New rules that aim to strengthen consumer protections in B.C. real estate will come into effect on March 15th, 2018.

These new rules include prohibiting dual agency, which is the practice of acting on behalf of both the buyer and seller in a real estate deal.

B.C. will be the first province in Canada to prohibit dual agency.

The rules coming into effect on March 15th will also:

• Require enhanced disclosure of real estate licensee remuneration that will inform consumers about how remuneration is to be divided between a listing brokerage and co-operating brokerage.
• Ensure licensees inform consumers of the duties and responsibilities owed to both clients and unrepresented parties before working with consumers.
• Warn consumers of the risks of relying on a licensee to provide limited assistance if the licensee already represents another party to the transaction.

"These rules will significantly change the way that real estate services are provided in British Columbia," said Michael Noseworthy, B.C.'s superintendent of real estate. "The changes will empower consumers and provide clarity around the role of an agent.“

Noseworthy added that they “want to create transparency for both consumers and licensees to ensure everyone understands in whose interest licensees must be working."

A consultation on these rules was completed on October 6th following a 30-day public comment period that saw strong public support on all proposed rules.

Members of the Okanagan Mainline Real Estate Board (OMREB) are less impressed, however.

“Everyday, realtors help their clients understand real estate transactions, so they can make informed decisions,” said OMREB president Tanis Read. “Over my career as a realtor, many long-standing clients have developed trust with me, and now my clients have no choice but to start from the beginning and build new relationships."

"Trust is a crucial part of what is often the largest financial transaction in people’s lives,” added Read.

The rules will provide for a small exemption to the dual agency prohibition in situations where a particular property is so remote that it makes finding another agent extremely difficult.

Strict reporting requirements will apply in these circumstances.