As you may know, the Real Estate Council of British Columbia has decided to implement some regulation changes. The decision to change the rules came from the Office of the Superintendent of Real Estate, which has oversight over the Council (for more info about the Real Estate regulatory regime, take a look at the picture below).
The most important detail about the change in regulations is in regards to Dual Agency, which is to be effective on March 15, 2018. Dual Agency simply means when a home’s listing agent also acts as the buyer’s agent. In simpler terms, there’s only one agent involved in the transaction. This rule is being implemented in light of certain cases in which realtors have put their own interests ahead of their clients', by means of some not abiding to reporting regulations required to prevent money laundering, or in some cases, realtors failing to disclose assignment of contracts (known as shadow flipping). The only exception to this rule would be if the deal occurs in a remote area with limited access to realtors.
More so, another important change is around the disclosure of commission sharing. Currently, a realtor must disclose how much commission they will earn on a sale. But under the new regulations, the realtor must also say how, if at all, that commission will be shared with another realtor. That seller could then use that information to renegotiate the contract with their realtor before signing the deal. For more info about these changes, feel free to contact me