B.C. Realtor Ordered to Forfeit $1.2M Profit After Buying House Intended for Client, Judge Rules

A B.C. Realtor who bought a house intended for his client, then sold it for a massive profit, has been ordered by the B.C. Supreme Court to hand over the earnings, which exceed $1.2 million.

In a scathing judgment, Justice Amy Francis described Alan Hu’s actions as a "marked departure from ordinary standards of behaviour" that warranted denunciation.

The Case

The case stems from a 2017 property deal where Pei Hua Zhong, a Chinese immigrant of modest means, sought Hu’s assistance to sell his home in South Surrey and buy another property. Zhong had signed a contract to purchase the new property for $2.1 million, contingent on selling his current home or securing bridge financing.

When Zhong failed to sell his home by the deadline, Hu sent a reduced offer of $2,050,000 to the seller on his client's behalf. At the same time, unbeknownst to Zhong, Hu referred his friend—whom he was vacationing with in Las Vegas—to another Realtor to place a competing bid.

The friend’s bid, which included a clause allowing assignment of the purchase contract, was accepted.

Realtor Profits from Deception

Two weeks later, Hu’s friend assigned the property contract to Hu, who did not disclose this to Zhong. Hu ultimately bought the home and sold it in 2021 for $3.35 million, pocketing more than $1.2 million in profit.

Hu also received a $19,000 referral fee from his friend’s Realtor for orchestrating the deal.

Court's Findings

During the trial, Hu argued Zhong suffered no financial loss because he couldn’t afford the home. However, Justice Francis rejected this claim, stating Zhong was willing to take a financial risk by pursuing bridge financing.

"Hu's conduct was deceptive and underhanded," Justice Francis wrote in her decision, adding that Hu had planned to ensure the house ended up in his hands well before the transaction was completed.

The judge ordered Hu to:

• Forfeit his $1.2 million profit from the sale of the property.

• Repay the $19,000 referral fee.

The exact amount of restitution is pending resolution of ongoing litigation between Hu and his friend.

Impact and Legal Precedent

The ruling highlights ethical concerns in real estate transactions, particularly when agents prioritize personal gain over client interests.

Hu’s lawyer, Robert Lo, declined to comment, stating they are reviewing the court’s decision and considering their options.

This judgment serves as a warning to Realtors about the consequences of breaching fiduciary duties to clients, reinforcing the importance of transparency and professional conduct in the real estate industry.