MLA: Real Estate Industry Requires Independent Oversight
MLA's David Eby hosted a conference which alleged fraudulent trading practices of some realtors in Metro Vancouver. The allegations included realtors avoiding property transfer tax payments and capital gains tax.
The information released over the weekend included an audio recording of New Coast owner Ze Yu Wu giving a training session on tactics for allowing sellers to make quick sales at lower prices by. Aside from New Coast not being a licensed realtor firm, the session was also a violation of the fiduciary duty of agents to act in the best interest of their clients.
Eby also believed that British Columbia's real estate industry should not be allowed to continue transactions following the revelations of potentially illegal practices. The Real Estate Council of B.C. had imposed strict rules to put the firms under its direct supervision after the reported practices were considered to be of serious concern to the council, according to a feature from Vancouver Sun.
Eby said that he complained to the council and enough allegations had come to light about the firm's shady operations. He urged for police to be brought in to investigate.
New Coast was also associated in shadow flipping which was the use of assignment clauses in contracts to flip the contract towards higher prices, Metro News reported.
MLA's Eby claimed he wrote to the council to suggest an audit of New Coast because of its name coming up over and over in relation to the scandalous practices. However, he was told the council did not have that authority. He claimed that British Columbians were being ripped off in an organized way, and these people needed to be prosecuted. Simon Coval, New Coast's lawyer stated via email that the firm denied the allegations. The statement implied that New Coast Realty's agents and management worked hard in the best interests of their clients.