1. Duty to Act Honestly and With Reasonable Care and Skill

All licensees must act honestly and with reasonable care and skill in all dealings, regardless of whether they are representing a client or dealing with an unrepresented party (Rules, s. 33–34). This is a statutory duty and is not limited to agency relationships.

2. Fiduciary Duties and Duty of Loyalty

When a licensee enters into an agency relationship (typically via a written service agreement), they owe the client fiduciary duties, including:

• Loyalty: Placing the client’s interests above their own.
• Avoidance of Conflicts of Interest: Licensees must avoid conflicts and, where unavoidable, must disclose and address them in accordance with the Rules (Rules, s. 30(i)-(j)).
• Full Disclosure: Licensees must disclose all known material information relevant to the client’s decision-making (Rules, s. 30(f)).

Dual agency (representing both buyer and seller in the same transaction) is generally prohibited, except in rare circumstances involving remote locations (Rules, s. 63–64).

3. Duty to Disclose Material Information

Licensees must disclose all known material information about the real estate, the trade, and the services being provided (Rules, s. 30(f)). This includes material latent defects, as defined in Rules, s. 59, and any other information that could affect a client’s decision.

4. Duty of Confidentiality

Licensees must maintain the confidentiality of all client information, both during and after the agency relationship (Rules, s. 30(e); BCFSA Agency Information). This includes financial details, motivations, and any other sensitive information.

5. Duty to Provide Information About Representation

Licensees are required to provide a Disclosure of Representation in Trading Services form to consumers at an early stage. This form explains:

• Whether the licensee is representing the consumer or another party,
• The nature of the duties owed depending on representation,
• The risks of being an unrepresented party.

This disclosure must be made before any confidential information is solicited or received (Rules, s. 54; BCFSA Disclosure Information).

6. Duty to Follow Lawful Instructions

Licensees must follow their clients’ lawful instructions, but are prohibited from following instructions that would result in a breach of law or the Rules (e.g., concealing a material defect or falsifying documents) (Rules, s. 30(b)).

7. Enforcement and Accountability

Breaches of the RESA, the Rules, or the Regulation can result in disciplinary action by the BCFSA, including fines, licence suspension, or cancellation (RESA, Part 4). Consumers may file complaints with the BCFSA, which has investigative and enforcement powers.

For any real estate questions or needs, Northam Law is here to help. Phone: +1 (604) 630-2350 Email: admin@northam-law.com

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