Richmond Realtor files $240K law suit against her former company

A Realtor from Richmond is suing her former company, claiming she is owed nearly a quarter of a million dollars in commission for presale and completed deals she worked on before she left the agency.

Morning Yu was hired by New Coast Realty in 2013.

She alleges things took an ugly turn soon after she started when the owner, Ze Yu Wu, encouraged her to take part in a practice known as shadow flipping, which has since been banned by the provincial government.

Yu claims she was pressured to encourage people to sell their homes at low prices to her friends, relatives or neighbours, who would act as buyers.

Once the home was sold, it would be relisted at a higher price, allowing the company to double up on its commission.

Yu alleges when she told her boss she wouldn't shadow flip because it's unethical, the company stopped giving her referrals.

She says that forced her to quit late last year and claims the company owes her more than $240,000 in outstanding commissions.

None of the allegations has been proven in court.

An investigation into New Coast's practices was launched earlier this year after a Globe and Mail newspaper article published similar allegations around shadow flipping.

The company denies the allegations made in the article and says they are based on excerpts of a recorded conversation taken out of context.

Company response

New Coast Realty and Wu say they expressly deny each of the allegations.

"At no time did Mr. Wu or any other member of the company's management team counsel or suggest that any agent connected to the company break any rules or regulations governing real estate sales," the company said in a statement.

"This is a dispute about commissions which New Coast does not owe to this Realtor.  Our position is that this claim has no merit. New Coast intends to vigorously defend its position and reputation and, when served with this lawsuit, will file its defence accordingly."