BCFSA Penalizes Individuals in Connection with Murrayville House Development in Langley; Releases Details About Hearing Against the Developer

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Gavel with construction and real estate materials in background

BC Financial Services Authority (“BCFSA”) has ordered Vasant Pragjibhai Patel and Chattar Singh Flora to pay administrative penalties for providing unlicensed real estate services.

The actions of Patel and Flora are connected to an investigation of seriously noncompliant and harmful real estate development activities allegedly undertaken by Mark John Chandler, the developer of Murrayville House, a 92-unit development project in Langley.

Chandler and Murrayville House Development

BCFSA alleges that Chandler undertook marketing activities to re-sell units within the Murrayville House development that had already been purchased by other buyers. To act swiftly and address this behaviour, BCFSA issued a cease marketing order against Chandler in 2017, shortly after learning of the allegations. These actions were taken by the then Superintendent of Real Estate. A notice of hearing was then issued in 2019, and Chandler’s activities were also reported to the RCMP at that time.

BCFSA could not conduct the scheduled hearing however, because Chandler was extradited and imprisoned in the United States, where he served a sentence for unrelated charges. Immediately upon his removal from the United States to Canada on February 14, 2025, BCFSA served Chandler an amended notice of hearing for his alleged actions related to the Murrayville House development. A hearing has been set for September 15-26, 2025.

Connected Individuals – Patel and Flora

Through BCFSA’s investigation into Chandler and the Murrayville House development, investigators uncovered that unlicensed real estate activities were occurring. Specifically, Patel had facilitated the sale of approximately 18 units within the development, and Flora approximately nine units. Neither were licensed to provide real estate services in B.C.

Patel is required to pay a $10,000 penalty for providing unlicensed real estate services, and $10,000 in investigation costs, while his company, 1074936 BC Ltd. is required to pay a $20,000 penalty. These penalty amounts were the maximum penalties allowed under the legislation that was in force during the period of Patel’s misconduct. Flora must pay a penalty of $70,000 for providing unlicensed real estate services.

BCFSA uncovered further misconduct committed by two licensed real estate agents that also participated in the Murrayville House development in a noncompliant way. While these two real estate licenses have been found liable of misconduct, a decision on sanction is pending and will be published to BCFSA’s website once issued.

Background

In 2016, amendments were made to the Real Estate Services Act’s (“RESA”) framework to increase the penalties from the previous maximum of $10,000 for an individual and $20,000 for a corporation. The penalties issued to Patel reflect the maximum pre-amendment penalty amounts. Following the 2016 amendment, individuals who are found to have contravened the RESA can face penalties of up to $250,000 per contravention (or $500,000 per contravention in the case of a corporation), plus an additional penalty equal to the amount of any compensation received in connection to the misconduct.