Consent Order

Okanagan Strata Management Ltd. failed to transfer the requisite Contingency Reserve Fund from a client's operating trust account into its Contingency Reserve Fund within the time frame required. This contravened section 7-9(4) of the Rules.

Okanagan Strata Management Ltd. failed to maintain proper books, accounts, and other records. This contravened section 25 of the Real Estate Services Act.

File 14-097

Okanagan Strata Management Ltd. processed an unauthorized and unnecessary expenditure, and permitted a withdrawal from an operating trust account. This contravened section 30 of the Real Estate Services Act.

File 14-135

Okanagan Strata Management Ltd. failed to transfer Contingency Reserve Fund amounts from a client's operating trust account into its Contingency Reserve Fund within the required time frame. This contravened section 7-9(4) of the Rules.

Okanagan Strata Management Ltd. failed to maintain proper books, accounts, and other records. This contravened section 25 of the Real Estate Services Act.

File 14-419

Okanagan Strata Management Ltd. allowed the trust accounts for a client to remain with negative balances. The brokerage did not take immediate steps to eliminate the negative balances, and did not notify the Council of those balances within the required time frame. This contravened section 25 of the Real Estate Services Act, and sections 7-5(2) and 7-5(3) of the Rules.

File 15-094

During the Council's inspection of Okanagan Strata Management Ltd.'s books and records, the auditor observed discrepancies in the brokerage's accounting. Okanagan Strata Management Ltd. failed to:

• maintain and retain financial records in connection to its business ;
• prepare monthly bank reconciliations within the required time frame;
• maintain a liability listing;
• reconcile the pooled rental trust account accurately and appropriately for a number of years; and
• reconcile the pooled rental trust accounts in a timely manner and in accordance with the Rules.

These actions contravened section 25 of the Real Estate Services Act, and sections 8-1, 8-2, and 8-3 of the Rules.

Okanagan Strata Management Ltd. also failed to:

• promptly pay deposits received by the brokerage into the brokerage's trust account. This contravened section 27(2) of the Real Estate Services Act.
• include a description of the records to be kept by the brokerage on behalf of the client, and a provision relating to the use and disclosure of personal information. This contravened section 5-1(5)(e) and 5-1(5)(g) of the Rules.
• take immediate steps to eliminate a negative balance in the long-term pooled rental trust accounts, or to notify the Council of the negative balance within the required time frame. This contravened section 7-5(2) of the Rules.
• provide certain clients with a monthly trust bank statement and reconciliation within the required time frame. This contravened section 7-9(7) of the Rules.

Results

A discipline committee of the Council has ordered the following:

1. Okanagan Strata Management Ltd. is reprimanded, and must pay a discipline penalty of $6,000.00 to the Council.
2. Okanagan Strata Management must pay enforcement expenses of $3,000.00 to the Council.