Limited Dual Agency

Conflicts of Interest: Sound Judgment Required #543

As Brian Taylor summarized in his February 26, 2021 Legally Speaking article, Learning from an RECBC Discipline Decision #535, the disciplinary landscape for real estate professionals changed dramatically in September 2016. Most starkly, fines and penalties were greatly increased by the then regulator, the Real Estate Council of BC (RECBC). But there is no need

Learning from an RECBC Discipline Decision #535

Starting in 2016, the real estate profession has seen numerous regulatory changes, including increased fines, new regulations, greater involvement from the Real Estate Council of BC (RECBC) and the elimination of limited dual agency. As a result, I have tried to focus many of my more recent articles on discipline decisions of RECBC. While discipline

BCREA’s Limited Dual Agency Waiver Proposal

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

Practice Limited Dual Agency At Your Risk #473

Despite being fraught with risk, licensees continue to practice limited dual agency. While BC courts have recognized the modifications to the agency relationship agreed to by buyers and sellers who have entered a Limited Dual Agency Agreement, a licensee failing to document the parties’ informed written consent to limited dual agency prior to acting as a limited dual agent

The Duty to Review Contract Terms #467

By Jennifer CleeB.A., LL.B. BC courts have accepted that the Limited Dual Agency Agreement (LDAA) limits certain general obligations that a licensee has to their clients. However, licensees must remember that while their duty of loyalty and disclosure are modified by the LDAA, they still owe a duty of “full and fair disclosure of all

Limited Dual Agency and Independent Advice #459

Legally Speaking

Judicial consideration of the practice of limited dual agency continues to evolve. A recent court decision1 considered whether a REALTOR® had a duty to refer their client for independent legal advice before the client entered into a Limited Dual Agency Agreement (LDAA). The plaintiff was a retired labourer with an elementary school education who, together with

“Limited Dual Agency Or No Agency,” There Is A Different #446

Legally Speaking

A recent case illustrates the pitfalls awaiting brokerages and REALTORS® when choosing to act as a limited dual agent.1 A couple engaged a brokerage and REALTOR® to assist them in the purchase of a house (the Grandview property). The Contract of Purchase and Sale for the Grandview property was subject to the sale of their

Limited Dual Agency and the BC Court of Appeal #439

Legally Speaking

In 2008, a BC Supreme Court decision awarded damages against a REALTOR® for breach of fiduciary duty when acting as a limited dual agent.1 The REALTOR®, while selling his own property to a client, entered into a Limited Dual Agency Agreement as well having the buyer execute an Addendum to the Contract of Purchase and Sale

Passing Information Accurately #433

In a real estate deal, a client depends on the licensee to accurately relay information between the parties. This is especially critical where the licensee is a limited dual agent. A recent Real Estate Council of British Columbia disciplinary decision makes the point.1 Beginning in 2005, the licensee acted as the owner’s property manager for

Limited Dual Agency Can Still be a Risky Business #427

Legally Speaking

A recent BC Supreme Court decision awarded damages against a REALTOR® for breach of fiduciary duty while acting as a limited dual agent.1 The relationship between the plaintiff and the REALTOR® first began in 2005 when the plaintiff answered a newspaper ad concerning the sale of a property listed by the REALTOR®. The plaintiff, who was

Limited Duty of Care in Limited Dual Agency #426

Legally Speaking

By Jennifer Clee There have been numerous articles on the legal concept of limited dual agency. Recent decisions of BC courts provide interesting judicial comment on the subject.  What is evident from the cases is that buyers and sellers entering into Limited Dual Agency Agreements (LDAA) still rely on REALTORS® to fully protect their interests.

Limited Dual Agency or No Agency? #419

Legally Speaking

REALTORS® should remember that limited dual agency isn’t the only option available to them when dealing with both parties to a transaction. A REALTOR® approached a property owner to see whether he was interested in selling his property. The REALTOR® faxed an offer to him together with an exclusive listing contract, a Limited Dual Agency

In a Limited Dual Agency, When is Notice Received? #413

Legally Speaking

In general, when a licensee serves as agent for her principal—the client—the licensee has authority to send and receive communications for that client, unless the client directs otherwise. What about a limited dual agent? If a licensee is a limited dual agent, can the licensee receive notices from other persons for the seller and buyer,