B.C. realtors cannot represent both the buyer and seller in a transaction.
The rule started on June 15, 2018, and it applies in almost all circumstances.
Henry Everett Klop, a Chilliwack realtor, found himself in a dual agency role in 2016, when this practice was still allowed.
Klop served as the listing agent for a homeowner, and the purchasing agent as well for the buyers, one of whom is his niece.
Moreover, Klop’s client wanted to sell her Aggasiz home for $729,000.
The realtor advised his client that based on his own market analysis, the property was worth $629,000.
Ultimately, the home was listed at $669,000.
Klop showed the property to his niece and her partner.
The seller claimed that the realtor did not disclose that Klop would be showing the property to his niece when they were talking about the listing price.
Klop denied this assertion, saying he told the seller that he was working with his niece.
In the end, Klop’s niece and her partner bought the place for $665,000.
The buyers’ bank had a professional appraisal of the property, and the number that came back was $655,000.
Klop’s seller was not happy with the way things turned out, and filed a complaint.
On Wednesday (December 16), the Real Estate Council of B.C. (RECBC) published online a consent order regarding the case.
The council accepted Klop’s admission of professional misconduct.
First, Klop admitted that he failed to advise his seller client to seek independent professional advice about the valuation of the property.
Second, the realtor did not take reasonable steps to avoid any conflict of interest.
“There is no evidence that Mr. Klop received a financial benefit from the transaction beyond his commission,” according to the consent order proposed by Klop, which was accepted by an RECBC review committee.
Klop was ordered to pay a discipline penalty of $5,000.