- BCFSA is the regulator of real estate licensees in BC, and any person may complain in writing with particulars.
- Possible outcomes are regulatory orders such as reprimand, suspension, cancellation and penalties, not damages for you.
- Compensation is available only through the Special Compensation Fund for certain losses, and claims must be made within 2 years.
If a realtor treated you badly, misled you or mishandled your money, you may want to complain. In British Columbia, BCFSA is the regulator of real estate licensees, and any person may make a written complaint to the superintendent if they believe a licensee may have committed professional misconduct or conduct unbecoming.
This article explains who the regulator is, what a complaint must include, what can happen next, and what a complaint cannot do for you. That last point matters, because many people expect compensation.
This article covers the law of British Columbia.
Who handles complaints now
BCFSA (BC Financial Services Authority) regulates real estate licensees under the Real Estate Services Act. On August 1, 2021 the Real Estate Council of B.C. and the Office of the Superintendent of Real Estate integrated with BCFSA, which is now the sole regulator. Older material that refers to the Real Estate Council is out of date.
BCFSA also licenses and regulates rental property managers and strata managers. The Authority's board of directors must appoint a Superintendent of Real Estate, who exercises the Act's powers and may delegate them in writing.
Generally, a person must not provide real estate services to or on behalf of another for remuneration unless licensed or exempt. The exemptions include persons acting under court authority, certain trustees and executors, and practising lawyers.
What you can complain about
Any person may complain to the superintendent if they believe a licensee may have committed professional misconduct or conduct unbecoming.
- 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.
Licensees owe duties to clients, including acting in their best interests, keeping information confidential and disclosing known material information. They also owe everyone, including non-clients, honesty and reasonable care and skill.
The law draws a line between a client, who is the principal who engaged the licensee, and an unrepresented party, who is a party to a trade but not a client of a licensee for that trade. The Rules do not use the word customer. Before providing trading services, a licensee must disclose whether or not they will represent you as a client. If the licensee represents a client, they must also tell an unrepresented party the risks of receiving assistance from the licensee and recommend that the party seek independent professional advice.
Examples of rules that may be relevant to a complaint include these:
- A licensee must promptly and fully disclose a conflict to the client, in writing and separately from a service agreement.
- A brokerage must not engage in dual agency, although the Rules give exceptions, including one for remote locations that requires a written agreement of dual agency with each party.
- A licensee must not request or agree to remuneration based on the difference between the listed price and the actual sale price.
- A licensee must promptly disclose to the client all remuneration paid or payable to the licensee's related brokerage, including its source and amount.
- A brokerage must pay money received from or for a principal into a BC interest-bearing trust account, and it may be exempt only if all principals agree in a separate written agreement and any rule conditions are met.
Whether something you experienced fits one of these rules depends on the facts, so it is worth confirming with a lawyer if you are unsure.
How to put your complaint together
A complaint must be in writing and include particulars. Unless it is anonymous, the superintendent must acknowledge receiving it and inform you of the outcome. Check BCFSA's current instructions for its exact steps and forms, since they can change.
- The licensee's name and brokerage.
- A dated timeline of what happened.
- Copies of the listing or service agreement, offers, emails and texts.
- Any disclosure documents you were or were not given.
- Receipts or records of money paid, including deposits.
A brokerage must have a written service agreement signed by the client and an authorized brokerage signatory before it represents the client in offering a property for sale, unless the prospective client waives that requirement. That agreement must state the expiry date and the remuneration payable and the circumstances in which it is payable, so it is a useful document to keep.
What happens after you complain
The superintendent may investigate, inspect and copy records at business premises, and require answers or production. Brokerage records, including trade record sheets showing every disbursement of deposit money, must be kept at least 7 years after creation unless the superintendent authorizes a shorter period. If the matter goes to a discipline hearing, notice must be given at least 21 days before it.
| Possible outcome | What it means |
|---|---|
| Reprimand, suspension or cancellation | Orders affecting the licensee's licence |
| Conditions or required training | Limits or education imposed on the licensee |
| Discipline penalty | Up to $500 000 for a brokerage |
| Costs order | Licensee may pay part or all of investigation and hearing costs, within limits |
| Administrative penalty | For contraventions of designated provisions; hearing must be requested within 30 days or the contravention is deemed acknowledged |
A person subject to an order may appeal to the Financial Services Tribunal.
What a complaint will not do, and what to do next
The discipline process provides no damages for the complainant. Its remedies are regulatory orders. Compensation is available only through the Special Compensation Fund, and only for compensable loss, meaning money held by a licensee that was misappropriated, wrongfully converted or fraudulently obtained. Claims for remuneration are excluded.
A fund claim must be made in writing to the superintendent within 2 years after the earliest of the events listed in the Act. Payments are capped at $200 000 to a single claimant and $1 000 000 in total for claims related to a single brokerage.
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.
If you want money back, speak to a lawyer early about other options and deadlines, and keep your complaint evidence organized in the meantime.
Frequently asked questions
Does my complaint need to be in writing?
Yes. A complaint must be in writing and include particulars. Unless it is anonymous, the superintendent must acknowledge it and tell you the outcome.
Will BCFSA get my money back?
The discipline process provides no damages to the complainant. Compensation is available only through the Special Compensation Fund for specific kinds of loss.
Is there a deadline for a compensation claim?
A Special Compensation Fund claim must be made in writing within 2 years after the earliest of the events listed in the Act. Do not wait to find out which event applies to you.
Can the realtor be punished?
Orders can include reprimand, suspension or cancellation, conditions, required training and a discipline penalty up to $500 000 for a brokerage. What applies depends on the findings.
Sources
- Real Estate Services Act, s. 1 (BC Laws) — bclaws.gov.bc.ca
- gov.bc.ca – Office of the Superintendent of Real Estate — www2.gov.bc.ca
- Real Estate Services Rules, s. 1 — bclaws.gov.bc.ca
- Real Estate Services Regulation, ss. 5.1–5.2 — bclaws.gov.bc.ca
Links go to official government, court and regulator pages. The law changes — confirm you are reading the current version.
This is a real estate question
A home purchase with us is from $1,900.88, tax included. Third-party fees are extra.