC Financial Services Authority (BCFSA) recently found that former real estate agent Jake Singh Kanda committed professional misconduct when he did not inform provincial licensing authorities that he’d been charged with crimes.

British Columbia’s Real Estate Services Act requires licensees to notify the BCFSA’s superintendent of real estate in writing if they are charged with or convicted of an offense, and also to provide their managing broker with the notice.

The decision notes that Kanda didn’t partake in the BCFSA’s hearing process and has not been licensed under the Real Estate Act since February 2023.

 

34 charges involved, requested information ‘withheld, concealed, or refused to provide’

 

The decision posted on the regulator’s website includes nine charges from February 2019, 10 from January 2021 and nine from July 2021.

Six charges from October 2016 (before Kanda was a licensed real estate agent) were withdrawn, about which, in May 2021, he submitted “a false or misleading statement in writing in response to the Real Estate Council of British Columbia (RECBC)’s investigatory requests made April 7, 2021.”

Few charges were proven, and the 2019 and 2021 charges were similar, coming from the 2016 incidents.

The document also notes Kanda “withheld, concealed, or refused to provide” information requested by the RECBC and that, in May 2022, he “failed to promptly notify the superintendent in writing” after being convicted of two crimes: assault, and pointing a firearm at a person, both in October 2016.

 

The decision

 

After requests from investigators in April 2021, Kanda’s lawyer responded with a letter in May 2021 stating the charges were withdrawn “because they were false charges” and that the court decided to “drop the charges permanently, and no longer seek prosecution.” The decision notes this is false or misleading since Kanda and his lawyers would have known the case was still being appealed (about 15 days before their statement was made).

In February 2022, an investigator emailed Kanda’s lawyer, noting that the stay of proceedings for the 2019 charges had been set aside, and requesting an update and court documents for the 2016 charges. The same request had been made in July and September 2021. The update and documents were provided in August 2022, along with information for the 2019 and July 2021 charges. However, the decision notes there was “no explanation for the significant delay.”

The decision notes that prior to this, the BCFSA had not been provided any of the information or the November 2020 reasons for the stay of proceedings for the 2019 charges being granted, despite the April 2021 request.

The BCFSA concluded that Kanda was guilty of professional misconduct since he did not notify the superintendent or his managing broker of his charges and convictions.

 

Review the regulator’s decision in full here.

 

While in attendance at the Wildfire Resiliency and Training Summit in Prince George, British Columbia, I learned a lot about the incredible people who protect our communities from wildfire risk and the barriers to wildfire protection of homes in at-risk areas.

By all academic, government and media accounts, 2024 is poised to be a record-breaking year for community impacts from wildfire.

The direct impact of property damage, the displacement of people, the government expenditure to respond and the impacts on the quality of life of people in our communities are stacking up to impact the availability of housing in all marketplaces affected by wildfire. 

 

Homeowner investment in risk reduction — including your advice — matters more as wildfire risk increases

 

Nova Scotia was not perceived to be a location of considerable risk prior to 2023. Last year’s distribution of catastrophic wildfire losses there is as shocking as the intensity of the losses to Fort McMurray in 2017.

Managing wildfire risk in Canada has shifted from the responsibility of governments to the shared responsibility of all of society. As the risk increases, the role of homeowner investment in risk reduction becomes increasingly important. And how you advise your clients is an important component of that!

 

Impacts on realtor business conduct

 

For the realtor community, there are some very real impacts on business conduct.

One example is how insurability precedes lending — in other words, getting a mortgage is generally conditional on getting insurance. When an active wildfire is present in a location (within a 100 km radius), finding an insurer can be very difficult or impossible, as new policies aren’t typically issued while an active wildfire is in proximity to a property.

So, if you have a looming closing date and an active wildfire near the property, your deal and your client could be in trouble.

 

Protect your clients with wildfire clause in APS

 

The BCFSA has created a resource for B.C. realtors to follow to protect their clients from risk. Critical recommendations include writing offers (and signbacks) with a wildfire clause in the Agreement of Purchase and Sale (APS) for properties in proximity of potential wildfire.  

In conversation with British Columbia Financial Services Authority (BCFSA) a/director of policy, Emily Shaw, about resources B.C. realtors can use to protect their clients (both buying and selling) from risk, she shares, “Licensees are experts, and part of (sharing) that expertise is to talk to clients, colleagues and insurers about these issues.

Buyer agents should be talking to their clients about the wildfire clause for use in transactions in wildfire-at-risk areas. This conversation can lead to additional conversations that are important. Wildfires are a reality in our marketplace.”

 

Recommended clause from BCFSA 

 

If, as a result of a wildfire and despite the Buyer’s best efforts, the Buyer is unable to obtain fire insurance on the Property that is binding and effective as of the original Completion Date, on terms and at rates that are commercially reasonable, then the Buyer may, at their sole discretion, extend each of the Completion Date, the Adjustment Date and the Possession Date to a date that is the first day, other than a Saturday, Sunday or statutory holiday in British Columbia (“Business Day”) that is [30] calendar days after the original respective dates by providing written notice (the “Extension Notice”) to the Seller or the Seller’s agent at least [5] Business Days before the original Completion Date. 

If during the period between the delivery of the Extension Notice and [5] Business Days before the extended Completion Date the Buyer obtains fire insurance on the Property that would allow the Buyer to complete the purchase and sale of the Property before the extended Completion Date, the Buyer will immediately provide written notice of same to the Seller or the Seller’s agent (the “Insurance Notice”) and the Seller may, by providing written notice to the Buyer or the Buyer’s agent within [2] Business Days after the Insurance Notice is provided, elect to accelerate the Completion Date to a date that is [5] Business Days after the Insurance Notice is provided, and the Adjustment Date and the Possession Date will be adjusted so that they will occur with the same relativity to the new extended Completion Date as they had to the original Completion Date.

The parties agree that time will remain of the essence.

 

Shaw notes that a licensee should recommend their client obtain legal advice regarding how triggering this clause may affect any related transactions that are closing on their original completion dates. She advises licensees to consider using this clause together with the Fire/Property Insurance condition precedent.

 

Other suggestions to help protect your clients

 

“Licensees who are in areas affected by wildfire should advise clients to have conversations with their insurer and to acquire a binding insurance commitment as soon as possible. If a home in transaction is damaged by wildfire, it’s important for licensees to advise their clients to seek legal advice at the earliest opportunity. These are very complex issues that are beyond the expertise of licensees to handle,” explains Shaw.

She insists that the most important action is to have active dialogue in your community, encouraging licensees to become acquainted with FireSmart recommendations for property risk reduction: “It’s important for registrants and homeowners to be informed. FireSmart BC has some excellent resources that licensees can share with clients.”

 

Encouraging fire-smart practices is an important, proactive opportunity for practitioners to help clients keep their families safe and their assets protected. There are plenty of videos and other content ideal for client communication from FireSmart Canada and other organizations. Use them to inform yourself of the risks to you and your clients.

This is an important and emergent issue that is affecting the industry and the businesses within it. We need to stay on top of it.

 

As an active back-country canoeist, I’m seeing the changes in the forest. Everywhere in Canada is changing. Seasonally, I personally observe the changes in the ecosystem. Coastal rainforests are being recategorized by geologists. The ferns in Ontario’s forests are getting crispy with drought in July. As the ecosystem evolves, the advice we give to clients also evolves. Wildfire will continue to impact the business of real estate in Canada, in all regions. It’s an important reputational knowledge category and a relevant errors and omissions discussion that realtors can have a very positive influence on.

It’s my strong suggestion that you explore these conversations in your in-office mastermind discussions and find a strategy that works in your marketplace and for your business.

 

Covering nearly 10 million square kilometres, each of Canada’s different provinces and territories has its own set of rules, regulations and legislation, in countless areas. Real estate is no exception.

A real estate regulator is an independent organization that is given the role of administering and enforcing their respective province or territory’s Real Estate Act. These organizations operate throughout the country, from the West Coast to the Maritimes.

Here’s our guide to some of the different real estate regulators across the country.

 

British Columbia

 

Number of agents: 26,000+

Regulator: BC Financial Services Authority (BCFSA)

Key takeaways: 

• Dual agency, sometimes referred to as double-end deals, is where an agent represents both the seller and buyer. Due to the risk involved, dual agency is not permitted in B.C., except in the case of properties in extremely remote or rural locations.
• All licensed real estate agents must renew their license every two years, the date dependent on each individual agent.

 

Alberta

 

Number of agents: 12,500+

Regulator: Real Estate Council of Alberta (RECA)

Key takeaways: 

• All real estate licenses expire on September 30 of each year.
• RECA has a “Good Character Policy” in place as part of its licensing requirements. While the province’s Real Estate Act does not explicitly define “good character”, RECA considers it to include characteristics such as moral strength, integrity, empathy and honesty.

 

Saskatchewan

 

Number of agents: 1,650

Regulator: Saskatchewan Real Estate Commission (SREC)

Key takeaways: 

As of January 1, 2024, changes were made to SREC’s education model. Previously, agents were able to trade in all three categories — residential, commercial and farm — after completing the standard coursework. Now, agents must complete two phases of coursework, Phase 1 – Real Estate as a Professional Career and Phase 2 – Residential Real Estate as a Professional Career, to become registered.

 

Manitoba

 

Number of agents: 2,400+

Regulator: Manitoba Securities Commission

Key takeaways: 

• The province saw major change in 2022 when the new Real Estate Services Act and Real Estate Services Regulation replaced the Real Estate Brokers Act (REBA), which had been the law since 1947.
• The implementation of the new Real Estate Services Act is part of the province’s efforts to modernize: one example is the current ongoing changes to its investigation process.

 

Ontario

 

Number of agents: 105,000+

Regulator: Real Estate Council of Ontario (RECO)

Key takeaways: 

• Unlike B.C., multiple representation (or dual agency) is permitted in Ontario — but only if each of the clients involved agrees. It’s recommended to seek professional advice first.
• As part of RECO’s complaint process, while they are given the power to take certain actions (such as administrative steps or prosecution pursuit), they cannot order monies to be refunded, contracts to be canceled or damages or restitution to be awarded to complainants. 

 

Quebec

 

Number of agents: 17,000+

Regulator: Organisme d’autoréglementation du courtage immobilier du Québec (OACIQ)

Key takeaways: 

• In Quebec, regulators conduct annual inspections to confirm that their registered brokerages are properly using the required forms, created by OACIQ and approved by Quebec’s finance minister.
• A real estate broker in Quebec is required to present their client with all the properties available on the market that meet their criteria. In addition, they must provide reasons for not presenting them with certain properties. 

 

Nova Scotia 

 

Number of agents: 1,900+

Regulator: Nova Scotia Real Estate Commission 

Key takeaways: 

• As per the province’s Advertising Guidelines, agents can only operate a brokerage under a company name.
• Every real estate license expires on June 30 at midnight following the date of issuance.

 

Prince Edward Island

 

Number of agents: Approximately 250

Regulator: Government of Prince Edward Island

Key takeaways:

In PEI, there is a distinction between a real estate salesperson and a real estate agent. The cost of a salesperson is less than that of an agent, but a salesperson needs to be employed, appointed or authorized by an agent.

 

New Brunswick

 

Number of agents: 1,000+

Regulator: New Brunswick Real Estate Association (NBREA)

Key takeaways:

NBREA co-regulates the province’s real estate sector alongside the Financial and Consumer Services Commission.

 

Newfoundland and Labrador

 

Number of agents: 500+

Regulator: Digital Government and Service NL

Key takeaways:

A relatively new practice in the province, the Real Estate Trust Account Dispute Resolution is an online form/process that has been set up for buyers and/or sellers to address concerns.

 

Yukon

 

Number of agents: Approximately 40 or less

Regulator: Government of Yukon 

Key takeaways: 

Yukon, the only Canadian territory in this guide, is regulated by its government. Applying for a real estate license involves an online process; other professionals such as chiropractors, nurses and insurance agents also follow a similar process.

 

Northwest Territories

 

Number of agents: Approximately 100

Regulator: Municipal and Community Affairs (MACA)

Key takeaways:

The Northwest Territories is governed by the Real Estate Agents’ Licensing Act, and MACA’s Consumer Affairs division licenses real estate salespeople and agents.