New real estate rules delayed after concern from industry

Superintendent of Real Estate agrees more clarity is required

New rules intended to improve consumer protection in real estate deals have been postponed for three months.

The changes, which prohibit the real estate practice of dual agency and mandate increased agent disclosure, were originally scheduled for March 15. They will now happen June 15, to allow for clarification of the rules and provide adequate time for realtor education and training.

The delay, announced Friday by B.C.’s superintendent of real estate, comes after considerable industry concern surrounding the implementation of the new rules.

In B.C. it is the Office of the Superintendent of Real Estate that sets the rules under the Real Estate Services Act, and it is the Real Estate Council of British Columbia (RECBC) that interprets and enforces the rules.

Last November, Micheal Noseworthy, B.C.’s superintendent of real estate, approved rule changes in line with a June 2016 report to the RECBC. The new rules aimed to eliminate conflict of interest and increase transparency by banning dual agency (the practice of representing both parties in a transaction), and forcing licensed agents to reveal in increased detail their representation and remuneration.

“The most complicated of these rule changes deals with the removal of dual agency – which has a considerable number of un-intended consequences – which impact consumer rights, and the practical application of real estate sales,” said Michael Ziegler, past president of the Canadian Real Estate Association and previous chair of the Real Estate Council of B.C.. “I think this is where the industry is out of step with government.”

Ziegler says that the industry supports consumer protection but it needs to be balanced with practical procedure.

When the RECBC posted its interpretation of the new rules on its website, realtors were shocked to see the dual agency ban didn’t just mean that they would have to release one client if a situation of dual agency arose. Instead, they had to give up both clients and completely step away from the sale. Licensees argued that the rule left consumers without representation and actually weakened consumer choice and protection.

A screenshot of the rule interpretation on Real Estate Council of British Columbia’s website

In a letter sent to Noseworthy dated Feb. 1, Jim Stewart, president of BC Real Estate Association, as well as nine presidents from real estate boards around the province expressed their concerns.

”We believe this interpretation could be damaging to real estate buyers and sellers with unintended consequences for consumer protection, thus undermining the intentions of the new rules…The response to date is usually one of confusion and incredulity,” the letter stated.

A delay was requested to give the Real Estate Council enough time to provide proper training in new management practices.

The superintendent responded on Friday (Feb. 9) with a letter back to Stewart and the board presidents, and an email to all licensees.

“My office is aware of the considerable industry concern surrounding the implementation of the new rules related to dual agency and enhanced consumer disclosures…It is clear that additional time would ensure a more successful roll out of the upcoming changes,” wrote Noseworthy, while announcing the implementation postponement.

Noseworthy also relayed that his office has been working with the Real Estate Council on how conflict of interest provisions should pertain to the dual agency prohibition.

“I agree that more clarity is required in this area. As such, I intend to publish rules for consultation that directly address how licensees should manage conflicts of interest involving competing clients so that they can continue to represent a party to the transaction. I believe this change will strengthen consumer protection,” he concluded.

Mykle Ludvigsen, manager of communications for the Office of the Superintendent of Real Estate, said it was never their intention for double recusal to be a part of the dual agency ban. Their intention was that a licensee would only have to step away from one side of the transaction.

The new rule will make B.C. the only province in Canada with a dual agency ban.

While the Real Estate Council website still reflects the original interpretation of the dual agency ban, updates are expected once the superintendent provides clarity.


 

keri.coles@oakbaynews.com

Follow us on Instagram
Like us on Facebook and follow us on Twitter.

Just Posted

WATCH: Westshore Wolves’ equipment managers go the extra mile

On an average game day, Rick Burke’s team spends nine to 10 hours working behind the scenes.

Snow keeps West Shore emergency crews busy

Environment Canada says more snow expected to hit Friday afternoon

Duncan family says care home switched mom’s cat with robot cat

Staff alleged to have said they were taking cat for bath, then replaced her with robotic stuffed toy

School’s on today, more snow expected across Greater Victoria

Environment Canada says more snow could fall Friday

Trial date delayed in case of slain Oak Bay sisters

Case of Andrew Berry, charged in deaths of daughters, will reconvene in three weeks

Photo gallery: Show us your Winter Wonderland!

User submitted photos from around Greater Victoria

All aboard! Job fair ports this weekend in Victoria

Find out about the hundreds of jobs in Victoria’s cruise ship industry

New charges against ex-Trump campaign associates

More charges were laid Thursday against President Donald Trump’s former campaign chairman and his business associate

Sooke mom hopeful for funding to treat child’s debilitating arthritis

Jillian Lanthier ‘prays’ for $19,000 per-dose drug for her son

Man accused in death of Winnipeg teen Tina Fontaine not guilty

Raymond Cormier was accused of killing Indigenous 15-year-old and dumping her body in the Red River

Okanagan real estate agents brace for speculation tax impact

“There’s a real potential for a domino effect to hurt the market in Kelowna.”

Human remains found near Campbell River

Human remains were found in a rural area outside Campbell River, RCMP… Continue reading

Alberta drops B.C. wine boycott, Notley says Horgan ‘blinked’ on pipeline

B.C. government announces court reference on proposed diluted bitumen restriction

Tofino Bus will cover Victoria–Nanaimo route after Greyhound announces cut

Although its name says ‘Tofino’, this bus company serves all of Vancouver Island

Most Read