Client vs. Customer Distinction

In British Columbia, a client has entered into a written service agreement establishing an agency relationship with a licensed real estate professional, and is owed fiduciary duties including loyalty, confidentiality, full disclosure, and obedience under the Real Estate Services Act (RESA) and BCFSA Rules. An unrepresented party — sometimes informally called a 'customer' — has no such agreement and is owed only limited duties, primarily honesty and disclosure of material latent defects known to the licensee. This distinction determines the full scope of obligations a licensee must fulfill toward each party in a transaction. The BCFSA Rules govern how licensees must document and communicate these differing relationships.

No — under the Real Estate Services Act and BCFSA Rules, fiduciary duties such as loyalty, confidentiality, and undivided representation are owed exclusively to clients with whom a written agency agreement exists. Toward an unrepresented party, a licensee is required to act honestly, disclose known material latent defects affecting the property, and not engage in misrepresentation, but the licensee is not required to advocate for that party's interests. This limited-duty framework is designed to prevent conflicts of interest while still protecting unrepresented parties from deception or harm.

A client relationship in BC is established through a written service agreement — such as a buyer's agency agreement or a listing agreement — signed by both the licensee and the party being represented, as required by the Real Estate Services Act and the BCFSA Rules. Without such a written agreement, no agency relationship exists, and the party interacts with the licensee only as an unrepresented party owed limited duties. Licensees are required by BCFSA Rules to use written service agreements and to provide the other party with the required disclosure before providing any trading services.

Yes — BCFSA Rules require that a licensee disclose to an unrepresented party, before providing any trading services to them, that the licensee is acting on behalf of another party and that the unrepresented party is not the licensee's client. This disclosure must be made in writing using the prescribed form. The purpose is to ensure unrepresented parties understand they should seek independent professional advice if they want representation in the transaction.

BC real estate regulations under RESA and the BCFSA Rules impose strict requirements on 'limited dual agency,' which was significantly restricted following regulatory changes — licensees should consult current BCFSA guidance for the precise rules applicable in 2026, as limited dual agency has been heavily curtailed. Generally, a single licensee representing both parties simultaneously raises serious conflict-of-interest concerns because full fiduciary duties cannot be simultaneously owed to parties with opposing interests. In practice, BC brokerages may use designated agency arrangements to address situations where two clients of the same brokerage are on opposing sides of a transaction.

Under the Real Estate Services Act and BCFSA Rules, a licensee must disclose to all parties — including unrepresented parties — any known material latent defects affecting the property that would not be discoverable through a reasonable inspection. This duty exists regardless of whether the other party is a client or an unrepresented party, and it cannot be waived. A material latent defect is a defect that renders the property dangerous, unfit for habitation, or that significantly affects its value or use.

A seller's licensee owes fiduciary duties — including the duty of loyalty — exclusively to their client, the seller, and is not in a position to provide strategic pricing advice to an unrepresented buyer, as doing so could conflict with those duties under the Real Estate Services Act and BCFSA Rules. The licensee may provide factual information about the property and the transaction process, but must not advocate for the unrepresented buyer's interests. The unrepresented party should understand this limitation and may seek their own licensed representation to obtain advice in their interest.

Yes — the client versus unrepresented party distinction applies equally in strata property transactions governed by the Strata Property Act (SBC 1998, c. 43), since the nature of representation does not change based on property type. A buyer's agent who has a written service agreement with the buyer is obligated to explain strata documents such as the Form B Information Certificate, depreciation reports, bylaws, and meeting minutes as part of their fiduciary duty to their client. An unrepresented buyer reviewing strata documents receives only honest dealing from the seller's licensee, not advocacy or interpretation services.

Yes — an unrepresented party may enter into a written service agreement with a licensee at any point before the transaction is completed, thereby becoming a client and triggering the full fiduciary duties owed under the Real Estate Services Act and BCFSA Rules. However, the licensee must ensure there is no existing conflict of interest that would prevent them from properly representing that party, and any prior confidential information received while the person was unrepresented must be handled appropriately. Both parties should be clearly informed when the relationship changes from unrepresented to represented.

An unrepresented party who believes a BC licensee has failed to act honestly, has misrepresented facts, or has not disclosed known material latent defects may file a complaint with the British Columbia Financial Services Authority (BCFSA), which has regulatory and disciplinary authority over licensees under the Real Estate Services Act. Depending on the circumstances, civil remedies may also be available through BC courts. BCFSA has the authority to investigate complaints, impose sanctions, suspend or cancel licences, and order administrative penalties against licensees found to have breached their obligations.