Changes to BCREA Standard Forms
Not surprisingly, the upcoming Rule changes will also mean updates to many of the BCREA standard forms used everyday. Once the Rule changes come into effect, outdated versions of the standard forms and the Working with a REALTOR®brochure will no longer be available on WEBForms®. As a REALTOR®, it's important that you are ready to work with the revised forms from day one. That means making sure you discard any print or electronic copies of previous versions and familiarizing yourself with the updated forms before they are in use.
BCREA's Standard Forms Committee has also taken this opportunity to make other changes to address issues that have been raised by REALTORS® or that were required because of changes impacting the industry, such as new applicable taxes.
The changes resulting from the Rule changes fall within two main categories:
- changes related to agreements between consumers (buyer/seller or landlord/tenant), and
- changes related to agreements/documents between REALTORS® and consumers (listing agreement or agency agreement).
Agreements between buyer/seller or landlord/tenant or assignee/assignor
Changes have been made to update the "Agency Disclosure" sections in these forms to refer to the Council's new disclosure form. In the same vein, all references to privacy disclosure in the Working with a REALTOR® brochure, which will no longer be in use, have been replaced to refer to the new 'Privacy Notice and Consent' form.
The required disclosure regarding agency relationships previously contained in the Working with a REALTOR®brochure is now covered in the Council's new mandatory disclosure form, the 'Disclosure of Representation in Trading Services'. REALTORS® must provide this new form to all consumers. Likewise, the new 'Privacy Notice and Consent' form must be signed by consumers and kept on file by the REALTOR®.
Agreements between REALTORS® and consumers
References to limited dual agency were removed throughout. References to disclosure regarding payments to cooperating brokerages were revised. The designated agent's duties were updated to reflect the new Rules, and the consumer's acknowledgments regarding conflicts of interest were also revised.
References to the Working with a REALTOR® brochure have also been replaced to reflect the fact that REALTORS® must now use the Council's 'Disclosure of Representation in Trading Services'. Where these forms previously referred to the Working with a REALTOR® brochure, they now refer to the new 'Privacy Notice and Consent' form.
In addition, updates were made to explain that these agreements will now terminate in the event that the brokerage/agent are unable to continue to act for a consumer if a conflict arises that is not permitted by the new Rules.
More about disclosure and the 'Privacy and Notice and Consent' form
When the Rule changes come into effect, the Working with a REALTOR® brochure will no longer be in circulation. Instead, REALTORS® will be required to use the Council's new mandatory disclosure form, the 'Disclosure of Representation in Trading Services'. REALTORS® must make this disclosure to consumers before providing any trading services. For full information on how and when to use the Council's mandatory disclosure form, please visit the Council's Licensee Knowledge Base.
REALTORS® will still receive and work with consumers' personal information. To ensure consumers understand that their personal information will be collected and safeguarded, BCREA has created a new standard form called the 'Privacy Notice and Consent' form. The 'Privacy Notice and Consent' form must be signed by consumers and kept on file by the REALTOR®.
Additional updates to Contracts of Purchase and Sale
Finally, the Standard Forms Committee has also made changes to the Contracts of Purchase and Sale in addition to changes related to the Rules. These forms have been revised to include clauses relating to new applicable taxes (such as the City of Vancouver Empty Homes Tax and the BC speculation tax), residency disclosure requirements, and requirements related to GST certificates as applicable.
To help REALTORS® get ready for the transition, we've put together a summary of all the changes to BCREA standard forms and made it available on REALTOR Link®. You can view or download that document here.
To subscribe to receive BCREA publications such as this one, or to update your email address or current subscriptions, click here.
What we do
Popular tags within BCREA
- Real Estate Practice
- Anti-Money Laundering
- Housing Affordability
- Professional Development Program
- Real Estate Council of BC
Popular posts from BCREA
Housing Market Update – November 2022Nov 17, 2022
New Statutory Holiday on September 30, National Day for Truth and ReconciliationSep 09, 2021