Victoria real estate agent disciplined for false advertising, encouraging cash deal to avoid taxes

A Victoria real estate agent is facing $9,000 in fines and a 60-day licence suspension after breaking several professional rules during the sale of her father's half-million-dollar property, according to adecision by the Real Estate Council of B.C.

Whitney Garside's missteps outlined this week in a disciplinary decision posted on the council's website included falsely advertising the property as being almost twice its actual size and advising the buyer they could avoid the property transfer tax if they paidcash directly to the seller.

The property on Burnett Road in Victoriawas being sold in 2016 by the real estate agent's father. That relationship was disclosed and isn't among the reasons she has been disciplined.

According to the disciplinary consent order, Garside told the buyer whosename is redacted that by paying $42,000 cash on the side, the value of the property couldbe reduced to avoid paying the property transfer tax.

That cash arrangement was not shared with Garside'sbrokerage, Re/Max Camosun, a failure that contravened theReal Estate Services Act.

The council alsoruled that she "failed to act honestly and with reasonable care and skill" when she advised the buyerthe property transfer tax could be avoided by paying cash directly to the seller.

The council's discipline committee also found that Garside committed professional misconduct when she failed to recommend the seller and buyer seek independent legal advice, specifically regarding the property transfer tax and the cash agreement.

Another issue the council considered professional misconduct involved the size of the property in question.

The council ruled that Garside published false and misleading advertising and failed to act with reasonable care and skill when the property was advertised as 8,712 square feet, when in fact a portion of the lot belonged tothe Ministry of Transportation, and the actual size was just 4,711 square feet.

The discipline committee ordered Garside's licence be suspended for 60 days, which will be completed Jan.3, 2021.

She has also been ordered to completereal estate ethics and remedial classes at her own expense.

Garside was also fined $7,500 as a disciplinary penalty and $1,500 in enforcement expenses.

She agreed to waive her right to appeal the council's discipline committee's decision in September.