Realtor greets home seekers at open house

Hosting Open Houses

An open house is a scheduled, public, or semi-public viewing of a property for sale. It is a common marketing tool used to generate interest in the seller’s property and to identify potential buyers.

Best Practice is for a Seller’s Agent to Host

When you have an agency relationship with a seller, it is considered best practice that you – the seller’s agent – host the open house. Under Section 30(a) of the Real Estate Services Rules (the Rules), you must act solely in the seller’s best interests. As the agent, you are the person best positioned to answer factual questions about the property on behalf of the seller at an open house.

However, there may be times when you’re unavailable to host the open house. For example, if you cannot attend the seller’s preferred date or time. In these cases:

  1. First confirm with your seller whether they still want to proceed without you.
  2. If they do, and you obtain their informed consent, you should arrange for another licensee from your brokerage to host the open house.

If you Can’t Host, Get Someone from Your Brokerage to Cover

Working as a Team

If you work as part of a team, all team members represent the seller, given the team is collectively the designated agent. This means if you’re unable to host the open house, another licensee on your team can step in and represent the seller at the open house.  

Because the team represents the seller, the hosting licensee cannot engage or represent prospective buyers interested in the property. Doing so would be classified as ‘dual agency’. This is prohibited under Section 63 of the Rules, unless the narrow exemption under Section 64(1) applies.

Not Working as a Team

If the hosting licensee is from the same brokerage but not part of your team, you must obtain the seller’s informed consent. Two scenarios may occur:

1) Designated Agency

Under Section 32 of the Rules, your brokerage may assign another licensee as a designated agent to the seller, provided:

  1. The service agreement between your brokerage and client must allow for it, and
  2. The new hosting licensee should provide a Disclosure of Representation in Trading Services (DORTS) to the client.

The service agreement must specify the scope of your services, making it clear whether the hosting licensee’s duties end after the open house or extend further (e.g., co-listing).

This scenario allows the designated agent to represent the best interests of the seller at the open house, as well as carry out all the other duties as set out in Section 30 of the Rules. As a result, having the new hosting licensee acting as a designated agent is recommended as it ensures the best interests of your seller client are protected.

As a designated agent, the hosting licensee cannot engage prospective buyers for this property, as that would be dual agency. Managing brokers must also ensure designated agents do not represent any another party in the same transaction, to avoid conflicts of interest.

2) No Representation (No Agency)

Some licensees get another licensee to host the open house, but do not list them as a designated agent. While this is often done so the hosting licensee can pursue potential buyer clients, it is discouraged because it typically does not safeguard the seller’s interests. For that reason, this practice is not recommended.

Hosting an open house is classified as ‘trading services’ under the Real Estate Services Act (the Act). Even without agency, the hosting licensee is still providing trading services to the seller and their goal of seeking out future clients can conflict directly with the brokerage’s duties to the seller. 

In this scenario, duties would need to be reduced to the point where the hosting licensee owes virtually no obligations beyond physically hosting the open house. Modifying core duties after establishing an agency relationship should occur only sparingly and in very limited situations.

You should only proceed with this option if the seller specifically requests it. Before proceeding, you must:

  • Inform the seller the hosting licensee will not act in their best interests and may try to engage buyer clients.
  • Advise the seller not to share confidential information or seek advice from the hosting licensee.
  • Ensure your service agreement allows this arrangement.
  • Require the hosting licensee to give a DORTS indicating they do not represent the seller.
  • Document the seller’s informed consent and your discussion of risks.

Similar to these scenarios, if another licensee attends the open house with you, they must be a designated agent; otherwise, they should not attend.

Don’t Use a Licensee from Another Brokerage

BCFSA strongly discourages using a licensee from another brokerage to host an open house. Under Section 7(3)(a) of the Act, you may provide real estate services only on behalf of the brokerage with which you are licensed. Hosting an open house is a ‘trading service’ that falls under the definition of ‘real estate services’; therefore, you should not host an open house for another brokerage’s client, nor can another brokerage’s licensee host one for yours.  If asked to do so, decline and notify your managing broker.

Remuneration for Hosting an Open House

Under Section 7(3)(b) of the Act:

  • You may only receive payment for real estate services (including trading services) from your own brokerage.
  • You must not take payment directly from a seller.

Because hosting an open house is a service to the seller, your brokerage must have an agreement with the seller and must be the entity receiving payment for its services. This is another reason not to involve licensees from other brokerages.

Summary Practice Tips

If you cannot host your own open house:

  1. Seek direction from your seller.
  2. If they wish to proceed, arrange for another licensee from your brokerage to host the open house as a designated agent.
  3. Before proceeding, consult your managing broker and make sure to follow brokerage policies.

Learn More

  • Real Estate Services Rules — Section 30: Duties to Clients
  • Real Estate Services Rules — Section 32: Designated Agency
  • Real Estate Services Rules — Section 63: Dual Agency Restrictions

News releases

Call for New Members to Join BCFSA's Real Estate Roundtable

Tags for 'Call for New Members to Join BCFSA's Real Estate Roundtable'

Professional group discussion in bright office
Real Estate Developer and Associates Receive Penalties for Fraudulent Condo Pre-Sale Scheme

Tags for 'Real Estate Developer and Associates Receive Penalties for Fraudulent Condo Pre-Sale Scheme'

Suburban apartment building
BCFSA and Greater Vancouver Realtors Agree to Information Sharing Partnership to Enhance Data-Driven Regulatory Oversight and Reduce Reporting Burden

Tags for 'BCFSA and Greater Vancouver Realtors Agree to Information Sharing Partnership to Enhance Data-Driven Regulatory Oversight and Reduce Reporting Burden '

Burnaby skyline
Suspension of Brokerage Licenses of Jovi Realty and Lighthouse Realty

Tags for 'Suspension of Brokerage Licenses of Jovi Realty and Lighthouse Realty'

Street with houses blue sky