Lawyers argue that the freezing of accounts for several real estate brokerages in Mississauga and Brampton has caused a “devastating” effect on clients and should be contested.
This month, four Save Max brokerages along with two residents from Mississauga and Brampton were suspended and subjected to freeze orders by the Real Estate Council of Ontario.
The council claims an investigation uncovered that around $2.7 million was “disbursed unlawfully” from brokerage trust accounts following a complaint.
However, attorneys representing the brokerages assert that the freezes were “unwarranted,” stating that the allegations “have caused serious harm to Save Max’s business, agents, brokers, and clients.”
The appeal highlights a “devastating impact” on Save Max, including “immediate and severe operational, reputational, and financial harm,” according to the appeal filed with RECO.
Between 100 to 150 active listings have been frozen, resulting in approximately 400 registered real estate salespeople leaving brokerages within the broader Save Max network, as mentioned in the appeal.
“Contrary to the rumours circulating about what is in Save Max’s trust accounts, no funds are missing,” stated law firm Hutchison Robitaille LLP in a message sent to INsauga. com.
The council alleges that funds held in trust for real estate transactions were instead allocated for loan payments, property management fees, taxes, credit card balances, and vendor services.
The appeal notes that investigations by RECO did reveal some “incorrect disbursements,” but most were “reversed promptly within 30 days – many within 24 to 48 hours, and one within minutes.”
The largest of these disputed transactions involved a transfer of $700,000 which was “reversed the next day,” according to the appeal.
In their appeal, Hutchison Robitaille argues there’s no basis for these orders and calls for them to be revoked while seeking reimbursement of costs incurred during this proceeding for the appellants.
The board identified Save Max Real Estate Inc., Save Max First Choice Real Estate Inc., Save Max Supreme Real Estate Inc., and Save Max Ace Real Estate in its findings.
Brampton broker Raman Dua alongside Nidhi Dua from Mississauga were also named as brokers at Save Max First Choice Real Estate Inc.
In a social media post, Dua stated he is “cooperating fully and proactively addressing each matter raised.”
“There is currently a freeze on real estate transactions across our four brokerages pending the completion of regulatory proceedings,” Dua added. “We understand this creates uncertainty, and we are working urgently to resolve these matters.”
To access their funds now, individuals must go through an insurance claims process as directed by the board.
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“Contrary to the rumours circulating about what is in Save Max’s trust accounts, no funds are missing,” stated law firm Hutchison Robitaille LLP in a message sent to INsauga. com.
The council alleges that funds held in trust for real estate transactions were instead allocated for loan payments, property management fees, taxes, credit card balances, and vendor services.
The appeal notes that investigations by RECO did reveal some “incorrect disbursements,” but most were “reversed promptly within 30 days – many within 24 to 48 hours, and one within minutes.”
The largest of these disputed transactions involved a transfer of $700,000 which was “reversed the next day,” according to the appeal.
In their appeal, Hutchison Robitaille argues there’s no basis for these orders and calls for them to be revoked while seeking reimbursement of costs incurred during this proceeding for the appellants.
The board identified Save Max Real Estate Inc., Save Max First Choice Real Estate Inc., Save Max Supreme Real Estate Inc., and Save Max Ace Real Estate in its findings.
Brampton broker Raman Dua alongside Nidhi Dua from Mississauga were also named as brokers at Save Max First Choice Real Estate Inc.
In a social media post, Dua stated he is “cooperating fully and proactively addressing each matter raised.”
“There is currently a freeze on real estate transactions across our four brokerages pending the completion of regulatory proceedings,” Dua added. “We understand this creates uncertainty, and we are working urgently to resolve these matters.”
To access their funds now, individuals must go through an insurance claims process as directed by the board.
INsauga’s Editorial Standards and Policies
Last 30 Days: 66,885 Votes
All Time: 1,228,456 Votes
2396 VOTES
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