IN THE MATTER OF THE REAL ESTATE ACT, C. R-1.3 AND IN THE MATTER OF WILLIAM BARKAIE

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1 IN THE MATTER OF THE REAL ESTATE ACT, C. R-1.3 AND IN THE MATTER OF WILLIAM BARKAIE DECISION OF THE SASKATCHEWAN REAL ESTATE COMMISSION AND CONSENT ORDER Commission File: # Before: A Saskatchewan Real Estate Commission Hearing Committee comprised of the following: Jeffrey P. Reimer - Chairperson Trevor Koot Bernie Weinbender Date: September 2, 2014 CHARGE and ADMISSION OF MISCONDUCT: The registrant is charged with and is admitting to professional misconduct as follows: Count 1: That contrary to Section 39(1)(c) of The Real Estate Act Mr. Barkaie breached Saskatchewan Real Estate Commission Bylaw 726, by making an advertisement which was false, inaccurate, and/or reasonably capable of misleading the recipient or intended recipient.

2 LEGISLATION: Section 39(1)(c) of The Real Estate Act states: Professional misconduct is a question of fact, but any matter, conduct or thing whether or not disgraceful or dishonourable is professional misconduct within the meaning of this Act, if it is a breach of this Act, the regulations or the bylaws or any terms or restrictions to which the registration is subject. Bylaw 726 which states: Any advertisement or incentive or the offering of any incentive or the participation in an incentive program to the public as an inducement to trade in real estate undertaken or authorized by a registrant shall not be: (a) false; (b) inaccurate; (c) reasonably capable of misleading the recipient or intended recipient; (d) in bad taste or offensive; (e) harmful to the best interests of the public; or (f) prohibited by law. FACTS: In accordance with subsection 9(4) of The Real Estate Regulations ( the Regulations ), the Hearing Committee accepts Mr. Barkaie s Statement of Facts, which includes the following relevant points: 1. William Barkaie has been continuously registered as a salesperson under the provisions of The Real Estate Act in the Province of Saskatchewan with the Saskatchewan Real Estate Commission since July 1, William Barkaie has taken the following real estate courses: Real Estate as a Professional Career; Residential Real Estate as a Professional Career; Principles of Real Property Law; Principles of Real Estate Appraisal; and Commercial Real Estate as a Professional Career. 3. William Barkaie has completed the continuing professional development seminars each registration year since William Barkaie is presently registered under the provisions of The Real Estate Act as a salesperson with Landmart Realty Ltd O/A Royal LePage Landmart. 5. On April 9, 2012, William Barkaie provided a Credit Union with an opinion of value on a rural property in Saskatchewan (hereinafter called the "Property").

3 6. While inspecting the Property to prepare an opinion of value, William Barkaie contacted SaskPower and was informed that there had been an electrical connection on the Property several years ago. 7. On April 11, 2012, the Credit Union signed an MLS System Exclusive Seller s Brokerage Contract with Royal LePage Landmart, listing the Property for sale. The asking price was $65, William Barkaie acted as agent for the seller. 9. William Barkaie created a MLS Listing, which stated that the Property was "already connected to electricity" and that "this Property is sold "As Is Where Is". 10. A salesperson with Better Homes and Gardens Real Estate Signature Service (BHG), acted as agent for the buyer. The salesperson obtained a Power-of-Attorney from the buyer authorizing the salesperson to sign documents on her behalf. 11. On April 30, 2012, the buyer wrote an offer to purchase the Property. The offer was signed by the BHG salesperson, as Power-of-Attorney for the buyer. 12. On April 30, 2012, the BHG salesperson also signed an Addendum to the Offer to Purchase acknowledging that, notwithstanding anything in the Residential Contract of Purchase and Sale, the Property was to be sold "AS IS WHERE IS". 13. The Credit Union accepted the buyer's offer to purchase on April 30, On May 3, 2012, the buyer received a report from SaskPower confirming that the transformer that had been installed on the Property had been salvaged at some point. 15. On May 8, 2012, a letter was sent to William Barkaie by the buyer's solicitor advising that there was, in fact, no electrical service on the Property. The letter went on to state the buyer had obtained an estimate of $7,000 to $8,000 to have service reconnected and that she would be seeking that amount from William Barkaie, as the listing registrant. 16. On May 9, 2012, William Barkaie responded to the buyer's solicitor and advised that he did not accept liability for the cost of reconnecting electrical service. William Barkaie suggested that the buyer refrain from waiving the conditions on the Residential Contract of Purchase and Sale and allow the transaction to collapse. 17. On May 12, 2012, the BHG salesperson, signed a Notice to Remove Condition(s) on Residential Contract of Purchase and Sale removing all conditions on the sale. 18. William Barkaie amended the MLS Listing by removing the reference to the electrical service. Further amendment to the entire listing was contemplated, however, further amendment became unnecessary when the conditions on the sale were removed by the buyer.

4 19. On June 19, 2012, the buyer's solicitor sent a letter to William Barkaie advising that the buyer expected to receive compensation for the cost of having electrical service installed on the Property. 20. On June 26, 2012, William Barkaie sent a letter to the buyer's solicitor advising that he was not considering any settlement or paying any compensation to the buyer. REASONS: The Hearing Committee, the Investigation Committee and Mr. Barkaie considered the following as relevant in agreeing to issue the within consent order: 1. The Investigation Committee s position is the statement that the Property was, "already connected to electricity" was false, inaccurate, and/or reasonably capable of misleading in that if the Property was connected to electricity then there would have been power at the Property, which there was not. 2. Mr. Barkaie noted that the Property was sold as is - where is, and it is his position that the statement is accurate in that there is a line from the Property connected to an electrical source. Mr. Barkaie concedes that the statement "already connected to electricity" could have been written more accurately so as to avoid misunderstanding. 3. It is a mitigating factor that all parties to the transaction were aware of the status of electrical power to the Property prior to the removal of conditions. As such, the buyer had the opportunity to collapse the transaction and/or renegotiate the terms of the agreement, thereby negating or reducing its alleged loss or damage. 4. Costs of this matter are not sought against Mr. Barkaie as he was forthright and cooperative during the course of the investigation, and wished to reach a timely and cost effective resolution. CONSENT ORDER: In accordance with The Real Estate Act, its Regulations, and the Commission Bylaws, the Hearing Committee, with the consent of the Salesperson, William Barkaie, and the Investigation Committee of the Saskatchewan Real Estate Commission, it is hereby ordered as follows: 1. With respect to Count 1, the charge of professional misconduct contrary to 39(1)(c) of The Real Estate Act for breach of Saskatchewan Real Estate Commission Bylaw 726: a. William Barkaie shall receive an order of reprimand for the violation of Bylaw 726; b. William Barkaie shall, prior to August 31, 2014, pay to the Saskatchewan Real Estate Commission, a $1, fine for the said violation of the Act; and

5 c. William Barkaie s registration shall be suspended if he fails to pay any portion of the fine by August 31, There shall be no order as to costs. Dated at Regina, Saskatchewan this 2 nd day of September, "Jeffrey Reimer" Jeffrey P. Reimer, Hearing Committee Chairperson