RECO revokes registration of Toronto brokerage – Feb. 2013

Graydon Hill Realty and Broker of Record no longer entitled to trade in real estate

Thursday, February 14, 2013 (Toronto) – The Registrar of the Real Estate Council of Ontario (RECO) has revoked the registrations of Graydon Hill Realty Ltd. and its Broker of Record David Allen, who is also the owner of the brokerage.

On January 21, the Registrar issued an immediate suspension and a proposal to revoke the registrations of both the brokerage and Allen. Under the Real Estate and Business Brokers Act, 2002 (REBBA 2002), they were entitled to 15 business days to register an appeal. No appeal was filed and, as a result, the Registrar has revoked both registrations.

Last month an inspection by RECO identified irregularities in Graydon’s real estate trust account. As a result, RECO’s Director issued an order to freeze the brokerage’s bank accounts and the Registrar issued an immediate suspension and proposal to revoke the registration of the brokerage. These actions are taken to protect the public.

The Registrar’s proposal alleged that, during a RECO inspection, shortfalls were discovered in the real estate trust account (where deposits from home buyers are held), which is in contravention of REBBA 2002. The proposal further alleges that based on the financial position of Allen, he cannot be reasonably expected to be financially responsible in the conduct of business… and that past conduct affords reasonable grounds for the belief that Allen will not carry on business in accordance with the law and with integrity and honesty under REBBA 2002. No allegations were proven in court since Allen did not appeal.

Buyers and sellers who may be concerned about whether a pending sale or purchase will be completed on time, or who have any other questions, may contact the individuals listed below.

RECO is responsible for administering REBBA 2002 on behalf of the provincial government. In order to trade in real estate in Ontario, brokers and salespersons must be registered with RECO. Trading in real estate without registration in Ontario is an offence under REBBA 2002. An individual found guilty of such an offence is liable to a fine of not more than $50,000 or to imprisonment for a term of not more than two years less a day, or to both.

 

CONTACT INFORMATION

HOME BUYERS AND SELLERS

Questions about the impact of the freeze order, including whether a pending sale or purchase will be completed on time:

Jay Blair, RECO
Phone: (416) 207‐5171
Email: jay.blair@reco.on.ca

Questions about consumer deposit claims, or other insurance‐related inquiries, should be directed to RECO’s Insurance Department:

Ruth Garrett, Manager, Insurance Programs
Phone: (416) 207‐4872 or (416) 207 4841
Toll Free: 1‐800‐245‐6910
Fax: (416) 207‐9020
E‐mail: insurance@reco.on.ca

EMPLOYEES OF GRAYDON HILL REALTY LTD. OR CO‐OPERATING BROKERAGES

Questions about commissions:

Claims for commissions should be directed to the claims adjuster for RECO’s insurance program:

Granite Claims Solutions
Toll Free: 1‐877‐740‐1913
Toll Free Fax: 1‐866‐735‐1033
Email: claims@reco‐claims.ca

The insurer requires one Notice of Claim Commission Protection form per trade. Claim forms are located on the insurer’s website: www.reco‐claims.ca

Questions about the procedures for transferring a registration to a new brokerage:

Maria Paolercio, Registration Officer
Phone: (416) 207‐4804 or 1‐800‐245‐6810 ext. 4804

Questions about the impact of a freeze order on transactions:

Jay Blair, RECO
Phone: (416) 207‐5171
Email: jay.blair@reco.on.ca


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