Real Advice E-News Issue 17 (April 12, 2018)

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

April 12, 2018

5 Key Questions to Prepare for Rule Changes

On June 15, 2018, consumer protection rules from the Superintendent of Real Estate will take effect. The goals of the rules are to ensure consumers are well-protected, well-informed, and can benefit from the undivided loyalty of a real estate licensee who is acting in their best interests.

Each week throughout the month of April, Real Advice is providing tips and guidance on how to prepare for some of the changes ahead as to how real estate services are offered in BC.

How to Ensure Real Estate Consumers are Well-Informed

Beginning June 15th, you will be expected to begin using new disclosure forms with your clients and unrepresented parties, as required by the Superintendent’s Rules. To make sure that consumers are well-informed and well-protected, you’ll need to do more than just make sure that the right forms are signed. More than ever, you’ll need to:

• Engage in clear and open communication with clients, potential clients and unrepresented parties.
• Engage in active listening to understand consumers’ expectations and questions.
• Use your professional judgement.
• Take time to ensure there is mutual understanding between you and the consumer, and that the consumer is making fully-informed choices.
• Make sure you carefully document conversations and agreements, to prevent misunderstandings later.

Five Questions to Ask Yourself Now

Why wait until June 15? As you deliver real estate services between now and June, begin evaluating your practices by asking yourself these key questions:

• (1) Have I clearly explained agency relationships to my client, and my fiduciary duties?
• (2) Have I explained the limits to the services that I can offer to an unrepresented party – and the services I cannot provide?
• (3) Have I explained to my clients the options for managing any conflicts of interest that might arise?
• (4) Do my clients understand that while I can offer them expert advice, that ultimately they are the decision-makers?
• (5) How would my actions look to a discipline committee?

Educate Yourself About Change

As a professional, you need to be knowledgeable about the expected standards of conduct for real estate licensees in BC. You are responsible for staying up-to-date about changes in laws, regulations, and policies that affect your practice. Here are some easy ways to help you understand how to comply with the rules coming into effect on June 15, how to keep consumers informed and protected, and how to avoid conduct that could result in a complaint against you.

• Review the FAQs on our website. They provide guidance about how to conduct yourself that can be applied to a range of common situations.
• Check out the videos and podcast of Council staff and other experts discussing the impacts of the rules.
• Review past issues of the Real Advice e-news and Report from Council newsletters.
• Still have questions? Ask your managing broker or contact one of RECBC’s Professional Standards Advisors.

Provide Your Input

Additional draft rules from the Superintendent of Real Estate are currently open for consultation. Any licensee and members of the public are welcome to contribute their thoughts on the package of new rules. Submit your comments using the consultation survey on OSRE’s website. The consultation closes on April 20, 2018 at 6:00 p.m.

Answers to Your Questions

Visit the RECBC’s website for information and advice about how to comply with the new rules in many common scenarios.

Published on Apr 12, 2018