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Volume 67, No. 9

101/2024

The British Columbia Gazette,

Part II

May 21, 2024

B.C. Reg. 101/2024 , deposited May 15, 2024, under the REAL ESTATE SERVICES ACT [section 89.2]. Rule of the BC Financial Services Authority, dated March 8, 2024.

The BC Financial Services Authority orders that, effective July 1, 2024, the Real Estate Services Rules, B.C. Reg. 209/2021, are amended as set out in the attached Schedule.

— S. HAMILTON, Chair, Board of Directors .

Schedule

Section 1 of the Real Estate Services Rules, B.C. Reg. 209/2021, is amended

(

a) by repealing the definition of "family partner" , and

(

b) by adding the following definition:

"spouse" means a person who

(

a) is married to another person, or

(

b) is living with another person in a marriage‑like relationship; .

Section 6 (2) (c) (ii) is amended by striking out " or family partner ".

Section 26 (1) is amended by striking out " these rules " and substituting " the provisions ".

Section 26 (2) is amended

(

a) by striking out everything before paragraph (

a) and substituting " For the purpose of determining the amount of an administrative penalty, designated contraventions are divided into Categories A to F as follows: ",

(

b) in paragraph (

a) by striking out everything before subparagraph (

i) and substituting " the following provisions of these rules are in Category A: ",

(

c) in paragraph (

a) by repealing subparagraph (v),

(

d) in paragraph (

b) by striking out everything before subparagraph (

i) and substituting " the following provisions of these rules are in Category B: ",

(

e) in paragraph (

b) by adding the following subparagraphs:

(iv.1)

section 28 (1) [managing broker responsibilities – general] ;

(v.1)

section 28 (6) [managing broker responsibilities – notice in writing to parties respecting deposits] ;

(x)

section 52 (3) [promptly disclose substantive change in information in required disclosure] ;

(xi)

section 54 [disclosure of representation in trading services] ;

(xii)

section 57 [disclosure to sellers of expected remuneration] ;

(xiii)

section 58 [disclosure of benefits – rental property and strata management services] ;

(xiv)

section 64 (3) [disclosure to superintendent – dual agency in under‑served remote location] ;

(xv)

section 73 (3) [notice to superintendent – negative balance in trust account] ; ,

(

f) by adding the following paragraphs:

(b.1)

section 7 (3) [prohibition against providing real estate services outside licensee’s brokerage] of the Act is in Category B;

(b.2) the following provisions of the Real Estate Services Regulation are in Category B:

(

i) section 8.2 (3) [include standard terms respecting assignment of contract] ;

(ii)

section 10.6 (1) [controlling individual must meet all requirements to receive remuneration from personal real estate corporation] ;

(iii)

section 10.6 (2) [no engagement of controlling individual by a brokerage] ;

(iv)

section 10.7 (1) [personal real estate corporation must maintain attributes] ; ,

(

g) in paragraph (

c) by striking out everything before subparagraph (

i) and substituting " the following provisions of these rules are in Category C: ",

(

h) in paragraph (

c) by adding the following subparagraphs:

(x.1)

section 31 (4) (b) [no disclosure by brokerage of confidential information respecting a client] ;

(xvii)

section 53 [disclosure of interest in trade] ;

(xviii)

section 55 [disclosure of risks to unrepresented parties] ;

(xix)

section 56 [disclosure of remuneration] ;

(xx)

section 57.1 [disclosure to certain clients of right of rescission] ;

(xxi)

section 64 (2) (a) [disclosure to parties – dual agency in under‑served remote location] ;

(xxii)

section 65 [addressing conflicts of interest when acting for multiple clients] ; ,

(

i) by adding the following paragraphs:

(c.1) the following provisions of the Act are in Category C:

(i)

section 27 (1) [payments to brokerage by licensee] ;

(ii)

section 27 (2) [payments into brokerage trust account by brokerage] ;

(iii)

section 27 (5) [restriction on money that can be paid into brokerage trust account] ;

(iv)

section 66 (2) [notice of court and discipline proceedings] ;

(c.2) the following provisions of the Real Estate Services Regulation are in Category C:

(

i) section 8.2 (4) [notice if licensee aware that buyer’s proposed contract does not include standard term respecting assignment of contract] ;

(ii)

section 8.2 (5) [notice if licensee’s proposed contract does not include standard term respecting assignment of contract] ;

(iii)

section 8.2 (6) [notice requirements if proposed contract does not include standard term respecting assignment of contract] ;

(iv)

section 8.2 (7) [notice by licensee providing trading services to the seller if proposed contract does not include standard term respecting assignment of contract] ; ,

(

j) in paragraph (

d) by striking out everything before subparagraph (

i) and substituting " the following provisions of these rules are in Category D: " ,

(

k) in paragraph (

d) by adding the following subparagraphs:

(iii.1)

section 28 (4) [managing broker responsibilities – trust accounts] ;

(xii.31)

section 75 [annual financial statements, accountant’s report and brokerage activity report] ; , and

(

l) by adding the following paragraphs:

(d.1) the following provisions of the Act are in Category D:

(i)

section 5 (4) [brokerage licence required for each branch office] ;

(ii)

section 21 (2) [brokerage must surrender inoperative, suspended or cancelled licence] ;

(iii)

section 25 [brokerage records] ;

(iv)

section 26 [brokerage must maintain trust account in British Columbia] ;

(

v) section 29 [interest on trust account] ;

(vi)

section 30 (2) [permitted withdrawals from brokerage trust account that the brokerage holds as stakeholder] ;

(d.2)

section 3.1 [interest on trust account to foundation] of the Real Estate Services Regulation is in Category D;

(

e) the following provisions are in Category E:

(i)

section 74 (1) [superintendent review of brokerage accounts and other records] of these rules;

(ii)

section 37 (4) [cooperation with superintendent’s investigation] of the Act;

(

f) the following provisions of these rules are in Category F:

(i)

section 66 (1) [payment by licensee to unlicensed persons prohibited] ;

(ii)

section 67 [brokerage acting for unlicensed persons prohibited] ;

(

g) the following provisions of the Act are in Category F:

(i)

section 3 (1) [licence required to provide real estate services] ;

(ii)

section 7 (5) (a) [brokerage relationship with other licensees] ;

(iii)

section 7 (5) (b) [brokerage relationship with licensee licensed in relation to another brokerage] ;

(iv)

section 20 [no real estate services if licence is inoperative or suspended] ;

(v)

section 21 (1) [licensee must surrender inoperative, suspended or cancelled licence and cease holding themselves out as licensee] .

Section 27 is amended

(

a) in subsection (1) by striking out " a rule listed in Category A in

section 26 (2) (a) " and substituting " a provision in Category A set out in

section 26 (2) (a) ",

(

b) in subsection (2) by striking out " a rule listed in Category B in

section 26 (2) (b) " and substituting " a provision in Category B set out in

section 26 (2) (b), (b.1) or (b.2) ",

(

c) in subsection (3) by striking out " a rule listed in Category C in

section 26 (2) (c) " and substituting " a provision in Category C set out in

section 26 (2) (c), (c.1) or (c.2) ",

(

d) in subsection (4) by striking out " a rule listed in Category D in

section 26 (2) (d) " and substituting " a provision in Category D set out in

section 26 (2) (d), (d.1) or (d.2) ",

(

e) in subsection (4) (

b) by striking out " specified rule " and substituting " specified provision " and by striking out " under

section 56 " and substituting " set out in

section 56 (2) ", and

(

f) by adding the following subsections:

(5) For each contravention of a provision in Category E set out in

section 26 (2) (e), the amount of the administrative penalty is as follows:

(

a) a base penalty amount as follows:

(i) $1 000 for a first contravention;

(ii) $5 000 for a subsequent contravention;

(

b) an additional $1 000 for each day or part of a day on which the contravention of the specified provision continues up to the maximum amount set out in

section 56 (2) [designated contraventions and penalty amounts] of the Act.

(6) For each contravention of a provision in Category F set out in

section 26 (2) (

f) or (g), the range of amounts of the administrative penalty is as follows:

(

a) between $5 000 and the maximum amount set out in

section 56 (2) of the Act, for a first contravention;

(

b) between $10 000 and the maximum amount set out in

section 56 (2) of the Act, for a subsequent contravention.

Section 51 is amended in the definition of "associate"

(

a) in paragraph (a) (i), (ii) and (iii) by striking out " a spouse or family partner of the licensee " and substituting " a spouse of the licensee ", and

(

b) in paragraph (a) (ii) by striking out " the licensee, spouse or family partner " and substituting " the licensee or spouse ".

Section 53 (2) (

a) is amended by striking out " a spouse or family partner of the licensee " and substituting " a spouse of the licensee " and by striking out " the licensee, spouse or family partner " and substituting " the licensee or spouse ".

Section 95 is amended

(

a) in subsections (1) (a) (

i) and 2 (b) (

i) and (ii) by striking out " family partner, ", and

(

b) in subsection (1) (a) (ii) (

B) by striking out " or family partner ".

Section 97 (2) is amended by striking out " or family partner " wherever it appears.

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