The British Columbia Financial Services Authority imposed a $15,000 administrative penalty on Realtor Pardeep Singh Sandhu for lending money to clients in a transaction that created a conflict of interest.
Sandhu was found to have violated the Real Estate Services Rules three times in connection with a property deal in Abbotsford in October 2021.
Realtor provided personal loan to clients
According to the BCFSA notice issued on Mar. 31, Sandhu gave a personal loan of $55,000 to his clients to facilitate the purchase, a move that regulators deemed as a financial conflict of interest.
“Sandhu received a commission from the transaction, and the loan he provided altered both the nature and extent of his interest in ensuring the completion of the transaction,” the decision stated.
The authority noted that Sandhu failed to take adequate measures to avoid the conflict, did not promptly disclose it to the clients to secure a mortgage, and did not recommend seeking independent professional advice.
Next steps
Each of the three violations carries a $5,000 penalty, resulting in a total fine of $15,000.
Sandhu has 30 days to request a review of the decision.
If no appeal is made, the penalties will be deemed accepted.
Courtney Zwicker is a digital reporter and associate editor for REM. Based in Atlantic Canada, she has over a decade of experience covering daily business news.
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