Major Changes Coming for BC Realtors!
Major changes coming to the real estate industry that could lead to greater transparency! The Superintendent has moved to prohibit licensees in the province of British Columbia from practicing dual agency.
This is one of the more notable changes put forward by the Council’s Independent Advisory Group’s recently released report (1 of 28 changes).
What is Dual Agency?
For REALTORS in BC, this means that they will no longer be able to provide an agency relationship to two parties(i.e. a Buyer and a Seller) in the same real estate transaction.
We have discussed this practice at length in previous episodes, since it has been under scrutiny by agents and the general public alike for many years.
The major concern is that it’s very difficult for an agent to remain objective in handling the best interests of two separate (and often at odds) groups. This is further complicated by the fact that said agent often receives both the Buyer’s Agent and Seller’s Agent commission for his/her work, which is an incentive for the agent to “double-end” transactions and cut out an agent on the buy side.
See the recent News Release below:
Real Estate Board of Greater Vancouver issues statement on proposed ban on dual agency
VANCOUVER, B.C. — September 7, 2017 — The BC government’s Office of the Superintendent of Real Estate announced proposed changes today to ban the practice of limited dual agency for all real estate licensees in the province.
Real Estate Board of Greater Vancouver President Jill Oudil issued the following statement on today’s announcement:
“REALTORS® support their clients and back changes that improve transparency in the real estate transaction. The new disclosure requirements proposed by the superintendent will enhance the public’s understanding of the real estate transaction in BC. We support this aspect of the measures announced today. Where the proposed changes fall short are in respect to consumer choice.”
“We believe in informing the home buying and selling public and empowering them to choose who they want to represent them in a transaction. We’re encouraged to see that government recognizes circumstances where exemptions to the ban on limited dual agency are necessary. We believe there are other circumstances where consumers should have the choice to consent to limited dual agency where they can demonstrate that their consent is informed. For example, people who’ve built a longstanding relationship with a Realtor shouldn’t be forced to find alternative representation against their wishes. We’ll continue to stress this point with government.”