Effective 15 June 2018, The Real Estate Council of BC (RECBC) introduced new regulations governing the provision of real estate services to the public.
These new regulations are intended to:
• one client wishes to make an offer on another client’s property, or • two or more clients are interested in making an offer on the same property.
- Prohibit the practice of ‘Dual Agency’ (where a single REALTOR® represents both the buyer and the seller in a real estate transaction), except in a very narrowly defined set of circumstances. Bowen Island does not meet the requirements for exemption, and Dual Agency is not permitted on Bowen Island.
- Explain the benefits to a ‘Client’ with representation by a real estate professional.
- Explain the risks to an ‘Unrepresented Party’ in a real estate transaction.
- Explain the process for resolving Conflict of Interest between clients of the same real estate professional when:
Prior to providing services and depending on the type of service, a real estate professional must provide you with one or more forms, explain the content of these forms, and answer your questions. Disclosure of Representation in Trading Services
This form was created to explain the duties which a REALTOR® owes a ‘Client’ vs an ‘Unrepresented Party”, and the difference between ‘Designated Agency’ and ‘Brokerage Agency’.
Disclosure of Risks to Unrepresented Parties
The RECBC does not recommend consumers act as an Unrepresented Party in a real estate transaction. This form is designed to ensure that the consumer understands the inherent risks in acting without representation.
Privacy Notice and Consent
To help you sell, buy or lease real estate, REALTORS®, brokerages and real estate boards need to collect, use and disclose some of your personal information. This brochure provides you with information about, and obtains your consent to, such information handling practices.
Agreement Regarding Conflict of Interest Between Clients
Conflicts of interest can happen between clients of the same real estate professional when, for instance:
- one client wishes to make an offer on another client’s property, OR
- two or more clients are interested in making an offer on the same property.
In situations like these, real estate professionals cannot continue to represent both clients—because real estate professionals have a duty to act in their clients’ best interests. When clients’ interests conflict, this becomes impossible. For example, sellers want the maximum price for their properties, while buyers want to pay the lowest possible price.
When your interests come into conflict with the interests of another current client in the same real estate transaction, your real estate professional must do one of two things:
- Stop acting for you and the other client and refer each of you to other real estate professionals who will represent your interests in the transaction.
- Ask you and the other client to sign the Agreement Regarding Conflict of Interest Between Clients. Under the terms of this agreement, the real estate professional will stop acting for one client (the “Released Client”) and will continue to represent the remaining client (the “Continuing Client”). The real estate professional may refer the Released Client to another real estate professional. Carefully consider the services that you would receive as a Continuing Client or as a Released Client before signing the Agreement Regarding Conflict of Interest Between Clients.
Disclosure to Sellers of Expected Remuneration
Each time a trading services licensee presents an offer to their seller client, they must include a completed disclosure form that informs the client about the remuneration—in dollars—the licensee's brokerage will receive. The form explains to the seller:
- the total commission that the listing brokerage would receive if the offer is accepted.
- how the commission would be shared with any cooperating brokerage.
- any other payment the licensee will receive, or expects to receive, as a result of the trade.
This information helps ensure that sellers are fully informed of the expected remuneration that the brokerage(s) will receive if they accept an offer.