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Real estate broker fined thousands for misconduct

Jul 25, 2019 | 1:55 PM

An Okanagan real estate broker has been fined $10,000 after admitting professional misconduct for three incidents, two of which were tied to property dealings in Vernon.

Nadine Westgate, managing broker of Sage Executive Group Real Estate in Kelowna, agreed to a consent order on July 17, 2019 by the Real Estate Council of British Columbia.

According to the document, the initial incident occured in November 7, 2016, when a licensee at the brokerage prepared a contract for a property for sale in Vernon listed for $150,000. Part of the contract’s deal was the buyer had to pay a $8,000 deposit within 12 hours of the sale contract’s removal of subjects.

A few days later on November 16, the real estate council said the buyer removed subjects but the deposit was not paid as part of the contract.

Two days later, the licensee at the brokerage told Westgate the deposit was not paid.

The real estate council stated Westgate failed to tell the listing brokerage the deposit was not sent.

The deal fell through and that triggered the listing brokerage to file a complaint with the real estate council.

When asked about what happened, Westgate told the council the mishap happened because of oversight.

Another incident

A year later in 2017, a similar incident occurred in Vernon, this time for a property deal on 42nd Avenue.

On June 20, 2017 the licensee at the branch prepared a contract on behalf of a buyer to purchase the home for $400,000.

The deal was accepted by the seller and the contract required a $5,000 deposit to be paid within two business days.

The deposit was never received, according to the Real Estate Council of B.C.

On July 3, the licensee sent a general release form to the seller asking for the transaction to be cancelled. They also told Westgate the deposit was never received.

The next day Westgate called and emailed the seller’s agent and talked to them about the missing deposit, but on July 11, the seller filed a complaint to the real estate council.

When the council confronted Westgate about the complaint, she explained “the failure to detect the failed deposit was because of oversight and heavy workload.”

She also said the staff member responsible for handling the contracts in 2016 and 2017 no longer worked at the firm.

Troubles at West Kelowna firm

Westgate was reprimanded a third time after Sage Executive Group Real Estate opened a branch along Dobbin Road in West Kelowna.

In June 2015, Westgate applied for a licence for the new branch through the Real Estate Council of B.C, but the board told her the application needed more details including a copy of the municipal business licence and the managing broker application.

Three months later, the council said they did not receive a licence application and told Westgate a licence application at that late of a date would be considered invalid.

In March 2016, council received a report from the Okanagan Mainline Real Estate board she was allegedly operating the brokerage without a licence and received a photograph of a logo outside of the branch office.

The real estate council eventually licenced the firm a month after the report was made.

According to the decision, Westgate told the real estate council she was having difficulty obtaining an inspection and a municipal business licence. She also stated the branch was not staffed and admitted she was wrong in putting the sign up and having information about the unlicensed branch on their website.

History of discipline

Westgate was also the subject of a professional misconduct investigation in 2011 and 2012, after she admitted she failed to submit financial statements on time. She also “failed to ensure that the business of the brokerage, including the supervision of employees was carried out competently.”

Conditions

Aside from the $10,000 fine, Westgate will have to retake the Broker’s Remedial Education Course at UBC, pay $1,500 in enforcement fees to the council and arrange for an audit of the brokerage by June 30, 2020.

If Westgate fails to abide by the conditions the real estate council said it could result in the suspension or cancelation of her licence without notice.

VernonMatters reached out to Nadine Westgate and she stated that she plans on commenting about the decision at a later date.

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