Below is the Official Release from the Real Estate Board of Vancouver regarding the new rule implementation efffective June 15th, 2018. As a consumer wishing to purchase or sell property in the future, it is very important to understand the significance of what these new rules actually mean. Please read below and I will explain to you the different situations you might come across which are now prohibited.
"New real estate rules took effect today that will change the way REALTORS® and their clients work together.
Specifically, the new rules will prohibit the practice of limited dual agency and require real estate licensees in BC.
The move to single agency is a significant change from the practice over the years when Realtors could represent both sellers and buyers in a transaction. BC is the first Canadian province to implement rules that require Realtors to act only for one party.
Real Estate Board of Greater Vancouver President Phil Moore issued the following statement on these changes:
“Today’s changes mean that real estate licensees across our province can now only represent one party in a real estate transaction and must provide their clients more detailed information about how they’re compensated. One of the biggest impacts of these changes is that there may be times when your Realtor is unable to represent you because they’re representing another client in the transaction. As well, listing agents won’t be able to bring their own buyers, which has always been a key reason for the existence of limited dual agency.”
“Realtors support and embrace standards that provide greater protection to home buyers and sellers. To understand how these new rules could apply to your next real estate transaction, talk with your Realtor or refer to the Real Estate Council of BC’s website at www.recbc.ca. To ensure you’re best protected and advised through the home buying or selling process, it’s important to hire your own professional representation to guide you through each stage.”
Click here to learn more about the new real estate rules."
In my opinion, many realtors are not happy with the recent changes to the new rules that have been implemented by the Real Estate Council of BC. Realtors can longer make offers for their own buyers or meet new buyer's at open houses and legally represent them if it's their own listing, otherwise known as 'Double-ending'.
However, I am very pleased that Limited Dual Agency has been prohibited as of June 15th. Why? If an agent is working for both parties in a transaction, there is a good chance they aren't giving their best effort in attaining the best price for the buyers. Particularly in today's market depending on the area of the Lower Mainland where there are no longer over-asking price offers, there is room to negotiate the price. If you are acting in the best interest of the Seller, you will not advise the buyer to offer much lower than the asking price which you initially set for your seller. When you represent both the seller and buyer, the seller will be better represented than the buyer's. Thankfully this is no longer the case!
Here are some examples where you can no longer have the listing agent represent you in a Real Estate Transaction when buying a home.
Example 1: You have met the listing agent before. They can no longer legally represent your best interest's in a real estate transaction if you are buying a home regardless if you they helped you buy a property in the past. You must obtain a buying agent.
Example 2: You attend an Open house. You have no Buying agent at the time. The listing agent can no longer begin working with you and represent you if you would like to make an offer. You must obtain a buying agent.
Example 3: If an agent has a property listed on the market, and you are currently working with them you must stop working with the listing agent immediately and obtain another buying agent.
Example 4: Conflict of Interest- you are currently working with a buying agent, however you know the listing agent who previously represented you in another transaction. If the selling agent has confidential information about you, they must now refer the listing to another realtor.
**You may wish to make an offer without representation, however the Real Estate Council strongly advises against this as Realtors have been properly trained to negotiate and make sure all legal documents are in order when making an offer.**
If you are a new buyer please note: **You do not pay anything to the Buying agent. The commission is paid by the selling agent only. Hiring a buying agent is FREE, and strongly suggested by the council.**
If you currently don't have a buying agent, I would be happy to sit down with you for coffee and go into more detail what these new rules mean for you as a consumer. You can email me at firstname.lastname@example.org or my direct line at 778-919-1039. The best thing to do before you even start looking to buy or sell a home is to educate yourself with the current Real Estate rules, make sure you are doing things right!
Until next time, enjoy your Wednesday Afternoon everyone:)