RECO lays 18 charges against Graydon Hill Realty Ltd. and Broker of Record, David Allen – April 2013
Inspection reveals irregularities in trust account – UPDATE
Tuesday, April 2, 2013 (Toronto) ‐ The Real Estate Council of Ontario (RECO) has laid 18 charges under the Real Estate and Business Brokers Act, 2002 (REBBA 2002) against Graydon Hill Realty Ltd. and its Broker of Record David Allen, who is also the owner of the brokerage.
An inspection by RECO identified irregularities in Graydon Hill’s real estate trust account. On January 18, RECO’s Director issued an order to freeze the brokerage’s bank accounts. On January 21, the Registrar issued an immediate suspension and a proposal to revoke the registrations of both the brokerage and Allen. Under REBBA 2002, they were entitled to 15 business days to register an appeal. No appeal was filed and, as a result, the Registrar revoked both registrations on February 11. These actions were taken to protect the public.
The charges under the Act relate to the improper disbursement of funds and failure to eliminate shortfalls in the brokerage’s trust account. David Allen, being the designated Broker of Record, committed offences by failing to ensure that Graydon Hill complied with the Act and its regulations. Details of all the charges can be found on RECO’s website at www.reco.on.ca. Charges are found under the complaints and enforcement section of the site.
Any home buyers or sellers who have representation agreements or deposits with Graydon Hill Realty Ltd. can visit www.reco.on.ca for further information. All real estate brokers and salespersons in Ontario must participate in an Insurance Program that provides consumer deposit protection.
For specific questions, please contact the individuals listed on the following page.
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.
The Real Estate Council of Ontario (RECO) is responsible for administering the Real Estate and Business Brokers Act, 2002 and associated regulations on behalf of the provincial government. In order to trade in real estate in Ontario, brokers and salespersons must be registered under the Real Estate and Business Brokers Act, 2002. RECO’s mission is to regulate the activity of trading in real estate in the public interest. For more information about the Real Estate Council of Ontario, visit www.reco.on.ca.
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
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
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
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 registration:
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
Media only contact:
Kristina Rikunova, Communications Officer