Property management company's licence suspended, accounts frozen in 'urgent' BCFSA order
![Rental sign A sign advertising a rental unit. (Shutterstock)](/content/dam/ctvnews/en/images/2023/9/11/rental-sign-1-6556534-1694453553044.jpg)
The B.C. Financial Services Authority has frozen a property management company's trust accounts and suspended its licence after what the regulator calls "repeated failures to provide compliant financial records."
Rent It Furnished Inc., which does business as Rent it Furnished Realty, "has been unable to produce required financial records over the last year," the BCFSA said in a news release and consumer alert published on its website Thursday.
The regulator said the urgent order to freeze the company's rental trust accounts was the latest in "a series of escalating actions" it has taken since RIF entered a consent order with the BCFSA last August.
In the consent order, which is published on the BCFSA website, the company and its managing broker admitted professional misconduct that occurred between February 2017 and September 2020.
Specifically, RIF admitted to failing to identify six shortages in the accounts, which totalled roughly $5,700, as well as failing to take immediate steps to rectify the shortages and failing to notify the BCFSA of a negative balance within 10 days of when it occurred.
Managing broker Pirooz Zarrabian admitted to failing to identify the six shortages, according to the consent order.
The company and Zarrabian agreed to jointly pay a discipline penalty of $17,000, plus $1,500 in enforcement expenses.
According to the BCFSA, RIF has shown a "repeated inability to reconcile its rental trust accounts" since entering the consent agreement.
"Without complete and accurate reconciliations, trust accounts cannot be assessed to determine if funds are handled correctly in accordance with the Real Estate Services Act," the BCFSA news release reads.
"RIF was unable to identify and track specific amounts held in trust for its clients, or how much money its clients were owed."
'Serious impact' on landlords and tenants
The accounts in question are used for disbursing rent payments received from tenants to RIF's clients, who are landlords, the BCFSA said, adding that most of the rental properties the company manages are in Metro Vancouver.
"The decision to freeze the accounts of this brokerage was not taken lightly," said Jon Vandall, the BCFSA's vice-president for compliance and enforcement, in the news release.
"The brokerage’s monthly trust accounts were not reconciled in accordance with the August 2023 Consent Order and have remained deficient. We acknowledge the serious impact this may have on landlords and tenants. A freeze order is the best mechanism to protect trust funds and address the accounting deficiencies of the brokerage. We must take action to protect the interests of consumers and the integrity of the sector."
The result of the freeze order is that RIF's landlord clients won't be receiving any rent payments until the BCFSA unfreezes the accounts.
The regulator said there are "no impacts" to any tenancy agreements as a result of the freeze order, and tenants should continue paying their rent according to the terms of their tenancy agreement.
Landlords "are advised to take the necessary steps to update their rental payment arrangement," the BCFSA said.
The agency published additional information for RIF landlords and tenants in the consumer alert on its website.
"BCFSA may vary the Urgent Order to unfreeze the rental trust accounts if RIF comes into compliance," the regulator's news release reads.
"If it is unable to do so, BCFSA can make an application to the BC Supreme Court to appoint a receiver, who will be responsible for reconciling the frozen accounts and distributing payments to landlords. This process is expected to take some time."
CTVNews.ca Top Stories
![](https://www.ctvnews.ca/polopoly_fs/1.7029443.1725744633!/httpImage/image.png_gen/derivatives/landscape_800/image.png)
Police release video of Toronto plaza shooting that killed university student
A university student from Brampton was killed when two shooters fired indiscriminately into a crowded plaza in Toronto last month in what police say was a 'cowardly act.'
'Hopeless and helpless': Regina mother seeks help to treat rare spinal disease
Mary Grace Rico is seeking help in getting treatment for a rare spinal condition.
The iPhone is getting a 'glow' up. What to expect from Apple's Monday event
Apple excited fans with its vision for its 'Apple Intelligence' artificial intelligence system earlier this year. Now, it's time for the company to prove it really works.
No more porta-potties at B.C. construction sites starting Oct. 1
What some B.C. construction workers describe as the worst aspect of their jobs will be coming to an end next month, the province announced.
Trump campaigns in Wisconsin just days ahead of debate with Harris
With just days to go before his first — and likely only — debate against U.S. Vice-President Kamala Harris, former U.S. president Donald Trump leaned into his familiar grievances about everything from his indictments to the border as he campaigned in one of the most deeply Republican swaths of battleground Wisconsin.
'Extremely vigorous' wildfire activity in central B.C. prompts crews to back off for safety
The wildfire fight in central B.C. intensified Friday, according to officials.
They were due to leave for their dream cruise in May. Three months on they’re still stuck at the departure port
It was the years-long cruise that was supposed to set sail, but saw its departure postponed… postponed… and postponed again.
Aryna Sabalenka beats Jessica Pegula to win the U.S. Open for her third Grand Slam title
Aryna Sabalenka got past Jessica Pegula 7-5, 7-5 in a rollicking U.S. Open women’s final Saturday to win her first championship at Flushing Meadows and third Grand Slam title of her career.