In the wake of a possible condo-selling scandal related to developments in Vancouver and Richmond, a real-estate board is offering tips for buyers in today's hot market.

The B.C. Financial Institutions Commission recently ordered a partnership to stop marketing four developments after alleged improprieties by one of the partners, Mark Chandler. The allegations include failing to place buyers' deposits into trust and selling one or more units to more than one buyer.

The order came after George Dengin is suing his business partner, Chandler, in B.C. Supreme Court.

The affected projects are Garden City residences in Richmond, two downtown Vancouver developments called Tribeca Lofts Yaletown and H + H Yaletown and another Vancouver development called Hamlin Mews.

In the order by Alan Clark, commission executive director and B.C.'s superintendent of real estate, he wrote: "Tribeca's development and Hamlin Mews' development may suffer serious financial losses . . . There is a serious risk that one or more of the [four] developments may be at risk of not completing."

Clark added that even if projects are completed, the financial difficulties may "negatively impact the quality of construction and the quality of the individual development units."

Rennie Marketing Systems Ltd., owned by Bob Rennie, had been marketing the projects. Rennie supported Dengin's lawsuit with an affidavit.

"We had previously resigned [from the projects] prior to the superintendent closing down the four projects. But because it's a matter before the courts, we really can't comment," said Rennie.

Rick Valouche, president of the Real Estate Board of Greater Vancouver, said that there are a few things that buyers should take into account.

"They shouldn't get caught up in the heat of the moment, like 'We're selling 100 homes a day, you've got to get in,'" said Valouche.

Instead, potential buyers should carefully read documents like disclosure statements. Any changes in disclosure statements should raise a red flag for buyers.

Buyers should also make sure that deposit money is put into a trust account and that they are a stakeholder in the account.

Valouche added that with a realtor, a buyer's money is protected because of a special compensation fund in case "something goes wrong like in these potential four cases."

© The Vancouver Province 2006