Nfld. & Labrador

Agents owed money from Exit Realty on the Rock may have longer wait

The group that represents real estate agents in this province says its members that are owned money from Exit Realty on the Rock may have to wait longer to get paid.

N.L. Association of Realtors says a court application may cause delays in process

An email to real estate agents owed money by Exit Realty on the Rock states they may have to wait longer to be paid. (CBC)

The group that represents real estate agents in this province is warning its members who are owned money from Exit Realty on the Rock they may have to wait longer to get paid.

The Newfoundland and Labrador Association of Realtors says the position of the receivers they are dealing with has changed. The association says PricewaterhouseCoopers (PwC) has applied to become a court-appointed receiver.

Before the court application, PwC was acting as a private receiver appointed by the Bank of Montreal.

"This change could result in a delay in resolving the outstanding claims as a result of further court action," reads an email from association CEO Bill Stirling.

PwC is handling the receivership for Exit Realty on the Rock after the province suspended the real estate company's licence in early February.

Bill Stirling, CEO of the Newfoundland and Labrador Association of Realtors, says in an email agents owed money by Exit Realty on the Rock may have to wait longer for payment. (CBC)

"We are disappointed by this turn of events and fully recognize the challenge that this may create for some of our members," Stirling wrote.

In mid-February, PwC confirmed real estate agents owed outstanding commissions from Exit Realty on the Rock will be paid.

PwC said at the time commissions will be paid to all agents who have been involved in sales with Exit Realty on the Rock, including those who work with other firms.

We are disappointed by this turn of events.- Bill Stirling

Exit Realty on the Rock owes money to more than 60 creditors, according to receivership filings.

The Bank of Montreal, the secured creditor that kickstarted receivership process, said it is owed nearly $300,000. Debts to unsecured creditors total another $160,000.

However, those numbers could go higher.

About 25 creditors are listed as being owed $1, but the actual amounts of those debts have yet to be determined. For example, Exit Realty Corp. International is listed as a creditor for $1.

But according to documents the Royal Newfoundland Constabulary used to obtain a search warrant last month, Exit Realty Corp. International officials told police they loaned Exit Realty on the Rock owner Anne Squires $1.2 million last year to help with her financial troubles.

The allegations made in those search warrant documents have not been tested in court, and no charges have been laid.

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