It’s been just over a year since the new real estate disclosure forms were introduced in BC and most people are still confused by them or don’t know what they are so, I’m going explain them for you.
It’s been a year since the new real estate disclosure forms were introduced in BC and most people are still confused by them or don’t know what they are so, I’m going explain them for you.
I’m Craig Veroni with RE/MAX Masters Realty. I was named one of the top 50 video influencers in real estate, in North America, for the past 2 consecutive years for the way I utilize video to sell my client’s homes and educate them as well. If you enjoy the content here, please subscribe to my channel, hit that thumbs up button and don’t forget to click on that bell so you can be notified immediately when I have a new video out. I want you to be able to stay up to date on all the latest tips and insights in the Vancouver real estate market so you can become an expert too!
Okay, let's dive into it. There were 3 new mandatory real estate forms introduced by the Superintendent of Real Estate, the Real Estate Council of BC, and the BC government a year ago. The most important thing you need to understand is that these are simply disclosure forms. Let me say that again. These are just disclosure forms and not contracts. These forms are meant to educate the public and provide them with vital information regarding Agency and you’re representation options.
The first is the Disclosure of Representation in Trading Services or DORTS. So, what exactly is this form and why is it important to you? It explains what your options are when it comes to representation and ensures you acknowledge that you understand these options. A key point here is that Dual Agency, which is where the listing agent could act for both the buyer and the seller, was banned in BC last year when these new forms were introduced but more on that in a moment. The superintendent of real estate believes that the general public needs to know and understand the advantages of working with a real estate professional and what their legal obligations are to you if they provide you client (agency) representation, as well as the pitfalls you can encounter if you decide to be unrepresented (no agency) in a real estate transaction. More on that in a moment too. He also believes the timing this information is imparted to you is important.
In order for every real estate agent to remain compliant with these new rules and forms, we need to provide them to you the moment the conversation moves from providing you factual information about a listing we may have or the real estate market at large to you discussing any personal information such as your financial situation, or why you’d like to buy or sell.
This is why if you’ve had any sort of interaction with a real estate agent over the past year it’s gotten awkward very quickly. Perhaps you’ve been at an open house or you’ve called an agent on the phone to discuss a particular home you’d seen. Things were going very well. You were getting all the information you needed. You felt comfortable with the agent. You began telling them all about how you’ve been searching for a home for a while now and you really want to live in this neighbourhood and this was your budget, and these are your needs and wants… and then there was a long awkward silence until the agent said, “It appears our conversation has moved from me simply providing you with factual information to you providing me with your personal information. I need to stop this conversation, send you this form called the Disclosure of Representation in Trading Services which explains agency. You must read it, and then we can continue our conversation. Awkward? Hell yes! Ridiculous in terms of timing? Hell yes! Out of left field for you the consumer? Absolutely. But, we don’t make the rules we just have to follow them.
You may be asking yourself what exactly is an Agency relationship. When you decide you want representation by a real estate agent, you’ll form an “agency” relationship with that Realtor. This means your Realtor is legally duty-bound to protect your interests. For example, that agent has fiduciary duties of loyalty, confidentiality, and disclosure to you the client. Ultimately, these forms and the discussions they encourage between you and a real estate agent will allow you to be more informed and make clearer decisions during a real estate transaction. So, just laugh along with us as we get through the awkward phase with you and these forms. Most people think we are trying to get them to sign a contract when we have to pull out this form and explain agency to them. I’ll say it again. It’s just a disclosure form. It’s not a contract.
The second form is called the Disclosure of Risks to Unrepresented Parties. This form essentially highlights the massive risks you take should you choose not to work with a real estate agent during the purchase of a home. All homeowners must sign a listing contract with a real estate agent if they want to sell their home. Buyers however are not mandated to sign a contract with an agent but, it is very unwise to purchase a home without one. This form spells out very clearly the risks you assume should you choose to be an unrepresented party. Remember, the listing agent for a home can no longer act for both the buyer and the seller in BC. If you intend to buy a home, find a REALTOR you like and trust to help guide you through the process. You may also want to check out my other video, The Home Buying Process Explained if you’re planning on buying a home in the near future.
The third form is called Privacy Notice and Consent form. In order to help you sell, buy, or lease real estate, REALTORS, brokerages, and real estate boards need to collect, use, and disclose some of your personal information. This form provides you with information about and obtains your consent to, such information handling practices. It informs you of how your personal information is collected and to whom that personal information may be disclosed.
And that’s it. See that wasn’t so bad. Three new forms to better inform you, early on in any real estate transaction. So, when things get awkward during your next conversation with a real estate agent, remember this video, don’t sweat it because they’re just disclosure forms.
Thanks so much for watching. I hope you’ve enjoyed this video. If you did, please subscribe to my channel, hit that thumbs up button and don’t forget to click on that bell so you can be notified immediately when I have a new video out. I want you to be able to stay up to date on all the latest tips and insights in the Vancouver real estate market so you can become an expert too! Have a great day, and remember, this is where you Live. Love. Own Vancouver!
I’m Craig Veroni with RE/MAX Masters Realty. I was named one of the top 50 video influencers in real estate, in North America, for the past 2 consecutive years for the way I utilize video to sell my client’s homes and educate them as well. If you enjoy the content here, please subscribe to my channel, hit that thumbs up button and don’t forget to click on that bell so you can be notified immediately when I have a new video out. I want you to be able to stay up to date on all the latest tips and insights in the Vancouver real estate market so you can become an expert too!
Okay, let's dive into it. There were 3 new mandatory real estate forms introduced by the Superintendent of Real Estate, the Real Estate Council of BC, and the BC government a year ago. The most important thing you need to understand is that these are simply disclosure forms. Let me say that again. These are just disclosure forms and not contracts. These forms are meant to educate the public and provide them with vital information regarding Agency and you’re representation options.
The first is the Disclosure of Representation in Trading Services or DORTS. So, what exactly is this form and why is it important to you? It explains what your options are when it comes to representation and ensures you acknowledge that you understand these options. A key point here is that Dual Agency, which is where the listing agent could act for both the buyer and the seller, was banned in BC last year when these new forms were introduced but more on that in a moment. The superintendent of real estate believes that the general public needs to know and understand the advantages of working with a real estate professional and what their legal obligations are to you if they provide you client (agency) representation, as well as the pitfalls you can encounter if you decide to be unrepresented (no agency) in a real estate transaction. More on that in a moment too. He also believes the timing this information is imparted to you is important.
In order for every real estate agent to remain compliant with these new rules and forms, we need to provide them to you the moment the conversation moves from providing you factual information about a listing we may have or the real estate market at large to you discussing any personal information such as your financial situation, or why you’d like to buy or sell.
This is why if you’ve had any sort of interaction with a real estate agent over the past year it’s gotten awkward very quickly. Perhaps you’ve been at an open house or you’ve called an agent on the phone to discuss a particular home you’d seen. Things were going very well. You were getting all the information you needed. You felt comfortable with the agent. You began telling them all about how you’ve been searching for a home for a while now and you really want to live in this neighbourhood and this was your budget, and these are your needs and wants… and then there was a long awkward silence until the agent said, “It appears our conversation has moved from me simply providing you with factual information to you providing me with your personal information. I need to stop this conversation, send you this form called the Disclosure of Representation in Trading Services which explains agency. You must read it, and then we can continue our conversation. Awkward? Hell yes! Ridiculous in terms of timing? Hell yes! Out of left field for you the consumer? Absolutely. But, we don’t make the rules we just have to follow them.
You may be asking yourself what exactly is an Agency relationship. When you decide you want representation by a real estate agent, you’ll form an “agency” relationship with that Realtor. This means your Realtor is legally duty-bound to protect your interests. For example, that agent has fiduciary duties of loyalty, confidentiality, and disclosure to you the client. Ultimately, these forms and the discussions they encourage between you and a real estate agent will allow you to be more informed and make clearer decisions during a real estate transaction. So, just laugh along with us as we get through the awkward phase with you and these forms. Most people think we are trying to get them to sign a contract when we have to pull out this form and explain agency to them. I’ll say it again. It’s just a disclosure form. It’s not a contract.
The second form is called the Disclosure of Risks to Unrepresented Parties. This form essentially highlights the massive risks you take should you choose not to work with a real estate agent during the purchase of a home. All homeowners must sign a listing contract with a real estate agent if they want to sell their home. Buyers however are not mandated to sign a contract with an agent but, it is very unwise to purchase a home without one. This form spells out very clearly the risks you assume should you choose to be an unrepresented party. Remember, the listing agent for a home can no longer act for both the buyer and the seller in BC. If you intend to buy a home, find a REALTOR you like and trust to help guide you through the process. You may also want to check out my other video, The Home Buying Process Explained if you’re planning on buying a home in the near future.
The third form is called Privacy Notice and Consent form. In order to help you sell, buy, or lease real estate, REALTORS, brokerages, and real estate boards need to collect, use, and disclose some of your personal information. This form provides you with information about and obtains your consent to, such information handling practices. It informs you of how your personal information is collected and to whom that personal information may be disclosed.
And that’s it. See that wasn’t so bad. Three new forms to better inform you, early on in any real estate transaction. So, when things get awkward during your next conversation with a real estate agent, remember this video, don’t sweat it because they’re just disclosure forms.
Thanks so much for watching. I hope you’ve enjoyed this video. If you did, please subscribe to my channel, hit that thumbs up button and don’t forget to click on that bell so you can be notified immediately when I have a new video out. I want you to be able to stay up to date on all the latest tips and insights in the Vancouver real estate market so you can become an expert too! Have a great day, and remember, this is where you Live. Love. Own Vancouver!