RECO Bulletin 3.1 Disclosures, consents, and acknowledgements

This bulletin explains the general requirements that apply to disclosures, consents, and acknowledgements required by the legislation.

Summary

All disclosures, consents, and acknowledgements must be:

• Written in plain language that is clear and concise; and,
• Presented in a manner that draws the person’s attention to the required information.

Disclosures must be identified by the prominent placement of the word “disclosure”.

The purpose of the new requirements is to promote clarity in communications. Clear communication supports informed decisions and enhances both consumer protection and professionalism.

To ensure the required disclosures, consents, and acknowledgements are effectively brought to the person’s attention, they should be distinct and separate from a representation agreement and separate from any agreement facilitating a real estate transaction.

Specific disclosures, consents, and acknowledgements

The following bulletins provide detailed information about specific disclosures, consents, and acknowledgements:

Bulletin No. 2.4 Dealing with a self-represented party

Bulletin No. 2.5 Confidentiality

Bulletin No. 3.2 Multiple representation

Bulletin No. 3.3 Financial benefits

Bulletin No. 3.4 Personal trades and property interests

Bulletin No. 3.5 Conflicts of interest

Bulletin No. 5.5 Advertising sold properties

Bulletin No. 7.1 Protection of property

Bulletin No. 7.3 Material facts

Disclosure, consent, and acknowledgement requirements not addressed in other bulletins are explained below.

Dealing with clients of other agents

A real estate agent who knows or ought to know that a person is a client of another agent must communicate only through the other agent unless the written consent of the other agent is obtained.

Remuneration terms that might affect whether an offer is accepted

If a brokerage has entered into a representation agreement with a seller and an agreement between the brokerage and the seller contains terms that relate to remuneration that may affect whether an offer to buy is accepted, the brokerage must disclose the existence of and the details of those terms to any person who makes a written offer to buy as soon as possible after the offer is made and before any offer is accepted.

The brokerage must make best efforts to obtain a written acknowledgement from each person receiving the disclosure indicating that the disclosure has been received and, if a person makes the acknowledgement, provide them with a copy of it.

Information statement re seller’s property

If a real estate agent represents a seller and knows that the seller has completed a written statement that is intended to provide information to buyers about the property, the agent must,

1. disclose the existence of the statement to every buyer who expresses an interest in the real estate; and
2. if requested by a buyer, make the statement available to the buyer as soon as possible after the request is made.

Not all information statements are prepared for the purpose of providing information to buyers about a property. These requirements apply to statements the seller intended to share with buyers.

Third party goods or services

A real estate agent must not, on behalf of a client, enter into an agreement with a third party for the provision of goods or services to the client unless,

1. the agent has disclosed in writing to the client the subject-matter of the agreement with the third party and the identity of the person responsible for paying for the provision of the goods or services;
2. the client has consented to the registrant entering into the agreement with the third party; and
3. the registrant has disclosed in writing to the third party the identity of the person responsible for paying for the provision of the goods or services

Deposit terms for money held in trust

Brokerages must fully and clearly disclose in writing to a person depositing trust money the terms on which the brokerage deposits the money, including whether the money is deposited in an interest-bearing account and the interest rate that the brokerage receives on the money.