Saturday, November 24, 2007
An Alberta Real Estate Story
This is a story of a client that gets their home appraised by a REALTOR A. REALTOR A tells REALTOR B of the same firm all the juicy details of this new listing including the sellers motivation (Family illness) and their minimum price. This REALTOR fails to informs the sellers of the value increasing zoning of the property.
REALTOR B submits an offer to the seller with another company he owns using this confidential information. REALTOR B sells the property one week after taking possession to developers for a profit of $55,000.
Almost 5 years later REALTOR B is required to pay a fine of $10,000 plus costs of $7,000. Net profit $38,000.
Real Estate Council of Alberta - Decision
Morale of the Story: Avoid being caught in shady deals because you might need to pay a fractional amount of your ill-gotten gains.
Real Estate Council of Alberta Other Decisions
Real Estate Council of Alberta - News Releases
*Picture of Wolves inspired by shadow company REALTOR B used to buy the property "Wolf Willow".