New Rules for Unrepresented Buyers
The Superintendent of Real Estate has announced new rules for real estate licensees that will change the way a real estate professional can provide service to consumers. Under the new rules, real estate licensees will be required to:
- give consumers more information about commissions and fees — in particular, how the commission is to be divided between a listing brokerage and cooperating brokerage, or when there is no cooperating brokerage, retained by the listing brokerage;
- before working with consumers, inform them of the duties and responsibilities owed to clients and unrepresented parties;
- inform unrepresented consumers of the risks of dealing with a licensee who is representing another party to the transaction;
- only work for either the buyer or the seller in a single real estate transaction. Under the new Rules, dual agency, the practice of acting on behalf of both the buyer and seller on the same trade, will be prohibited except in extremely limited circumstances.
The new rules will come into effect on March 15, 2018.
The Council has developed answers to a number of questions that real estate consumers may have about these new Rules.
If you have questions that aren’t addressed in the Frequently Asked Questions below, let us know by submitting your question using our online form — we will post responses to the questions we receive on this FAQ in the weeks ahead.