Decision 2: Salesperson represented both the buyers and sellers in a residential property transaction. A total of eight offers were submitted and they were all reviewed by the sellers on an advertised offer review date.
However, Salesperson did not disclose at least one of the following to each of the seven unsuccessful buyers and/or their representatives:
- that Salesperson’s brokerage was representing three of the eight potential buyers;
- that Salesperson was the brokerage representative for one of the buyers;
- that the total commission payable by the sellers would be reduced by 1% if the sellers accepted the offer of Salesperson’s buyers; and
- the total number of offers received.
Salesperson took full responsibility for the non-disclosures, stating that it was the first time dealing with a multiple offer situation that became an extreme situation which caused her to make some unfortunate and regrettable errors.
The Discipline Committee found that Salesperson breached seven sections of the Code of Ethics: 2(1) in relation to 25(1) and 26(1) and 3, 17, 38 and 39 and she was ordered to pay a fine of $10,000 and complete two courses in compliance and ethics.