New B.C. Consumer Protection Rules for Real Estate - In a Nutshell
New Real Estate Rules Mean Total Disclosure
On June 15, 2018, the Real Estate Council of British Columbia announced new rules for licensed real estate agents and brokerages. Designed to increase transparency and enhance consumer protection, here is a summary of how buyers and sellers will be impacted.
In two words “Total Disclosure” by all parties and realtors to a transaction to buy or sell properties in all forms in British Columbia.
What does this really mean?
Paperwork has likely increased by an additional 15 pages, to achieve this, most of which repeating the re-occurring theme of:
- Who is representing the buyer
- Who is representing the seller
- Who is paying and receiving what - consumers will get more information about commissions, fees and how these are divided between brokerages.
A practice that is now outlawed and accompanied by hefty fines, Dual Agency occurs when the realtor is working for both the buyer and seller. This rule was initiated under the assumption that one cannot have two masters to equally represent buyer and seller, which I have to admit is a very hard road to travel
There will be difficulties for teams in this transaction as the new rules say all team members are working for the one party only as all team Realtors are identified as being as one. The Dumbrell’s are not impacted by this. Though we maintain a common last name, are individuals, and so seen under the real estate act. Each of us is independent of the other and can work alternately with a buyer or a seller to just get the job done. This is a huge advantage for us in avoiding conflicts in showing, listing and selling (marketing) a house.
Can a listing realtor sell a property?
Yes! The marketing or listing realtor can:
- Distribute and advertise the property
- Show the property
- Provide comparable sale and property information to a buyer
- Provide to the buyer who is now called an Unrepresented Party, contract details and forms. Only the party representing the buyer can give price, terms and advice before making a binding offer.
Dumbrell Real Estate has arranged so that expertise is available at no cost to the buyer (unless otherwise notified).
So What's the Difference?
In approximately 90 percent of all sales in the past, a Marketing Realtor has done just that; Market, and another realtor has actually written the contract. The difference now is that a form is presented to explaining what will happen if you were wanting to offer on a property listed by the specific listing agent. A bit awkward in project and commercial business sales, but otherwise we will all adjust.
In short, the Dumbrell Real Estate people at Pemberton Holmes can and will list and sell your property, as we have done for three generations of customers. Just a bit more paperwork!
Don't hesitate to call or contact Wayne or Denise for more information about this new ruling and how it effects you as a buyer or seller.
Visit the Real Estate Council of British Columbia for the complete set of new Consumer Protection Rules