Who Regulates BC Realtors? BCFSA and the Real Estate Council

If you search for the body that oversees realtors in British Columbia, you may still find references to the Real Estate Council of B.C. Those sources are out of date, and knowing who is in charge today helps you know where to turn with a concern.

This article explains what BCFSA does, what happened to the Real Estate Council, who must be licensed, what duties licensees owe you, how agreements and money are handled, and what can happen if something goes wrong.

This article covers the law of British Columbia.

BCFSA is the regulator, and who needs a licence

BCFSA (the BC Financial Services Authority) is the regulator of real estate licensees under the Real Estate Services Act, and the word "Authority" in the Act means BCFSA. It licenses and regulates real estate agents, rental property managers and strata managers, and it also regulates real estate development marketing under the Real Estate Services Act and the Real Estate Development Marketing Act.

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.

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 happened to the Real Estate Council of BC

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. If you see older material telling you to contact the Real Estate Council, treat it as out of date.

What licensees owe you

The law draws the line between a client and an unrepresented party, not between a client and a customer. A client is the principal who has engaged the licensee to provide real estate services, and an unrepresented party is a party to a trade who is not a client of a licensee for that trade. The Rules do not use the word "customer".

• To a client, a licensee owes duties including 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.
• To everyone, including parties who are not clients, a licensee must act honestly and with reasonable care and skill.
• Before providing trading services, a licensee must disclose whether or not they will represent the party as a client.
• If the licensee represents a client, they must tell an unrepresented party the risks of receiving assistance from the licensee and recommend that the party seek independent professional advice.

A brokerage must not engage in dual agency, meaning acting for both sides, subject to limited exceptions such as a remote-location trade where written agreements and disclosure are required. Naming designated agents does not by itself amount to dual agency unless the designated licensee represents both parties as clients.

Agreements, commission and money held in trust

A brokerage providing trading services must have a written service agreement signed by the client and an authorized brokerage signatory, entered into before the brokerage represents the client in offering the property for sale. That requirement does not apply if the prospective client waives it.

The agreement must state the expiry date and the remuneration payable and the circumstances in which it is payable, and a copy must be delivered immediately on execution. The Rules do not give a general right to cancel a listing agreement, so the contract's own terms govern early termination. Because that depends on the wording of your contract, it is worth having a lawyer read the clause before you sign or try to end it.

• A licensee must not request or agree to remuneration based on the difference between the listed price and the actual sale price.
• GST at 5% is added on top of a brokerage's commission in British Columbia.

A brokerage must pay all money received from or for a principal in relation to real estate services promptly into a BC interest-bearing trust account. Deposit money held for a trade is held by the brokerage as a stakeholder and not as agent for one of the parties, unless the parties agree otherwise in writing or regulated circumstances apply. How a disputed deposit is released depends on the facts, so get legal advice if you and the other side disagree.

If something goes wrong

Any person may make a complaint 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. Unless a complaint is anonymous, the superintendent must acknowledge receiving it and inform the complainant of the outcome.

The discipline process provides no damages for the complainant. Compensation is available only through the Special Compensation Fund for compensable loss, meaning money held by a licensee that was misappropriated, wrongfully converted or fraudulently obtained, and it excludes claims for remuneration. A claim must be made in writing to the superintendent within 2 years after the earliest of the events listed in the Act. The fund is capped at $200 000 to a single claimant and $1 000 000 in total for claims related to a single brokerage.

What to do next

• Check that anyone offering real estate services for pay is licensed or fits an exemption.
• Ask the licensee, before services begin, whether they will act for you as a client.
• Keep a copy of your service agreement and any written disclosures.
• If you have a concern about conduct, you can make a written complaint to the superintendent with particulars.
• Act promptly if you think money was lost, because a Special Compensation Fund claim has a 2-year time limit.
• For a dispute over money or a contract, speak with a lawyer.

Frequently asked questions