The ban on dual agency and the requirement to provide the mandatory disclosures apply to all trading services licensees – whether you practice in the area of residential real estate, commercial real estate, or whether you specialize in agricultural, industrial, or recreational properties.
The agency and disclosure rules also apply to rental property management licensees, when providing trading services in relation to rental property.
By introducing new agency rules and new disclosure requirements, the Superintendent made it clear that all real estate consumers have a right to expect the undivided loyalty of their licensee, and must be fully informed of their rights and the risks. The Real Estate Services Act and the new rules do not distinguish between residential and commercial real estate transactions.
Effective June 15, 2018, licensees who specialize in commercial real estate must use all four new mandatory disclosure forms with consumers, and are prohibited from practising dual agency.
Regardless of whether you specialize in marinas, ranch lands, mobile homes, supermarkets or other kinds of specialty properties or niche markets, the agency and disclosure rules will apply to the services you provide.
Trading services licensees who serve speciality markets must make all required disclosures, effective June 15, 2018.
The agency and disclosure rules apply to trading services in relation to the rental of real estate. This means that services such as finding tenants and assisting in the renting or leasing of property are covered under the rules, while collecting rents or managing the real estate are not.
When providing these trading services, rental property manager must use all but one of the mandatory disclosure forms. Because property is not being sold, rental property managers do not have to make a Disclosure of Expected Remuneration to Sellers.
The agency and disclosure rules effective June 15, 2018 do not apply to the provision of strata management services.
Do the new agency and disclosure rules apply to strata managers?
No. The agency and disclosure rules that come into force on June 15 apply only to trading services and some aspects of rental property management.
Do the new agency and disclosure rules apply to rental property managers?
Yes – when a rental property manager is providing services like lease-ups and tenant placement. These services are considered trading services in relation to the rental of real estate. When providing these services, rental property managers must provide consumers with the Disclosure of Representation in Trading Services, the Disclosure of Risks to Unrepresented Parties, and (in the rare cases when it would be appropriate) the Disclosure of Risks of Dual Agency.
Because property is not being sold, rental property managers do not have to make a Disclosure of Expected Remuneration each time an offer is presented.
Do the agency and disclosure rule coming into effect on June 15 apply to commercial real estate transactions?
Yes! Licensees who practice commercial real estate must comply with all the requirements that come into force on June 15, 2018.
The ban on dual agency and the requirement to provide the mandatory disclosures apply to all forms of trading services – residential, commercial, agricultural, industrial, recreational.
Published on May 04, 2018