Duelling lawsuits over major Canadian city property deal expose area's worth

Three properties in Burnaby assessed for a total of less than C$15 million (US$11.7 million) sold for C$40 million (US$31 million) in May, and a pair of duelling lawsuits over the property deal has exposed details of just how much increased density in the Metrotown area is worth to developers.

On July 5, businessman Wen Xue Wang sued Vancouver Home Park Realty Ltd., agent Laura Zhao and her personal real estate corporation, and company president Raymond Zhao in BC Supreme Court. Wang claims he retained Laura Zhao when he bought three properties on Sussex Avenue in Burnaby. Prior to the sales and subsequent assignments, Wang claims the Zhaos had him sign a “bonus agreement” that he didn’t understand.

“Wang, who is of Chinese ethnicity, and cannot understand, read nor speak English, asked Laura and Raymond to translate the bonus agreement so he did not understand its contents and relied on Laura and Raymond to explain it to him,” the claim states. “Raymond and Laura informed Wang that the bonus agreement was for disclosure purposes as required by the Real Estate Council of BC.”

But Wang claims he was induced to sign the agreement under false pretenses after discovering that C$300,000 (US$233,172) was “erroneously deducted from his portion of the assignment fee.”

“The bonus agreement was created by Laura ... solely for her own personal gain and for no benefit whatsoever to Wang,” the claim states.

While Wang’s lawsuit contains few details about the deals for the properties at 6525, 6559, and 6585 Sussex Avenue, a suit filed on July 11 by Vancouver Home Park Realty Ltd. against Wang states that the properties ultimately sold for C$40 million. The realty firm claims in a notice of civil claim that Wang had an “exclusive listing agreement” with the firm for the three properties, listing them for C$38.7 million (US$30.1) between Nov. 30, 2015, and May 30, 2016.