Licensees providing trading services should be careful about the kinds of assistance they provide to clients when selling or purchasing tenanted properties. The desire to smooth a transaction for your clients can be dangerous when you step across the line into the arena of providing rental property management services for which you are not licensed.

The BC Financial Services Authority has provided guidance on the types of services that both trading services licensees and rental property managers can provide. As a trading services-only licensee, you are allowed to:

• assist a landlord with finding tenants;
• assist a tenant in finding a property to rent; and
• collect security or pet damage deposits from tenants on behalf of a property owner (but you must promptly deliver such deposits to the brokerage for deposit into the brokerage’s trust account).

However, as a trading services-only licensee, you are not allowed to provide services that can only be provided by rental property managers. These include:

• collecting rents from tenants on behalf of a property owner;
• making payments to third parties on behalf of a property owner;
• negotiating or entering into contracts on behalf of a property owner, whether with the tenants or other parties;
• supervising employees or contractors hired by a property owner; and
• managing landlord and tenant matters.

Only a licensed rental property manager can provide ongoing management services.

Can a REALTOR® Issue a Notice to End Tenancy for Purchaser’s Use?

Only if they are licensed to provide property management services, and only with the owner’s authorization to do so for the property.

A seller who accepts an offer that contains a vacancy clause, and a written request from the buyer to serve a three-month Notice to End Tenancy for Purchaser’s Use, must issue that notice using the Residential Tenancy Branch’s web portal.

Licensees should not use the portal on their client owners’ behalf unless the licensees are also licensed for providing rental property management services and have the clients’ authorization to do so for the property. If you are a trading services-only licensee, you should advise your client that they must issue this notice themselves through the portal, and you can direct them to the information sheet provided by the Residential Tenancy Branch.

Can a REALTOR® Fill Out an End of Tenancy Inspection Report?

Only if they are licensed to provide property management services, and with the owner’s authorization to do so for the property.

You might be asked by your sellers to assist with their tenants’ move-out inspection. Note that move-out inspections fall under “management of landlord and tenant matters” on the list of services that can only be provided by rental property managers.

See, for example, the Real Estate Council’s Consent Order: Cheryl Chih Yu Kang, November 6, 2019,¹ where the trading services-only licensee had provided assistance to an overseas friend who purchased a property in West Vancouver. The licensee provided a copy of the lease and completed a move-in inspection report naming herself as the tenant’s agent and the brokerage’s address as the landlord’s address for service. She also renewed the lease and dealt with various tenant complaints over the course of the lease. These services were found to be rental property management services for which Ms. Kang was not licensed. She was ordered to pay a $7,500 discipline penalty and $1,500 in enforcement expenses, and to complete remedial courses.

Can a REALTOR® Communicate With a Strata on Their Client’s Behalf About Tenant Matters?

Only if they are licensed to provide property management services, and with the owner’s authorization to do so for the property.

See, for example, the Real Estate Council’s Consent Order:Steve Wai Bun Hui and Steve Hui Personal Real Estate Corporation, November 19, 2020,² where a trading services-only licensee had communicated with a strata manager on behalf of his seller client. The seller was not fluent in English and asked the licensee to assist with resolving the tenant’s complaint about exterior windows not being cleaned by the strata corporation. When asked by the strata manager for proof of his authority, the licensee incorrectly responded that he was a rental property manager for the property, and fabricated a back-dated property management agreement, which he signed on behalf of the client. The licensee was suspended for 30 days, ordered to pay an $18,000 discipline penalty and $1,500 in enforcement costs, and directed to complete remedial courses.

Can a REALTOR® Help a Buyer Find Tenants for a New Property?

Yes, even if they only have a trading services-only license. REALTORS® can also collect the security and pet deposits, if any, as long as they deposit them immediately into their brokerage’s trust account.

However, if a licensee does not hold a rental property management license, they must be careful not to take any further steps, such as:

• negotiating the terms of the tenancy agreement;
• entering into the tenancy agreement on behalf of the owner;
• collecting rent;
• arranging for repairs of the property; or
• acting in Residential Tenancy Branch disputes.

REALTORS® should never deposit rent or security or pet deposits into their own bank accounts.

See, for example, the Real Estate Council’s Consent Order: Ke (Jerry) Liu and Jerry Liu Personal Real Estate Corporation, December 6, 2018,³ where a trading services-only licensee who provided property management services was suspended for 14 days, ordered to pay a $5,000 discipline penalty and $1,500 in enforcement costs, and directed to take certain remedial courses.

Can REALTORS® Manage Their Own Properties?

Yes, Part 9 of the Real Estate Services Rulesprovides that if you are a trading-only licensee, you may manage real estate owned by you or by certain members of your family in certain circumstances. You should review the Part 9 exemptions in detail to determine whether they apply to your particular situation, and if they do, ensure you comply with the requirements to provide certain written disclosures to various parties. 

However, note that there is no coverage by your Errors and Omissions Indemnity Plan when providing any real estate services in respect of property owned or being acquired by you or your spouse or by any entity you own or control (see exclusions 9 and 13). If you are a trading services-only licensee, be careful not to stray into providing rental property management services. Providing your clients with excellent service may include referring them to a licensed rental property management service provider if they require one.

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	1.	Real Estate Council of British Columbia, Consent Order: Cheryl Chih Yu Kang (BC Financial Services Authority, Vancouver, 2019).
	2.	Real Estate Council of British Columbia, Consent Order: Steve Wai Bun Hui and Steve Hui Personal Real Estate Corporation (BC Financial Services Authority, Vancouver, 2020).
	3.	Real Estate Council of British Columbia, Consent Order: Ke (Jerry) Liu and Jerry Liu Personal Real Estate Corporation (BC Financial Services Authority, Vancouver, 2018).

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