BEFORE WE CAN HAVE A SUBSTANTIAL CONVERSATION
Before I can offer you any advice on your interest in real estate, mandatory industry legislation introduced in 2018 requires that any licensed agent review with you, and explain to you, the Disclosure of Representation in Trade. This form explains the types of relationships you and I can have, and is designed with the intention of protecting the consumer's interests. This page is intended to provide a general overview of why the Government has implemented these requirements and what next steps for us would look like.
Effective June 15, 2018, The Real Estate Council of British Columbia (RECBC) has made changes to the disclosure requirements of its Real Estate Licensees. These new disclosure requirements are meant to help ensure that all consumers have the information they need to make informed decisions in a real estate transaction.
Under the new RECBC requirements, all Real Estate Licensees (Realtor®) must make disclosures about the intent of providing services to a consumer earlier than had previously been the norm in the Industry. The Disclosure of Representation in Trading Services and the Disclosure of Risks to Unrepresented Parties detail the changes to the practices that licensees follow with clients.
These forms will:
1. clearly explain to consumers the difference between being represented and unrepresented, and;
2. which of those options they are being offered by the licensee who is providing them with the form.
DISCLOSURE OF REPRESENTATION IN TRADING SERVICES
All Real Estate Licensees must use this new form to explain and disclose the type of agency relationship and representation that they are able to offer each consumer. This form identifies whether the consumer will be represented (as a client) or unrepresented by the Licensee in the real estate transaction, and outlines the requirements and limitations of each type of relationship. Signing this form does not bind you to working with the Licensee.
DISCLOSURE OF RISKS TO UNREPRESENTED PARTIES
Consumers who choose to continue their relationship with a Licensee as unrepresented will be moving forward as an Unrepresented Party. Licensees are now required to provide Unrepresented Parties with the Disclosure of Risks to Unrepresented Parties form, which ultimately confirms and discloses that the Licensee will not be representing the consumer in the transaction as the Licensee is already acting as an agent of another client in the transaction.
WHAT IS THE BENEFIT TO YOU AS A CLIENT?
Under Client Representation: when you become the client of a Realtor®, they owe you special legal duties as your agent:
Loyalty: they must put your interests first, even before their own.
Avoid conflicts of interest: they must avoid any situation that would affect their duty to act in your best interests.
Fully disclose relevant information: they must give you all the facts they know that might affect your decisions.
Protect your confidentiality: they must not reveal your private information without your permission, such as: your reasons for buying/selling/leasing/renting AND the minimum/maximum price you are seeking AND any preferred terms and conditions you may want to include in a contract.
I am excited about learning more about you, hearing about your particular situation and sharing my professional opinions and advice. Before I am allowed to do so, we will have to follow these steps:
Review and provide you with a copy of the new mandatory DRTS form, and describe to you the difference between being represented or unrepresented. This can be done over the phone or in email. You have an option to sign and acknowledge this form.
Once the proper form has been signed, and we have entered a client relationship under designated agency, I can offer you my opinion and advice. Please note that this process and signing such form DOES NOT BIND YOU to working with me or any other licensee.
If you would like to proceed with this process as required, please connect with me below and I would be happy to take you through these next steps.