The Newfoundland and Labrador Association of Realtors (NLAR) were told by a lawyer for the Bank of Montreal (BMO) late Friday afternoon that Exit Realty on the Rock has entered into receivership and that PricewaterhouseCoopers has been engaged as the receiver.
A statement issued by NLAR to its members says that “PWC’s primary role will be to secure BMO’s position as the primary lender” and will take possession of all assets belonging to Exit Realty on the Rock, which will be liquidated to pay off the outstanding debt owed to BMO.
Anything left over will then be paid to other creditors in order of their entitlement to payment.
As of the time of this writing, it still remains unclear what this means to agents who are owed commissions.
But in a news conference on Saturday, Exit Realty on the Rock owner Anne Squires fired back and read a prepared statement asserting that any claims that Exit Realty on the Rock is bankrupt are “absolutely 100 per cent inaccurate,” adding that she “can assure all agents industry wide their commission is not at risk.”
As reported late last week, Exit Realty on the Rock was stripped of its real estate licence in the midst of an investigation by the province’s Superintendent of Real Estate Agents and Salespersons.
The Royal Newfoundland Constabulary (RNC) is also investigating, but is not releasing any further information as to the nature of their investigation.
In her prepared statement, Squires asserts that she has “not spoken to, or heard from any RNC person.”
NLAR CEO Bill Stirling tells REM that despite being advised that Exit Realty on the Rock is in receivership, he has not been advised that the company is bankrupt.
“For the record, I never used the term ‘bankrupt’, nor did I imply the company was bankrupt,” says Stirling. “I did inform our membership that we were notified late Friday afternoon by a lawyer for (the) Bank of Montreal that PricewaterhouseCoopers has been engaged as the receiver, and then described generally what receivership meant. We’ve since clarified that wording.”
As of late Friday afternoon, Stirling says about 40 former Exit Realty on the Rock agents have been relicensed with another broker and about 25 had yet to apply for relicensing.
Stirling says several salespeople affected by the suspension have inaccurately posted on social media that listings, pending sales and licences were being transferred to another Exit franchise, but that this is not possible.
“When the broker’s licence was suspended any listings became immediately null,” says Stirling. “We’ve been advising vendors to consider their listing expired and that they are free to do as they choose.”
Stirling says options available to vendors include taking their property off the market, following their salesperson to another location under a new broker, or relisting with a different salesperson.
Pending sales, says Stirling, “should close as per the purchase and sales agreements that are in place.”
Tony Palermo is a contributing writer for REM.
