Buyer's Agency

Buyer's Agency is a formal agency relationship in which a licensed real estate professional represents a buyer as a client, owing full fiduciary duties including loyalty, confidentiality, and disclosure of all material facts known to the licensee. In BC, this relationship is governed by the Real Estate Services Act (RESA) and the Rules made under it, administered by the British Columbia Financial Services Authority (BCFSA). The relationship must be established and disclosed in writing before the licensee provides trading services to the buyer as a client.

Yes. Under the BCFSA Rules made pursuant to RESA, a licensee must provide a written disclosure of the nature of the agency relationship before entering into a buyer's agency arrangement and before providing trading services to a buyer as a client. The disclosure form documents that the buyer understands the duties owed to them, including loyalty, confidentiality, and the obligation to disclose material facts. Failing to provide this written disclosure is a breach of the licensee's professional obligations under RESA.

A buyer's agent in BC owes their client the core fiduciary duties of loyalty, confidentiality, disclosure of all material facts known to the licensee, obedience to lawful instructions, and the duty to account for any funds held. These duties are established under RESA and the BCFSA Rules, and they require the licensee to act exclusively in the buyer's best interests throughout the transaction. The duty of confidentiality survives the end of the agency relationship unless the client consents to disclosure or disclosure is required by law.

Yes, this situation is known as limited dual agency in BC, but it is subject to strict restrictions under the BCFSA Rules made under RESA. A licensee acting for both parties must obtain informed written consent from all clients and must disclose to each client what information can and cannot be shared. Because limited dual agency significantly curtails the fiduciary duties owed to each client, buyers and sellers should carefully review the limited dual agency disclosure form before consenting.

In BC, a buyer's agent is typically compensated through a commission or other remuneration arrangement, which has historically been offered by the seller's brokerage through a co-operating commission structure, though market practices around buyer remuneration are evolving. Under RESA, all remuneration arrangements must be disclosed in writing to the buyer client. Regardless of the source of payment, the licensee's legal duties remain to their buyer client under RESA and the BCFSA Rules.

The duty of confidentiality under BC's Buyer's Agency relationship does not automatically end when the transaction closes; it survives the termination of the agency relationship under RESA and the BCFSA Rules. This means the licensee cannot disclose confidential information the buyer shared during the agency relationship — such as their maximum budget or personal circumstances — unless the former client provides consent or disclosure is required by law. Personal information collected during the relationship is also subject to BC's Personal Information Protection Act (PIPA), which imposes ongoing obligations on how licensees collect, use, and store that data.

Yes. Under RESA and the BCFSA Rules, a licensee representing a buyer as a client must disclose all material facts that are known to the licensee and that could reasonably affect the buyer's decision to purchase. A material latent defect — one that is not visible on reasonable inspection and that could render the property dangerous, unfit for habitation, or significantly affect its value — is precisely the type of material fact the licensee must disclose. Failure to make such a disclosure is a breach of the licensee's fiduciary duty and may constitute professional misconduct under RESA.

When a buyer is purchasing a strata lot in BC, the buyer's agent should help ensure the buyer obtains and reviews key strata documents governed by the Strata Property Act (SBC 1998, c. 43), including the Form B Information Certificate, the strata corporation's bylaws and rules, the most recent depreciation report (if required), and financial statements including the contingency reserve fund balance. The Form B, issued by the strata corporation, provides critical financial and legal information about the strata as of the date it is issued. Reviewing these documents helps the buyer client make an informed purchase decision, consistent with the buyer's agent's duty to disclose material facts.

Yes, a buyer's agency relationship in BC can generally be terminated by either the buyer or the licensee, subject to the terms of any written agreement that established the relationship and the BCFSA Rules under RESA. If a written buyer's agency agreement contains terms governing early termination — such as notice periods or compensation obligations — those terms will apply. Upon termination, ongoing duties such as confidentiality continue to bind the licensee with respect to information obtained during the agency relationship.

BC's Personal Information Protection Act (PIPA) requires a licensee acting as a buyer's agent to collect only the personal information reasonably necessary for the real estate transaction, to use it only for the purposes for which it was collected, and to protect it with appropriate security safeguards. The licensee must also be prepared to provide clients with access to their personal information and to correct inaccuracies upon request. Sharing a buyer client's personal information — such as financial details or motivations — with other parties without the client's consent could breach both PIPA and the fiduciary duty of confidentiality owed under RESA.