BC realtor fined $50,000 after sale to friends fails

A failed real estate deal between a BC realtor's husband and some friends has cost the realtor $55,000. Sunshine Coast realtor Teresa Dawn Kostelnik, who goes by Sunny Kostelnik, signed a consent agreement with the regulator admitting to failing to take steps to avoid a conflict of interest when trying to sell a property her husband owned. According to a May 29 BC Financial Services Authority consent agreement, Kostelnik, who has been a realtor for 30 years, did not formally disclose that she had an interest in the sale when selling a property her husband owned to some friends. The decision says the situation dates back to 2017 when Kostelnik and her husband were friends with an unnamed couple who stayed at a property in Powell River owned by her husband. The friends had wanted to buy the property and Kostelnik's husband agreed. READ MORE: Kelowna realtor fined for conflicts of interest https://infotel.ca/inhome/kelowna-realtor-fined-for-conflicts-of-interest/it104537 The property was listed and Kostelnik represented the friends buying the property. The box on the form for who was representing the seller was left blank. "However, T. Kostelnik represented both the Buyers and (her husband) with respect to the... contract," the decision reads. A month or so later the parties entered into an agreement that Kostelnik would represent both buyers and sellers, as was allowed at the time. The day this agreement was signed the subjects were removed, including the removal of the financing condition. However, a month later the friends told Kostelnik they'd failed to get the financing. A year later, Kostelnik received a notice of complaint from the regulator related to her representing her friends as the buyers. READ MORE: Real estate prices down in most of Okanagan, up in Kamloops https://infotel.ca/inhome/real-estate-prices-down-in-most-of-okanagan-up-in-kamloops/it105088 Kostelnik's husband then started legal action against the buyers over the failed sale. The decision says this matter was settled out of court in May 2022. The Financial Service Authority said the realtor had failed to take reasonable steps to avoid any conflict of interest and failed to disclose an interest in a trade. The regulator issued a $50,000 fine and ordered her to pay $4,525 in costs. The relator has three months to pay the fine. To contact a reporter for this story, email Ben Bulmer mailto:bbulmer@infonews.ca  or call (250) 309-5230 or email the editor mailto:news@infonews.ca . You can also submit photos, videos or news tips to the newsroom mailto:tips@infonews.ca  and be entered to win a monthly prize draw. We welcome your comments and opinions on our stories but play nice. We won't censor or delete comments unless they contain off-topic statements or links, unnecessary vulgarity, false facts, spam or obviously fake profiles. If you have any concerns about what you see in comments, email the editor in the link above. SUBSCRIBE to our awesome newsletter here https://infotel.ca/newsletter .