Next month, BCREA will be releasing a significant number of changes to our Standard Forms. There will be seven new forms and revisions to several more. They will be ready to use and available on WEBForms® on September 16.
In the meantime, BCREA has been hard at work to make this rollout as painless as possible for members. They have done extensive consulting within the industry, particularly with Managing Brokers, ensuring that the changes are being made in the best way possible reflecting REALTORS®’ day-to-day workflow. These new forms and improvements to other existing forms will make sense to you and should help you do an even better job for your clients.
BCREA is creating guides to go with all the new forms and explanations for the changes to existing forms. Your Broker should have access to these Guides by the end of August, beginning of September.
The top 5 changes to watch for:
- Signature blocks
This is a logical change. It will now be explicitly clear – using signature blocks – where the Managing Broker and Designated Agent signatures go on 21 forms, including listing contracts, agency contracts, fee agreements, etc. All these agreements are between the Brokerage and the client and the revision clarifies that the Managing Broker is signing on behalf of the Brokerage.
2. New Notice of Condition Waiver/Fulfillment form
The purpose of this new Notice of Condition Waiver/Declaration of Fulfillment form is to support Realtors by providing a tool to document a benefiting party waiving or declaring fulfilled the condition(s) that were included in the original contract.
This ensures the parties are able to clearly communicate their intent with respect to their conditions; either give notice that they’re fulfilled or waive them. Note, this form is intended for province-wide use and the language contained within it is consistent with the language provided by the regulator.
3. New Co-Listing Form – Separate Representation
This new form was developed to allow multiple sellers of one property (where there may be conflict between the parties, i.e. divorce) to engage different brokerages or the same brokerage with different designated agents, to represent their respective interests in the sale of their property.
Each brokerage will enter into a separate listing agreement with their respective seller and then all of the parties (each Seller, each Brokerage, and each Designated Agent) should complete and enter collectively into the Co-Listing Form – Separate Representation. The effect of this form will be to amend the respective listing agreements to modify their terms to allow for a listing on terms mutually agreed by all. The form also sets out the parties’ rights, obligations and expectations of the co-listing.
4. New Seller’s Disclosure of Material Latent Defects form
The purpose of the Seller’s Disclosure of Material Latent Defects form is to support Realtors with meeting their responsibility and statutory obligation to disclose material latent defects to the buyer.
This new form was created for the following purposes:
· To provide a disclosure tool that can be used if the seller does not complete the Property Disclosure Statement but is aware of a material defect that must be disclosed;
· To obtain the seller’s acknowledgment of the Realtor’s disclosure requirements, which are broader than the seller’s common law disclosure requirements,
· To obtain the seller’s authorization for the Realtor to disclose material latent defects in compliance with Section 5-13 of the Real Estate Rules,
· To document whether or not the seller is aware of any material latent defects, as defined under Section 5-13 of the Real Estate Rules,
· To document the details of the disclosure of material latent defects by the seller.
5. BCREA Individual Identification Information Record
The BCREA Individual Identification Information Record is meant to help brokerages and Realtors fulfill their Client Information Record obligations to be in compliance with the Proceeds of Crime (Money Laundering) and Terrorist Financing Act and the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC).
This new form can be used in low risk transactions when Brokerages and Realtors are identifying their clients or taking reasonable steps to identify unrepresented parties that they meet face to face. In these low risk circumstances, this simple Client Identification Form can be used instead of CREA’s more formal FINTRAC – Individual Identification Information Record. BCREA has created this form to help make compliance with FINTRAC obligations easier for Realtors and brokerages working with low risk clients. If your brokerage provides an alternate form that meets compliance requirements you may use that form instead.
That’s a quick summary of what’s coming in September. You, your Brokers and the Board will be receiving more information and assistance from BCREA in the days and weeks to come. You’ll need to pay attention, familiarize yourself with the changes and update your saved WebForms® transaction kits.
Source: FVREB Professional Standards