Understand how to use the Disclosure to Risks Associated with Dual Agency.

1. Disclosure of Risks Associated
with Dual Agency
A Guide for Licensees

2. Agenda
1. Who Must Make this Disclosure?
2. Overview
3. Understanding the Form
4. Definitions of Terms in the Disclosure Form
5. Using the Form

3. Who Must Make this Disclosure?
Make this disclosure before representing two clients with competing
interests in the same transaction, if all of the following requirements
are met:
1. The property is in a remote location.
2. That location is under-served by real estate professionals.
3. It would be impracticable (i.e. not possible) for the parties to have
different real estate professionals in this transaction.
Ifyou are licensed fortrading services and/or rental
property managementservices (appliestotradingservicesin
relationtorentalpropertymanagementonly):

4. Who Must Make this Disclosure?
You do not need to make this disclosure.
Ifyou are licensed forstrata managementservices:

5. Overview
This guide is intended to help you understand how to use
the Disclosure of Risks Associated with Dual Agency.
The Disclosure of Risks Associated with Dual Agency form is
a mandatory Council-approved form and may not be
modified or altered.

6. Overveiw
Under the Superintendent’s agency and disclosure rules, real
estate professionals (licensees) in BC are banned from engaging
in dual agency, including:
• representing both the buyer and the seller in a single
transaction;
• representing two separate buyers who each hope to
purchase the same property; or
• representing both the potential tenant and the landlord of
the same property.

7. Understanding the Form

8. Overveiw
• the real estate is in a remote location;
• the location of the real estate is under-served by
licensees; and
• it is impracticable for the parties to be provided trading
services by different licensees.
Despite the ban on dual agency,there is a narrow
exemption for licenseesto practicedual agencyif allthree
of the followingrequirements are met:

9. Overview
In the very rare circumstance where a trade does fall within
the exemption, you must use the Disclosure of Risks
Associated with Dual Agency form. The form must be given
to the consumers before providing them with any trading
services within the dual agency relationship.
A separate form must be presented to each consumer you
wish to represent in a dual agency relationship.

10. Overview
This disclosure does not replace the Dual Agency
Agreement, which is also required before providing
trading services within the dual agency relationship.

11. Understanding the Form
Section 1: An information piece for consumers called
“Understand the Risks of Dual Agency”.
The purpose of this section is to inform consumers about
the risks associated with dual agency, including:
• how dual agency benefits real estate professionals;
• how dual agency limits a real estate professional’s ability
to give their clients advice; and
• how dual agency prevents real estate professionals from
exclusively acting in their best interests.
The Disclosure of Risks Associatedwith Dual Agencyform
contains three keysections.

12. Understanding the Form
It also offers the consumer options other than
entering into a dual agency relationship.

13. Understanding the Form
Section 2: Checklists and signature sections that must be
completed by the real estate professional but are optional
for the consumer.
The purpose of this section is to document that the
disclosure has been made to the consumer.

14. Understanding the Form
Section 3: An explanation from the managing broker that
must be completed before it is presented to the consumer.
The managing broker must attach an explanation of how
each of the three necessary criteria for providing dual
agency is met. The managing broker must also sign the form.

15. Understanding the Form
Agency: a type of relationship where the agent has the
authority to represent and act for the consumer in dealing
with others.
Client: the principal who has engaged the licensee to
provide real estate services to or on behalf of the principal.
Confidential information: any information about a client
that is not available to the public. That can include the
client’s finances, personal situation, motivations or needs.
Definitions of Terms in the Disclosure Form

16. Understanding the Form
Dual agency: the representation, in respect of a trade in real
estate, by the brokerage of the following:
• both the seller and the buyer as clients;
• both the lessor and the lessee as clients;
• both the assignor and the assignee as clients;
• 2 or more buyers, lessees or assignees, as the case may be, as
clients who have conflicting interests in respect of the trade in
real estate.
Definitions of Terms in the Disclosure Form

17. Understanding the Form
Impracticable: impossible to do or carry out.
Unrepresented party: a party to the trade in real estate
who is not a client of a licensee for the trade in real estate.
NOTE: the terms “remote” and “underserved” are not
defined in the Rules. Council’s position is that these terms
should be interpreted narrowly and strictly, in keeping with
the Superintendent’s goal of imposing broad restrictions on
dual agency.
Definitions of Terms in the Disclosure Form

18. Using the Disclosure Form
Step 1: The managing broker must complete their portion
of the form.
The managing broker must complete a checklist, attach an
explanation of how each of the necessary criteria for
providing dual agency is met, and sign the form.

19. Using the Disclosure Form

20. Using the Disclosure Form
Step 2: Discuss the Form with the Consumer
Take time to review the form with the consumer and
discuss any questions or concerns the consumer may have.
Explain any unfamiliar terms using the definitions included
in this guide.

21. Using the Disclosure Form

22. Using the Disclosure Form
Step 3: Complete the Mandatory Real Estate Professional
Confirmation
The form contains a mandatory checklist that licensees must
complete, plus a mandatory signature section.

23. Using the Disclosure Form

24. Using the Disclosure Form
Step 4: Invite the Consumer to Complete the Optional
Consumer Confirmation
It is optional for consumers to complete the checklist or sign
their name. If a consumer chooses not to complete and sign
the disclosure, you can make a note at the bottom of the
Mandatory Real Estate Professional Confirmation to
document that you presented the consumer with the form.

25. Using the Disclosure Form

26. Using the Disclosure Form
Step 5: Submit the form (or a copy of the form) to your
brokerage promptly

27. Using the Disclosure Form
Step 6: The brokerage must provide a copy of this
disclosure to the Real Estate Council.
A copy of this disclosure must be sent to the Council
promptly after entering into a written agreement of
dual agency to forms@recbc.ca. Remember that
promptly means without delay.
NOTE: a copy of a disclosure for each consumer you are
representing in a dual agency relationship must be sent
to Council.

28. Using the Disclosure Form

29. Using the Disclosure Form
Step 7: Your clients must sign a Dual Agency Agreement.
After getting the disclosure signed, licensees must have
clients sign the agreement. The agreement does not
need to be sent to Council. The agreement is not in a
form prescribed by council.

30. QUESTIONS??