Designated Agency Update

The Joint Agency Task Force (JTF) was formed in January 2008 by the British Columbia Real Estate Association (BCREA) and the Real Estate Council of British Columbia (Council). Its mandate was to review the practice of agency in British Columbia, and make recommendations on changes which would enhance the consistency, understanding and professionalism of industry practice, and further the protections offered to consumers in the trading of real estate.

The review sought information and feedback from a range of sources, including a 2004 report by the Canadian Regulators Group and a 2008 survey gauging licensee understanding of agency practice in BC. In addition, extensive input was also sought from current licensees, industry educators, and other professionals with knowledge of current real estate practice. The review investigated potential impacts of any change on licensees and on the public, and examined the changes in agency practice implemented by some brokerages in Alberta and Nova Scotia.

In spring of 2010, the JTF report recommended a number of measures to enhance the practice of agency in the province, more correctly align practice with perception, and provide more clarity to both licensees and consumers. Specifically, the JTF recommended changing agency documentation in the province to move from the current brokerage agency model to a designated agency model where the brokerage enters into a contractual relationship with the client and designates a licensee or team of licensees engaged by the brokerage to provide real estate services as a sole agent to or on behalf of that client. The recommendations were adopted by the Council in 2010 and by BCREA in January of 2011 with a target implementation date of June 1, 2012.

An Implementation Task Force has been in place for over a year to facilitate adoption of the recommendations. In creating a detailed implementation plan, the Implementation Task Force explored the potential for difficulties in implementing a change to designated agency, and explicitly addressed the issues of information barriers, the needs of small communities and other implementation challenges in the design of its plan. The plan also included detailed approaches to regulatory changes, training and education, industry communications, and an integrated pilot project.

The pilot project has been underway with members of the Victoria Real Estate Board since January 2012 following managing broker and associate broker/representative workshops to explain the changes. The results have been excellent — the adoption of designated agency has been very smooth, with few impacts on the public, licensees and their related brokerages.

The next step in the implementation plan involves a series of managing broker and associate broker/representative workshops, which are being offered by all real estate boards in the province. There is a free webinar on designated agency being held on May 18, 2012.

The Council urges all licensees to take advantage of this opportunity to understand the changes in advance of beginning to practice designated agency. Extensive information related to designated agency, including frequently asked questions, is currently available at http://web.bcrea.bc.ca/da.

The Council has been pleased to work so closely with the industry on these changes. In the fall, the Council will be publishing information to incorporate designated agency into the Professional Standards Manual and Brokerage Standards Manual, as well as consulting with respect to proposed changes to the Council Rules.