T
he property was initially listed with two realtors in May 2020, but after failing to attract a buyer, they were approached by Elyas Salimi Sarkhab, who had identified a potential buyer. The brothers sold the property for $2,290,000 in December 2020, despite its capital value being $3,225,000. Less than three weeks later, the new owner listed it for sale and sold it again for $3,080,000.

    The brothers alleged that Sarkhab and the two realtors had colluded to on-sell the property, making a profit of $790,000. They claimed this was an abuse of trust and had a severe impact on their health. However, the committee found no evidence of collusion between Sarkhab and the realtors, but did find that Sarkhab breached his fiduciary duties by failing to inform the brothers about the on-sale agreement.

    The committee ruled that the property appraisal completed by the realtors reflected the market conditions at the time, and the on-selling was due to a change in circumstances rather than a profit motive. Sarkhab was fined $1000 and had his commission reduced by $4500 for breaching his fiduciary duties. His manager, Wayne Maguire, was also found guilty of unsatisfactory conduct for inadequately supervising Sarkhab.

    The Real Estate Authority's chief executive, Belinda Moffat, noted that the ruling highlighted the importance of fiduciary obligations in real estate transactions. She explained that buyers are legally entitled to on-sell their interest in a property before settlement, and market fluctuations can influence the price achieved for an on-sold property interest.