Taken from “Coastal Appraisals”.
http://coastalappraisals.net/do-you-really-need-a-real-estate-agent/
On September 7th, an article in the Vancouver Sun entitled, “Proposed new rules address problems in real estate industry” caught my eye. In the article, the author, David Carrigg, outlines proposed new rules in BC that have been drafted by the Superintendent of Real Estate, Michael Noseworthy. Mr. Noseworthy plans to eliminate multiple issues such as when the realtor represents both the buyer and seller. The lack of oversight in this area gives realtors the power to put their own interests ahead of their clients’ and potentially personally enrich themselves.
When a realtor is hired, they are ethically and professionally obligated to work in the best interests of their client, whether that be selling property for the highest price, or purchasing property for the lowest price. In the market today, it is not an unusual practice for a realtor to represent both the buyer and the seller. This is an issue because it creates a conflict of interest. The agent can not properly represent the best interests of both parties. This gives them the opportunity to influence what their client buys and the selling price, which in turn gives them a higher commission. This is what is know as “dual agency”. To eliminate this, real estate agents will no longer be allowed to represent both the buyer and the seller unless there is limited access to real estate agents such as might be the case in rural areas. Another aspect is that the ultimate recipients of the commission earned on a sale must be disclosed to the buyer and seller. This includes when any part of the commission is being shared with another realtor. This is to ensure transparency and to discourage realtors from attempting “dual agency” with a partner.
I support the proposed new rules because they encourage good behavior by all real estate agents. Before, those who chose to be ethical were at a disadvantage to other agents who had a more flexible moral compass. Hopefully with this new legislation, it will now be a more even playing field and the consumers will benefit as a result.
This proposed new legislation from Michael Noseworthy is long overdue and should encourage more ethical behavior by realtors in the housing market. Although most realtors have always had their clients’ best interests at heart, the evidence suggests that not all did. Hopefully when the new laws go into effect on January 15th, 2018 it will encourage a generally more ethical real estate market for consumers.
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