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BCFSA Issues Largest Ever Penalty for Unlicensed Rental Property Management Services
Kathy Alaina Bakker has been issued a $125,000 penalty plus $52,926.26 in expenses
BC Financial Services Authority (“BCFSA”) has levied its largest penalty to date against Kathy Alaina Bakker, of Kamloops, B.C., for her failure to comply with a BCFSA order to cease unlicensed rental property management services.
Bakker must pay a $125,000 penalty and $52,926.26 in investigation and hearing expenses. Between December 2019 and August 2022, Bakker provided unlicensed rental property management services for 10 properties in Kamloops, B.C. In several cases, Bakker collected fees for her services without being licensed to do so.
Aggravating factors noted in the decision include the fact that Bakker continued to engage in unlicensed property management activities after being notified of BCFSA’s investigation of these activities. When Bakker failed to cooperate with BCFSA’s investigation, the Superintendent of Real Estate issued an order to cease unlicensed activities which Bakker intentionally ignored, in addition to a freeze order on her bank accounts.
“BCFSA is sending a clear message that failing to comply with an order and not cooperating with an investigation will not be tolerated,” says Raheel Humayun, Director of Investigations at BCFSA. “Orders issued by BCFSA are significant, and anyone who does not comply with an order will be prosecuted.”
This is a landmark penalty for BCFSA since legislation was updated to increase maximum penalties for misconduct to $250,000.
“Unlicensed persons and their unlawful participation in providing real estate services puts landlords and tenants at risk particularly when it comes to protecting deposits or rent. These risks are elevated in a competitive rental market, where unlicensed rental property managers may engage in unfair practices, and the recourse for impacted tenants is unfortunately limited,” adds Humayun.
Bakker has 30 days to appeal the decision.
Read the Reasons for Decision on Liability and Sanction.
To report a rental property management complaint, visit: File a Real Estate Complaint | BCFSA
Related Resources
- Discipline Decision
- News release: Kathy Alaina Bakker: Order to Cease Unlicensed Activities Filed with B.C. Supreme Court | BCFSA
- Consumer alert: Information for Tenants Regarding an Order in Urgent Circumstances to Kathy Alaina Bakker | BCFSA
- Order to Freeze Property [updated]
- Order to Freeze Property
- Reasons – Order to Freeze Property
- Order in Urgent Circumstances
- Reasons – Order in Urgent Circumstances
About BCFSA
BC Financial Services Authority (“BCFSA”) is a Crown regulatory agency of the Government of British Columbia. BCFSA oversees the financial services sector which includes pension plans, mortgage brokers, real estate services, real estate development marketing, and financial institutions (credit unions and insurance and trust companies). BCFSA also administers the Credit Union Deposit Insurance Corporation of British Columbia (“CUDIC”).
Media Contact:
Warren Mirko
Communications Manager, (778) 783-4057, [email protected]
Visit: www.bcfsa.ca