A Victoria-area real estate agent bought a B.C. government-subsidized unit, then rented the affordable home ownership apartment out<\/p>\n
A Victoria-area real estate agent has been suspended from the profession for six months and fined $200,000 after being found to have violated the rules of an affordable homeownership program.<\/p>\n
The B.C. Financial Services Authority stated Aug. 24 that, under\u00a0a consent order, Jason Alexander Leslie agreed he committed \u201cprofessional misconduct and conduct unbecoming a licensee\u201d in relation to his purchase of a one-bedroom apartment unit in a new apartment complex\u00a0subsidized by the provincial government.<\/p>\n
Leslie purchased the unit at the Vivid at the Yates building on\u00a0Feb.13, 2018, which was specifically built as part of an \u201cAffordable Home Ownership Program\u201d delivered by BC Housing.\u00a0The residential units were sold\u00a0at an average of 12 per cent below the current market rates thanks to a $53 million government loan to the developer.<\/p>\n
Buyers were not allowed to have an annual gross income more than $150,000. They\u00a0had to reside in the unit as its primary residence for the first two years.<\/p>\n
Leslie took possession on May 17, 2021 and immediately rented out the unit. Leslie later admitted he had no intention to live in the unit.<\/p>\n
Leslie represented himself as the buyer\u2019s agent in the purchase. He\u00a0earned a three per cent commission on the first $100,000 of the purchase price and 1.5 per cent on the balance.<\/p>\n
Leslie was a representative licensed to provide trading services at Camosun Properties Ltd.\/Re\/Max\u00a0Camosun (or the \u201cBrokerage\u201d) at the time of the subject transaction, according to the consent order. He is no longer listed online with Re\/Max.<\/p>\n
On March 5, 2024, the regulator received two complaints\u2014one from a strata council member of the the Vivid at the Yates and one from a member of the public\u2014alleging Leslie had purchased a unit without complying with the covenants.<\/p>\n
Following an investigation, Leslie agreed to return the unit to BC Housing. Leslie also returned the net real estate commission he earned on the original purchase.<\/p>\n
Leslie also paid back the net rental income earned on the unit, the property transfer tax that BC Housing owed for purchase, and the legal fees incurred by BC Housing in connection with the purchase.<\/p>\n
The regulator ordered Leslie to pay it a $200,000 penalty,\u00a0close to the $250,000 maximum, as well as\u00a0$5,000 in enforcement expenses.<\/p>\n
In addition to the six-month suspension, Leslie is required to have enhanced brokerage supervision by a managing broker for one year after his\u00a0licence suspension ends.<\/p>\n
\u201cThe $200,000 penalty and six-month licence suspension sends a clear message: exploiting an affordable home\u00a0ownership program for personal gain is serious misconduct that erodes public confidence in real estate professionals and will result in significant consequences,\u201d said Jon Vandall, senior vice-president of financial professionals at BCFSA.<\/p>\n
\u201cReal estate agents are entrusted to act honestly. Deceptive dealing violates that trust, undermines confidence in the profession, and demands decisive regulatory action,\u201d Vandall said.<\/p>\n
Leslie is not the only person accused of breaking the rules in buying Vivid at the Yates\u00a0units.\u00a0The B.C. government has filed 13 lawsuits<\/a> against other owners it claims skirted the home ownership covenants, including income thresholds.<\/p>\n