Dear members,

The BC Financial Services Authority is releasing proposed amendments to the Real Estate Services Rules (the “Proposed Amendments”) for public and licensee comment. The Proposed Amendments are intended to update the real estate services administrative penalty framework (the “Administrative Penalty Framework”) set out in Sections 26 and 27 of the Real Estate Services Rules (the “Rules”).

The primary focus of updating the current Administrative Penalty Framework is to:

• Include unlicensed activity;
• Ensure compliance with BCFSA investigations; and
• Ensure required disclosures are provided properly

Members are encouraged to submit their input regarding the Proposed Amendments through the Consultation Feedback Form. The consultation period will close on November 26, 2023.

If the Minister of Finance consents to the Proposed Amendments, the BCFSA intends to bring the Proposed Amendments into force in July 2024.

Proposed Amendments:

The proposed amendments will not change licensing requirements under RESA or any license obligation.

• Create two new categories of Administrative Penalties, capturing failures by both unlicensed persons and licensees to comply with BCFSA investigations, and unlicensed and related restricted activity. Restricted activities include an individual providing real estate services while their license is suspended or in a category for which they are not licensed, a brokerage making payments to an unlicensed individual or a licensee that is licensed to another brokerage.
• Add violations with respect to the improper use of required disclosures; and
• Expand the list of infractions eligible for Administrative Penalties that fit within the parameters of existing categories B, C and D in s. 26 of the Rules.

Need and Effect of Proposed Rules:

Unlicensed activity puts consumers at risk and the need for general deterrence is high. The proposed Amendments support a regulatory system that gives the public confidence that individuals who provide real estate services have received proper training, are competent to practice, and will be penalized if they breach requirements.

The revision of the Administrative Penalty Framework offers a wider range of tools to address a broader set of infringements, while supporting the streamlining of handling complaint files. Administrative penalties also offer increased predictability in outlining specific categories of infractions.

Additional Information

For more information on the Proposed Amendments, please see the annotated Rules. BCFSA has developed a Stakeholder Discussion Paper that provides comprehensive information on the Proposed Amendments.

Thank you for your attention to these matters which will help to ensure member input is duly considered regarding the BCFSA’s proposed amendments to the Real Estate Services Rules.

Rock Lefebvre

Executive Director & Chief Operating Officer