The Disclosure to Sellers of Expected Remuneration informs sellers of the expected remuneration that the brokerage(s) will receive if the client accepts that offer.

The disclosure must:

  • inform the seller about how the commission will be shared, if at all, and
  • inform the seller of any other remuneration the licensee will receive or expects to receive as a result of the trade.
How should you fill out the Disclosure to Sellers of Expected Remuneration when the buyer’s agent is another licensee at your brokerage?

By requiring licensees to disclose remuneration, the Superintendent’s intention is to ensure that home sellers are fully informed about

  • The amount of remuneration to be paid by the seller to the listing brokerage
  • The remuneration to be paid by the listing brokerage to a cooperating brokerage, if applicable;
  • The remuneration to be retained by the listing brokerage.

A cooperating brokerage is defined in the Rules as “a brokerage that provides trading services to or on behalf of a buyer.” When buyers and sellers are represented by separate designated agents at the same brokerage, that brokerage is by definition both the listing brokerage and the cooperating brokerage. So the form should be filled out just as it would be if the buyer was represented by a licensee from a different brokerage.

Step 1: Enter your brokerage name in the line provided for the listing brokerage and in the line for the cooperating brokerage (see Step 1 example below).

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Step 2: Continue to fill out the form, separating the amounts for the listing brokerage and the cooperating brokerage (see Step 2 example below).

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Line #1: Enter the total amount of remuneration to be paid by the seller.

Line #2: Calculate the amount that would be shared with a cooperating brokerage. Enter it here.

Line #3: Deduct the amount that would be shared with a cooperating brokerage from the total amount.

If I received an offer on my seller client’s property prior to June 15, 2018 and presented the offer to my client on or after June 15, 2018, am I required to make the disclosure required by section 5-11.1 of the Rules?

Yes. Every offer that is presented to a seller by the seller’s licensee on and after June 15, 2018 must be accompanied by a disclosure to sellers of expected remuneration in accordance with section 5-11.1 of the Rules.

If there are a number of offers and counteroffers going back and forth between the buyer and seller, do I need to prepare a new disclosure for each counteroffer?

When you are acting for a seller, you must make a disclosure of expected remuneration for each “offer to acquire real estate” from a buyer that you present to the seller. This includes any counteroffers made by the buyer.

You do not need to prepare a disclosure of expected remuneration for counteroffers that your seller proposes to the buyer.

In multiple offer situations, can I make the written disclosure to the seller, in relation to each offer, after the buyers’ agents have presented the offers, but before the acceptance of any offer?

Yes, provided that you present a Disclosure to Seller of Expected Remuneration Form for each offer before a seller’s acceptance of any offer.

If any of the buyers make a counter-offer, you must make a new disclosure based on the buyer’s countered price before the seller accepts any offer.

I have presented an offer to my sellers and provided them with a Disclosure to Seller of Expected Remuneration Form as required after June 15, 2018. My sellers now want to renegotiate the amount of commission they had agreed to in the listing agreement. What are my obligations?

Section 5-11.1 of the Rules requires you to provide the seller with a Disclosure to Seller of Expected Remuneration Form.

Once you have satisfied that obligation, the question of whether you, with the authority of your brokerage, choose to renegotiate the commission payable to your brokerage, is a contractual matter that does not fall under the jurisdiction of RECBC.

Do I have to make this disclosure if I am acting for the lessor of a property?

No. However, all the other disclosures required under the agency and disclosure rules effective June 15, 2018 (i.e. 5-10, 5-10.1, 5-17) apply to licensees acting for lessors and lessees.

Rule 5-11.1 creates obligations for licensees acting for sellers of property. Licensees acting for lessors of property are not required to make the disclosure of expected remuneration.