Former realtor Katharine Virtanen was ordered to pay Ron and Shelley Gordon more than $37,000. A warrant was issued for her arrest. A judge ruled she couldn’t escape this debt through bankruptcy.
And yet, more than six years after the Gordons first agreed to loan cash to Virtanen for a real estate deal, they are no closer to getting their money back.
Most frustrating of all for the Gordons is the response from the Real Estate Council of B.C. (RECBC), which maintains a pool of money meant to compensate victims of misappropriation by real estate professionals.
But the Gordons’ application for relief through the same program was rejected.
That decision left Ron Gordon feeling disillusioned about the people who are meant to shield consumers from the actions of unscrupulous real estate professionals.
“They like to tell you that they’re protecting the public, but that’s the farthest thing from their minds. They protect themselves at all costs,” Gordon said.
That’s not how the council’s CEO Erin Seeley sees things.
“I know our team, we come every day to work to protect the public,” she said.
She said the council has made a lot of progress in the years since 2016, when the province ended self-regulation of the real estate industry in response to a series of scandals.
“But we’re always looking for ways to improve, and so this experience with the Gordons is helpful for us to take forward,” Seeley said.
Virtanen surrendered her real estate licence in 2014 after seven years in the business, but the real estate council says it cannot confirm or deny whether that happened in response to complaints about her work.
She could not be reached for comment on this story. She did not return calls to a cellphone number included in her old listings, and an email address in her name has been deactivated.
Lost in the paperwork
The Gordons tried two different avenues in their quest to get their money back from Virtanen — the courts and the real estate council. All that they have to show for that is a pile of legal bills and an effectively useless court order.
They filed an application with RECBC in 2017 for relief through the Real Estate Special Compensation Fund, hiring a lawyer to help them navigate a confusing process.
“They sort of lose you in the paperwork,” Ron Gordon said.
According to the Gordons’ application, they met Virtanen in 2013 when they were selling their home in Surrey and buying a new one. She performed those services without any issues and then befriended them, the Gordons say.
In early 2014, Virtanen approached them about a client who was trying to buy a home but was short on the deposit, according to the Gordons’ application. Virtanen allegedly told them the client had money in an investment that would mature after the deadline.
Ron and Shelley Gordon have given up hope of getting their money back from Katharine Virtanen. (Ron Gordon)
The Gordons say they eventually agreed to cover most of the shortfall, writing Virtanen a bank draft for $12,500 and then another to her brokerage for $10,000 on the understanding it would be paid back within three days of closing.
“I never would have thought she would have absconded with the money,” Shelley Gordon said.
But when they tried contacting her after the deal was done, they say she always had an excuse why she couldn’t talk or meet up with them.
The Gordons’ application for compensation was rejected in June 2018
A letter from the RECBC’s lawyer, Patrick Poyner, to the Gordons states that their claim doesn’t meet the definition of a “compensable loss” under the Real Estate Services Act.
Poyner wrote that while the Gordons say the $12,500 they gave directly to Virtanen was to be used for a real estate deal, “there is no evidence to support that other than your clients’ assertion.”
As for the second bank draft for $10,000 made out to Virtanen’s brokerage, Poyner wrote that there was no evidence that it was misappropriated since it appears the money did in fact go toward the clients’ purchase — even though the Gordons were never repaid as promised.
When he received the news, Ron Gordon said, “I was defeated.”
‘What’s the point?’
By then, the Gordons had already given up on the courts, even though they had technically won their case.
They filed a claim against Virtanen in provincial court in 2015, asking for their money back. She never filed a response to that claim, and a judge wrote a default order requiring her to pay back the principal plus more than $14,500 in interest and expenses.
When she failed to show up for a hearing on repaying the Gordons, a warrant was issued for her arrest on July 26, 2016.
That warrant was cancelled less than a month later because Virtanen had declared bankruptcy.
Virtanen was eventually told she couldn’t escape her debts because of her “unjustifiable extravagance in living, by gambling or by culpable neglect,” according to a 2017 order from B.C. Supreme Court.
A Surrey provincial court judge ordered Virtanen to repay the Gordons, but that hasn’t happened. (Cliff MacArthur/provincialcourt.bc.ca)
But a year had passed by then, and if the Gordons wanted to see their money, they’d have to ask the court for another payment hearing. Then they’d have to track down Virtanen so they could serve her with a summons.
Having already spent a few thousand dollars on their legal battle, the Gordons decided throwing more money at the problem wasn’t worth it.
“What’s the point?” Ron Gordon asked.
They’ve pretty much given up any hope of ever getting their money back. But they would like to see changes at the real estate council to make it easier for laypeople to navigate the claim process, with deadlines and other requirements clearly laid out.
“They need to be more approachable,” Shelley Gordon said.
Seeley, the CEO of RECBC, said she recommends people consult a lawyer before filing a claim, but the council does provide information to the public about the process through FAQs on its website, information packages and professional standards advisors.
“But again, I’m very sorry that the individuals in this case didn’t feel like they had the support they needed,” she said.
MONTREAL – Two Quebec real estate brokers are facing fines and years-long suspensions for submitting bogus offers on homes to drive up prices during the COVID-19 pandemic.
Christine Girouard has been suspended for 14 years and her business partner, Jonathan Dauphinais-Fortin, has been suspended for nine years after Quebec’s authority of real estate brokerage found they used fake bids to get buyers to raise their offers.
Girouard is a well-known broker who previously starred on a Quebec reality show that follows top real estate agents in the province.
She is facing a fine of $50,000, while Dauphinais-Fortin has been fined $10,000.
The two brokers were suspended in May 2023 after La Presse published an article about their practices.
One buyer ended up paying $40,000 more than his initial offer in 2022 after Girouard and Dauphinais-Fortin concocted a second bid on the house he wanted to buy.
This report by The Canadian Press was first published Sept. 11, 2024.
MONTREAL – The Quebec Professional Association of Real Estate Brokers says Montreal-area home sales rose 9.3 per cent in August compared with the same month last year, with levels slightly higher than the historical average for this time of year.
The association says home sales in the region totalled 2,991 for the month, up from 2,737 in August 2023.
The median price for all housing types was up year-over-year, led by a six per cent increase for the price of a plex at $763,000 last month.
The median price for a single-family home rose 5.2 per cent to $590,000 and the median price for a condominium rose 4.4 per cent to $407,100.
QPAREB market analysis director Charles Brant says the strength of the Montreal resale market contrasts with declines in many other Canadian cities struggling with higher levels of household debt, lower savings and diminishing purchasing power.
Active listings for August jumped 18 per cent compared with a year earlier to 17,200, while new listings rose 1.7 per cent to 4,840.
This report by The Canadian Press was first published Sept. 6, 2024.
In the quest to find cities where renters can enjoy the best of all worlds, a recent study analyzed 24 metrics across three key categories—Housing & Economy, Quality of Life, and Community. The study ranked the 100 largest cities in Canada to determine which ones offer the most to their renters.
Here are the top 10 cities that emerged as the best for renters in 2024:
St. John’s, NL
St. John’s, Newfoundland and Labrador, stand out as the top city for renters in Canada for 2024. Known for its vibrant cultural scene, stunning natural beauty, and welcoming community, St. John’s offers an exceptional quality of life. The city boasts affordable housing, a robust economy, and low unemployment rates, making it an attractive option for those seeking a balanced and enriching living experience. Its rich history, picturesque harbour, and dynamic arts scene further enhance its appeal, ensuring that renters can enjoy both comfort and excitement in this charming coastal city.
Sherbrooke, QC
Sherbrooke, Quebec, emerges as a leading city for renters in Canada for 2024, offering a blend of affordability and quality of life. Nestled in the heart of the Eastern Townships, Sherbrooke is known for its picturesque landscapes, vibrant cultural scene, and strong community spirit. The city provides affordable rental options, low living costs, and a thriving local economy, making it an ideal destination for those seeking both comfort and economic stability. With its rich history, numerous parks, and dynamic arts and education sectors, Sherbrooke presents an inviting environment for renters looking for a well-rounded lifestyle.
Québec City, QC
Québec City, the capital of Quebec, stands out as a premier destination for renters in Canada for 2024. Known for its rich history, stunning architecture, and vibrant cultural heritage, this city offers an exceptional quality of life. Renters benefit from affordable housing, excellent public services, and a robust economy. The city’s charming streets, historic sites, and diverse culinary scene provide a unique living experience. With top-notch education institutions, numerous parks, and a strong sense of community, Québec City is an ideal choice for those seeking a dynamic and fulfilling lifestyle.
Trois-Rivières, QC
Trois-Rivières, nestled between Montreal and Quebec City, emerges as a top choice for renters in Canada. This historic city, known for its picturesque riverside views and rich cultural scene, offers an appealing blend of affordability and quality of life. Renters in Trois-Rivières enjoy reasonable housing costs, a low unemployment rate, and a vibrant community atmosphere. The city’s well-preserved historic sites, bustling arts community, and excellent educational institutions make it an attractive destination for those seeking a balanced and enriching lifestyle.
Saguenay, QC
Saguenay, located in the stunning Saguenay–Lac-Saint-Jean region of Quebec, is a prime destination for renters seeking affordable living amidst breathtaking natural beauty. Known for its picturesque fjords and vibrant cultural scene, Saguenay offers residents a high quality of life with lower housing costs compared to major urban centers. The city boasts a strong sense of community, excellent recreational opportunities, and a growing economy. For those looking to combine affordability with a rich cultural and natural environment, Saguenay stands out as an ideal choice.
Granby, QC
Granby, nestled in the heart of Quebec’s Eastern Townships, offers renters a delightful blend of small-town charm and ample opportunities. Known for its beautiful parks, vibrant cultural scene, and family-friendly environment, Granby provides an exceptional quality of life. The city’s affordable housing market and strong sense of community make it an attractive option for those seeking a peaceful yet dynamic place to live. With its renowned zoo, bustling downtown, and numerous outdoor activities, Granby is a hidden gem that caters to a diverse range of lifestyles.
Fredericton, NB
Fredericton, the capital city of New Brunswick, offers renters a harmonious blend of historical charm and modern amenities. Known for its vibrant arts scene, beautiful riverfront, and welcoming community, Fredericton provides an excellent quality of life. The city boasts affordable housing options, scenic parks, and a strong educational presence with institutions like the University of New Brunswick. Its rich cultural heritage, coupled with a thriving local economy, makes Fredericton an attractive destination for those seeking a balanced and fulfilling lifestyle.
Saint John, NB
Saint John, New Brunswick’s largest city, is a coastal gem known for its stunning waterfront and rich heritage. Nestled on the Bay of Fundy, it offers renters an affordable cost of living with a unique blend of historic architecture and modern conveniences. The city’s vibrant uptown area is bustling with shops, restaurants, and cultural attractions, while its scenic parks and outdoor spaces provide ample opportunities for recreation. Saint John’s strong sense of community and economic growth make it an inviting place for those looking to enjoy both urban and natural beauty.
Saint-Hyacinthe, QC
Saint-Hyacinthe, located in the Montérégie region of Quebec, is a vibrant city known for its strong agricultural roots and innovative spirit. Often referred to as the “Agricultural Technopolis,” it is home to numerous research centers and educational institutions. Renters in Saint-Hyacinthe benefit from a high quality of life with access to excellent local amenities, including parks, cultural events, and a thriving local food scene. The city’s affordable housing and close-knit community atmosphere make it an attractive option for those seeking a balanced and enriching lifestyle.
Lévis, QC
Lévis, located on the southern shore of the St. Lawrence River across from Quebec City, offers a unique blend of historical charm and modern conveniences. Known for its picturesque views and well-preserved heritage sites, Lévis is a city where history meets contemporary living. Residents enjoy a high quality of life with excellent public services, green spaces, and cultural activities. The city’s affordable housing options and strong sense of community make it a desirable place for renters looking for both tranquility and easy access to urban amenities.
This category looked at factors such as average rent, housing costs, rental availability, and unemployment rates. Québec stood out with 10 cities ranking at the top, demonstrating strong economic stability and affordable housing options, which are critical for renters looking for cost-effective living conditions.
Québec again led the pack in this category, with five cities in the top 10. Ontario followed closely with three cities. British Columbia excelled in walkability, with four cities achieving the highest walk scores, while Caledon topped the list for its extensive green spaces. These factors contribute significantly to the overall quality of life, making these cities attractive for renters.
Victoria, BC, emerged as the leader in this category due to its rich array of restaurants, museums, and educational institutions, offering a vibrant community life. St. John’s, NL, and Vancouver, BC, also ranked highly. Québec City, QC, and Lévis, QC, scored the highest in life satisfaction, reflecting a strong sense of community and well-being. Additionally, Saskatoon, SK, and Oshawa, ON, were noted for having residents with lower stress levels.
For a comprehensive view of the rankings and detailed interactive visuals, you can visit the full study by Point2Homes.
While no city can provide a perfect living experience for every renter, the cities highlighted in this study come remarkably close by excelling in key areas such as housing affordability, quality of life, and community engagement. These findings offer valuable insights for renters seeking the best places to live in Canada in 2024.
