Advisory

Purpose

The purpose of this Advisory is to inform real estate licensees of recent updates to template contract clauses developed by BCFSA for use with BC Real Estate Association’s standard form Contract of Purchase and Sale – Residential.

Background

The updated clauses, and various considerations associated with each, can be found in BCFSA’s Knowledge Base at Clauses | BCFSA. The update clauses and considerations are also available on CREA WEBForms.

Updates were made to reflect updates to legislation, BCREA forms, and current practice.

When incorporating these clauses into a Contract of Purchase and Sale and reviewing the various considerations associated with each, licensees should ensure that they:

• Advise their client to obtain legal advice as applicable;
• Use their professional judgment in applying clauses and information to particular situations, and ensure that they are not engaging in the provision of legal advice;
• Consider who they are acting for before advising the applicable party which clause is appropriate;
• Speak to their managing broker and seek legal advice if they are not sure about the language in a clause or whether it is appropriate; and
• Be mindful of confidentiality requirements.

Additional information

The clauses and considerations are for educational purposes and are not mandatory. The legal appropriateness of the clauses are fact dependent and subject to change as the relevant law changes. The clauses and considerations do not constitute legal or other professional advice. Licensees are responsible for exercising their own professional judgement in applying clauses and information to particular situations. When reviewing or using these clauses, or the associated considerations, licensees should keep in mind a number of considerations, including those listed above, that may be relevant to the use or wording of a clause or a modification of the clause.

Licensees are advised to recommend to their clients that legal advice is obtained in respect of any clauses that require the exercise of judgement. The exercise of judgment in applying or modifying any of the clauses contained in this section may constitute legal advice, the provision of which is regulated in British Columbia.

Contact one of BCFSA’s Practice Standards Advisors for further guidance.