Understand how to use the Disclosure to Seller of Expected Remuneration.

1. Disclosure to Sellers
of Expected Remuneration
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 to a consumer each time you present an offer to
your seller client. This includes all counter-offers coming from a potential
buyer to your seller client.
Ifyou are licensed fortrading services:

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

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

6. Who Must Make this Disclosure?
NOTE: This form does not replace the existing
Disclosure of Remuneration.

7. Overview
This guide is intended to help real estate professionals
(licensees) use the Disclosure to Sellers of Expected
Remuneration form with consumers.
The Disclosure to Sellers of Expected Remuneration form is a
mandatory Council-approved form and may not be modified
or altered.

8. Overview
1. Inform the consumer of the risks of being unrepresented
in a real estate transaction
2. Inform the consumer of the limits to the services a licensee
can provide to an unrepresented party
3. Advise the consumer to seek independent professional
advice.
Eachtime a trading serviceslicenseepresents an offer
to their sellerclient, they must include a completed
disclosure form thatinforms the client about the
remunerationthe licensee'sbrokeragewill receive.

9. Overview
• the total payment that the listing brokerage would receive if the offer
is accepted;
• how the payment would be shared with any cooperating brokerage;
• the payment that would kept by the listing brokerage; and
• any other payment the licensee will receive, or expects to receive, as
a result of the trade.
This information helps ensure that sellers are fully informed of the
expected remuneration that the brokerage(s) will receive if they accept
an offer.
The form explains to the seller:

10. Overview
The new Disclosure to Sellers of Expected Remuneration
Form is in addition to the existing obligation to present a
Disclosure of Remuneration form. Learn more about
those existing obligations in the Report From Council or
Professional Standards Manual.

11. Understanding the Form
Section 1: An information piece for consumers called
“Payment for Real Estate Services – What Sellers Need
to Know.”
The section informs the consumers that real estate
professionals are required to disclose to their clients how
they will be paid for their services. It also explains that
commissions are paid by the sellers to the real estate
professional’s brokerage, and that real estate professionals
receive payment from the brokerage.
The form contains three keysections:

12. Understanding the Form
It explains to your seller the total commission that the listing
brokerage would receive if the offer is accepted, and how it
will be split with any cooperating brokerage. It also informs
the seller of any other payment you will receive, or expect to
receive, as a result of the trade.

13. Understanding the Form

14. Understanding the Form
This is intended to ensure that sellers clearly understand
how their licensee would be compensated and how
remuneration could vary on different offers.
While consumers are under no obligation to accept any
offer, real estate professionals are required by law to
bring all written offers to their clients for consideration,
unless otherwise instructed by their clients.

15. Understanding the Form
Section 2: Details of the Offer
This section includes information on the specific details of the
offer that they will be reviewing, including:
• The address of the property
• Name of the real estate professional (you)
• Listing brokerage (your brokerage)
• Name of potential buyer(s)
• Potential buyer’s brokerage (the cooperating brokerage)
• Date of the offer
• Purchase price

16. Understanding the Form
It then includes the followingsections:
“You will pay your real estate professional’s
brokerage this amount”
This is the total commission.
“This amount will be shared with the potential
buyer’s brokerage (the co-operating brokerage)"
This is how much will be shared with the buyer’s
brokerage. Note: If the potential buyer’s brokerage
is also your own brokerage, you should treat them
as the co-operating brokerage.
“This amount will be kept by your real estate
professional’s brokerage”
This is the total commission minus the amount that
would be shared with the potential buyer’s/co-
operating brokerage.
“Your real estate professional has received or will
receive this amount from someone other than you,
as a result of providing real estate services to you,
or on your behalf."
If you disclose an amount in this section, you must
provide the consumer with a separate Disclosure of
Remuneration that sets out the source of the
remuneration, the amount or likely amount or
method of calculation of the remuneration and all
other relevant facts relating to the remuneration.

17. Understanding the Form
Section 3: Checklists and signature sections for the
licensee (mandatory) and signature section for the
consumer (optional).
The purpose of this section is to document that the
disclosure has been made to the consumer.

18. Understanding the Form
Client: the principal who has engaged the licensee to provide
real estate services to or on behalf of the principal.
Cooperating brokerage: a brokerage that provides trading
services to or on behalf of a buyer in respect of a trade in real
estate. Note: under designated agency, this could be the same
brokerage as the listing brokerage.
Remuneration: any form of remuneration, including any
commission, fee, gain or reward, whether the remuneration is
received, or is to be received, directly or indirectly.
Definitions of Terms in the Disclosure Form

19. Using the Disclosure Form
Step 1: Fill out the Details of the Offer
Complete the Details of the Offer section before presenting
the disclosure to your seller client. Remember that you must
fill out a separate disclosure for each offer (including
counter-offers) coming from the buyer to your seller client.

20. Using the Disclosure Form

21. 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.

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
Step 5: Submit the form (or a copy of the form) to your
brokerage promptly
A copy of the form is not required to be provided to the
Council unless it is specifically requested.

26. QUESTIONS??