Real Advice E-News Issue 16 (April 6, 2018)

Real Advice is a weekly e-newsletter helping licensees prepare for regulatory changes.

April 6, 2018

3 Things You Can Do Now to Prepare for Change

On June 15, 2018, new rules from the Superintendent of Real Estate will take effect. These rules will protect consumers by:

• prohibiting limited dual agency in almost all cases, and
• requiring new disclosures about commissions, services to expect from a licensee, and the risks of being an unrepresented party in a real estate transaction.

The Superintendent’s rules will change the way real estate is practiced in BC. Here are three things you can do to prepare for the changes ahead.

1. Remember the principles of agency.
Under the Superintendent’s rules, you’ll need to apply your professional judgement to decide what to do in some situations. As a licensee, you have certain fundamental duties to your clients and when deciding how to act, you should keep these duties in mind:

• undivided loyalty,
• confidentiality,
• managing conflicts of interests, and
• informed consent.

Learn more about these duties by reviewing our recent video: Designated Agency: Back to Basics. Or listen in to our Real Advice, Real Talk podcast on Exploring the Fundamentals of Agency.

2. Remember your role – and your client’s role.
You are a trusted advisor with special expertise. While it is up to you to advise your client, it is the client who makes the decisions. Don’t let your clients abdicate their important role as the decision makers. Ensure they have information they need to make decisions in their own best interests.

3. Remember to take time.
Yes, real estate transactions can sometimes move blindingly fast, but delivering professional real estate services requires that you take the time for a thorough and consultative approach. Remember, a fully informed consumer is a protected consumer. And that means more than just getting a signature on a form. Build in enough time to consult with your clients about their choices, and ensure they are well-informed and comfortable with the decisions they make.

To learn more about the Superintendent’s rules and RECBC’s guidance for licensees, see our online FAQs. Our guidance is based on the principles of the rules, with a goal of advancing consumer protection. We encourage licensees to review our published material to understand how the rules will impact their business practices.

In March, the Superintendent distributed more draft rules, which are currently under consultation. RECBC is preparing information and materials to help licensees understand the potential impacts of the proposed rules.

Published on Apr 06, 2018