Who Must Make this Disclosure?

If you are licensed for...When to provide the form ...
Trading services
or
Rental property management services (applies to trading services in relation to rental property management only)

Make this disclosure if you are already representing a client in a real estate transaction; and you intend to provide limited trading services to the consumer as an unrepresented party including:

sharing real estate statistics or general market information;

providing standard real estate contracts and other relevant documents;

helping the unrepresented party fill out a standard real estate contract (without advising on terms or conditions);

communicating their messages to your client and presenting offers or counteroffers.

Strata management servicesYou do not need to make this disclosure.

NOTE: Where it is required, the Disclosure of Risks to Unrepresented Parties should be made at the same time as the Disclosure of Representation in Trading Services.

Overview

This guide is intended to help real estate professionals (licensees) use the Disclosure of Risks to Unrepresented Parties form with consumers.

The Disclosure of Risks to Unrepresented Parties form is a mandatory Council-approved form and may not be modified or altered.

The Disclosure of Risks to Unrepresented Parties form has three objectives:

  1. Inform the consumer of the risks of being unrepresented in a real estate transaction
  2. Inform the consumer of the limits to the services a licensee can provide to an unrepresented party
  3. Advise the consumer to seek independent professional advice.

This form explains to the consumer that the licensee providing the form cannot represent them in the transaction, because the licensee is already acting for a client in the transaction.

The form describes the limited assistance that a licensee can provide to an unrepresented party, and encourages the unrepresented party to seek independent representation for the transaction.

The disclosure is intended to help ensure consumers can make informed decisions about whether or not to be represented by a licensee in a real estate transaction.

Understanding the Disclosure Form

The Disclosure of Risks to Unrepresented Parties form contains two key sections:

Section 1: Information for consumers called “Unrepresented in a Real Estate Transaction? Know the Risks.”
This section informs the consumer that they are receiving the form because the licensee is currently representing a client in the transaction and they want to provide the consumer with trading services as an unrepresented party.

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The form then explains three key risks for unrepresented parties:

  1. The licensee’s loyalty is entirely to their client.
  2. The licensee must share all material information with their client that the unrepresented party tells them.
  3. The licensee can only provide the unrepresented party with limited assistance.

While it is ultimately up to a consumer to decide whether to be represented by a licensee, the Real Estate Council urges all unrepresented parties to seek their own real estate professional for help during the transaction.

Section 2: Checklists and signature sections for the consumer (optional) and licensee (mandatory).
The purpose of this section is to document that the disclosure has been made to the consumer.

Definitions of Terms in the Disclosure Form

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.

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.

Using the Disclosure Form

Step 1: Discuss the Form with the Consumer
Take time to review 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 wish to use the structure of the checklists to guide any conversations you may have 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.

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 this disclosure form is not required to be provided to RECBC unless it is specifically requested.