In order to slash corrupt real estate deals, the Pacific province is introducing a new set of rules for 2018. The new British Columbia laws governing real estate will crack down on dual agency, or when one real estate agent works for both the purchaser and the vendor on the same sale. The rules will also let buyers know just how much commission real estate sales persons are entitled to make.
The changes are partly due to a practice known as shadow flipping, where a property is sold many times. The sales contracts on these properties are reassigned before the closing and each time they're put back on the market, the price escalates. It's hoped that the new rules will protect consumers from these kinds of deals by raising awareness. However, some real estate professionals are unsure if these new laws will actually protect residents since they see the new law as basically just limiting what professional someone hires and won't stop some realtors from flipping homes.
One realtor has said all the new rules do is limit a salesperson from working with both the vendor and purchaser on the same transaction. In any case, changes are a result of recommendations last year of the former British Columbia Liberal government's independent advisory panel regarding the subject. The new rules are set to take effect in March 2018.
There are some unscrupulous dealings in the volatile real estate industry. It is wise on the part of both a purchaser and a seller to get the advice of a savvy British Columbia real estate lawyer. He or she will always have a client's back when it comes to questionable real estate transactions.
Source: cbc.ca, "B.C. to introduce new real estate rules in 2018", Nov. 15, 2017