Disclosure of Interest in Trade
What is Disclosure of Interest in Trade in British Columbia?
Key Points
- What is a Disclosure of Interest in Trade under BC real estate rules?
- Who must provide a Disclosure of Interest in Trade?
- When must the Disclosure of Interest in Trade be provided?
- To whom must the Disclosure of Interest in Trade be given?
- What happens if a licensee fails to provide a Disclosure of Interest in Trade?
A Disclosure of Interest in Trade is a written disclosure required under the Real Estate Services Act, SBC 2004, c. 42, and BCFSA rules made under that Act, when a real estate licensee — or a person related to that licensee — has a direct or indirect interest in a real estate trade in which the licensee is also acting in a professional capacity. This obligation applies whether the licensee is acquiring or disposing of the property. The disclosure must be made to all parties to the trade and must occur before the trade is entered into. The requirement exists to manage conflicts of interest and ensure transparency in transactions where a licensee's personal or financial interests may influence their professional conduct. Verify current rule details, including any prescribed form or timing requirements, with a BC lawyer, notary, or licensed tax professional.
General information only — not legal, financial, tax, or real-estate advice. For your situation consult a licensed BC REALTOR®, lawyer, notary, or accountant.
Frequently Asked Questions
What is a Disclosure of Interest in Trade under BC real estate rules?
Under the British Columbia Financial Services Authority (BCFSA) Rules, specifically section 5-9 (as of 2026-07-27 — verify current), a Disclosure of Interest in Trade is a required written disclosure when a REALTOR® or related party is acquiring or disposing of real estate in which the licensee is also involved in their professional capacity. This ensures transparency when a licensee has both a personal and professional interest in the same transaction. Verify the current BCFSA Rules and any amendments with a BC lawyer or notary before acting.
Who must provide a Disclosure of Interest in Trade?
BCFSA Rules section 5-9 (as of 2026-07-27 — verify current) requires the disclosure from a licensee under the Real Estate Services Act (RESA), SBC 2004, c. 42, when the licensee or a related party is acquiring or disposing of real estate in which the licensee is acting in a professional capacity. Related parties typically include spouses, relatives, corporations, or partnerships in which the licensee has an ownership interest. Verify current definitions of 'related party' and specific disclosure obligations with a BC lawyer or notary before acting.
When must the Disclosure of Interest in Trade be provided?
The disclosure must be made in writing before the licensee or related party enters into an agreement to acquire or dispose of the property. This ensures that all parties to the transaction are aware of the licensee's dual interest before contractual obligations arise. Verify the exact timing requirements under current BCFSA Rules section 5-9 (as of 2026-07-27 — verify current) with a BC lawyer or notary before acting.
To whom must the Disclosure of Interest in Trade be given?
The disclosure must be provided in writing to all parties involved in the transaction, including the brokerage, clients, and other parties as required by BCFSA Rules section 5-9 (as of 2026-07-27 — verify current). The purpose is to ensure every participant is aware the licensee has both a personal and professional stake. Verify current disclosure recipient requirements with a BC lawyer or notary before acting.
What happens if a licensee fails to provide a Disclosure of Interest in Trade?
Failure to comply with BCFSA Rules section 5-9 (as of 2026-07-27 — verify current) may result in disciplinary action by the British Columbia Financial Services Authority, including fines, license suspension, or cancellation under the Real Estate Services Act (RESA), SBC 2004, c. 42. Non-disclosure may also expose the licensee to civil liability if harm results from the undisclosed conflict. Verify current enforcement practices and potential penalties with a BC lawyer or the BCFSA before acting.
Does the Disclosure of Interest in Trade apply if a licensee's spouse is buying a property the licensee is listing?
Yes. BCFSA Rules section 5-9 (as of 2026-07-27 — verify current) requires disclosure when a 'related party' is involved, which typically includes a spouse or immediate family member. The licensee must provide written disclosure to all parties before the spouse enters into an agreement to purchase. Verify the current definition of 'related party' and disclosure obligations with a BC lawyer or notary before acting.
Is a Disclosure of Interest in Trade required if the licensee is both the buyer's agent and personally purchasing the property?
Yes. If a licensee is acting as a buyer's agent for themselves (or a related party), BCFSA Rules section 5-9 (as of 2026-07-27 — verify current) requires written disclosure of this dual interest to all parties, including the seller and the licensee's brokerage. This scenario involves significant conflict-of-interest risks and heightened disclosure obligations. Verify current rules and best practices with a BC lawyer, notary, or the BCFSA before acting.
Does the Disclosure of Interest in Trade apply to rental transactions?
BCFSA Rules section 5-9 (as of 2026-07-27 — verify current) applies when a licensee or related party is 'acquiring or disposing of real estate,' which generally means purchase and sale transactions. Rental or leasing transactions may trigger other disclosure obligations under the Real Estate Services Act (RESA) and BCFSA Rules, but verify whether section 5-9 specifically applies to your rental scenario with a BC lawyer or the BCFSA before acting.
Can a licensee still complete a transaction after providing a Disclosure of Interest in Trade?
Yes, the disclosure does not prohibit the transaction; it ensures transparency. Once written disclosure is provided in accordance with BCFSA Rules section 5-9 (as of 2026-07-27 — verify current), the licensee may proceed if all parties acknowledge and consent to the dual interest. The licensee must continue to comply with all other duties under the Real Estate Services Act (RESA), SBC 2004, c. 42. Verify current requirements and obtain informed consent from all parties with a BC lawyer or notary before acting.
Where can I find the full text of the Disclosure of Interest in Trade requirements?
The full requirements are set out in section 5-9 of the BCFSA Rules (as of 2026-07-27 — verify current), which are available on the British Columbia Financial Services Authority website (www.bcfsa.ca) and through the BC Laws website (www.bclaws.gov.bc.ca). The Real Estate Services Act (RESA), SBC 2004, c. 42, provides the broader statutory framework. Verify the current version of the Rules and any recent amendments with a BC lawyer, notary, or the BCFSA before acting.
Verify the specific statutory language, thresholds, deadlines and current guidance directly with the governing authority:
- BCFSA — Consumer Guide to Disclosures ↗BCFSA — Consumer Guide to Disclosures
- BCFSA — Agency and Disclosure Forms (DoRTS, DoLC) ↗BC Financial Services Authority (BCFSA)
- Real Estate Services Rules ↗BC Financial Services Authority (BCFSA)
- Real Estate Services Act (SBC 2004, c. 42) ↗Province of British Columbia — BC Laws
- BC Financial Services Authority (BCFSA) ↗BC Financial Services Authority