MISINFORMATION

On Tue, Jan 7, 2025, 7:00 PM Sandra Rafferty - Broker Greater Calgary Real Estate <sandra@greatercalgaryrealestate.com> wrote:

Dear XXXXX Broker,

I am writing in response to your recent communication regarding the condo fees associated with the transaction at 110 Walgrove Cove SE, Calgary. I understand that BrokerageXXXX and AgentXXXXX represent the Sellers in this matter, and I respect your request for communications to be directed to myself Broker of Greater Calgary Real Estate, Sandra Rafferty.

As you are aware, the condo fees were inaccurately listed on the MLSA2177304, with an error of $44.75. Additionally, the $25 increase in condo fees was not disclosed to our client, CleintXXXX, or his agent, XXXX, either prior to or after the removal of conditions, nor prior to Completion Day. As per Section 6.2 of the Representations and Warranties in the contract, all information must be true at Completion Day.

Under the ESRA Condo Schedule, section 2, attached to the listing agreement, AgentXXXXX was obligated to ensure that all condo documents were obtained within 10 days of listing the property, reviewed, and that any updates to the condo fees were accurately reflected in the MLS listing. 

This failure to provide accurate and timely information regarding the condo fees accurately and not providing details of a condo fees increase resulted in material misrepresentation, which is particularly concerning given that such information is crucial to a buyer’s decision-making process. Misstatements or omissions of this nature constitute a breach of the listing agent’s responsibility to disclose material facts that may influence the buyer’s decisions. It is insufficient to claim that the seller was unaware, and therefore the listing agent was not informed. Both parties should have been aware of this information when deciding to sell, list the property, and entertain offers on the MLS. And this could have been easily done by confirming information from the condo docs the seller was to provide the agent on the condo schedule. 

To resolve this matter fairly for all parties, our client is requesting compensation for the total increase in condo fees of $70 per month for 12 months, totaling $840. He is asking that BrokerageXXXX and agentXXXX take responsibility for this amount, which can be recovered from the Sellers as you feel appropriate.

Should you wish to proceed with this resolution, please let me know. If necessary, I am prepared to escalate this matter to the appropriate authorities for further review.

Thank you for your attention to this matter. I look forward to your response.

On Wed, Jan 8, 2025 at 3:57 PM XXXXXX Broker wrote:

Hi, 

Thanks for your email.  After consideration of the details of the transaction, BrokerageXXXX will not be agreeing to your buyers request for $840.  

I note that the Buyer did not want a Condominium Document review condition.   It's worth pondering if that was sound advice.  

I'm also of the understanding that the condo fees were discussed among the Lawyers prior to closing.  As you are aware, it is the Seller or the Sellers Lawyer that is responsible to provide the closing documents, which include the Condominium Estoppel Documents, to the Buyers Lawyer for review; not the responsibility of the Sellers Brokerage.  The Buyers Lawyer should have reviewed these documents before closing.  That would have been the time to raise these concerns.  

We find it difficult to believe that your Buyer was completely unaware of the condo fees prior to closing; and if the Buyer was unaware then they need to discuss with their Lawyer why they were not made aware, assuming their Lawyer reviewed the Estoppel like they were supposed to.  If the Estoppel was not recieved by the Buyers Lawyer then the Buyer had the option to delay closing to allow a reasonable time to review and verify.  

My understanding is that when the Estoppel was reviewed it was discovered the Sellers were in arrears for their Condominium Contributions.  Our Sellers have already acknowledged this and agreed to cover the outstanding fees for the period they owned the property.  Your Buyer agreed to proceed with closing, which is evidence he was satisfied. 

We feel this has matter has already been fairly resolved. 

Regards, 

BrokerXXXXX

Subject: Resolution of Complaint Regarding 110 Walgrove Cove SE

Thank you for your recent correspondence regarding the transaction at 110 Walgrove Cove SE. After careful consideration, our client has decided not to pursue a formal complaint regarding this matter.

While our client has chosen not to proceed, I feel it is important to reiterate the concerns he has raised. The accuracy of information presented on MLS is critical to ensuring that buyers can make informed decisions. Missteps, such as not updating the listing with accurate condo fees or changes, can lead to confusion, disappointment, and mistrust, which ultimately impacts the professionalism of our industry.

Our client remains understandably disappointed with how this aspect of the transaction was handled. While they recognize this as a learning experience, I hope this serves as a valuable reminder of the importance of diligence and communication in representing properties.

That said, I respect that we are all striving to uphold the highest standards in our work, and I look forward to maintaining a professional and collaborative relationship moving forward.

Thank you for your time and attention to this matter.

Best regards,