BCREA's Limited Dual Agency Waiver Proposal
TAGS: Limited Dual Agency Office of the Superintendent of Real Estate (OSRE) Real Estate Council of BC (RECBC) Rules and Regulations
Making the LDA ban more workable for consumers and REALTORS®
On January 16, leadership from the British Columbia Real Estate Association (BCREA) met with Minister of Finance Carole James to present a proposal for a waiver that would make the ban on limited dual agency (LDA), the practice of a REALTOR® representing both parties in a transaction, more workable for small communities and commercial real estate transactions in the short term. The proposal was supported by real-life stories gathered from REALTORS® through a provincewide survey on unintended negative impacts of the ban.
Minister James said she would discuss our proposal with the Real Estate Council of BC and the Office of the Superintendent of Real Estate and provide us with feedback. In the meantime, we continue to investiage long-term solutions. Meetings like these help us build stronger relationships with the government by providing workable solutions to issues impacting consumers, while ensuring REALTORS® voices are heard.
Making the LDA ban more workable
The waiver, or certificate of independent legal advice, we proposed would continue to emphasise consumer protection while solving some of the side effects of the LDA ban. Here's an example of how the waiver would work:
- A REALTOR® represents a seller, and then the same REALTORS®'s buyer client expresses interest in the seller's property.
- The potential buyer decides they want to continue working with the REALTOR® who's already representing the seller.
- The REALTOR® provides three documents to the seller and the potential buyer:
- the Council's Disclosure of Risks Associated with Dual Agency form,
- Certificate of Independent Legal Advice (waiver), and
- the appropriate BCREA limited dual agency agreement.
- The potential buyer and seller then each meet with a lawyer to discuss the LDA agreement and complete the Certificate of Independent Legal Advice.
Your engagement helps ensure REALTOR® voices are heard
Back in October, Minister James asked BCREA to provide evidence of why the LDA ban doesn't work for consumers. In response, we launched a provincewide survey to gather data and personal stories of how the ban impacts consumers and REALTORS®. We thank the more than 1,200 individuals who completed the survey.
We learned that 96 per cent of commercial REALTORS® say the ban has negatively impacted their business. 94 per cent of respondents working in communities of 10,000 or less say the ban has negatively impacted their business.
60 per cent of REALTORS® have observed an increase in unrepresented consumers, who are now limited when choosing the REALTOR® they believe can best represent them, and 60 per cent of REALTORS® working in communities of 25,000 or less have referred more than 25 per cent of their clients to other REALTORS®.
Photo: On January 16, BCREA President James Palanio, President-Elect Michael Trites, Past President Jim Stewart and CEO Darlene Hyde met with Minister of Finance Carole James to present the LDA waiver proposal.
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