Xiao Zhong (Jordan) Guo, formerly of New Coast Realty
A Richmond realtor has been suspended from selling homes for 45 days and fined $5,000 for failing to disclose his dual agency, as well as not informing the seller of a $7.5 million property on Minoru Boulevard that he was assigning the contract for $7.9 million back in 2015.
Dual agency is where an agent represents the buyer and the seller and pockets two commissions. Realtors must disclose their dual agency.
The Real Estate Council of B.C. determined Xiao Zhong (Jordan) Guo, a realtor then with New Coast Realty, attempted (but ultimately failed) to profit handsomely from the multi-million dollar transaction on Minoru in 2015.
Guo wrote an offer of $7.5 million for the property on behalf of his company Â鶹´«Ă˝Ół»JIA Construction Ltd. but failed to provide the seller, or the seller’s agent, with a Disclosure of Interest in Trade form before entering into an exclusive listing for $7.9 million with JIA as the assignor.
He also failed to inform New Coast of the assignment, as required under real estate regulations.
While the assignment, or “shadow flip,” ultimately failed and Guo walked away from the deal, someone filed a complaint against him with the council.
“Licensees must act honestly and with reasonable care and skill. Mr. Guo’s actions show that he failed to do this, contravening” real estate rules, declared the council in a written summary posted online Tuesday.
In another file, Guo acted as a dual agent in a transaction. He failed to properly disclose this fact, backdated contracts and didn’t file necessary paperwork for the buyer.
Guo told the council he didn’t understand the rules.
“Mr.Guo states in his response to Council that he acted as a limited dual agent to help both the buyers and the seller, and was not aware that he should include a subject clause for the buyer to review strata documentation,” said the council. “Mr. Guo also stated in his response to Council that he was a new licensee and that he did not realize that he had to submit all accepted contracts to the brockerage, and therefore he did not submit contracts to his brokerage until after subjects were removed.”
For his transgressions, Guo will not be able to sell properties until Nov. 4. He was also forced to pay enforcement expenses of $3,000. He will also be forced to complete a real estate remedial education course.
Guo reportedly left New Coast, which fell under licence conditions from the council in April 2016 following a Globe and Mail investigation into B.C.’s loosely self-regulated real estate market.
Dual agency is considered by real estate experts to not be in the interest of the buyer and/or seller and this month B.C.’s Superintendent of Real Estate proposed banning the practice, save for remote, rural areas where agents are limited in numbers.
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