In 2023, do not expect a BC real estate agent to show you homes if you are not their client. The reasons for such an expectation is explained in the following paragraphs.
The real estate sector is highly regulated by the government. Showing a home is one of the real estate services described in the BC Real Estate Services Act. https://www.bclaws.gov.bc.ca/civix/document/id/complete/statreg/04042_01
The provincial regulator, the BC Financial Services Authority (BCFSA) is responsible for regulating the real estate industry.
Federal Laws
The Proceeds of Crime (Money Laundering) and Terrorist Financing Act requires that real estate agents complete an Individual Identification Record on people when they act for them in respect to the purchase or sale of real estate. https://lois-laws.justice.gc.ca/eng/acts/P-24.501/
The Prohibition of Purchase of Residential Real Estate by Non-Canadians Act bans the purchase of residential real estate by foreign buyers (non-Canadians) from the 1st of January 2023 through the 1st of January 2025. Real estate agents must now confirm the citizenship / residence status of real estate buyers to ensure that they are aiding a non-Canadian and committing an offense under the act. https://laws-lois.justice.gc.ca/eng/acts/P-25.2/page-1.html
Because of these two laws, real estate agents are now required to:
- Confirm the identify (in person) of their real estate buyers and sellers, and,
- for real estate buyers, confirm that they are not prohibited from the purchase of residential real estate in Canada
Provincial Laws and Regulations
Real estate professionals have a regulatory requirement to present consumers with information on the BCFSA ‘Your Relationship with a Real Estate Professional” BEFORE providing services to you. https://www.bcfsa.ca/media/3108/download#:~:text=Whenever%20a%20real%20estate%20professional,with%20reasonable%20care%20and%20skill.&text=This%20is%20a%20required%20disclosure,the%20Real%20Estate%20Services%20Rules.
This form states that when you become a client, you may be asked to sign a written agreement setting out your, and the real estate professional’s, responsibilities.
The real estate agent must disclose whether or not they are representing you as a client. If they agree to represent you as a client they take on special legal duties that include avoiding conflicts of interest.
Conflicts of Interest
Dual agency (except in rare circumstances that do not apply to the Comox valley area) is prohibited. This means a real estate agent cannot represent more than one party in the same transaction (two or more buyers or a buyer and a seller). https://www.bcfsa.ca/about-us/legislation/real-estate-services-rules#section63
Before taking on a new client, real estate agents must evaluate whether or not the new client could generate a conflict of interest with existing clients.
The real estate agent will need to have a discussion about buyer needs and qualifications before they can assess whether or not the new potential client represents a potential conflict of interest with existing clients.
Real Estate Services Agreements
To become a real estate client, you will be asked to sign a written agreement that sets out your and the real estate agency / agent’s professional responsibilities along with a fee agreement. When a home seller engages the services of a real estate agent to help them sell their home, they generally do so by signing a multiple listing contract. Similarly, buyers can choose to engage the services of a real estate agent through either a buyer agency contract or a buyer agency acknowledgement. https://www.bcfsa.ca/industry-resources/real-estate-professional-resources/knowledge-base/guidelines/service-agreements-guidelines
Other professionals use similar agreements. Lawyers, for example, generally employ engagement letters that describe the relationship between the attorney and the client, including the scope of work to be done and the fee agreement.