Two BC real estate agents have been fined a total of more than $200,000 for professional misconduct during the sale of a waterfront property on the Sunshine Coast in 2017.

Joel Patrick O’Reilly and Denise Anne Brynelsen acted as dual agents in the transaction, representing both the sellers and buyers, according to a consent order with the BC Financial Services Authority, which was published online last week.

The property in question housed an 800 square foot cabin and a dock, both located on the shore in Pender Harbour, BC. the shoreline is the space between the high and low tide watermarks in a body of water. In British Columbia, it is Crown land.

“illegal”

The cabin was built “in or about the 1960s and was originally a shed-type structure,” according to the consent order.

“During their possession, the sellers completed, without permits and/or authorizations from the Sunshine Coast Regional District (SCRD), a major remodeling of the cabin into a residence,” the order states, adding that the sellers corresponded with the province approximately . the property and signed an agreement in 2010 acknowledging that the cottage cannot be used as a permanent residence.

Although the sellers did not communicate this limitation to O’Reilly and Brynelsen, the real estate agents inquired with “a shore rental consultant” on behalf of a prospective buyer and were informed that the cabin was “not legalized” and was “non-compliant.” use.”

The email sent to the consultant by a provincial official, which is cited in the consent order, went on to say that “generally speaking, such a use on the Crown Coast is contrary to provincial policy and would likely not be approved.”

O’Reilly shared this email with the sellers, opining that he believes there is “zero chance” a government agency would order the cabin removed, according to the consent order.

When they showed the home to potential buyers, the estate agents told them the cottage was “non-compliant”. The consent order indicates that the marketing of their property did not mention the shoreline agreement or that the cabin was suitable for seasonal use only. They also did not provide buyers with a copy of the provincial government email.

After purchasing the property for $900,000, the buyers were surprised to find the provincial government refused to transfer the foreshore agreement from the sellers “until the non-conforming uses cease to exist,” according to the consent order.

The deal was eventually transferred to the buyers in 2021 once they had finished removing the lodge from the property. The consent order indicates the buyers built a new home on the land – away from the shore – in 2023, six years after their original purchase.

Professional misconduct

In the consent agreement, O’Reilly and Brynelsen each admitted to advertising the property with “false and/or misleading representations,” failing to make “independent verifications” of cabin use restrictions, and failing to disclose “material information” to customers their.

O’Reilly further admitted to providing buyers with “false, misleading and/or inaccurate information” in an email responding to questions they had about the property.

The pair admitted that these various failings amounted to professional misconduct under the provincial Real Estate Services Act, specifically breaching provisions prohibiting false or misleading advertising, requiring real estate agents to act honestly and with reasonable care and skill, and to act in the best interest of the client.

They also committed misconduct by breaching the act’s provisions regarding the duty of real estate agents to “make reasonable efforts to discover facts relevant to real estate,” “disclose all known material information relating to real estate,” and discloses any “latent material defect” in the property. .

In the consent order, O’Reilly and Brynelsen agreed to pay disciplinary penalties of $100,000 each to the BCFSA, along with “enforcement costs” of $2,500 each.

They also agreed to complete the “Real Estate Transaction Services Remedial Education Course” at UBC’s Sauder School of Business.

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

“In this case, the licensees’ failure to disclose information was detrimental to their customers. The penalties imposed reflect the seriousness of their misconduct and serve as a reminder to all real estate licensees of the importance of disclosing critical information to clients. ”