It’s been over a year since the BC Financial Services Authority (BCFSA) introduced new rules respecting real estate teams, and it makes good business sense for REALTORS® to review the changes.
In Part 1 of this series, we will take a comprehensive look at the Real Estate Service Rules (Rules) with respect to real estate teams (Teams) to help ensure you are complying.
What is a Team?
A Team means two or more REALTORS® who are registered to work together.
Registration Requirements for Teams
A Team must be registered with BCFSA if the group:
- Represents themselves to the public as a single entity (NOT limited to advertising);
- Regularly acts as designated agents of the same client; or
- Regularly work together in a manner that creates implied agency with the same party.
Registration is NOT required if the Team itself is a brokerage.
CONSIDERATION: If you are part of a group of two or more REALTORS® that regularly undertakes real estate related activities that could lead consumers or other REALTORS® to believe that the group is a team, you and your colleagues should consider whether to register with BCFSA as a Team, or cease activities, to comply with the Rules. Common examples are:
- Sharing confidential information about clients;
- Advertising with other REALTORS®;
- “Partnering” with other REALTORS®; and
- Hiring a licensed assistant — A REALTOR® that has a licensed assistant MUST register as a Team; since REALTORS® can only belong to one Team at a time, a licensed assistant may only assist the Team of which they are a member.
Team Requirements
In Part 2 of our series, we will look at the registration requirements for Team names, which must be approved by the BCFSA.
For more information on real estate teams, visit the BCFSA website.
Source: Professional Standards