New rules dictating how realtors work with prospective buyers and sellers under the Real Estate Services Act have come into effect on Friday, June 15, the British Columbia Real Estate Association (BCREA) announced.
The rules were amended to ensure that realtors “make adequate disclosures, so that consumers can make informed decisions” in the real estate market.
The biggest change is the elimination of what’s called “dual agency,” which occurs when a realtor represents more than one party in a real estate transaction, whether it’s a buyer and a seller, two or more buyers, or a landlord and a tenant.
Under the new rules, a real estate agent cannot represent two clients with competing interests at the same time.
The ban was recommended by the Real Estate Council of British Columbia’s Independent Advisory Group in 2016.
“The new rules governing real estate practices mark a significant shift in how realtors in B.C. work with their clients, said BCREA CEO Darlene Hyde. “It’s important that consumers know what to expect when the changes come into effect.”
Realtors must disclose commissions on transactions
In addition to the new rules around client representation, realtors are now required to make more disclosures on the commissions they receive on transactions.
Once the amendment comes into effect, realtors will be required to give sellers a copy of the disclosure form before presenting each offer or counter-offer from potential buyers.
That form explains how the commission will be shared with other brokerages involved in the transaction, and any other payments the realtor expects to receive.
The BCREA says it will be actively working to educate realtors on the changes so that they can “continue to serve consumers with integrity and professionalism” when the rules come into effect.
“These changes will profoundly alter for the foreseeable future the way consumers initially interact with their realtor and the ban on limited dual agency will have a negative impact on consumer choice with respect to their selection of realtor in some circumstances,” said Hyde.
“BCREA has done its utmost to facilitate the transition to the new rules and we stand behind a strong regulatory regime, informed and knowledgeable customers, and professional realtors.”
