B.C.'s real-estate regulator and New Coast Realty have agreed on new licence conditions following a news report of an audiotape containing controversial comments by its owner.

The Globe and Mail obtained an audiotape of Ze Yu Wu speaking in Mandarin and advising staff to sell houses quickly. Reporter Kathy Tomlinson noted that he encouraged them to tell clients homeowners that the first offer is the best offer, even though, according to him, that's never the case.

In a news release, the Real Estate Council of B.C. said that the newspaper informed it of the existence of the tape but wouldn't turn it over.

The council later obtained the tape recording from New Coast Realty and has since imposed the following licence conditions, which the company has agreed to:

• appointment of a managing broker approved in advance by the council; 
• training sessions are to be conducted by only the managing broker;  
• licensee supervision is to be conducted directly by only the managing broker;  
• monthly reports must be submitted by the managing broker to the council on any in-house transactions, trust accounts, transactions involving licensees personally, activities of unlicensed assistants, and any complaints received by the brokerage;  
• approval of account signing authorities by the council;  
• providing the council records relating to assignments and commission bonuses;  
• and retention of copies of all offers received for a property for inspection by the council. 

  In addition, there will be quarterly audits conducted by the council.

  “There are a significant number of buyers and sellers with transactions in progress at the brokerage," council CEO Robert O. Fawcett said in a news release. "Those consumers have contractual obligations that they must meet, and the council does not wish to impede the transactions. The conditions that have been agreed to with the brokerage will ensure that those transaction are able to proceed, and that the appropriate controls and oversight will be in place."

  In February, NDP housing critic David Eby cited Tomlinson's examination of New Coast Realty in a letter to to the chair of an independent advisory group appointed by the council to look into questionable real-estate practices.

  Eby's letter to Carolyn Rogers, who's also the superintendent of real estate and CEO of the Financial Institutions Commission, maintained that the council and her office did not have sufficient resources to know "exactly how and why the existing oversight failed".

  On April 8, Rogers issued a statement revealing that the independent advisory group has submitted an interim report to the council. According to her, council officials will speak about it with Finance Minister Mike de Jong this week. 

  Meanwhile, New Coast Realty has posted a statement on its website stating that its agents and staff "can be proud of our company regarding our strict policies on the current media issues of contract assignment and money laundering".

  "New Coast has no history of problems with these issues," the company emphasized. "New Coast has always required its agents, when personally buying or selling real estate, to make all disclosures required under The Real Estate Council of British Columbia's Rules."

  The brokerage also alleged that some former agents have approached the media with complaints about unpaid commissions.

  "New Coast is committed to respecting all its contracts, with clients, agents, staff and suppliers," the company stated. "The former agents who are complaining to the media omit one very important fact—their contracts are clear and New Coast has fully complied with all financial and other obligations to them."