The BC Financial Services Authority (BCFSA) recently found that former real estate agent Jake Singh Kanda committed professional misconduct when he did not inform provincial licensing authorities that he’d been charged with crimes.

British Columbia’s Real Estate Services Act requires licensees to notify the BCFSA’s superintendent of real estate in writing if they are charged with or convicted of an offense, and also to provide their managing broker with the notice.

The decision notes that Kanda didn’t partake in the BCFSA’s hearing process and has not been licensed under the Real Estate Act since February 2023.

 

34 charges involved, requested information ‘withheld, concealed, or refused to provide’

 

The decision posted on the regulator’s website includes nine charges from February 2019, 10 from January 2021 and nine from July 2021.

Six charges from October 2016 (before Kanda was a licensed real estate agent) were withdrawn, about which, in May 2021, he submitted “a false or misleading statement in writing in response to the Real Estate Council of British Columbia (RECBC)’s investigatory requests made April 7, 2021.”

Few charges were proven, and the 2019 and 2021 charges were similar, coming from the 2016 incidents.

The document also notes Kanda “withheld, concealed, or refused to provide” information requested by the RECBC and that, in May 2022, he “failed to promptly notify the superintendent in writing” after being convicted of two crimes: assault, and pointing a firearm at a person, both in October 2016.

 

The decision

 

After requests from investigators in April 2021, Kanda’s lawyer responded with a letter in May 2021 stating the charges were withdrawn “because they were false charges” and that the court decided to “drop the charges permanently, and no longer seek prosecution.” The decision notes this is false or misleading since Kanda and his lawyers would have known the case was still being appealed (about 15 days before their statement was made).

In February 2022, an investigator emailed Kanda’s lawyer, noting that the stay of proceedings for the 2019 charges had been set aside, and requesting an update and court documents for the 2016 charges. The same request had been made in July and September 2021. The update and documents were provided in August 2022, along with information for the 2019 and July 2021 charges. However, the decision notes there was “no explanation for the significant delay.”

The decision notes that prior to this, the BCFSA had not been provided any of the information or the November 2020 reasons for the stay of proceedings for the 2019 charges being granted, despite the April 2021 request.

The BCFSA concluded that Kanda was guilty of professional misconduct since he did not notify the superintendent or his managing broker of his charges and convictions.

 

Review the regulator’s decision in full here.

 

While in attendance at the Wildfire Resiliency and Training Summit in Prince George, British Columbia, I learned a lot about the incredible people who protect our communities from wildfire risk and the barriers to wildfire protection of homes in at-risk areas.

By all academic, government and media accounts, 2024 is poised to be a record-breaking year for community impacts from wildfire.

The direct impact of property damage, the displacement of people, the government expenditure to respond and the impacts on the quality of life of people in our communities are stacking up to impact the availability of housing in all marketplaces affected by wildfire. 

 

Homeowner investment in risk reduction — including your advice — matters more as wildfire risk increases

 

Nova Scotia was not perceived to be a location of considerable risk prior to 2023. Last year’s distribution of catastrophic wildfire losses there is as shocking as the intensity of the losses to Fort McMurray in 2017.

Managing wildfire risk in Canada has shifted from the responsibility of governments to the shared responsibility of all of society. As the risk increases, the role of homeowner investment in risk reduction becomes increasingly important. And how you advise your clients is an important component of that!

 

Impacts on realtor business conduct

 

For the realtor community, there are some very real impacts on business conduct.

One example is how insurability precedes lending — in other words, getting a mortgage is generally conditional on getting insurance. When an active wildfire is present in a location (within a 100 km radius), finding an insurer can be very difficult or impossible, as new policies aren’t typically issued while an active wildfire is in proximity to a property.

So, if you have a looming closing date and an active wildfire near the property, your deal and your client could be in trouble.

 

Protect your clients with wildfire clause in APS

 

The BCFSA has created a resource for B.C. realtors to follow to protect their clients from risk. Critical recommendations include writing offers (and signbacks) with a wildfire clause in the Agreement of Purchase and Sale (APS) for properties in proximity of potential wildfire.  

In conversation with British Columbia Financial Services Authority (BCFSA) a/director of policy, Emily Shaw, about resources B.C. realtors can use to protect their clients (both buying and selling) from risk, she shares, “Licensees are experts, and part of (sharing) that expertise is to talk to clients, colleagues and insurers about these issues.

Buyer agents should be talking to their clients about the wildfire clause for use in transactions in wildfire-at-risk areas. This conversation can lead to additional conversations that are important. Wildfires are a reality in our marketplace.”

 

Recommended clause from BCFSA 

 

If, as a result of a wildfire and despite the Buyer’s best efforts, the Buyer is unable to obtain fire insurance on the Property that is binding and effective as of the original Completion Date, on terms and at rates that are commercially reasonable, then the Buyer may, at their sole discretion, extend each of the Completion Date, the Adjustment Date and the Possession Date to a date that is the first day, other than a Saturday, Sunday or statutory holiday in British Columbia (“Business Day”) that is [30] calendar days after the original respective dates by providing written notice (the “Extension Notice”) to the Seller or the Seller’s agent at least [5] Business Days before the original Completion Date. 

If during the period between the delivery of the Extension Notice and [5] Business Days before the extended Completion Date the Buyer obtains fire insurance on the Property that would allow the Buyer to complete the purchase and sale of the Property before the extended Completion Date, the Buyer will immediately provide written notice of same to the Seller or the Seller’s agent (the “Insurance Notice”) and the Seller may, by providing written notice to the Buyer or the Buyer’s agent within [2] Business Days after the Insurance Notice is provided, elect to accelerate the Completion Date to a date that is [5] Business Days after the Insurance Notice is provided, and the Adjustment Date and the Possession Date will be adjusted so that they will occur with the same relativity to the new extended Completion Date as they had to the original Completion Date.

The parties agree that time will remain of the essence.

 

Shaw notes that a licensee should recommend their client obtain legal advice regarding how triggering this clause may affect any related transactions that are closing on their original completion dates. She advises licensees to consider using this clause together with the Fire/Property Insurance condition precedent.

 

Other suggestions to help protect your clients

 

“Licensees who are in areas affected by wildfire should advise clients to have conversations with their insurer and to acquire a binding insurance commitment as soon as possible. If a home in transaction is damaged by wildfire, it’s important for licensees to advise their clients to seek legal advice at the earliest opportunity. These are very complex issues that are beyond the expertise of licensees to handle,” explains Shaw.

She insists that the most important action is to have active dialogue in your community, encouraging licensees to become acquainted with FireSmart recommendations for property risk reduction: “It’s important for registrants and homeowners to be informed. FireSmart BC has some excellent resources that licensees can share with clients.”

 

Encouraging fire-smart practices is an important, proactive opportunity for practitioners to help clients keep their families safe and their assets protected. There are plenty of videos and other content ideal for client communication from FireSmart Canada and other organizations. Use them to inform yourself of the risks to you and your clients.

This is an important and emergent issue that is affecting the industry and the businesses within it. We need to stay on top of it.

 

As an active back-country canoeist, I’m seeing the changes in the forest. Everywhere in Canada is changing. Seasonally, I personally observe the changes in the ecosystem. Coastal rainforests are being recategorized by geologists. The ferns in Ontario’s forests are getting crispy with drought in July. As the ecosystem evolves, the advice we give to clients also evolves. Wildfire will continue to impact the business of real estate in Canada, in all regions. It’s an important reputational knowledge category and a relevant errors and omissions discussion that realtors can have a very positive influence on.

It’s my strong suggestion that you explore these conversations in your in-office mastermind discussions and find a strategy that works in your marketplace and for your business.

 

Covering nearly 10 million square kilometres, each of Canada’s different provinces and territories has its own set of rules, regulations and legislation, in countless areas. Real estate is no exception.

A real estate regulator is an independent organization that is given the role of administering and enforcing their respective province or territory’s Real Estate Act. These organizations operate throughout the country, from the West Coast to the Maritimes.

Here’s our guide to some of the different real estate regulators across the country.

 

British Columbia

 

Number of agents: 26,000+

Regulator: BC Financial Services Authority (BCFSA)

Key takeaways: 

• Dual agency, sometimes referred to as double-end deals, is where an agent represents both the seller and buyer. Due to the risk involved, dual agency is not permitted in B.C., except in the case of properties in extremely remote or rural locations.
• All licensed real estate agents must renew their license every two years, the date dependent on each individual agent.

 

Alberta

 

Number of agents: 12,500+

Regulator: Real Estate Council of Alberta (RECA)

Key takeaways: 

• All real estate licenses expire on September 30 of each year.
• RECA has a “Good Character Policy” in place as part of its licensing requirements. While the province’s Real Estate Act does not explicitly define “good character”, RECA considers it to include characteristics such as moral strength, integrity, empathy and honesty.

 

Saskatchewan

 

Number of agents: 1,650

Regulator: Saskatchewan Real Estate Commission (SREC)

Key takeaways: 

As of January 1, 2024, changes were made to SREC’s education model. Previously, agents were able to trade in all three categories — residential, commercial and farm — after completing the standard coursework. Now, agents must complete two phases of coursework, Phase 1 – Real Estate as a Professional Career and Phase 2 – Residential Real Estate as a Professional Career, to become registered.

 

Manitoba

 

Number of agents: 2,400+

Regulator: Manitoba Securities Commission

Key takeaways: 

• The province saw major change in 2022 when the new Real Estate Services Act and Real Estate Services Regulation replaced the Real Estate Brokers Act (REBA), which had been the law since 1947.
• The implementation of the new Real Estate Services Act is part of the province’s efforts to modernize: one example is the current ongoing changes to its investigation process.

 

Ontario

 

Number of agents: 105,000+

Regulator: Real Estate Council of Ontario (RECO)

Key takeaways: 

• Unlike B.C., multiple representation (or dual agency) is permitted in Ontario — but only if each of the clients involved agrees. It’s recommended to seek professional advice first.
• As part of RECO’s complaint process, while they are given the power to take certain actions (such as administrative steps or prosecution pursuit), they cannot order monies to be refunded, contracts to be canceled or damages or restitution to be awarded to complainants. 

 

Quebec

 

Number of agents: 17,000+

Regulator: Organisme d’autoréglementation du courtage immobilier du Québec (OACIQ)

Key takeaways: 

• In Quebec, regulators conduct annual inspections to confirm that their registered brokerages are properly using the required forms, created by OACIQ and approved by Quebec’s finance minister.
• A real estate broker in Quebec is required to present their client with all the properties available on the market that meet their criteria. In addition, they must provide reasons for not presenting them with certain properties. 

 

Nova Scotia 

 

Number of agents: 1,900+

Regulator: Nova Scotia Real Estate Commission 

Key takeaways: 

• As per the province’s Advertising Guidelines, agents can only operate a brokerage under a company name.
• Every real estate license expires on June 30 at midnight following the date of issuance.

 

Prince Edward Island

 

Number of agents: Approximately 250

Regulator: Government of Prince Edward Island

Key takeaways:

In PEI, there is a distinction between a real estate salesperson and a real estate agent. The cost of a salesperson is less than that of an agent, but a salesperson needs to be employed, appointed or authorized by an agent.

 

New Brunswick

 

Number of agents: 1,000+

Regulator: New Brunswick Real Estate Association (NBREA)

Key takeaways:

NBREA co-regulates the province’s real estate sector alongside the Financial and Consumer Services Commission.

 

Newfoundland and Labrador

 

Number of agents: 500+

Regulator: Digital Government and Service NL

Key takeaways:

A relatively new practice in the province, the Real Estate Trust Account Dispute Resolution is an online form/process that has been set up for buyers and/or sellers to address concerns.

 

Yukon

 

Number of agents: Approximately 40 or less

Regulator: Government of Yukon 

Key takeaways: 

Yukon, the only Canadian territory in this guide, is regulated by its government. Applying for a real estate license involves an online process; other professionals such as chiropractors, nurses and insurance agents also follow a similar process.

 

Northwest Territories

 

Number of agents: Approximately 100

Regulator: Municipal and Community Affairs (MACA)

Key takeaways:

The Northwest Territories is governed by the Real Estate Agents’ Licensing Act, and MACA’s Consumer Affairs division licenses real estate salespeople and agents.