We have a rule in the Real Estate industry, and as you’ve probably guessed by the title above, it goes something like disclose, disclose and disclose. It’s these three simple words that are the backbone for our new Council and Superintendent’s idea to change things up.
Now granted, like most people we Realtors are not overly keen on rule changes, but when you take away the smoke, you realize these changes are to protect clients AND us Realtors. Now to make it simple, Limited Dual Agency is done, no more, kaput. This agency relationship, meant your Realtor would represent both the Seller and Buyer in the same transaction (not to be confused with representing the buyer of a new property AND helping said buyer sell their current residence.)
This seemed good in theory, however (and there it is, the dreaded however) as a Realtor our responsibility to our clients relies in our Fiduciary duties. This is to say we owe the utmost care and loyalty to you, our client. Now, what were to happen if we successfully sold you’re home with a ‘Subject to Sale’ clause tidily tucked into your offer. Now we also find a buyer who wants to purchase your home at a rate below the market value and asks what they should offer? Here lies our conundrum, where does the loyalty and more importantly Fiduciary duties lie? With keeping to the asking price of the seller, or do we knowingly advise the buyer as their representative they can offer under ask, as the seller is in a ‘Subject to Sale’ agreement.
So as of June 15 2018, our new forward movement does not allow the listing agent to also represent the buyer in the same transaction. This extends to that Realtors ‘team’ as well, but not necessarily that Realtors entire company. So, I am part of the McInnes Marketing team at Oakwyn Realty Downtown Ltd, meaning someone from my same team CANNOT represent that buyer in my listing. But someone from the agency, outside of my team may.
To my point above, this new way of practice is put in place to make sure clients are being given their utmost loyalty and care when utilizing the services of a real estate agent. As a buyer, you may see a lot more Realtors at open houses ask you to not disclose any of your personal information in order to not break the rule. Don’t fear, this is for your benefit, as the Realtor may still tell you everything about the listing. They are just making sure you don’t tell them you ‘Need a place tomorrow, as living with your Mother-In-Law is driving you crazy’ …. A potential factor the Realtor legally has to disclose to her client should price negotiations take place should you make an offer.
What other Realtors may have not noticed too, is this is in place to protect us too. With conflicting loyalties on both sides, it is inevitable, not impossible, but inevitable for this line to be crossed at some point which can have horrendous effects when it comes to disciplinary action for the Realtor. Even if this mistake is made accidentally.
So there you have it. These new rules have changed the way our business works and how consumers and realtors will interact. Naturally any change takes time to come to grips with, but after a few months this will be the norm again. At that point we’ll all be moving forward full speed, forgetting a change even took place.
It’s hard to sum up ALL of the changes related to this topic in a 700 word blog. So if you’re looking to learn more about the Real Estate rule changes and the new documents required. Take a look at https://knowledge.recbc.ca/resource/an-overview-of-new-consumer-protection-rules-agency-and-disclosure. As always, we at McInnes Marketing are happy to answer any questions consumers or Realtors may have. Feel free to contact us, you can find our contact details at https://www.mcinnesmarketing.com/contact or email ben@mcinnesmarketing.com / jay@mcinnesmarketing.com
Thank You.
Mcinnes Marketing
Now granted, like most people we Realtors are not overly keen on rule changes, but when you take away the smoke, you realize these changes are to protect clients AND us Realtors. Now to make it simple, Limited Dual Agency is done, no more, kaput. This agency relationship, meant your Realtor would represent both the Seller and Buyer in the same transaction (not to be confused with representing the buyer of a new property AND helping said buyer sell their current residence.)
This seemed good in theory, however (and there it is, the dreaded however) as a Realtor our responsibility to our clients relies in our Fiduciary duties. This is to say we owe the utmost care and loyalty to you, our client. Now, what were to happen if we successfully sold you’re home with a ‘Subject to Sale’ clause tidily tucked into your offer. Now we also find a buyer who wants to purchase your home at a rate below the market value and asks what they should offer? Here lies our conundrum, where does the loyalty and more importantly Fiduciary duties lie? With keeping to the asking price of the seller, or do we knowingly advise the buyer as their representative they can offer under ask, as the seller is in a ‘Subject to Sale’ agreement.
So as of June 15 2018, our new forward movement does not allow the listing agent to also represent the buyer in the same transaction. This extends to that Realtors ‘team’ as well, but not necessarily that Realtors entire company. So, I am part of the McInnes Marketing team at Oakwyn Realty Downtown Ltd, meaning someone from my same team CANNOT represent that buyer in my listing. But someone from the agency, outside of my team may.
To my point above, this new way of practice is put in place to make sure clients are being given their utmost loyalty and care when utilizing the services of a real estate agent. As a buyer, you may see a lot more Realtors at open houses ask you to not disclose any of your personal information in order to not break the rule. Don’t fear, this is for your benefit, as the Realtor may still tell you everything about the listing. They are just making sure you don’t tell them you ‘Need a place tomorrow, as living with your Mother-In-Law is driving you crazy’ …. A potential factor the Realtor legally has to disclose to her client should price negotiations take place should you make an offer.
What other Realtors may have not noticed too, is this is in place to protect us too. With conflicting loyalties on both sides, it is inevitable, not impossible, but inevitable for this line to be crossed at some point which can have horrendous effects when it comes to disciplinary action for the Realtor. Even if this mistake is made accidentally.
So there you have it. These new rules have changed the way our business works and how consumers and realtors will interact. Naturally any change takes time to come to grips with, but after a few months this will be the norm again. At that point we’ll all be moving forward full speed, forgetting a change even took place.
It’s hard to sum up ALL of the changes related to this topic in a 700 word blog. So if you’re looking to learn more about the Real Estate rule changes and the new documents required. Take a look at https://knowledge.recbc.ca/resource/an-overview-of-new-consumer-protection-rules-agency-and-disclosure. As always, we at McInnes Marketing are happy to answer any questions consumers or Realtors may have. Feel free to contact us, you can find our contact details at https://www.mcinnesmarketing.com/contact or email ben@mcinnesmarketing.com / jay@mcinnesmarketing.com
Thank You.
Mcinnes Marketing