Real Advice is a weekly e-newsletter helping licensees prepare for regulatory changes.
June 25, 2018
Tips for Disclosing Remuneration to Sellers
How should you fill out the Disclosure to Sellers of Expected Remuneration when the buyer’s agent is another licensee at your brokerage?
To help licensees answer this question, we’ve added new information and step-by-step guidelines to the:
- FAQ on Disclosure to Sellers of Expected Remuneration, and
- User Guide for the Disclosure to Sellers of Expected Remuneration Form.
When making the disclosure to sellers, keep in mind that by requiring licensees to disclose remuneration, the Superintendent’s intention is to ensure that home sellers are fully informed about:
- The amount of remuneration to be paid by the seller to the listing brokerage;
- The remuneration to be paid by the listing brokerage to a cooperating brokerage, if applicable; and
- The remuneration to be retained by the listing brokerage.
A cooperating brokerage is defined in the Rules as “a brokerage that provides trading services to or on behalf of a buyer.” When buyers and sellers are represented by separate designated agents at the same brokerage, that brokerage is by definition both the listing brokerage and the cooperating brokerage. So the form should be filled out just as it would be if the buyer was represented by a licensee from a different brokerage. By filling out the form this way, the seller can see that some of the remuneration will be shared with the buyer’s licensee, and that some will be retained by the listing agent. Check out the FAQ or the User Guide for full details.
Looking for an explanation of when and how to use the Agreement Regarding Conflict of Interest Between Clients? RECBC’s newest video is the resource you need.
The Agreement Regarding Conflict of Interest Between Clients video describes the options that licensees can use to manage situations when continuing to act in a conflict of interest would result in dual agency, and includes details on how to complete the Agreement Regarding Conflict of Interest Between Clients. It is intended to help licensees understand how to use the agreement in their daily business practices.
You can find the video on RECBC’s Licensee Knowledge Base, along with other brief videos covering each of the four mandatory disclosures:
- Disclosure of Representation in Trading Services video
- Disclosure of Risks to Unrepresented Parties video
- Disclosure to Sellers of Expected Remuneration video
- Disclosure of Risks Associated with Dual Agency video
If you’ve been reading the Real Advice enews each week, you probably have a good understanding of the recent changes to agency and disclosure, and how to comply with the requirements. Taking the Rule Changes: Agency & Disclosure course is a great way to confirm that you know everything you need – and it’s also a mandatory course that you must complete in order to renew your licence. If you haven’t been reading Real Advice regularly, it’s even more important that you complete the course as soon as possible, to make sure you are up to date with all the information you need in order to comply with the new rules.
Rule Changes: Agency & Disclosure is an online course that you can complete at your own pace, over three days. It takes most people about 4 to 5 hours to complete, and it includes modules on all the new forms, as well a refresher on the foundations of agency. Sign up now and feel confident that you’re able to provide your clients with the information they need to make well-informed real estate decisions.
Published on Jun 25, 2018