Can One Realtor Act for Both the Seller and the Buyer in BC?

Your listing agent calls to say they have a buyer. Or someone asks whether the same brokerage can look after both sides of your sale. It sounds convenient, and it can feel like a smoother path to a deal.

In British Columbia the rules on this are strict. This article explains what dual agency is, when it is allowed, what paperwork you should expect as a seller, and which duties stay in place no matter who the buyer is.

This article covers the law of British Columbia.

What dual agency means and the general ban

Dual agency means one brokerage acting for both the seller and the buyer in the same trade. The two sides usually want different things, such as a higher price and a lower one, which is why the practice is so tightly controlled.

Under the Real Estate Services Rules, a brokerage must not engage in dual agency. That means your listing brokerage cannot simply sign up the buyer as a second client and act for both of you.

A common way this arises is that the buyer has no agent and contacts your listing agent directly. The ban does not go away in that case. What changes is how the buyer is treated, which is covered below.

The narrow exception for remote locations

There is one exception. In a remote, under-served location where separate licensees are impracticable, dual agency is allowed. It is not available just because it would be quicker or cheaper.

Even then, three things are required:

• Prior disclosure to each party.
• A signed written dual agency agreement.
• A copy of the disclosure sent to the superintendent.

If you are not in a remote area where other licensees are simply not available, you should expect the general ban to apply. If someone suggests the exception covers your sale, ask them to explain in writing why separate licensees are impracticable.

Disclosure of who represents whom

Before providing trading services, a licensee must disclose whether they will represent the party as a client, using the approved form. This applies to you as the seller and to any buyer the licensee deals with.

If the buyer is unrepresented, the licensee must also disclose the limited assistance available to that buyer and recommend independent professional advice. In practice, that means your agent can still deal with an unrepresented buyer, but only on a limited basis and without becoming that buyer's agent.

• Read the representation form before you sign it.
• Ask plainly whether the licensee is acting for you only.
• If a buyer appears without an agent, ask how the licensee will explain the limits of their help.

Your written agreement and the offer disclosure

A brokerage providing trading services to an owner offering property for sale must have a written service agreement, often called a listing agreement, unless you waive it. It must be entered into before the brokerage represents you in offering the property.

The agreement must be signed by you and an authorized signatory of the brokerage. It must state the property address, effective date, expiry date, a description of services, and the remuneration and the circumstances in which it is payable. If the listing brokerage shares remuneration with a cooperating brokerage, the breakdown must be specified. Any amendment must be in writing and signed by both, and you must be given a copy of any written agreement immediately on execution.

When an offer is presented, a licensee acting for you must give you a disclosure in the superintendent-approved form. It covers:

Money amounts must be stated in dollars. This lets you see how the split works on the actual offer in front of you.

Defect disclosure still applies

A licensee acting for a seller must promptly, and before any agreement is entered into, disclose known material latent defects to all other parties to the trade. A material latent defect is a material defect that cannot be discerned through a reasonable inspection. It includes a defect that makes the property dangerous or unfit for habitation, one that would involve great expense to remedy, a circumstance for which a local government has given notice that it must be remedied, and a lack of appropriate municipal building and other permits.

If you instruct the licensee not to disclose such a defect, the licensee must refuse to provide further trading services to you for that trade. The licensee need not disclose to a party who has already received written disclosure of that defect from you.

What to do next

• Ask your listing agent in writing whether they will act for you only.
• Review the representation form and your service agreement before signing.
• Keep a copy of the signed agreement and any amendments.
• When an offer arrives, read the dollar disclosure of payments to each brokerage.
• Tell your agent about any known defects or permit gaps early.
• If anything about the arrangement seems unclear, speak with a lawyer before you sign.

Frequently asked questions