The industry watchdog said Vicky Wang had committed professional misconduct by creating a conflict of interest.
A real estate agent who lent a client $50,000 as a down payment on a property in Richmond has been fined nearly $28,000 for professional misconduct.
Last year, Wei (Vicki) Wang, now employed at Amex Broadway West Realty, was found to have committed professional misconduct by creating a conflict of interest in a loan.
The Real Estate Council of British Columbia, formerly known as the BC Financial Services Authority (BCFSA), investigated Wang's transactions following customer complaints.
They discovered that Mr Wang provided the loan in 2016 when the client did not have enough money for a down payment and was “hesitant” to buy the property.
The incident occurred while Mr. Wang was still a real estate agent at Sutton Group West Coast Realty.
Despite Mr Wang's claims that the funds were provided out of friendship, BCFSA hearing officer Andrew Pendley found that Mr Wang likely provided the loan to secure the sale fee.
More than six months after its initial decision, BCFSA has now sanctioned Wang and her company, Vicki Wang Personal Real Estate Corporation.
Remedial education necessary for real estate agents: BCFSA
In a decision issued Jan. 5, Mr. Pendley ordered Ms. Wang and her company to pay approximately $23,000 in enforcement costs, plus a $5,000 administrative penalty.
Mr Pendley acknowledged that Mr Wang had committed a “single unlawful act” that did not involve a “particularly vulnerable customer”. Although the customer originated the loan, Mr. Pendley said there was no evidence that the customer was adversely affected by the loan, nor was there any evidence that any harm was caused to the general public.
However, he said that actions that create conflicts of interest and are motivated by a “desire to secure financial gain” tend to “lead to a more serious end” of illegality, and that deterrence is necessary for the protection of the public. I thought power was necessary.
the fact that Mr. Wang felt pressured to agree to provide fee rebates to his customers to ensure repayment of the loan, and that the customers had initiated civil proceedings against Mr. Wang. The facts do not diminish the seriousness of her misconduct, Pendley explained.
“While it is unfortunate that Ms. Wang felt pressured to offer her client a reduced commission, the situation she found herself in was due to the fact that she was putting herself in a conflict of interest in the first place. I would like to reiterate that,” he wrote. .
He said providing such loans to customers would create “intolerable disputes” that put the public at risk, and that the government needed to “prevent and deter similar misconduct” and “maintain public confidence in the industry.” He expressed the view that punishment should be imposed.
He insisted Wang “did not commit any wrongdoing” and ordered him to undergo remedial education within six months at UBC's Sauder School of Business and an ethics course at the Canadian Real Estate Institute.
BCFSA sought reimbursement of approximately $25,000 in enforcement costs, including investigation and litigation costs, but Pendley reduced the amount by $2,000 because the matter proceeded by written submissions without a hearing.
Mr Pendley declined to address Mr Wang's submissions, which disagreed with the finding of wrongdoing, as he would have a right to appeal to the Financial Court if sanctions were imposed.
Mr. Wang has 30 days to appeal the decision.
Have an opinion on this or other stories in Richmond? Send us a letter or email your comments and story tips to Editor@Richmond-News.com.
