Mar 26, 2014

REAL PROPERTY: AGENT ON BOTH SIDES

Hundley v. Garnier, 2012 BCCA 199 (CanLII)
A third party, Mr. Hunter, a real estate agent with Prudential Realty Limited, had acted for the Respondent, Ms. Hundley, on a number of real-estate transactions. In 2006, Ms. Hundley asked Mr. Hunter to assist her in looking for a development property. He searched expired Multiple Listing Service ('MLS') listings, and identified the Applicants' property as one of possible interest. Ms. Hundley was interested because the property had development potential, was in the area where she had been raised and had been listed at a price within her affordable range. Mr. Hunter then arranged for an Exclusive Listing Contract between the Applicants and Prudential, advising them that he had a potential buyer. The Applicants signed a brochure indicating that they were in a dual agency relationship with Mr. Hunter who was acting for both the sellers and the purchaser. The Applicants' property had been on the market three times in the past but they had not obtained any suitable offers. In due course, the Applicants accepted a $912,000 offer from Ms. Hundley but then failed to complete the transaction. It was their contention that, inter alia, the price was much to low in light of the market, that Mr. Hunter was in a conflict of interest and that Ms. Hundley had failed to tender her deposit cheque in accordance with the terms of the agreement of purchase and sale. Ms. Hundley sued for damages in lieu of specific performance. The Applicants joined Mr. Hunter and Prudential as third parties. The B.C.S.C. held the Applicants liable to Ms. Hundley for $138K. The B.C.C.A. dismissed the appeal.
Susan J. Garnier, et al. v. Lucy Hundley, et al. (B.C.C.A., May 9, 12) (34911)