BCFSA Penalizes Real Estate Licensees Who Violated Advertising Rules

To protect consumers, the BC Financial Services Authority (“BCFSA”) penalizes real estate licensees for publishing or allowing false and misleading statements on social media, websites, and listings.

There are typically two types of advertising rules violations:

1. False or misleading listings – a licensee may claim that a house has larger square footage/acreage than in reality, that GST is included in the sale price when that is not the case, or that a property allows for additions or extra suites when these are not allowed by local zoning.
2. False or misleading credentials – a licensee may promote themselves and their services on their listings, websites, and social media platforms by claiming they have received awards or hold other credentials that may be misleading or simply untrue.

BCFSA has recently issued administrative penalties to four B.C. real estate licensees for the latter, after they published false and misleading ads and statements about their services and credentials on their social media and websites. BCFSA found that the following licensees failed to follow the Real Estate Services Act (“RESA”), which requires that advertising be current, accurate, and verifiable:

• Craig Veroni and Craig Veroni Personal Real Estate Corporation were ordered to pay a $6,250 administrative penalty which included an additional $3,250 for the 13 days which he took to fix some of his advertising. Veroni failed to indicate his brokerage’s name on his Instagram and Facebook pages, failed to indicate his personal real estate corporation’s licensee name on his LinkedIn, Facebook, and Instagram pages and his website; and failed to provide names of awards he has won while stating that he is an “Award Winning Realtor” on his Instagram and X accounts and an “Award Winning Realtor for over 14 years” on his website. Read the Craig Veroni decision.

• Derek Gillette has been ordered to pay $4,000 for a series of misleading statements on his website and social media. He failed to qualify the following statements with particulars: “#1 sales-30years,” “#1 Nanaimo Realtor 2015-2023,“ Top 100 Realtors in Canada-REP magazine,” “#1 Transactions in BC,” “Ranked #1 in BC,” “#36 Worldwide Teams for Re/Max International,” “Top 10 commission paid in Canada,” and “Business Excellence Award for Vancouver Island.” Read the Derek Gillette decision.

• Sarmad Mehrbod and Sam Mehrbod Personal Real Estate Corporation have been ordered to pay $6,000 for misleading statements on social media and his website. The statements included “Top 1% REALTOR in Van” and “REBGV Medallion Club” without any explanatory qualifying information. Mehrbod also made references to being part of a team when he was not registered with a team. Read the Sarmad Mehrbod decision.

• Xin Bo (Angela) Guo has been ordered to pay $4,000 for misleading statements on her social media and website. Although the statements were published by staff of the licensee’s brokerage, the licensee was found to be responsible for the advertising, and no qualifying information was provided on statements that Guo was a “Top 1% President Club Member” and in the “2017 President’s Club.” Read the Angela Guo decision.

“These deceptive actions show a disregard for truth in advertising,” said Jon Vandall, Senior Vice President of Compliance and Enforcement at BCFSA. “When consumers seek a real estate professional to help them buy or sell their home, they deserve to know a licensee’s real history and credentials. When licensees claim to be something they are not, consumers and other licensees suffer. BCFSA is here to inform and protect consumers and provide a level playing field in B.C. real estate.”

BCFSA has developed Advertising Guidelines for real estate professionals. BCFSA has also produced a Consumer Fact Sheet to help consumers understand what to look for in a real estate licensee’s social media and websites.

Additional Information

• Consumer Fact Sheet: Misleading Real Estate Advertising
• Real Estate Services Rules – sections 40 and 41
• Recent BCFSA Real Estate Decisions
• Report a concern with BCFSA
• Find a registered Real Estate professional

About BCFSA

B.C. Financial Services Authority (“BCFSA”) is the province’s regulator for the financial services sector that helps to protect British Columbians during some of the most important financial decisions of their lives. As a Crown agency of the Government of British Columbia, BCFSA oversees credit unions, trust companies, insurance companies, pension plans, mortgage services, real estate services, real estate development marketing, and money services. BCFSA also administers the Credit Union Deposit Insurance Corporation of British Columbia (“CUDIC”). BCFSA’s mission is to instill confidence in the financial services sector by focusing on the safety and soundness of regulated entities and consumer protection.

Media Contact:
Lindsey Norris
Communications Manager, media@bcfsa.ca
Visit: www.bcfsa.ca