FAQ on How Current Deals Will be Affected

We’ve received a lot of questions about how current deals will be affected when the new agency and disclosure rules take effect on June 15th. Find answers to some of the most common questions.

I used the Working with a REALTOR ® brochure to disclose the nature of an agency relationship to a client before June 15th. Do I need to use the Disclosure of Representation in Trading Services to re-disclose this again to the same client after June 15th?

No. You only need to use the Disclosure of Representation in Trading Services with new consumers after June 15th. You do not need to use it with current clients except if you are changing the type of relationship from client to unrepresented party (or vice versa).

 

I entered into a dual agency agreement with two clients prior to June 15, 2018. The parties have not yet entered into a contract of purchase of sale. Can I continue to act as a dual agent for these clients after Rule 5-16 comes into effect on June 15, 2018?

Yes. You can continue to engage in dual agency if you are doing so pursuant to a dual agency agreement that was signed prior to June 15, 2018.

 

I entered into a dual agency agreement with two clients on February 1, 2018. The parties entered into a contract of purchase and sale before June 15, 2018 but it has a completion date after June 15th. Can I continue to act as a dual agent for these clients after Rule 5-16 comes into effect?

Yes. You can continue to engage in dual agency if you are doing so pursuant to a dual agency agreement that was signed prior to June 15, 2018.

 

If I receive an offer on my seller client’s property late in the evening of June 14, 2018 and present the offer to my client on the morning of June 15, 2018, am I required to make the disclosure required by section 5-11.1 of the Rules?

Yes. Every offer that is presented to a seller by the seller’s licensee on and after June 15, 2018 must be accompanied by a Disclosure to Sellers of Expected Remuneration in accordance with section 5-11.1 of the Rules.

 

I started working with a consumer recently, but we won’t have a chance to sign the Working with a REALTOR ® brochure by June 15, 2018. Do I need to provide them with the Disclosure of Representation in Trading Services form?

Yes. If you have NOT provided a consumer with the Working with a REALTOR ® brochure by June 15, 2018, and you are going to provide trading services after June 15, 2018 (other than “hosting an advertised open house” or “providing factual responses to general questions”), you need to give the consumer the Disclosure of Representation in Trading Services form. Even if you have already provided the consumer with trading services prior to June 15, 2018, you still need to comply with your disclosure requirements by giving the consumer the form before you provide further trading services.

 

I am representing a seller, and I have been working with a buyer as a customer. After June 15, can I continue to work with the buyer as an “unrepresented party”?

After June 15, 2018, before you provide trading services (other than “hosting an advertised open house” or “providing factual responses to general questions”) to an unrepresented party in a trade in which you are already an agent for another party, you need to give the unrepresented consumer the Disclosure of Risks to Unrepresented Parties form. You must give the consumer this form, even if you already provided trading services to that unrepresented party prior to June 15, 2018. If you are going to provide further trading services to that consumer after June 15, 2018, you need to give them the Disclosure of Risks to Unrepresented Parties form.

 

Will service agreements entered into before June 15, 2018 need to be brought into compliance with section 5-1(4) of the Rules once the new Rules take effect on June 15, 2018?

No. Section 5-1(4) of the Rules only applies to service agreements entered into on or after June 15, 2018.

Published on Jun 08, 2018