The BC Financial Services Authority recently fined a former Vancouver Island REALTOR® $60,000 for professional misconduct after failing to disclose that a property was located on a protected archaeological site.
The agent listed the property twice and, before the second listing, became aware that the land was subject to the Heritage Conservation Act, meaning alterations required special permits issued by the Archaeological Branch. The designation of the land as an archaeological site constituted a material latent defect, yet it was not disclosed in the listing or the Property Disclosure Statement. The agent followed the seller’s instructions not to disclose this fact to the buyer and their agent, and the sale completed.
After purchasing the property for $300,000, the buyer began clearing the land and was subsequently ordered by the Archaeological Branch to stop work. Unable to develop the property as planned, the buyer later sold it for $200,000, incurring a significant financial loss.
BCFSA determined that the REALTOR® had a duty to disclose the archaeological designation and, once instructed by the seller not to do so, was required to cease providing trading services. By failing to disclose and continuing to act, the agent did not act honestly or with reasonable care and skill. The seriousness of the misconduct, combined with the buyer’s financial loss, led to the substantial penalty, along with an additional $6,500 in enforcement costs.
As REALTORS®, we are entrusted with significant responsibility, and professionalism must guide every decision we make. Avoiding misconduct is essential not only for compliance, but for maintaining public trust and strengthening confidence in our profession.
For more information on material latent defects, visit the BCFSA website.
FVREB Professional Standards