BCFSA Discussion Paper: Strengthening Confidence in B.C. Real Estate
The BC Financial Services Authority (BCFSA) has released a new November 2025 Discussion Paper: Strengthening Confidence in Real Estate Services, and it highlights several proposed changes aimed at increasing transparency, fairness, and professionalism across B.C.’s real estate industry.
Since buying or selling a home is often the largest financial decision consumers ever make, BCFSA is exploring ways to ensure the process remains trustworthy and consumer-focused. The paper is not a formal rule change—rather, it’s an invitation for public feedback on potential future updates.
Below is a brief overview of the key themes and proposals.
Why This Matters Now
According to BCFSA, evolving market conditions, economic uncertainties, and emerging risks (including technology and climate-related challenges) mean consumers need professionals they can rely on. Confidence isn’t automatic—it must be earned daily—and the regulator believes this is the ideal moment to strengthen foundational consumer protections.
Transparency: Giving Consumers More Clarity
BCFSA’s first major focus is transparency, broken into four areas:
A. Services & Fees
Today, only sellers must sign a written service agreement with their agent. BCFSA is proposing that buyers also be required to sign written service agreements, clearly outlining:
- Services the agent will provide
- How the agent is paid
- Start/end dates
- Cancellation provisions
- Any limitations or modifications to duties
This change is meant to reduce confusion around buyer-agent remuneration—especially important given ongoing commission-related legal challenges in Canada and the U.S.
B. Risks in the Buying Process
Unconditional offers have historically led to negative outcomes, particularly in hot markets. To better protect buyers, BCFSA is considering:
- A mandatory disclosure form explaining the risks of unconditional offers
- Including default subject conditions (such as financing approval and home inspection) in standard contracts, which buyers can customize or opt out of
These steps help ensure buyers understand what they’re giving up when removing subjects.
C. Product Transparency for Strata Purchases
Strata buyers often don’t receive critical documents early enough. BCFSA is proposing to require listing agents to obtain key strata documents before advertising a strata property, such as:
- Form B
- Bylaws
- Two years of strata minutes
Agents may also need to update buyers on any new significant strata decisions made after those documents were obtained.
D. Transparency in Competition (Multiple Offers)
In “bidding war” conditions, buyers often lack information. BCFSA is considering:
- Enhanced disclosure of the highest active offer price when buyers are invited to improve their offer in later rounds
- Post-transaction reporting, providing all offer participants with an anonymized summary of how many offers were made and by whom (brokerage names only)
These measures aim to reduce information asymmetry and promote fairer competition.
Fairness: Updating Compensation Practices
BCFSA is exploring several changes to ensure agent remuneration aligns with consumer expectations:
A. Prohibiting “Double Ending”
When a buyer is unrepresented, the listing brokerage currently keeps the full commission. BCFSA may restrict this so brokerages only receive the portion of commission tied to the services they actually provide.
B. Preventing Agents From Claiming Commission When Buying for Themselves
Some licensees claim cooperating commissions when purchasing property personally. BCFSA is considering prohibiting this to ensure agents don’t have an unfair advantage over consumers.
C. Allowing New Commission Models
BCFSA may allow remuneration tied to the difference between list price and sold price—creating room for innovative fee structures.
Professionalism: Protecting Core Duties
BCFSA wants to limit situations where an agent can modify their fiduciary duties to a client. Currently, modification is too flexible and may reduce consumer protection. The proposal would restrict duty modification except where expressly allowed (e.g., dual agency exemptions).
Your Opportunity to Provide Feedback
BCFSA is actively seeking feedback from consumers, licensees, and stakeholders before deciding on next steps.
Complete the official survey here:
https://survey.alchemer-ca.com/s3/50467779/Project-Enhance-Discussion-Questions
Your input plays a meaningful role in shaping the future of real estate practices in British Columbia.