June 15 2018, was a date assigned to implement the newly introduced disclosure forms by Real Estate Council of British Columbia. In here, I will only share the portion of changes that will effect Vancouver area. The changes that will take effect immediately are:
- Banning of dual Agency
As of June 15Th 2018, a Real Estate Agent Professional, REALTOR® is not able to represent both Seller and Buyer clients in one transaction. In addition, Limited Dual Agency also applies where there are two competing buyer clients. Trading services are:
- Trading Real Estate in Vancouver
- Leasing and renting
As a result, REALTOR® who is in a multiple Listing contract (MLC) with his/her seller client, must only work as a designated agent to the seller/s owing legal (Fiduciary Duties) to his/her client.
If a buyer, who is not represented by a real estate professional, wanting to make an offer on the listing agent represented property, the agent must
1- Make it clear that he/she is merely representing the seller and is working only to protect their interest.
2- Offer the buyer to seek representation and if applicable, refer the buyer to another REALTOR®
3- If the buyer prefers to remain "Unrepresented":
A) Provide the Buyer with "Disclosure of Representation In Trading Services" and have the buyer review and understand the difference between "Client" (Agency) and "Unrepresented" (No Agency) relationship and differences.
The duties owed to a "client" is and not limited to:
- Duty of "Loyalty"
- Duty to "Avoid Conflict of Interest"
- Duty to fully "Disclose any relevant information"
- Duty to "protect the client confidentiality"
as an "Unrepresented" party, there is no duty owed.
4- If the buyer insist in remaining "Unrepresented", the REALTOR® in Vancouver, must provide the "Disclosure of Risks" so the buyer can fully understand the Risks involved in being "Unrepresented"
June 15, 2018, Real Estate Council, also introduced "Disclosure to Seller of Expected Remuneration".
This enhanced form is to be represented to the seller clients at the time when presenting an offer to the seller, disclosing the segmented remuneration/commission in dollar form. Despite of the original real estate agreement to list the seller's property in Vancouver in Multi Listing contract and agreed amount or percentage of commission, the real estate agent must and is obligated to inform the sellers of the dollar amount of commission for any offer received:
- The total amount of commission paid to the Listing brokerage
- The total amount of commission to Coop Brokerage
- The retained amount of commission by listing Brokerage
In addition, the REALTOR® is also owed the duty to disclose any expected amount of remuneration involved in this transaction.
I also have provided a short video for any consumer that I come in contact online which i provide the form and send them the link to this video for their review.
The following link is a full detail directly on RECBC, Real Estate Council of BC
If you have any question, please do not hesitate to contact me