Disciplinary Hearing

Published on
squircle icon
Licensee
Kevindeep Singh Bratch
Brokerage at Time of Sanctioned Activity
Bratch Realty Ltd.
Current Brokerage
Disciplinary Hearing Date
30 November 2020

Summary

The Discipline Committee found that Mr. Bratch and Bratch Realty Ltd. (the “Brokerage”) committed professional misconduct within the meaning of section 35(1) and/or conduct unbecoming within the meaning of section 35(2) of the RESA in that: 

  1. In relation to the Rxxxxx Property, the Sxxxxxxxxxxx Property, and the Lxxxxxx Property, he contravened the duty to act honestly and with reasonable care and skill pursuant to Rule 3-4 when he failed to clarify his role as adverse to the owners and failed to recommend that the owners obtain independent legal advice;
  2. In relation to the Lxxxxxx Property he committed conduct unbecoming pursuant to section 35(2)(a)-(c) of the RESA when he:
    1. Targeted the owner with a “rent-to-own” program which included disadvantageous terms for the owner who he knew was in foreclosure proceedings and who he knew or ought to have known was financially distressed and vulnerable;
    2. Purchased the property at a price less than the assessed value and in his and/or his wife’s name when he knew or ought to have known the owner had no agency or legal representation;
    3. Included a term in the contract of purchase and sale that the contract was conditional on the owner entering into a tenancy agreement with him;
    4. Had the owner execute a document titled “option agreement” which stated “the recording of this option or any memorandum thereof will result in the automatic revocation of this option, and all monies paid to the owner by tenants shall be retained by the owner as liquidated damages” to ensure that the owner did not register their option against the property at the Land Titles Office; and
    5. Knew or ought to have known that the owner relied on his advice and self-identification as a realtor with expertise in foreclosure matters when entering into the contracts related to the property.
  3. In relation to the Lxxxxxx Property, the Brokerage committed both professional misconduct and conduct unbecoming a licensee, and in relation to the Rxxxxx Property, the Brokerage committed professional misconduct, pursuant to section 35(3) of the RESA;
  4. Mr. Bratch failed to make proper disclosure of interest in trade pursuant to Rules 5-9, 3-1(1) and 3-4 when:
    1. In relation to the Rxxxxx property, he failed to disclose the corporate buyer as an associate and failed to disclose the nature of his relationship with the corporate buyer on the Disclosure of Interest in Trade form;
    2. In relation to the Sxxxxxxxxxxx Property, he failed to provide a Disclosure of Interest in Trade form; and
    3. In relation to the Lxxxxxx Property, he failed to list his wife as an associate on the Disclosure of Interest in Trade form.
  5. Mr. Bratch made, or allowed to be made, a false or misleading statement in a Brokerage Activity Report dated March 23, 2017 in contravention of Rules 3-1(3) and 3-4; and
  6. The Brokerage filed a Brokerage Activity Report dated March 23, 2017 containing a false or misleading statement, in contravention of Rules 7-7(1)(c) and 3-4.

Results

The Discipline Committee ordered the following sanctions:

  1. Mr. Bratch and Bratch Realty Ltd. be jointly and severally liable to pay a discipline penalty in the amount of $45,000 within three (3) months from the date of the Order, or within such further period as the Council might direct;
  2. Mr. Bratch, at his own expense, register for and successfully complete the Real Estate Institute’s Ethics in Business Practice course, within one (1) year from the date of the Order;
  3. Mr. Bratch and Bratch Realty Ltd. be jointly and severally liable to pay enforcement expenses to Council in the amount of $50,000, within six (6) months from the date of the Order or within such further period as the Council might direct; and
  4. Mr. Bratch and the Brokerage be prohibited from applying for licensing until after
    1. One (1) year from the date of the Order;
    2. Mr. Bratch has refrained from serving as an unlicensed assistant for one (1) year immediately prior to any application for licensing;
    3. Mr. Bratch has successfully completed the Real Estate Institute’s Ethics in Business Practice course; and
    4. Mr. Bratch and the Brokerage have paid both the discipline penalty and the enforcement expenses.

 

Discipline Committee Reasons for Decision Regarding Liability

Discipline Committee Supplemental Reasons for Decision Regarding Liability

Discipline Committee Reasons for Decision Regarding Sanction

 

Contraventions

  • Real Estate Services Act
    • 35(1)(a) & (g) [Misconduct by licensee]
      Read More
    • 35(2)(a)-(c) [Misconduct by licensee]
      Read More
    • 35(3) [Misconduct by licensee]
      Read More
  • Real Estate Rules
    • 3-1(1) [Business of brokerage carried out competently]
      Read More
    • 3-1(3) [Ensure trust accounts and records of the brokerage are maintained in accordance with the Act, Regulations, Rules and Bylaws]
      Read More
    • 3-4 [Act honestly, with reasonable care and skill]
      Read More
    • 5-9(1) [Disclosure of Interest in Trade]
      Read More
    • 7-7(1)(c) [Requirement to file Brokerage Activity Report]
      Read More