The relationship between a REALTOR® and a client is an agency relationship with the client as the principal and the REALTOR® as the agent acting on the client’s behalf. This relationship creates a fiduciary duty to the client, in which the REALTOR® must always act in the client's best interests. This fiduciary relationship has been developed through case law over many years.  

In addition to the common law fiduciary duty to act in the client’s best interest, Section 30 of the Real Estate Services Rules (RESR) explicitly states the following: 

“Duties to clients

30 Subject to sections 31 [modification of duties] and 32 [designated agency], if a client engages a brokerage to provide real estate services to or on behalf of the client, the brokerage and its related licensees must do all of the following:

(a) act in the best interesets of the client;

..."

However, despite this rule, there have been several disciplinary decisions related to licensees not acting in the best interests of their clients. Here is a quick summary of some recent decisions to highlight how important this topic is: 

• The REALTOR® failed to act in the best interest of their client by using incorrect forms and details to obtain a release of a deposit. The REALTOR® also inappropriately signed the forms as a witness, even though the client signed electronically. Additionally, the REALTOR® was instructed to use the deposit from the first contract for the second contract, however, the REALTOR® failed to advise the clients that the deposit on the second contract was already late and not deposited in the required timeframe.¹ 

• The REALTOR® failed to act in the best interest of their client by acting outside of the scope of their authority and client instructions. The REALTOR® and their brokerage provided strata management services to a strata corporation. The strata council notified the REALTOR® that it intended to recommend the termination of the strata management services with the REALTORS® brokerage at the upcoming annual general meeting (AGM). 
  
  The REALTOR® then took the position that the strata council’s proposed amendment to the AGM notice to include the possible termination did not comply with the Strata Property Act. The REALTOR® then submitted a letter of resignation to the strata council to be read at the AGM. The resignation letter had an offer to rescind the resignation if there was a significant change to the composition of the strata council.
  
  At the hearing, it was found that the REALTOR® committed professional misconduct in that she acted “contrary to section 3-3(a) of the Rules to act in the best interests of her client when she responded to the Strata Council’s notification that it intended to recommend at the then upcoming annual general meeting of the Strata Corporation that the services of the brokerage be terminated by adopting a course of action designed both to circumvent and to undermine in the eyes of the Strata Corporation’s owners the authority of the Strata Council.”² 

• The REALTOR® failed to act in their client's best interest by allowing them to provide a non-refundable deposit to an unlicensed business associate of the REALTOR® and failed to ensure an addendum was signed before the deposit was delivered. The REALTOR® also failed to advise their client to seek independent professional advice regarding the deposit.³  

• The buyer’s REALTOR® did not act in the best interests of their client by failing to include any clauses in the contract related to the existing tenancy, advising the client of the requirements under the Residential Tenancy Act for vacant possession, and failing to provide notice to the existing tenants.⁴ 

So, What Does It Mean to Act in the Best Interests of a Client? 

1) Put the client’s interests ahead of your own 

First and foremost, the REALTOR® must put the client’s interest ahead of their own and anyone else’s. While this sounds simple enough, there can be an inherent conflict in how REALTORS® are remunerated. A REALTOR®’s remuneration is typically directly tied to the purchase price on an offer, having that offer accepted by the other party, and having subject conditions removed. REALTORS® need to be aware of this inherent conflict of interest to ensure they are always acting in the best interest of their client and that they are not just pushing for an offer to be made, or accepted, or subjects removed if it’s not right for the client.  

Additionally, a REALTOR®’s remuneration may vary depending on the type of listing, for example, properties listed for sale by owners, where the selling agent may not be entitled to any commission from the seller. It’s essential that REALTORS® don’t steer clients away from properties in which their commissions would be reduced (or non-existent), if the property is right for the client.  

Some other situations where agents need to be aware of placing their client’s interest ahead of their own relate to situations where the REALTOR® receives a referral fee from a third-party service provider or another REALTOR®. In these situations, the REALTOR® needs to ensure they do not simply recommend someone in order to obtain the referral fee, and rather they must only refer the client to another REALTOR® or third-party service provider when it is in the best interest of the client.  

For more information on recent disciplinary decisions regarding conflicts of interest, read Chris Johnston’s October 27, 2021, Legally Speaking article, Conflicts of Interest: Sound Judgement Required #543. 

2) Listen to your client 

To act in a client's best interest, REALTORS® must listen to their clients and act on their instructions (except when such instructions are unlawful). Understanding a client’s needs, motivations, preferences, limitations, and circumstances is key to ensuring the REALTOR® can act in their client's best interests. Clients may share different opinions and priorities than their REALTOR®, so ensuring REALTORS® understand their clients and listen to them is important. It can be hard to act on a client’s instructions if the REALTOR® believes they are making a mistake or being unreasonable.  

However, it’s the REALTOR®’s duty to act on their instructions, unless they are asking the REALTOR® to do something that would be unlawful. A client’s instructions may put their REALTOR® at odds with them and require the REALTOR® to withdraw from continuing to provide services and terminate the agency relationship if the client’s instructions would cause the REALTOR® to be in contravention of the Real Estate Services Act, Real Estate Services Regulations, or RESR.  

3) Provide your client with information 

In acting in a client's best interests, REALTORS® must provide their client with all the information they need regarding the process, the property, and the potential transaction. REALTORS® need to fully inform their clients for them to make the best decision. It’s important that REALTORS® don’t just rely on including a bunch of acknowledgements in a Contract of Purchase and Sale (CPS) in an attempt to try and absolve them from obtaining and providing fulsome information to a client. This is especially important in fast-paced transactions.  

Additionally, the REALTOR® is not a party to the CPS. So, any advice, or waivers of advice, to their clients should not be contained in the CPS, but rather, a best practice is to include such advice (or waiver thereof) in a separate standalone written format, either as a written acknowledgment or in an email, with the client ideally signing such acknowledgment or confirming by written response to the email.  

REALTORS® may need to refer clients to other professionals for more specific advice, such as accountants, lawyers or notaries, engineers, surveyors, and inspectors, to name a few. Knowing when to refer a client to another professional is equally as important as the advice a REALTOR® provides to a client. Section 30 of the RESR advises the client to seek independent professional advice on matters outside of the expertise of the licensee.”⁵

Informing clients of any conflicts of interest is just as important as providing them with information about a property. Section 30(j) of the RESR requires that REALTORS® inform their clients of any conflicts of interest in writing: 

“…if a conflict of interest does exist, promptly and fully disclose the conflict to the client

(i) in writing, and

(ii) separately from a service agreement or any other agreement under which real estate services are provided and separately from any agreement giving effect to a trade in real estate.”⁶

When a client is fully informed of any conflicts of interest, they can make informed decisions. 

4) Assist clients with making the best decision 

Finally, REALTORS® need to assist clients in making the best decision for the client, even if such decisions do not benefit the REALTOR®. Putting someone else’s interest above our own can be hard, but that is at the heart of any agency and fiduciary relationship. This means that, at times, REALTORS® may lose out on compensation or feel as though their time has been wasted. However, it’s these fiduciary responsibilities and duties that allow REALTORS® to call themselves professionals and to be in positions of trust. 

Conclusion 

REALTORS® must act in the best interests of their clients, as required under Section 30(a) of the RESR and at common law through the principles of agency relationships and the fiduciary duty that flows from such relationship. In order to act in a client’s best interests, REALTORS® must put their client’s interests above their own, listen to their client, provide their client with fullsome information, and assist their client with making the best decisions.   

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	1.	Alexander Duygu Moret. Real Estate Council of British Columbia, File #15-519. Consent Order March 1, 2018.
	2.	Colleen Marie Floris, Managing Broker, Steadfast Properties Ltd. Real Estate Council of British Columbia, File #15-469. Consent Order September 13, 2017; Floris (Re), 2017 CanLII 62615 (BC REC).
	3.	Yana Masalitina, Yana Masalitina aka Yana Lyon, Representative, currently unlicensed, while licensed with 621104 B.C. Ltd. dba Homelife Benchmark Titus Realty, Real Estate Council of British Columbia, File #15-004. Consent Order September 13, 2017.
	4.	Benjamin Ng, Representative, Team 3000 Realty Ltd. Real Estate Council of British Columbia, File #15-431. Consent Order October 18, 2017.
	5.	Rule 30(d), Real Estate Services Rules, BC. Reg. 101/2024.
	6.	Rule 30(j), Real Estate Services Rules, BC. Reg. 101/2024.

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