Understand how to use the Disclosure of Risks to Unrepresented Parties.

1. Disclosure of Risks to
Unrepresented Parties
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 if you are already representing a client in a real estate
transaction; and you intend to provide limited trading services to the
consumer as an unrepresented party including:
• sharing real estate statistics or general market information;
• providing standard real estate contracts and other relevant documents;
• helping the unrepresented party fill out a standard real estate contract
(without advising on terms or conditions);
• communicating their messages to your client and presenting offers or
counteroffers.
Ifyou are licensed fortrading services or rentalproperty
managementservices (appliestotradingservicesinrelationtorentalproperty
managementonly):

4. Who Must Make this Disclosure?
You do not need to make this disclosure.
NOTE: Where it is required, the Disclosure of Risks to
Unrepresented Parties should be made at the same time as
the Disclosure of Representation in Trading Services.
Ifyou are licensed forstrata managementservices:

5. Overview
This guide is intended to help real estate professionals
(licensees) use the Disclosure of Risks to Unrepresented
Parties form with consumers.
The Disclosure of Risks to Unrepresented Parties form is a
mandatory Council-approved form and may not be modified
or altered.

6. Overview
1. Inform the consumer of the risks of being
unrepresented in a real estate transaction
2. Inform the consumer of the limits to the services a
licensee can provide to an unrepresented party
3. Advise the consumer to seek independent
professional advice.
The Disclosure of Risks to UnrepresentedParties
form has three objectives:

7. Overview
This form explains to the consumer that the licensee providing
the form cannot represent them in the transaction, because the
licensee is already acting for a client in the transaction.
The form describes the limited assistance that a licensee
can provide to an unrepresented party, and encourages the
unrepresented party to seek independent representation for
the transaction.
The disclosure is intended to help ensure consumers can make
informed decisions about whether or not to be represented by a
licensee in a real estate transaction.

8. Understanding the Form
Section 1: Information for consumers called
“Unrepresented in a Real Estate Transaction? Know the
Risks.”
This section informs the consumer that they are receiving
the form because the licensee is currently representing a
client in the transaction and they want to provide the
consumer with trading services as an unrepresented party.
The Disclosure of Risks to UnrepresentedPartiesform
contains two keysections:

9. Understanding the Form

10. Understanding the Form
• The licensee’s loyalty is entirely to their client.
• The licensee must share all material information with
their client that the unrepresented party tells them.
• The licensee can only provide the unrepresented party
with limited assistance.
The form then explains three keyrisks for
unrepresented parties:

11. Understanding the Form
While it is ultimatelyup to a consumer to decide
whetherto be representedby a licensee,the Real
EstateCouncil urgesall unrepresented parties to
seek their own realestateprofessional for help
during the transaction.

12. Understanding the Form
Section 2: Checklists and signature sections for the
consumer (optional) and licensee (mandatory).
The purpose of this section is to document that the
disclosure has been made to the consumer.

13. Understanding the Form
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.
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

14. Using the Disclosure Form
Step 1: Discuss the Form with the Consumer
Take time to review 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 wish to use the structure of the checklists to
guide any conversations you may have with consumers
when you are presenting them with this form.

15. Using the Disclosure Form

16. Using the Disclosure 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.

17. Using the Disclosure Form

18. Using the Disclosure 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.

19. Using the Disclosure 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

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

21. QUESTIONS??