“Members of the industry must practice strict adherence to laws and regulations to maintain the integrity of the industry.”
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A Red Deer real estate broker has been permanently banned from his position following a string of violations uncovered in an Alberta Real Estate Council (RECA) investigation.
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David Kennedy, 56, was also ordered to pay $1,500 in investigative and procedural costs, according to an August 16 ruling.
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“Mr. Kennedy acted competently, failed in his fiduciary duties, failed to disclose conflicts of interest, and engaged in conduct that undermined public confidence in the industry.
“Industry members must practice strict adherence to laws and regulations to maintain the integrity of the industry.”
The crime occurred when Kennedy was working at Manor Management and goes back decades.
The ruling outlines how his company has continued to manage properties and collect tolls for over 22 years after the expiry of a management contract from 1995.
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It also explains how rent was deducted from January to November 2017 and only a portion of that rent was ultimately transferred to the property owner.
Additionally, it details how in October 2017, Manor mistakenly sent eviction notes to multiple tenants of a mobile home site without contacting the owner.
“The county excluded mobile home sites and clients could not replace tenants once removed,” the ruling said.
A 2018 audit revealed that the company’s trust account was short of nearly $19,000.
“This shortfall was caused by Mr. Kennedy’s improper withdrawal,” the ruling said.
“Mr. Kennedy was improperly receiving funds from the Manor’s rental trust account to cover the shortfalls in the broker’s operating account and to fund his maintenance business.”
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It also outlines how he failed to disclose a conflict of interest when he contracted his own flooring company and management company in a separate incident without telling the client or offering an alternative provider.
Kennedy declined to comment when contacted by phone.
He had already been reprimanded and fined $7,500 by RECA five times between 2015 and 2017 and had a license since 1997.
“The hearing acknowledges that he should have known his actions violated the rules.”
His real estate license has already been suspended for three years in December 2019.
He can reapply for his license this December, but only at the associate level after completing his remedial education course, not as a broker.
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