We wanted to let you know about a new real estate rule that came into effect last Friday, June 15 that will affect the way you work with a realtor. Limited Dual Agency will no longer be allowed. What is "limited dual agency"? And what impact will this have on you? Keep reading to find out.
Limited Dual Agency
In the very recent past, real estate agents were able to represent both the buyer and the seller. Example: if a realtor's client was interested in buying a property that was listed by the same Realtor. The "limited dual agency" would require that the Realtor sign an agreement, where he/she is bound by contract to act impartially on behalf of both the buyer and the seller. Although this works in theory, clients are at the mercy of their real estate agent's honesty and integrity.
New Rule: Single Agency
BC is the first Canadian province to implement rules that require Realtors to act only for one party. This provides greater protection for home buyers and sellers, as real estate agents are dedicated to getting the "best offer" for their clients without the lure of an enticing opportunity. Realtors will also be required to provide their clients with more detailed information about how they're being compensated in each real estate transaction.
There may be circumstances where your existing Realtor cannot represent you in a real estate transaction if he/she is already representing someone else. In addition, listing agents won't be able to bring their own buyers.
If you have any questions about how this new rule will affect your next real estate transaction, please contact us - we'd be happy to answer any questions!