IN THE MATTER OF The Real Estate Agent's licensing Act S.A. 1996, c. R4.S
AND IN THE MATTER OF E. George Hyatt, salesperson registered with Ranger Realty Company Ltd.
INTRODUCTION
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The Executive Director of the Real Estate Council of Alberta conducted an investigation into whether E. George Hyatt's conduct is deserving of sanction and contrary to the public's interests andlor whether he breached the requirements of the Real Estate Agent's Licensing Act (hereinafter lithe Act").
The Executive Director and Mr. Hyatt have agreed to resolve the allegations against Mr. Hyatt on the terms and conditions set out below.
AGREED STATEMENT OF FACTS
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Mr. Hyatt was registered as a real estate salesperson with Royal Lepage Real Estate Services Ltd. from December 21, 1984 until February 6, 1995. From February 6, 1995 to August 1, 1995 he was registered with Synergy Realty Inc. ola Sutton Group - Synergy Realty. Since August 1, 1995 he has been registered as a real estate salesperson with Ranger Realty Company Ltd.
In or about July, 1995 Mr. Hyatt represented and who were seeking to purchase a new house and sell their current house.
Prior to July, 1995 and in or about 1994, Mac Realty Ltd. represented the and sell their current house.
a registered salesperson with Tri-who were seeking to purchase a new house
On or about November 13, 1994, the agreed to purchase a house from Mazda Homes, a new home builder ("Mazda house"). In order to do so, the had to sell their house (" house"). Mazda Homes would not commence building the Mazda house until the house was sold. To ensure the sale of the Mazda house, Navek Homes Ltd. ("Navek"), a company owned by and agreed to purchase the house for $82,000. then listed the house for sale on or about January 15, 1995 and hoped to sell it prior to the completion or possession date of the Mazda house. Completion date was originally set for May 15, 1995 and then extended to June 15, 1995 and then again August 15, 1995.
was having difficulty finding a buyer for the house and therefore sought the assistance of other industry members. In or about July, 1995 Mr. Hyatt showed the house to and who agreed to
buy it.
NOV 2 7 1998 REAL ESTATE COUNCl Of AU3ERTA
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In order to purchase the house, and had to sell their house. (" house"). In order to ensure the sale of the house to and Navek then agreed to purchase the house, which purchase was completed August 25, 1995. The transaction involving the sale of the house to Navek involved Navek assuming the mortgage registered against the house.
Had commissions from the sale of the house to and been paid to both salespersons, and Mr. Hyatt, there would not have been sufficient proceeds to allow Navek to pay the the agreed sum of $82,000.00. Mr. Hyatt therefore agreed that he would no longer represent and and that would do so exclusively. and Mr. Hyatt then agreed that would directly pay Mr. Hyatt one-half of the commission earned from the sale of the house. This agreement was achieved without the knowledge or consent of or
In agreeing to representing failed to explain or disclose to between and Navek.
or
and
Mr. Hyatt the potential conflict
The mortgage registered against the house, which was assumed by Navek. was guaranteed by CMHC and thus and remained liable for this mortgage notwithstanding the transfer of the property to Navek. Mr. Hyatt did not explain this continuing liability to or .
Subsequently, Navek defaulted on the mortgage which left CMHC with a shortfall on the mortgage. CMHC sought redress against and who eventually paid CMHC $3000 to settle the claim.
In or about December, 1995, following the sale of the house, paid Mr. Hyatt $1000. Mr. Hyatt disputed that $1000 was the entire amount of the commission owing to him and he therefore commenced an action in provincial court, in which he was unsuccessful.
As a result of the foregoing, Mr. Hyatt breached his fiduciary duties to and failed to act in their best interests in that he:
(a) failed to disclose to represent them;
and
(b) failed to disclose to and position of conflict with respect to Navek;
(c) failed to disclose to agreement with
; and
and
and
that he was ceasing to
that
was in a
that he had a commission
(d) failed to advise and of their continuing liability regarding the assignment of a CMHC guaranteed mortgage.
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Further Mr. Hyatt breached section 34(b) of the Act by accepting or agreeing to accept commi!?siot:ls directly from and not as between an agreement between the licensed agents.
SETTLEMENT TERMS
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In settlement of these issues, Mr. Hyatt has agreed to immediately pay a fine in the amount of $1000 to the Real Estate Council of Alberta.
Mr. Hyatt has agreed to immediately pay costs in the amount of $300 to the Real Estate Council of Alberta.
Mr. Hyatt is aware that a copy of this Consent Agreement will be placed in his file and may be reviewed and considered in any future disciplinary proceedings.
Mr. Hyatt is aware that the contents of this Consent Agreement may be published by the Real Estate Council of Alberta.
Mr. Hyatt acknowledges that he has been given an opportunity to seek the advice of legal counsel and acknowledges that he is agreeing to the terms of the settlement on his own free will.
Mr. Hyatt hereby waives any rights he may have under the Act or otherwise to a hearing, review, judicial review or appeal of the matter referred to herein.
These settlement terms are intended to resolve all matters described herein and subject to the approval of the Hearing Panel, the Executive Director will take no further steps including the initiation of any proceedings before the Real Estate Council of Alberta or the courts in this regard.
IN WITNESS WHEREOF the undersigned agrees and accepts the terms and conditions of this settlement this 83 day of ~o\Je hoi bec1998. .
Signed and delivered in th ~presence of
itness to the signature of E. George Hyatt
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The Executive Director recommends to the Hearing Panel the proposed terms of settlement based on the Agre,ed ,Statement of Facts.
iI of Alberta
Per:
Recommendation Approved . Recommendation Denied
DATE()..g.t the City of Calgary, in the Province of Alberta this _~~=:....=..::::.......--.:::~---=~---', 1998.
grit dayof
:
Hearing Panel Chairperson
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AFFIDAVIT OF EXECUTION
CANADA
PROVINCE OF ALBERTA TO WIT:
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I,
(name of witness),
of the City of&Jm· in the Province of Alberta MAKE OATH AND SAY:
1. THAT I was personally present and did see E. George Hyatt named in the annexed instrument, who is personally known to me to be the person named therein, duly sign and execute the same for the purpose named therein.
2. THAT the same was executed at the City of Edmonton, in the Province of Alberta, and that I am the subscribing witness thereto.
3. THAT I know the said party and he is in my belief of the full age of eighteen years.
SWORN BEFORE ME at the City of Edmonton in the Province of AlbWa th~Way of IN ,1998.
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