A former B.C. Realtor whose professional misconduct was described by a judge as “repugnant” has been ordered to pay his former clients $285,800 after redirecting investment funds for the purchase of his own home.
And this may not be the end of consequences for Alden Chand, however, as the real estate industry’s regulator contemplates administrative charges, BIV has learned.
B.C. Supreme Court Justice Francesca Marzari ruled on Jan.24 Chand solicited his neighbours, Amandeep Kaur Rahil and Jagvir Singh Rahil, in September 2018 to invest $200,000 in a Kelowna home only to then redirect the funds into the purchase of an Abbotsford home, which Chand first lived in and then rented.
Chand, then a Surrey-based Century 21 Realtor, also took $15,000 from the Rahils to invest in a Surrey property.
At the time of Marzari’s decision, Chand had not repaid any of the money to the Rahils, who told the court they were forced to file a civil claim against Chand to recuperate the funds.
The Rahils, noted Mazari, did not have excessive means to invest at the time: “Mrs. Rahil was a machinist and Mr. Rahil drove a van for a window factory,” noted Mazari.
But the Rahils owned their home in Surrey and took a $200,000 advance on their home line of credit as well as money from their children’s education savings to invest with Chand, who Mazari found did not act as their fiduciary, as was expected in a Realtor-client relationship.
The repayment order includes returning the $215,000 investment, plus $42,000 in interest and a $25,000 award for punitive damages against Chand.
Breach of contract was also proven.
“I find that there was no contract that could provide a juristic reason for Mr. Chand’s use and retention of the Rahil’s $215,000 for the purchase of the Abbotsford property in his own name.
“Mr. Chand’s misconduct in this case is particularly repugnant and appropriately attracts an award of punitive damages for the purposes of denunciation and deterrence,” stated Mazari.
But Mazari raised questions as to how the Rahils were not able to recuperate their money when Chand sold the Abbotsford home in 2020.
Rahil’s lawyer, Karen Maki, filed a certificate of pending litigation (CPL) against the Abbotsford property. In September 2020 Maki received a letter from “Singh Law Corp” seeking removal of the CPL, the ruling explains.
“Maki responded to Mr. Singh that same day requiring Mr. Singh’s undertaking to pay $275,000 into her trust account upon completion of the sale,” Mazari noted.
Then, “Mrs. Rahil testified that she instructed her counsel to remove the CPL provided that her counsel received an undertaking and held $275,000 of the sale proceeds of the Abbotsford property in trust to settle her claims.”
But the property sold, leaving questions for Mazari.
“I infer that the CPL was removed to allow this sale to proceed. However, $275,000 was not paid into trust,” stated Mazari.
The property sold with just $87,656 in Kellie Hamilton of Hamilton Law Group’s trust account in relation to the claim.
“Mrs. Rahil testified that, had she known that this was the extent of the funds that would be placed in trust, she would not have consented to the removal of the CPL. I accept this evidence,” stated Mazari.
The judge also found some guesswork in what happened to Chand’s licence, which was issued by the B.C. Financial Services Authority.
According to the ruling, Chand reported that he lost his real estate license due to the civil lawsuit and after the Rahils complained to the regulator (then known as the Real Estate Council of B.C., which has since been absorbed by BCFSA).
But BIV could find no public records of Chand losing his licence so it asked BCFSA what happened. This was its response via a spokesperson:
“Alden Chand is not currently licensed by BCSFA to provide real estate services in B.C. Chand had been under investigation since November 2018. That investigation was held in abeyance when BCFSA learned of the legal proceedings involving Chand in the Supreme Court of British Columbia. Where appropriate, BCFSA may await outcomes of civil or criminal proceedings when the issues before the courts are similar to those that BCFSA is investigating. In such cases, BCFSA can rely on the court’s findings to support disciplinary proceedings.”
Chand last reapplied for licensing in 2021. At the time, BCFSA relicensed Chand with 19 licensing conditions resulting from its investigation into Chand’s alleged non-compliance with the Real Estate Services Act.
BCFSA is in receipt of the trial judge’s decision on Chand and has completed its investigation. BCFSA’s investigations into Chand involved broader matters than those brought forward by the Rahils in Supreme Court and charges in relation to Chand’s conduct under the Real Estate Services Act are pending.”
