You may have heard news of B.C. Real Estate Rules that came into effect on June 15th, 2018.
The New Rules define Client Relationship and Unrepresented Party. There major change is there is effectively no longer Dual Agency.
What Realtors can do:
As your Designated Agent, I can list your home and also represent you in the purchase of your new home. This is not considered a conflict of interest…in fact it is much more comprehensive to have the same Designated Agent handle your sale and your purchase as we can ensure everything goes smoothly with the dates, terms etc. on both transactions.
What Realtors cannot do:
As your Designated Agent I can list your home but cannot represent a Buyer of your home. This used to be called Dual Agency, Double Ending or Customer Relationship. Government decided this is a conflict of interest and no longer permitted in BC. The Buyer of your home will need their own Realtor...alternately they can choose to be unrepresented.
The changes have presented a number of new forms designed in clear language and easily understood. I’ve attached one of the new forms that is required to be provided upon the first conversation with a potential client or unrepresented person.
Here is a point form explanation for What Has Happened?
The body that regulates us (BC real estate professionals) has made changes to the Rules that govern how we can serve you:
I, along with all BC real estate professionals, must comply with these new Rules which came into effect June 15, 2018.
These new Rules were put into place by the provincial Office of the Superintendent of Real Estate and are intended to protect consumers.
What are the New Rules?
These new Rules ensure you receive specific types of information, and includes getting you to read certain documents and sign certain forms about:
duties and responsibilities owed you, and
the risks of relying on the limited assistance a real estate professional can provide when they are already representing another party to a transaction.
These new Rules also include a ban on the practice of acting for both the buyer and the seller on the same deal, making BC the only province in Canada to prohibit this practice.
Why were the Changes Made?
These Rule changes resulted from recommendations made in 2016 by an Independent Advisory Group on Real Estate Regulation in BC.
What do these Changes Mean for Me (the Consumer)?
These changes mean that I may need to handle my services to you a bit differently than what you may be used to or what was common practice in the past. In certain situations, it may mean that I am not permitted to provide certain types of service that you may ask of me. It may also mean that I will ask you to read certain forms or other documents and sign that you have read and understand them.
What types of services are not permitted?
Any type of service that puts me into a situation where I have to split my allegiance to you and another party on the same real estate transaction will no longer be permitted.In a nutshell, a realtor can only work for either the Buyer or the Seller in a single real estate transaction: they cannot act for both the buyer and seller on the same transaction. I hope this helps to explain. If you would like further clarification, here is a link to the Real Estate Council’s website: https://www.recbc.ca/licensee/superintendents-rules-information-for-consumers.html