Disclosure Rules Changed For the Better
October 16, 2019
Well, there have been some changes to the wording around the rules Realtors must obey in regards to dual agency, conflict of interest, disclosures of representation and remunerations. After a year of using the forms, the Real Estate Council of BC has amended the forms slightly to make it more easy for consumers to understand and for Realtors to explain. It sounds like a lot, but it’s what we have already been doing since 1986 for all of our clients.
At RE/MAX Priscilla we are uniquely positioned to offer informed single agency to all our clients, whether buying or selling. Our Realtors are highly trained professionals with in-depth knowledge of every aspect of the real estate market and the communities we serve.
The newly updated forms, explained below, are still in effect and will provide you information on:
– Disclosure to both buyers and sellers as to the agency relationship options that are available.
– Disclosures are made – the when and how version.
– Realtors may only represent either the buyer or the seller in a single real estate transaction – unless one side is unrepresented or in certain extreme circumstances.
So, what will you see and when? Every transaction will see the first two documents signed and in very rare cases the third:
- Disclosure of Representation in Trading Services – this form is required to be presented and signed with every seller or buyer. This means we represent you.
- Disclosure of Expected Remuneration Payment – will be used to show the compensation to the Realtor by the seller. This shows sellers how much they are paying for services.
- Disclosure of Risks to Unrepresented Parties – if working with an unrepresented party (a buyer or seller not using a Realtor) this form must be used to highlight risks to that person.
For a quick understanding of what these new forms will mean for you and why we need to use them, here are some quick videos from the Real Estate Council of BC:
- Disclosure of Representation in Trading Services: Video
- Disclosure to Sellers of Expected Remuneration: Video
- Disclosure of Risks to Unrepresented Parties: Video
ONLY IN EXTREME CIRCUMSTANCES
Documents that are highly unlikely to ever be used, but here’s why they may be used:
- Agreement Regarding Conflict of Interest Between Clients – Very unlikely to be used unless you are put in a conflict of interest situation.
- Disclosure of Risks Associated with Dual Agency – Dual agency means the same Realtor is representing both the buyer and seller. Highly unlikely to ever be done in the North Okanagan.
Videos for these two forms can be found here:
- Agreement Regarding Conflict of Interest Between Clients: Video
- Disclosure of Risks Associated with Dual Agency: Video
In most cases you will only see the top two documents, but as they say, now you know!