Who Must Make this Disclosure?

If you are licensed for…When the form must be provided...
Trading servicesMake this disclosure to a consumer before providing any trading services, including:

(a) advising on the appropriate price for the real estate;
(b) making representations about the real estate(see exception below);
(c) finding the real estate for a party to acquire;
(d) finding a party to acquire the real estate;
(e) showing the real estate (see exception below);
(f) negotiating the price of the real estate or the terms of the trade in real estate;
(g) presenting offers to dispose of or acquire the real estate;
(h) receiving deposit money paid in respect of the real estate.

Exception: You do NOT need to make this disclosure if you are only:
• hosting an open house, or
• answering general questions

provided you don’t exchange information with a consumer about their motivation, financial qualifications or real estate needs.
Rental property management services (applies to trading services in relation to rental property only)Make this disclosure to a consumer before providing any trading services (see items (a) to (h) above).
Strata management servicesYou do not need to make this disclosure

Overview

This guide is intended to help real estate professionals (licensees) use the Disclosure of Representation in Trading Services form with consumers.

The Disclosure of Representation in Trading Services form is a mandatory Council-approved form and may not be modified or altered.

The form allows licensees to disclose the type of representation they will be offering a consumer and whether they are able to treat them as a client or as an unrepresented party.

Client: In this type of agency relationship, the consumer has engaged a licensee to provide services on their behalf. The licensee will owe the client fiduciary duties including:

  • undivided loyalty
  • avoiding conflicts of interest
  • disclosing material information,
  • and protecting confidentiality.

Unrepresented party: In this case, the consumer will be in a no agency relationship with the licensee, meaning the licensee is not working on their behalf in a transaction. A licensee may still provide some limited trading services to the consumer including:

  • providing general market information, standard form contracts and other relevant documents, without providing any advice;
  • helping fill out a standard real estate contract (without providing advice on terms or conditions); and
  • presenting offers or counteroffers.

Understanding the Form

The Disclosure of Representation in Trading Services form contains two key sections:

  1. An information piece for consumers called “Know Your Options as a Real Estate Consumer”; and
  2. Checklists and signature sections that must be completed by the real estate professional but are optional for the consumer.
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The purpose of the first section (Know Your Options as a Real Estate Consumer) is to describe to the consumer the difference between being represented or unrepresented in a real estate transaction.

This section covers has four key points that consumers need to know before entering a real estate transaction:

  1. the benefits of working with a licensee
  2. an overview of what representation means
  3. an overview of what being unrepresented means
  4. the difference between designated and brokerage agency.

The second section contains:

  1. a mandatory checklist and name/signature field that must be completed by the licensee
  2. an optional checklist and name/signature field that may be completed by the consumer.

The purpose of this section is to document that the disclosure has been made to the consumer.

Definitions of Terms in the Disclosure Form

Agency: a type of relationship where the agent has the authority to represent and act for the consumer in dealing with others.

Client: the principal who has engaged the licensee to provide real estate services to or on behalf of the principal.

Unrepresented party: a party to the trade in real estate who is not a client of a licensee for the trade in real estate.

Conflict of interest: a situation where there is a substantial risk that the agent’s representation of a client would be negatively affected by the agent’s own interests or by the agent’s duties to another current client, a former client, or a third party.

Confidential information: any information about a client that is not available to the public. That can include the client’s finances, personal situation, motivations or needs.

Designated agency: a model of agency where the brokerage appoints one or more specific licensee to act as the sole agent(s) of the client. Only that designated agent (s) owes the fundamental agency duties to that client.

Brokerage agency: a model of agency where the entire brokerage acts as the agent for the client. All of the licensees at the brokerage owe agency duties to the client.

Using the Form

Step 1: Discuss the Form with the Consumer
Take time to review the first two pages of the form with the consumer and discuss any questions or concerns the consumer may have. Explain any unfamiliar terms using the definitions included in this guide.

You may want to use the checklists to guide your conversations with consumers when you are presenting them with this form.

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Step 2: Complete the Mandatory Real Estate Professional Confirmation
The form contains a mandatory checklist that licensees must complete, plus a mandatory signature section.

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Step 3: Invite the Consumer to Complete the Optional Consumer Confirmation
It is optional for consumers to complete the checklist or sign their name.

If a consumer chooses not to complete and sign the disclosure, you can use the Notes section at the bottom of the Mandatory Real Estate Professional Confirmation to document that you presented the consumer with the form.

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You may use the Notes section to indicate:

  • The date and time the disclosure form was presented
  • The circumstances (was the disclosure presented at an open house, a listing presentation, or other meeting?)
  • Other details that may be relevant

Step 4: Submit the form (or a copy of the form) to your brokerage promptly
A copy of the form is not required to be provided to RECBC unless it is specifically requested.