Most of these forms exist to protect you. They tell you who is working for you, how your real estate professional is being paid, and whether anyone has a personal stake in the deal. Here's what each one means, in the order you're likely to see them.
1. Disclosure of Representation in Trading Services
This is one of the first forms you'll see. A BC real estate professional must give it to you before providing real estate services. It tells you whether they will represent you as a client, who is owed fiduciary duties, or work with you as a non-client, who can receive some limited services without that relationship. It also explains how to make a complaint and includes information about the Home Buyer Rescission Period.
You won't need it to walk through an open house or ask a general question. If you start out as a non-client and later become a client, you'll get a new one. (More in the FAQ on this form; BCFSA marks your initials on it as optional.)
2. Disclosure of Risks to Unrepresented Parties
If you deal directly with the other side's real estate professional without your own, you're an unrepresented party, and you'll be given this form before you share confidential information. It explains the limited help that professional can give you, such as factual information or drafting a contract to your specifications. They can't advise you on the contract, and anything you tell them can be passed to their client. BCFSA strongly recommends having your own professional. (See buying without your own real estate professional.)
3. Disclosure of Risks Associated with Dual Agency
One professional representing both buyer and seller in the same deal is called dual agency, and in BC it's only permitted in very specific circumstances. If it's proposed, you'll get this form before any agreement, and it can only go ahead if all the legal requirements are met and everyone agrees.
4. How your professional is paid
For buyers: Disclosure of Remuneration
When a professional represents you, they must disclose in writing any payment their brokerage receives or expects from anyone other than you, including from the seller, with the source and the amount or how it's calculated. The disclosure shows the total the brokerage earns, not just the individual professional's share.
For sellers: Disclosure of Expected Remuneration
When a buyer's offer is presented to you, your listing professional gives you this form. It shows, in dollars, what you'll pay your brokerage and what will go to the buyer's professional's brokerage, and it's updated as offers and counteroffers change. BCFSA says this is the only time remuneration must be shown as a dollar amount.
Referral fees
If your professional receives a referral fee from anyone other than you, it must be disclosed to you promptly and in writing, with the source and the amount or method of calculation. It doesn't have to be cash: gift cards, loyalty points and merchandise count too. (See the FAQ on referral fees.)
5. Disclosure of Interest in Trade
If a real estate professional, or an associate such as their spouse or a company in which they hold at least a 5% interest, is buying or selling the property, they must give you this form before you enter into an agreement with them. It applies whether they represent themselves or hire someone else. If they're buying, it shows how much they'll earn on the deal and whether they plan to live in the property or resell it.
6. What sellers disclose about the home
Sellers in BC must disclose known material latent defects: hidden problems, such as ones that are dangerous to occupants or very costly to fix (see the FAQ on material latent defects). That disclosure must be in writing. Buyers should still arrange their own inspection and ask questions.
A home's history is different. There's no legal requirement in BC for a seller or their professional to disclose a stigma, such as a death at the property. If they answer a question, though, they must answer truthfully. If something about a home's past matters to you, ask a specific question (see this FAQ).
Pros and cons of all this paperwork
Pros
- You know who's working for you and who isn't, before you share anything confidential.
- Payments and personal interests are out in the open.
- You have a written record if questions come up later.
Cons
- It can feel like a lot, especially in a fast-moving deal.
- The forms explain your rights, but they don't replace legal advice.
Questions worth asking
- Are you representing me as a client, or working with me as a non-client?
- Who else, if anyone, are you being paid by on this deal, and how much?
- Do you or anyone connected to you have an interest in this property?
- Can I have copies of everything I sign?
- Should I talk to a lawyer before I sign this?
The bottom line
The forms aren't there to slow you down. Read each one, ask what it means for you, and keep copies. A good real estate professional will be glad you asked.
Buying or selling in Vernon or the North Okanagan and want the paperwork explained before you sign anything? Call or text Sean Phillips, REALTOR® with Coldwell Banker Executives Realty, at 236-599-5898. The guide to choosing a REALTOR® has questions to ask before you hire one.
This article is general information, not legal advice. Talk to a lawyer about your situation.