Real Estate Developer and Associates Receive Penalties for Fraudulent Condo Pre-Sale Scheme

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Real estate developer Mark Chandler, and his company 0981478 Ltd. (098), have been issued with the maximum penalty allowed under the Real Estate Development Marketing Act (REDMA) after BCFSA found he deceived consumers by reselling presale condo units that had already been sold to other buyers. This enforcement action follows earlier orders against Chandler’s associates who participated in or helped to facilitate his misconduct.

BCFSA investigation background

Between May 2014 and Spring 2017, Chandler and 098 entered into pre-sale contracts to sell units in Murrayville House, a 92-unit condo development in Langley, B.C.

Many of the contracts were for units that 098 had already contracted to sell to other purchasers, and Chandler and his associates required that entire purchaser funds to improperly flow directly to him and 098, rather than be held as deposits in trust in accordance with legislation. This resulted in multiple pre-sale contracts for multiple units in Murrayville House, which prevented 098 from providing assurance of title to various buyers.

The Office of the Superintendent of Real Estate (which became BCFSA in 2021), first learned of these allegations in August 2017, and on September 8, 2017, it acted urgently to order that Chandler cease marketing the Murrayville development, place purchaser deposits in trust, and file a new disclosure statement.

Chandler’s activities were also reported to the RCMP at that time.

Timing of the decision

Following the issuing of the September 2017 urgent order, BCFSA continued an extensive investigation into the activities of Chandler and his associates and issued Chandler with a notice of hearing in 2019.The hearing could not be held as Chandler was extradited and imprisoned in the United States that same year, where he served a six-year sentence for unrelated criminal charges,

Chandler was deported from the United States to Canada on February 14, 2025, and on that same date BCFSA served Chandler. A hearing was held in September 2025. Chandler did not attend the hearing and did not have legal representation present, so the hearing proceeded in absentia.

Significant diverted deposits

BCFSA’s investigation revealed that the total deposits that buyers paid directly to 098 (which were not delivered into trust with a lawyer, notary, or other permitted person as required by REDMA) was over $10 million. Much of this money was improperly used for purposes outside of the development, including Chandler’s own purposes.

“Chandler’s actions were predatory and deceptive, causing tremendous financial hardship and distress for the consumers he misled,” said Jon Vandall, Senior Vice President of Financial Professionals at BCFSA. “His actions, and those of his associates, drew attention to whether the legislative framework governing the real estate and real estate development sectors were adequate in protecting consumers. As a result, swift amendments were made to increase penalties to be more proportional to potential misconduct.”

Legislative changes to REDMA

After the activities of Chandler and his associates were discovered, amendments were made to REDMA in 2018 to increase the maximum penalties from $25,000 to $250,000 for an individual, and from $50,000 up to $500,000 for a corporation.

Penalties to Chandler and 098

Chandler and his company, 098, where ordered to pay the maximum available penalties under REDMA at the time the misconduct occurred. Chander was issued a $25,000 individual penalty and his company, 098, received a $50,000 penalty for violating the Real Estate Development Marketing Act (REDMA). Chandler and 098 must also jointly pay $66,498.86 in investigative expenses.

In related cases, BCFSA has suspended the real estate licences of Gurpreet Singh Chhina and Rashpal Singh Kambo for recommending consumers buy nine Murrayville House condo units that Chandler had already pre-sold.

Between June 2016 and September 2016, Chhina and Kambo shared a Surrey office space where they encouraged consumers to purchase nine condo units in Murrayville House that Chandler had already pre-sold in 2015. The first purchasers had paid approximately 15 per cent of the total unit price as a deposit. Chhina and Kambo knew these units were pre-sold and helped to resell them to new purchasers at a discounted price of approximately 75 per cent of the original purchase price.

Chhina and Kambo collected deposits from second purchasers on behalf of Chandler and Vasant Patel, an accountant who worked with Chandler, with sale proceeds going directly to Chandler. Patel is the Director of 1074936 BC Ltd. and has never been licensed to offer real estate services in B.C.

BCFSA previously announced that in March 2025, Patel and his company were ordered to pay a combined $40,000 in penalties and enforcement costs for facilitating Chandler’s activities and for providing unlicensed real estate services. An associate of Patel, Chattar Flora, was also sanctioned for unlicensed activity, and received a penalty of $70,000 in March 2025 for his role in the scheme. More information about BCFSA’s enforcement actions against these unlicensed individuals can be found here: BCFSA Penalizes Individuals in Connection with Murrayville House Development in Langley; Releases Details About Hearing Against the Developer.

Chhina and Kambo collected over $2 million from second purchasers and gave these payments to Patel, though he was not licensed to receive real estate deposits. Patel then paid Chhina and Kambo $113,500 each in referral fees for the condo sales.

Chhina and Kambo did not disclose these activities to their brokerage, Sutton Premier Realty. Chhina and Kambo failed to provide relevant trading records, including copies of the purchase agreements for the sale of the units. They also did not hold the referral fees in trust through Sutton Premier Realty or through their respective personal real estate corporations (Gurpreet Singh Chhina Personal Real Estate Corporation; Rashpal Singh Kambo and Rashpal Singh Personal Real Estate Corporation).

Chhina and Kambo suspensions and penalties

Chhina and Kambo’s licences are suspended for one year until October 2026. They must also each pay a $10,000 discipline penalty, the maximum allowed under RESA at the time of their misconduct, which occurred before the 2016 amendments to RESA.

That year, the previous maximum of $10,000 for an individual and $20,000 for a corporation were increased to $250,000 per contravention for individuals who are found to have contravened RESA, and $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. In addition, BCFSA has made further submissions to recover enforcement expenses from Chhina and Kambo.

“Chhina and Kambo were both aware the units they were selling had already been sold, and in doing so put their clients at significant risk,” said Vandall. “Their actions demonstrate a flagrant disregard for consumers’ best interests, which is not just unethical, it’s unacceptable.

Background on REDMA

The Real Estate Development Marketing Act (REDMA) governs the marketing of development properties in B.C. In respect of development units, REDMA applies to selling, leasing, offering for sale or lease, and any activity that is likely to lead to a sale or lease. Before a developer can market a development unit in B.C., it must:

meet preliminary approval requirements (see sections 4 to 10);
adequately assure title, utilities and services (see sections 11 to 13);
file a Disclosure Statement with our office (see sections 14 to 17); and
place all deposits for development units in trust with a lawyer, notary or brokerage (see section 18).