Agent loses licence, faces $10,000 fine

Andy Ivens
Province

It’s one of the worst cases of real estate double-dealing in B.C. history.

Smrat (Sam) Sharma stole $45,000 from a Vancouver family last year — the last scam in a long list of transgressions going back to 2002 — which cost him his licence and earned him a $10,000 fine.

“We issued the maximum allowable fine, which is $10,000,” said Anthony Cavanaugh, communications officer for the Real Estate Council of B.C.

Sharma is barred from applying to get his realtor’s licence back for five years. He must submit to a grilling by a “qualification hearing panel” that would determine if Sharma had rehabilitated himself — if he seeks reinstatement.

“It’s not a slam dunk by any stretch,” said Cavanaugh.

David Zajdlik contracted to buy a house on West 33rd Avenue in tony Mackenzie Heights through Sharma in February 2005.

He wrote a cheque for $45,000 for a deposit, but Sharma deposited it into his own privately owned company, 655179 BC Ltd., instead of his brokerage’s trust account.

Sharma “admitted that he had stolen the $45,000 and that the funds were not in trust,” says an agreed statement of facts contained in a consent order signed by Sharma and RECBC’s lawyer this year.

The 16-page order mentions 16 other cases involving sales of property in the Lower Mainland in which Sharma admits he committed some form of misconduct.

The Financial Institutions Commission of B.C. is investigating possible criminal charges against Sharma, FICOM investigator Ken Fraser told The Province.

Zajdlik didn’t find out until moving day, March 31 of last year, that Sharma had bilked him.

Zadjlik and his wife had to scramble to move on time, emptying their bank accounts and extending lines of credit at the 11th hour.

Langara Realty waived Sharma’s $13,900 commission on the sale, and Zajdlik was able to recover his losses through the RECBC’s special compensation fund.

Sharma’s licence was suspended on April 15, 2005, two weeks after his theft was discovered. The fund’s compensation committee is now suing Sharma for the payment it made to cover Sharma’s theft.

TIPS FOR HOMEBUYERS

Prospective homebuyers have a number of ways to protect themselves in the Lower Mainland’s current overheated real-estate market:

– Never make out a deposit cheque to a personal company; only to a real-estate brokerage’s in-trust account. If an agent asks for this, call the Real Estate Council of B.C. at 604-683-9664;

– Check the council’s website www.recbc.ca to see if a real-estate agent has been disciplined;

– Use a lawyer or a notary public to convey the title of the property.

© The Vancouver Province 2006

Other

Cat-fits in the car, guinea pigs escaped at the diner, the snake that got left behind, and the dog that bit the moving man… you could fill a book with tales of the trials of moving with pets. But it doesn’t have to be that way, if you do some planning and follow good common sense.

Firstly, remember that your pet is also a member of the family, and deserves some consideration in the moving plans. Your pet will also be leaving familiar surroundings, and you’ll have some trouble helping your pet understand what’s happening and why. Your goal will be to get your pet out of your present home and into your new home as securely and smoothly as possible. Think about your pet’s temperament and special needs and put together a plan to help your pet make the transition:

1. Plan for your pet’s trip to the new home.
   Most pets will make the move in a car with the rest of the family. In the event that you’re traveling by air, you’ll need to make arrangements for your pet several weeks in advance. If necessary, get your pet used to a carrier.
2. Make a moving day plan for your pet.
   Ideally, on moving day your pet should stay elsewhere, preferably in a familiar place: a favorite kennel service, or at a kind friend or relative’s home. With all the comings and goings at your house – strange people and vehicles, and constantly opening doors – there are just too many chances for your pet to have a meltdown or meet with an accident. Stressed pets and movers don’t mix well. If your pet must be in the house, find an empty room with the least commotion and put your pet there. Put a sign on the door to clearly indicate that the room is not to be entered. Ensure your pet has comfortable surroundings, enough fresh water and some familiar toys.
3. Try to keep a calm environment.
   Your pet will be picking up on the family’s signals in the weeks before and after the move. If you’re experiencing stress, your pet will be tuning into the change. No matter how crazy life gets, try to maintain (as closely as possible) your pet’s feeding, watering, play, and exercise routines. Keep their familiar foods, toys and bedding accessible. After all, there is upheaval enough in their surroundings now!
4. Think about your pet’s own personality.
   Cats are far more territorial than dogs are. Cats need to feel that they are in control of a changing environment, whereas dogs are far more attached to their owner than they are to the actual house. So make sure your cat always has a nook or cranny or box to hide in or under at both ends of the move.
5. Make sure your pet is wearing identification.
   Also, take a picture of your pet and jot down a written description. Pets can be unpredictable when their home life is upset. There is a higher risk of your pet escaping in the weeks before and after the move.
6. Prepare your pet for travel.
   When traveling by car with your pet, remember to restrict its food intake several hours ahead of the trip, and during the trip too. Animals should be in a carrier unless you are absolutely sure that they will not get under a brake pedal or cause a dangerous commotion. Most cats will sleep away their long trip. Your dog will be much happier if it has been well exercised before the trip. Use a tranquilizer for your pet as a very last resort, and then only with your veterinarian’s instructions.
7. Pack a travel kit for your pet.
   Be sure that the food is easy to digest, and use water from your regular home supply; changing diet or water sources are common causes of diarrhea and vomiting from upset stomachs. If in doubt, check with your veterinarian for food recommendations. Don’t forget extra food for the arrival (can opener too!), medications and vet records, familiar toys, new identification tags, and something with a reassuring scent.

Other

The following are some tips from professional movers on how to pack:

Assemble your supplies at least one month in advance.
At a minimum, you’ll need several sizes of clean, close-able cardboard boxes, packing tape, permanent markers, bubble wrap, newspaper and/or tissue paper. You may also need special boxes for mattresses, artwork or mirrors, and table lamps. Buy a wardrobe box from your mover to transport the contents of your closets. Start packing as early as you can.

Room by Room
Stay organized by packing one room at a time. Label each box clearly with the room and a description of the contents – e.g. “Girl’s Bedroom – toy shelf contents”. Keep the boxes in the room, if possible. It’s helpful, when packing is complete for that room, to number the boxes (e.g. “Box 1 of 5”). At the other end, you’ll know if a box is missing or misplaced from that room. Keep a list of numbered boxes and their contents.

Heavy items in small boxes; light items in large boxes.
If you have a lot of books or an old collection of vinyl records, you’ll know how heavy they can be. If you’re moderately fit, you should be able to lift any box you pack. Double-box any fragile items, and add plenty of cushioning. Finally, when labeling the box, add a “Fragile” note, so the movers can treat it accordingly.

Don’t bother emptying your dresser or desk drawers.
Do ensure that any items are secured. Remove any items which might cause problems in the case of freezing or spilling.

Set up a station for packing dishes.
Use a medium-sized carton and line the bottom with packing popcorn or crumpled paper. Try packing plates or soup bowls in threes: on a stack of packing paper, set the first plate. Pull up the corners of your paper and pull up to cover plate completely. Set a second plate on the stack and repeat. When you finish the third plate, ensure that the bundle is completely covered, seal it with tape and place carefully in the box.

Dealing with delicate items.
Lamps and lampshades should be removed and packed carefully. Wrap the harp and finial fittings separately and keep them in the box with the shade. You may want to tape them to the side of the box so they don’t get lost in a sea of crumpled paper.

Call in a specialist for the trickiest jobs.
If you’re moving an heirloom grandfather clock, for example it should be prepared by a professional. With smaller clocks, you may be able to remove and/or secure the pendulum yourself. Unsecured, the clock can be badly damaged.

Computers and electronics need special care.
We all know we’re supposed to keep the original cartons. This is the reason why. Nothing will protect the equipment better than the custom-designed box it was originally shipped in. If you haven’t saved them, then you’ll need to improvise with strong corrugated boxes. Place a protective layer on the bottom of the box: crumpled newspaper is usually fine. Wrap an old blanket, towel or bubble wrap around the item and place it in the box. Stuff additional padding around the item.

Pack as little food as possible, and pack it carefully.
It would be ideal if you didn’t need to move a scrap of food. But realistically, you’ll probably want to pack the contents of your spice cabinet, other staples, and perhaps a pantry of canned goods. Again, keep the weight of the boxes reasonable, with no more than 24-30 cans in a box. Secure lids of spice jars and wrap carefully in packing paper. Frozen food is the trickiest of all. Get advice from your mover. Some will transport carefully packed frozen food for a short move. Others will allow a fully stocked, fully frozen freezer to be moved with the food inside – generally only for a certain distance. In general, perishable food items like eggs and produced should not be moved.

What NOT to pack:
valuable papers, jewellery and cash should always stay with you. The movers don’t want the responsibility and you don’t want the worry. And don’t pack your appliances. In general, you only need to ensure that they are empty, clean, dry and unplugged. The movers will take care of the rest.

As the move day approaches, and rooms are packed, begin stacking the boxes as closely as possible to the spot where the movers will park the truck.

While proper packing sounds like a lot of work, it’s an important safeguard for your precious possessions.

Client’s $45,000 deposit was misappropriated

Derrick Penner
Sun

A Vancouver real estate agent who misappropriated a client’s $45,000 deposit has been hit with $15,000 in fines and enforcement costs and his licence has been cancelled, the strictest penalty ever handed out by the Real Estate Council of B.C.

The Council, this week, handed down its decision against Smrat (Sam) Sharma to settle its investigation into a long list of infractions, the most serious of which was the misappropriation of a client’s deposit.

Sharma also faces a criminal investigation into his conduct by the Financial Institutions Commission. Ken Fraser, chief investigator for the commission, said that process is still underway.

“We have no tolerance for tampering with trust money,” Real Estate Council spokesman Anthony Cavanaugh said in an interview.

“[Trust funds] are one of the most sacred parts of any real estate transactions and consumers have to feel confident their moneys are protected.”

He added it is the stiffest penalty the council has handed out since being granted expanded disciplinary powers in January 2005, as part of the new Real Estate Services Act.

Cavanaugh said the council was tipped to Sharma’s potential misconduct in April 2005 and immediately suspended his licence to begin its investigation.

The Real Estate Council handed down its decision Tuesday in the form of a consent order that included an agreed set of facts that lay out the case.

It details a long list of infractions in 15 transactions between 2003 and 2005, including failing to notify sellers that deposits had been paid late, failing to properly document transactions, failing to notify his brokerage that he was acquiring properties from clients and conflict of interest.

In the most serious case, the consent order states that Sharma, in March of 2005, directed a client to pay the $45,000 deposit due on the purchase of a west-side Vancouver home directly to the account of a numbered company owned by Sharma, and not his brokerage’s trust account at Sutton Group Langara Realty.

Sharma also signed the seller’s name, without the seller’s knowledge, to an addendum in the contract which purported to authorize the payment.

However, the buyer learned that the deposit had not been made to the seller and the transaction couldn’t close as his family was preparing to move into the house.

The order notes that the buyer and his wife were forced to drain their bank accounts and extend a line of credit to cover $31,093 of the deposit. Sutton Group Langara also came forward to cover for Sharma by waiving the transaction’s $13,905 commission and honouring a $5,000 rebate that Sharma had promised the buyer.

The Real Estate Council has since compensated the buyer for $33,339.

Sharma, during the compensation hearing, said he would reimburse the buyer for $36,093, which would also cover the $5,000 rebate.

On March 20, the corporation that administers the council’s compensation fund won a judgement in B.C. Supreme Court against Sharma and his company to recover that money. However, he had not made any payments at the time the council’s decision was released.

The numbered company, in its registration with the B.C. Registrar of Companies, lists the Burnaby law office of Chee Dusevic as its registered office. A call to that office Thursday was not returned.

Cavanaugh said 461 complaints were filed to the council between June 2005 and May 2006 which is a 33-per-cent increase from the previous year.

© The Vancouver Sun 2006

Tim Loehrke
USA Today

WASHINGTON (AP) — Sales of existing homes fell in April, and the price posted the smallest increase in 4½ years, new signals that the nation’s once red-hot housing market has cooled.

The National Association of Realtors said Thursday that sales of previously owned single-family homes and condominiums dropped 2% last month to a seasonally adjusted sales pace of 6.76 million units.

The median price of homes sold in April rose to $223,000, an increase of 4.2% from April 2005. That represented the smallest year-over-year price gain since September 2001. The price was up $5,000 from March.

Prices in the Midwest actually fell 1.2% in the April to April period, a fact that Lereah attributed to weak job growth and a rising inventory of unsold homes.

The price increase in April is far below the double-digit price gains that home sellers enjoyed last year. Sales of both new and existing homes set records for five straight years as the housing industry enjoyed a boom powered by the lowest mortgage rates in more than four decades.

However, rates have been rising this year, with 30-year mortgages now at 6.6%, the highest level in nearly four year.

David Lereah, chief economist for the Realtors, said he expects the 30-year mortgage would keep rising and would be near 7% by the end of the year. He said that is consistent with his view that the country is heading for a soft landing in housing but not a crash.

Other economists worry that with a large overhang of unsold homes and rising mortgage rates, the industry could be facing a more severe outcome.

For April, the total number of unsold homes hit a record of 3.38 million units, which represented a six-month supply at the April sales pace. The time period needeed to exhaust the current supply was the highest since January 1998.

By region, sales fell 3.7% in the Midwest, 1.9% in the South, 1.4% in the West and 0.8% in the Northeast.

Lereah said the data the Realtors are collecting indicate the housing industry is still experiencing a split personality with once hot markets in Florida, California and Arizona slowing down while some housing markets that had been lagging behind the front-runners are starting to take off.

He said the hot markets were in Texas, North Carolina, South Carolina, Ohio, Georgia, Utah and New Mexico.

“This is a tale of two markets. Half of the country is heating up and half the country is cooling off,” Lereah said.

Lereah called the current period a “delicate juncture” for housing with the inventory of unsold homes being the critical indicator going forward. If that figure gets too high, analysts worry, it will put downward pressure on prices.

For now, analysts are forecasting that prices will rise around 6% this year while sales drop around 10%.

For April, sales of single family homes dropped 2% to an annual rate of 5.92 million units while sales of condominiums fell 2.7% to an annual rate of 839,000 units.

The sales price for condominiums fell 0.2%, the first year-over-year price drop since the spring of 1995.