Understand how to use the Disclosure of Representation in Trading Service.

1. Disclosure of Representation
in Trading Services
A Guide for Licensees

2. Agenda
1. Who Must Make this Disclosure?
2. Overview
3. Understanding the Form
4. Definitions of Terms in the Disclosure Form
5. Using the Form

3. Who Must Make this Disclosure?
Make this disclosure to a consumer before providing any trading services, including:
a) advising on the appropriate price for the real estate;
b) making representations about the real estate(see exception below);
c) finding the real estate for a party to acquire;
d) finding a party to acquire the real estate;
e) showing the real estate (see exception below);
f) negotiating the price of the real estate or the terms of the trade in real estate;
g) presenting offers to dispose of or acquire the real estate;
h) receiving deposit money paid in respect of the real estate.
Ifyou arelicensed for trading services:

4. Who Must Make this Disclosure?
Exception: You do NOT need to make this disclosure if you are
only:
• hosting an open house, or
• answering general questions
provided you don’t exchange information with a consumer
about their motivation, financial qualifications or real estate
needs.
Ifyou arelicensed for trading services:

5. Who Must Make this Disclosure?
Make this disclosure to a consumer before providing any trading
services (see items (a) to (h) above).
Ifyou are licensed forrental property managementservices
(appliestotradingservicesinrelationtorentalpropertyonly):

6. Who Must Make this Disclosure?
You do not need to make this disclosure
Ifyou are licensed forstrata managementservices:

7. Overview
This guide is intended to help real estate professionals
(licensees) use the Disclosure of Representation in Trading
Services form with consumers.
The Disclosure of Representation in Trading Services form is
a mandatory Council-approved form and may not be
modified or altered.
The form allows licensees to disclose the type of
representation they will be offering a consumer and
whether they are able to treat them as a client or as an
unrepresented party.

8. Overview
In this type of agency relationship, the consumer has
engaged a licensee to provide services on their behalf.
The licensee will owe the client fiduciary duties including:
• undivided loyalty
• avoiding conflicts of interest
• disclosing material information,
• protecting confidentiality.
Client:

9. Overview
In this case, the consumer will be in a no agency
relationship with the licensee, meaning the licensee is
not working on their behalf in a transaction. A licensee
may still provide some limited trading services to the
consumer including:
• providing general market information, standard form
contracts and other relevant documents, without
providing any advice;
• helping fill out a standard real estate contract (without
providing advice on terms or conditions); and
• presenting offers or counteroffers.
Unrepresentedparty:

10. Understanding the Form
1. An information piece for consumers called “Know Your
Options as a Real Estate Consumer”; and
2. Checklists and signature sections that must be completed
by the real estate professional but are optional for the
consumer.
The Disclosure of Representationin Trading Services
form contains two keysections:

11. Understanding the Form

12. Understanding the Form
The purpose ofthe first section (Know Your Options as a
RealEstateConsumer) is to describe to the consumer the
differencebetweenbeing representedor unrepresented
in a realestatetransaction.

13. Understanding the Form
This section covers has four key points that consumers need
to know before entering a real estate transaction:
1. the benefits of working with a licensee
2. an overview of what representation means
3. an overview of what being unrepresented means
4. the difference between designated and brokerage
agency.

14. Understanding the Form
1. a mandatory checklist and name/signature field that
must be completed by the licensee
2. an optional checklist and name/signature field that may
be completed by the consumer.
The purpose of this section is to document that the
disclosure has been made to the consumer.
The second section contains:

15. Understanding the Form
Agency: a type of relationship where the agent has the
authority to represent and act for the consumer in dealing
with others.
Client: the principal who has engaged the licensee to
provide real estate services to or on behalf of the principal.
Unrepresented party: a party to the trade in real estate
who is not a client of a licensee for the trade in real estate.
Definitions of Terms in the Disclosure Form

16. Understanding the Form
Conflict of interest: a situation where there is a
substantial risk that the agent’s representation of a client
would be negatively affected by the agent’s own interests
or by the agent’s duties to another current client, a former
client, or a third party.
Confidential information: any information about a client
that is not available to the public. That can include the
client’s finances, personal situation, motivations or needs.
Definitions of Terms in the Disclosure Form

17. Understanding the Form
Designated agency: a model of agency where the brokerage
appoints one or more specific licensee to act as the sole agent(s)
of the client. Only that designated agent (s) owes the
fundamental agency duties to that client.
Brokerage agency: a model of agency where the entire
brokerage acts as the agent for the client. All of the licensees at
the brokerage owe agency duties to the client.
Definitions of Terms in the Disclosure Form

18. Understanding the Form
Step 1: Discuss the Form with the Consumer
Take time to review the first two pages of the form with the
consumer and discuss any questions or concerns the consumer
may have. Explain any unfamiliar terms using the definitions
included in this guide.
You may want to use the checklists to guide your conversations
with consumers when you are presenting them with this form.
Using the Form

19. Understanding the Form

20. Understanding the Form
Step 2: Complete the Mandatory Real Estate Professional
Confirmation
The form contains a mandatory checklist that licensees must
complete, plus a mandatory signature section.
Using the Form

21. Understanding the Form

22. Understanding the Form
Step 3: Invite the Consumer to Complete the Optional
Consumer Confirmation
It is optional for consumers to complete the checklist or sign
their name.
If a consumer chooses not to complete and sign the disclosure,
you can use the Notes section at the bottom of the Mandatory
Real Estate Professional Confirmation to document that you
presented the consumer with the form.
Using the Form

23. Understanding the Form

24. Understanding the Form
You may use the Notes section to indicate:
• The date and time the disclosure form was presented
• The circumstances (was the disclosure presented at an open
house, a listing presentation, or other meeting?)
• Other details that may be relevant
Using the Form

25. Understanding the Form
Step 4: Submit the form (or a copy of the form) to your
brokerage promptly
A copy of the form is not required to be provided to the Council
unless it is specifically requested.
Using the Form

26. QUESTIONS??