Encyclopedia
Agency
The legal relationship between you and the brokerage that represents you. In BC, licensees have to give you a written disclosure of representation before providing real estate services.
For example: A buyer looking at an industrial strata unit gets a disclosure form from the listing licensee explaining that the licensee represents the seller, not the buyer. (Illustration only, not a real deal.)
Official source: Real Estate Services Rules (BC Laws)
Example only, not a real client. Say you hire me to find a building for your business. Once we have an agreement, I act as your agent, which means I owe you duties of loyalty, confidentiality and full disclosure while I work for you.
What I’d tell a friend
Know who your agent works for and what duties they owe you.
Why it matters to you
It decides who is actually working for you. If the agent across the table represents the other side, they can't advise you on price or terms, so you need to know before you share your budget or your deadline.
How to use it in your deal
Buyers, tenants, sellers and landlords should decide early whether you want your own representation. Read the disclosure of representation form and ask questions if it's unclear. If a licensee isn't representing you, they can still give some information but can't advise you or negotiate for you.
Since 2021, BC rules have largely banned dual agency, so one licensee usually can't represent both sides of the same deal. Ask how the brokerage handles situations where two of its licensees represent opposite sides. Get agreements in writing, including what you'll pay and for how long.
Owners leasing space should know a tenant's licensee may be paid by the landlord, which doesn't change who they represent.
Mistakes I see
Sharing confidential information with the other side's licensee. Assuming any licensee works for you. Not reading disclosure forms. Signing long exclusive agreements without reading terms.
In BC and Vancouver
The Real Estate Services Act and BC Financial Services Authority (BCFSA)'s rules set agency duties and disclosure. BCFSA publishes guidance for consumers.
Official sources: Real Estate Services Act (BC Laws) · Real Estate Services Rules (BC Laws) · BC Financial Services Authority
What it means
Agency is the legal relationship where an agent acts on behalf of a client, such as a buyer, seller, landlord or tenant.
In BC, real estate agents owe their clients duties under provincial rules.
What to know
Get your agency relationship in writing, including its length and the services included.
Ask how conflicts are handled, such as when the agent’s brokerage lists a property you want.
Hiring an agent? Start with the questions I’d ask before you sign.
Questions to ask before you sign
- Who do you represent?
- What duties do you owe me?
- Is anyone at your brokerage working for the other side?
- How are you paid?
- How long is our agreement?
Keep reading
Related terms: Disclosure of representation, Dual agency, Buyer's agent, Tenant rep
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General information for British Columbia only. It isn’t legal, tax, accounting or financial advice, laws and rates change, and reading it doesn’t make you my client. Any numbers or scenarios are hypothetical. Check the linked official source and talk to a lawyer, accountant or other qualified professional before you act or sign anything. See the terms and disclaimer.