Sometimes news travels fast, and sometimes it can come and go without anyone realizing there was anything going on. The news of 8th Avenue Elite Realty in Surrey having their doors shut down by the Real Estate Council of British Columbia (RECBC) was broadcast to all REALTORS® last week, but very few people in the public actually knew what had happened.
Last week, we were told that 8th Avenue Elite Realty had its doors shut, bank accounts frozen and license suspended due to an apparent "failure to account for trust account monies". To those that are unfamiliar with real estate transactions, what does this mean? When someone purchases a property through a brokerage (such as 8th Avenue Elite Realty, RE/MAX, Sutton, Royal LePage, etc.), a deposit is taken from the purchaser and held in a trust account with the firm. This is done for a number of reasons, but mainly to protect the interests of both the selling and purchasing parties until the deal is closed. There are very tight guidelines on who, when and how that money can be released from that same trust account. It would appear, based on the recent events, that 8th Avenue Elite Realty was not abiding by these rules.
Unfortunately, this could mean that a number of people who have deals in limbo through this brokerage may be in for a rocky road ahead - in regards to closing the deal and moving into their new homes. If a deposit has not been accounted for and the bank accounts are frozen, the completion of sale could now be in question.
To read more about this, please read the article from Global News here