- Any person may complain to the superintendent in writing, with particulars, if they believe a licensee committed professional misconduct or conduct unbecoming.
- The process leads to regulatory orders, not damages for you.
- Compensation exists only through the Special Compensation Fund for compensable loss, with a 2-year claim deadline.
If you believe a realtor acted improperly, you may want to know whether a complaint is worthwhile and what it can achieve. Knowing the limits at the start helps you choose the right route.
This article explains how a complaint to the superintendent works under the Real Estate Services Act, what can follow, and what a complaint cannot do. For BCFSA's current forms and online steps, check the BCFSA website, since procedures can change.
This article covers the law of British Columbia.
What you can complain about
Any person may make a complaint 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.
BCFSA is the regulator of real estate licensees under the Real Estate Services Act. Since August 1, 2021, the Office of the Superintendent of Real Estate and the Real Estate Council of B.C. have been integrated with BCFSA, which is now the sole regulator for BC financial services including real estate. BCFSA licenses and regulates real estate agents, rental property managers and strata managers.
The rules a licensee must follow can help you see whether something went wrong. Examples from the Real Estate Services Rules and the Act include:
- A licensee owes a client duties such as acting in the client's best interests, keeping client information confidential, disclosing all known material information about the services, and communicating all offers in a timely, objective and unbiased manner. These duties can be modified only by written agreement, and even then the brokerage must still supervise its licensees and protect confidential information.
- A licensee must promptly and fully disclose a conflict to the client, in writing and separately from a service agreement.
- A licensee must act honestly and with reasonable care and skill, including toward parties who are not clients.
- A brokerage must not engage in dual agency, with limited exceptions, such as a trade in a remote location where it is impracticable for different licensees to serve the parties, which requires disclosure and a written agreement 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 brokerage must pay money received from or for a principal in relation to real estate services promptly into a BC interest-bearing trust account, unless all principals agree otherwise in a separate written agreement and any rule conditions are met.
The Rules distinguish between a client, who has engaged the licensee, and an unrepresented party, who is not a client of a licensee for that trade. Before providing trading services, a licensee must disclose whether or not they will represent the party as a client. Whether a particular event amounts to misconduct depends on the facts, so a lawyer can help you assess it.
How to make the complaint
A complaint must be in writing and include particulars. Unless the complaint is anonymous, the superintendent must acknowledge receiving it and inform you of the outcome.
- Write down what happened, with dates, names of the licensee and brokerage, and the property involved.
- Gather the service agreement, disclosure documents, offers, emails and text messages.
- Note any money involved, such as deposits or commission.
- State clearly what you believe the licensee did wrong, and why.
- Make sure your complaint is in writing and includes particulars, and confirm the current way to submit it on the BCFSA website.
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 generally be kept for at least 7 years unless the superintendent authorizes a shorter period.
| Possible step | What the Act says |
|---|---|
| Discipline hearing | Notice must be given at least 21 days before the hearing |
| Orders | Reprimand, suspension or cancellation, conditions, required training, and a discipline penalty up to $500 000 for a brokerage |
| Costs | The superintendent may order a licensee to pay part or all of investigation and hearing costs, within prescribed limits |
| Administrative penalties | Possible for contraventions of designated provisions; no hearing request within 30 days means the person is deemed to acknowledge the contravention |
| Appeal | A person subject to an order may appeal to the Financial Services Tribunal |
What a complaint cannot do
The discipline process provides no damages for the complainant. The Act's 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 Special Compensation Fund claim must be made in writing to the superintendent within 2 years after the earliest of the events listed in the Act. The caps are $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 2-year limitation period from 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 for a loss, a complaint alone will not do that. A lawyer can explain whether a civil claim, a fund claim or both may suit your situation.
What to do next
- Act promptly, because the fund claim deadline is 2 years.
- Keep all original documents and write your timeline while memories are fresh.
- Check that the person you dealt with was a licensee, since the Act requires a licence to provide real estate services for remuneration unless the person is exempt, for example a practising lawyer.
- Decide whether your main goal is regulatory action, money recovery, or both.
- Speak with a lawyer if money is at stake, so a complaint does not delay other options.
Frequently asked questions
Who can file a complaint against a realtor?
Any person who believes a licensee may have committed professional misconduct or conduct unbecoming can complain to the superintendent. You do not need to have been the realtor's client.
Can I complain anonymously?
The Act's duty to acknowledge a complaint and inform the complainant of the outcome applies unless the complaint is anonymous. An anonymous complaint therefore will not get that follow-up.
Will a complaint get me compensation?
Not directly. The discipline process provides no damages, and compensation is only through the Special Compensation Fund for compensable loss. Claims for remuneration are excluded.
What penalties can a realtor face?
Orders can include a reprimand, suspension or cancellation, conditions, required training, and a discipline penalty up to $500 000 for a brokerage. A person subject to an order may appeal to the Financial Services Tribunal.
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.
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