A British Columbia realtor was fined $15,000 for loaning money to his clients so they could buy a house he was selling.
The British Columbia Financial Services Authority (BCFSA) determined that Pardeep Singh Sandhu ran afoul of the provincial Real Estate Services Rules when he loaned $55,000 to prospective buyers to help them secure a mortgage for a residence in Abbotsford.
Sandhu’s fine was divided into thirds – $5,000 for failing to take “reasonable steps” to avoid a conflict of interest, $5,000 for failing to “promptly and fully” disclose that his loan created a conflict of interest, and $5,000 for not advising the clients to obtain independent advice on their financial needs.
“You obtained commission from the subject transaction, and the loan you gave changed both the nature and degree of your interest in ensuring that the transaction would complete,” said the BFCSA in its ruling to Sandhu.
