As of March 15, dual agency or limited dual agency will be prohibited. This means that in any real estate deal, a realtor can no longer represent a buyer and a seller at the same time.
This has come about due to allegations that some real estate agents were flipping homes multiple times before a deal closed, and increasing prices and commissions. “This is a huge change for both the realtor and the public” says agent Ron Allibone. For rural realtors this has caused a problem. This is because 20-30 percent of their business has involved representing the buyer and seller. With top producing realtors it's 50-70 percent.
Once this new rule is enforced, long-term clients may have to be represented by a realtor they have no relationship with. There are many other unfavorable circumstances that have surfaced with this new rule.
In June of 2016 there was a report with recommendations to the Real Estate Council of BC. "It was prompted by allegations that some real estate agents were flipping homes multiple times before a deal closed, and driving up prices and commissions. This unscrupulous practice is known as “shadow flipping.” -Trail Times. This report has a big part with what prompted this new rule change.
The RECBC (Real Estate Council of B.C.) states new upcoming rules "will enhance consumer protection by increasing the number and frequency of disclosures that real estate licensees must make to consumers, and in almost all cases, prevent real estate licensees from acting for both a buyer and a seller in the same transaction."
The Kootenay board is taking action and they are appealing to the NDP government and the province’s regulating agency. The board is petitioning and trying to negotiate to postpone and review the negative impact this will have on rural realty.