Suing a Realtor for Misrepresentation in BC: Your Options

You relied on something your realtor said about a property, a price or an offer, and it turned out to be false. Now you have lost money and you want to know whether you can sue and what you would have to show.

In British Columbia, the route you choose matters, because the regulator can discipline a realtor but cannot award you damages. This article explains the options, what evidence helps, and why time limits make it worth acting early.

This article covers the law of British Columbia.

Three routes, three different goals

These routes are not mutually exclusive in a general sense, but each has its own rules and deadlines. A lawyer can tell you which fit your facts.

What the realtor owed you

What a realtor owed you depends on whether you were a client. A client is the principal who engaged the licensee, and an unrepresented party is a party to the trade who is not a client of a licensee for that trade. Clients are owed duties that include acting in their best interests and disclosing all known material information about the services.

Even if you were not a client, a licensee must act honestly and with reasonable care and skill. A false statement may be relevant to those standards. Professional misconduct includes contravening the Act, wrongful taking or deceptive dealing, and incompetence.

The regulatory complaint and its limits

Any person may make a complaint to the superintendent if they believe a licensee may have committed professional misconduct or conduct unbecoming; it must be in writing and include particulars. Unless it is anonymous, the superintendent must acknowledge it and inform you of the outcome. The superintendent may investigate, inspect and copy records at business premises, and require answers or production.

Outcomes can include a reprimand, suspension or cancellation, conditions, required training and a discipline penalty of up to $500 000 for a brokerage. A person subject to an order may appeal to the Financial Services Tribunal. None of this pays you back: the Act's remedies are regulatory orders, and the process provides no damages for the complainant.

The Special Compensation Fund

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 lost deal or an overpayment caused by a careless statement may not fit this definition.

A 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.

A civil claim, proof and time limits

A civil claim in court is a separate route from the regulator's process, and what you would need to prove depends on the facts, so it is worth confirming with a lawyer. Whether a particular statement qualifies, and what damages are realistic, depends on the facts and the contract. A lawyer can assess this.

Be careful with time limits. The 2-year period for prosecution under the Act runs from the date the facts arose, or from when they came to the superintendent's knowledge if a certificate is issued. That is about prosecution, not a lawsuit. The deadline for a civil claim depends on the facts, so confirm it with a lawyer promptly rather than assuming you have time.

Early termination and commission disputes also depend on the contract. The Rules require a stated termination clause only for rental property management and strata management agreements, so a listing agreement's own terms govern early termination.

What to do next

• Write down exactly what was said, who said it and when, while your memory is fresh.
• Collect listing materials, emails, texts, offers, the service agreement and any disclosure documents.
• Keep brokerage disclosures; remuneration disclosures may show who was paid and how.
• Note the dates of every event, since a compensation claim has a 2-year window.
• Do not sign releases or settlement papers before you have advice.
• Speak with a lawyer early about which route, or combination, suits your situation.

Frequently asked questions