How to Complain About a Realtor in BC and What BCFSA Can Do

You may think a real estate licensee in British Columbia treated you unfairly, hid something, or handled your money badly. You may wonder who to turn to and what a complaint can achieve. It helps to know who the regulator is, what it can do, and what it cannot do.

This article explains the regulator, the kinds of conduct that can be disciplined, the powers and penalties that follow, and the limited compensation route. It is general information, not legal advice.

This article covers the law of British Columbia.

Who regulates real estate licensees now

BCFSA (BC Financial Services Authority) regulates real estate licensees under the Real Estate Services Act. On August 1, 2021 the Office of the Superintendent of Real Estate and the Real Estate Council of B.C. integrated with BCFSA, and BCFSA is now the sole regulator for BC financial services including real estate.

That means the Real Estate Council of B.C. no longer exists as a place to complain, and older material that points to it is out of date. BCFSA's board must appoint a Superintendent of Real Estate, who exercises the Act's powers and may delegate them in writing. BCFSA licenses and regulates real estate agents, rental property managers and strata managers, and it also regulates real estate development marketing.

Who can complain, and how

Any person may complain to the superintendent if they believe a licensee may have committed professional misconduct or conduct unbecoming. The complaint must be in writing and include particulars. You do not need to have been the licensee's client.

Unless a complaint is anonymous, the superintendent must acknowledge receiving it and inform the complainant of the outcome. BCFSA's current complaint steps and timelines are best confirmed directly at bcfsa.ca, because procedure can change.

What counts as misconduct

Professional misconduct includes contravening the Act, wrongful taking or deceptive dealing, and incompetence. Conduct unbecoming is conduct the superintendent judges contrary to the public interest or bringing the industry into disrepute.

The Real Estate Services Rules set out duties that help show what proper conduct looks like. These are some of them:

• Honesty and reasonable care and skill, which a licensee owes to everyone, including people who are not clients.
• Client duties, such as acting in the client's best interests, keeping client information confidential, disclosing known material information and communicating all offers in a timely, objective and unbiased manner.
• Prompt and full written disclosure of a conflict to the client, separate from the service agreement.
• Prompt disclosure to the client of all remuneration paid or payable to the licensee's related brokerage, including its source and amount.

Whether a particular situation amounts to misconduct depends on the facts. The Rules speak of clients and unrepresented parties, not customers, so it matters whether the licensee was acting for you.

Investigation, hearings and possible orders

The superintendent may investigate, inspect and copy records at business premises, and require answers or production. If a discipline hearing is held, notice must be given at least 21 days before it.

Orders can include a reprimand, suspension or cancellation of a licence, conditions, required training, and a discipline penalty of up to $500 000 for a brokerage. The superintendent may also order a licensee to pay part or all of the Authority's investigation and hearing costs, subject to prescribed limits.

The superintendent may also impose administrative penalties for contraventions of designated provisions. If the person does not request a hearing within 30 days, they are deemed to acknowledge the contravention. A person subject to an order may appeal to the Financial Services Tribunal. Prosecution under the Act has a limitation period of 2 years after the date the facts arose, or from when the facts came to the superintendent's knowledge if the superintendent issues a certificate.

Compensation and what to do next

A complaint does not get you damages. The Act's remedies are regulatory orders, and compensation is available only through the Special Compensation Fund for compensable loss. That means money held by a licensee that was misappropriated, wrongfully converted or fraudulently obtained, and it excludes claims for remuneration.

• Write down what happened and keep your documents, such as agreements, emails and offers.
• Check bcfsa.ca for the current complaint procedure before you file.
• Put your complaint in writing with particulars.
• Make your complaint in writing and include particulars, and note that a Special Compensation Fund claim must be made within 2 years after the earliest of the events listed in s. 61(2).
• Speak to a lawyer about a civil claim if you want to recover money, since the discipline process does not award it.

Frequently asked questions