Fiduciary Duties

Consequences For Breach Of Fiduciary Duties #491

S was the owner-operator of both a real estate brokerage and a mortgage company which intermingled their business enterprises. From 2002 to 2005, M worked as a REALTOR® for the real estate brokerage. In 2004, M purchased a property and by 2007, had consolidated all the mortgages on the property into a single mortgage to

Limited Dual Agency Can Still be a Risky Business #427

Legally Speaking

A recent BC Supreme Court decision awarded damages against a REALTOR® for breach of fiduciary duty while acting as a limited dual agent.1 The relationship between the plaintiff and the REALTOR® first began in 2005 when the plaintiff answered a newspaper ad concerning the sale of a property listed by the REALTOR®. The plaintiff, who was

Consequences of Breach of Fiduciary Duty #411

Legally Speaking

An agent’s duty of full disclosure to their client and the consequences of a breach of that duty were the subject of a recent lawsuit concerning deficiencies in a new townhouse in a development near Squamish.1 The owner/developer and the buyer of the unit were represented by separate REALTORS® from the same brokerage. The seller,

Damages, Licensees’ Purchase of Property Customer Wanted, No Explicit Agency Relationship, Fiduciary Duty; Leaky Condo, Buyer Acted Unreasonably in Relying Upon Property Disclosure Statement #336

Legally Speaking

By Gerry NeelyB.A. LL.B. It should be obvious that licensees cannot purchase property they know their clients want. If licensees are uncertain whether an agency relationship has been created by conduct, they must take all necessary steps to satisfy themselves that the buyers have abandoned their interests in the property, before offering to purchase it.

Criminal Rate of Interest #243

Legally Speaking

By Gerry NeelyB.A., LL.B. An interest rate in excess of 60% is illegal under Section 347 of the Criminal Code. In one case, a $10,000 bonus on an advance of $180,000, secured by a mortgage for $190,000, to be repaid in 30 days without interest, resulted in an effective annual interest rate of 89%. The

Breach of Duty and Fraudulent Misrepresentation #129

Legally Speaking

By Gerry Neely B.A. LL.B Termites, latent defect, non-disclosure, breach of duty, fraudulent misrepresentation, and all occurring in Toronto. A young couple purchased a home in an area of termite infestation which had started about five years prior to their purchase. They were aware of this problem because an earlier conditional offer made by them

Commissions #113

Legally Speaking

By Gerry Neely B.A. LL.B There are occasions when a licencee agrees reluctantly to pay part of a purchaser’s costs out of the licencee’s commission, to make a deal between a cash-short purchaser and the vendor. Since this helps the vendor, the licencee might well think that the licencee’s decision to help the purchaser is

Fiduciary Relationship Responsibilities Between the Licensee and Client #29

Legally Speaking

By Gerry NeelyB.A. LL.B. Legally Speaking Column No. 1 discussed the fiduciary relationship between the licencee and the person who has retained the licencee to sell his property. Those principles were examined in a recent case where the licencee exchanged his property for that of the principal’s property. The principal had listed a 2 1/2-acre semi-rural

Damages, Deposits; Separate Legal Representation for Vendors #26

Legally Speaking

By Gerry NeelyB.A. LL.B. In an Ontario case which arose because of a purchaser’s refusal to close a real estate transaction, the vendors were awarded S5,000.00 general damages for the “vexation, frustration, distress and anxiety, caused solely by the failure of the Defendants (Purchasers) to complete this transaction upon the date agreed upon.” This was