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Consumer Alert: Guidance for Consumers Using Services of Balpreet Singh Bal, Jovi Realty, Lighthouse Realty Ltd.
BC Financial Services Authority (BCFSA) has issued urgent orders against Balpreet Singh Bal and his real estate brokerage Fraseridge Realty Ltd. (operating as Amex-Fraseridge Realty), suspending them from providing real estate services. BCFSA has also issued freeze orders against the real estate brokerages, Fraseridge Realty Ltd. (operating as Amex-Fraseridge Realty), Bal Realty Services Incorporated, Jovi Realty and Lighthouse Realty Ltd. The orders freeze accounts, including trust accounts, for all four brokerages.
What’s happening:
- BCFSA has proactively frozen accounts to ensure that trust funds are preserved while it continues its active investigation of Bal.
- Consumers whose funds are impacted by the freeze order should contact their real estate licensee for further information.
- Consumers may be eligible for support through the Special Compensation Fund, which provides financial protection to consumers who suffer losses due to licensee misconduct.
Why this action was taken:
BCFSA’s investigation of Bal relates to:
- Mishandling of trust funds;
- Deceptive dealing;
- Failing to maintain brokerage records; and
- Offering mortgage and investment services without registration.
What consumers should do:
- Contact the real estate licensee you’ve been working with, who can provide you with information regarding any funds you may have in trust at the brokerage as well as information on how the orders may impact the real estate services you are receiving.
Next steps
BCFSA’s investigation is ongoing. Once complete, BCFSA will pursue penalties for any contraventions of RESA.
Under RESA, the maximum financial penalty per contravention is $250,000 for individuals and $500,000 for corporations.
Additional information
- News Release: BCFSA Issues Urgent Orders, Freezes Trust Accounts Over Alleged Misconduct by Balpreet Singh Bal and Related Brokerages
- Order in Urgent Circumstances and Order to Freeze Property – Bal Realty Services Incorporated, Amex-Fraserridge Realty, and Balpreet Singh Bal
- Reasons for Order to Freeze Property — Jovi Realty & Lighthouse Realty Ltd.
- Section 43 of RESA
Frequently asked questions
Consumers who have used the services of Bal or any of the brokerages impacted by freeze orders may be wondering how this impacts them. Below are answers to some frequently asked questions.
For buyers or sellers:
If you currently have funds held in trust with Jovi Realty or Lighthouse Realty Ltd. your funds are impacted by the freeze order.
Speak to the licensee you’ve been working with to understand the impact of the freeze and potential mitigations. Licensees that are working with clients who have pending transactions have been given instructions on how to contact BCFSA for support.
The Special Compensation Fund is a financial protection program administered by the Real Estate Compensation Fund Corporation (RECFC). BCFSA administers claims to the fund on behalf of RECFC. The fund reimburses consumers who have lost money entrusted to a real estate licensee or an unlicensed individual at a brokerage due to:
- Misappropriation or wrongful conversion of funds
- Failure to account for funds
- Fraudulent activity
If you have funds held in trust at one of the named brokerages you may be eligible to make a claim. We encourage you to speak to the licensee you’ve been working with to discuss your situation. Licensees that are working with clients who have pending transactions have been given instructions on how to contact BCFSA for support in these situations.
To mitigate impacts on consumers whose funds are impacted by the freeze order, BCFSA will expedite the application process for eligible claimants to access the Fund. Speak to your real estate licensee to discuss your situation.
For tenants:
Residential tenancy agreements are not impacted by these orders. You should continue to pay rent according to the instructions of your landlord and the terms of your agreement. However, your rental property manager may contact you to update your agreement or provide an update regarding arrangement for payments given the freeze on the brokerage’s accounts.
The Residential Tenancy Branch advises that tenants should continue to pay rent according to the terms of their tenancy agreement, until such time as their licensed property manager or landlord contacts them to provide updated information regarding their agreement.
Landlords are not permitted to evict a tenant for non-payment of rent or non-payment of deposit if it was paid to Jovi Realty or Lighthouse Realty Ltd. as per the residential tenancy agreement.The accounts that collect and disperse rental payments have been frozen, and no payments from named brokerages can be made until BCFSA varies the freeze order or appoints a receiver. Money in the frozen accounts will be preserved for the appropriate beneficiaries.
Contact your rental property manager or the real estate licensee you’ve been working with for more information.
Tenants with concerns about their obligations under their tenancy agreements, including rent payment, returning security deposits, and dispute resolution, can find information on the Residential Tenancy Branch website.
The Residential Tenancy Branch is responsible for dispute resolution between tenants and landlords and may be contacted to answer questions you have about continuing rent payment, and other obligations under your tenancy agreement. BCFSA does not regulate the actions of tenants.
For landlords:
The accounts that collect and disperse rental payments have been frozen, and no payments from Jovi Realty or Lighthouse Realty Ltd. can be made until BCFSA varies the freeze order or appoints a receiver.
Money in the frozen accounts will be preserved for the appropriate beneficiaries. Contact your rental property manager if you wish to make alternate payment arrangements with your tenants.No, landlords are not permitted to evict a tenant for non-payment of rent or non-payment of a deposit if it was paid to Jovi Realty or Lighthouse Realty Ltd. as per the tenancy agreement.
We understand this is a difficult situation, and landlord clients with concerns about their obligations under their tenancy agreements, including forms of rent payment, returning security deposits, and adjudicating disputes, can find information on the Residential Tenancy Branch website.
Landlords should engage with their licensed rental property manager for more information about the impacts to them and to explore alternate payment arrangements.Speak to your rental property manager to discuss your options.
Yes. Landlords can take on activities related to the management of their rental property themselves, if they wish.
Landlords who take on activities related to the management of their rental property should ensure they can prove to the tenant that they are the landlord/property owner.
Landlords and licensed rental property managers must act in accordance with the Residential Tenancy Act and are not permitted to evict a tenant for non-payment of rent or non-payment of deposit if rental payments were paid to Jovi Realty or Lighthouse Realty Ltd. as per the tenancy agreement.We understand this is a difficult situation, and landlord clients with concerns about their obligations under their tenancy agreements, including rent payment, returning security deposits, and dispute resolution, can find information on the Residential Tenancy Branch website.
