Realtors in British Columbia are required by regulation to inform consumers about the various types of relationships they can establish with a real estate professional before engaging them to buy, sell, or lease property.
Click the image to watch the complete guide to the Disclosure of Representation and Trading Services Form
Before disclosing any confidential information to your realtor, it is imperative to have a comprehensive understanding of the nature of your business relationship.
Real estate professionals can represent a client in one of two capacities:
As a client, the real estate professional will act as your agent, working diligently on your behalf. Your realtor will have specific legal obligations to you, which include:
- Loyalty – Your agent will prioritize your best interests above all else.
- Complete Transparency – Your agent is obligated to share all relevant information that could affect your decision during a transaction.
- Steering Clear of Conflicts of Interest – It is essential for your agent to refrain from any situations that could compromise their obligation to prioritize your best interests.
- Confidentiality – Your agent is obligated to keep your personal information private and must not disclose it without your consent, even after your relationship has concluded. This includes:
a) Your motivations for buying or selling,
b) Your minimum or maximum price,
c) Any preferred terms or conditions you wish to have included in a contract.
When you become a client, you might be required to sign a written agreement that outlines the responsibilities of both your agent and yourself.
As a non-client, a realtor is not obligated to provide you with the following legal duties:
- No Loyalty – The real estate agent may be representing a client whose interests conflict with yours. Their primary loyalty lies with their client, not with you.
- No Obligation for Complete Disclosure – The real estate professional is not required to provide you with all pertinent information.
- No Obligation to Prevent Conflicts – The real estate agent does not have a duty to prioritize your interests.
- There is No Confidentiality – The real estate agent is required to disclose any information you share with them to their clients involved in a transaction.
As a non-client, a real estate professional can offer limited trading services, which may include providing general market information in standard formats, assisting with the accurate completion of paperwork, and presenting offers and counteroffers.
Every time a real estate professional engages with you in a transaction, regardless of your status as a client, they are obligated to conduct themselves with honesty and to exercise reasonable care and skill.
For additional details regarding your relationship with a real estate professional, please visit the BC Financial Service Authority website at bcfsa.ca or feel free to ask any questions you might have. Once your inquiries are addressed, you’ll be in a better position to decide how to complete the form. This will allow your real estate professional to offer you the relevant training services.
