What is dual agency in British Columbia real estate, and is it allowed?
This answer covers the law of British Columbia.
Dual agency is when one brokerage acts as the representative of both the buyer and the seller in the same sale, and in British Columbia it is generally not allowed. A brokerage must not engage in dual agency, though there is a narrow exception for real estate in a remote location where it is impracticable for the parties to be served by different licensees.
In that exception, the licensee must first make the required disclosure to each party and enter a written agreement of dual agency with each party. Designating one or more licensees at a brokerage is not by itself dual agency unless the designated licensee represents both sides as clients.
The risk is conflict, because a licensee owes a client duties such as acting in the client's best interests and keeping information confidential. Where a licensee would otherwise act for conflicting clients, they must serve none or represent only one, and may do so only if all clients agree in writing. Ask about the brokerage's role in writing, ask what it means for your confidential information, and consider legal advice before you sign.
Key takeaways
- A brokerage must not engage in dual agency in British Columbia.
- The exception is for real estate in a remote location where different licensees are impracticable, and it needs disclosure and a written dual agency agreement with each party.
- Designating one or more licensees at a brokerage is not by itself dual agency unless the designated licensee represents both sides as clients.
- Before providing trading services, a licensee must disclose whether or not they will represent you as a client.