Disclosure of Representation in Trading Services Document – What is it?
If you’re buying or selling a property in British Columbia, Canada, it’s important to be aware of the Disclosure of Representation in Trading Services form (DORTS).
This mandatory form was introduced in 2018 and is used by all real estate agents in the province to ensure transparency and protect the interests of all parties involved in a transaction.
Disclosure of Representation in Trading Services form is provided by the British Columbia Financial Services Authority BCFSA. BCFSA is a provincial government body that regulates real estate and Realtors among other related sectors in British Columbia.
Is DORTS Required for presale condos in BC?
Yes, Realtors are required to discuss DORTS with the purchasers of new construction and presale condos and townhouses in British Columbia. This is also part of an explanation of the package of documents a buyer can expect to review, sign, and fill out when buying a presale or new construction home with Vancouver New Condos.
The DORTS form is designed to disclose the relationship between the real estate agent and their client and ensure that the client understands their rights and responsibilities throughout the transaction. One important aspect of the form is to disclose the type of representation that the agent will provide, which can be either a client relationship or a non-client relationship:
As a Client
If you are the client of a real estate professional, they work on your behalf.
The real estate professional representing you has special legal duties to you including:
• Loyalty. They will act only in your best interests
• Full disclosure. They must tell you everything they know that might influence your decision in a transaction. This also includes disclosing any risks the client may face.
• Avoid conflicts of interest. They must avoid any situation that would affect their duty to act in your best interests.
• Confidentiality. They must not reveal your private information without your permission, even after your relationship ends.
That includes:
• your reasons for buying, selling or leasing
• your minimum/maximum price
• any preferred terms and conditions you may want to include in a contract
This includes the clients personal information.
When you become a client of a Realtor in BC, you will be asked to sign a Disclosure of Representation in Trading Services setting out your and the real estate professional’s responsibilities
As a Non-Client
A real estate professional who is not representing you as a client does not owe you special legal duties:
• No loyalty. They may be representing a client with competing interests to yours in a transaction. They must be loyal to their client, not you.
• No duty of full disclosure. They do not have a duty to give you all relevant information.
• No duty to avoid conflicts. They are not acting in your interests.
• No confidentiality. They must share any information you tell them with their clients in a transaction.
As a non-client, a real estate professional may give you only limited services.
Whenever a real estate professional works with you in a real estate transaction, whether you are their client or not, they have a responsibility to act honestly and with reasonable care and skill.
Also, please note – buyers (including presales and new constructions homes) and sellers in British Columbia are not required to sign this document, but Realtors are required to present this document when beginning a conversation about a prospective clients motivations or potentially confidential information. Please see a copy of the document below.
Disclosure of Representation in Trading Services and Informed Decision Making Around Agency
The explanation of the agency relationship in the form is an essential part of the real estate transaction process in British Columbia and helps to ensure that clients are fully informed about the agency relationship and can make informed decisions throughout the process. By understanding the purpose of the DORTS form and the different types of representation, clients can have confidence in their decision-making and have peace of mind throughout the transaction.
Disclosure of Representation in Trading Services DORTS FAQ
Q1: What is the Disclosure of Representation in Trading Services form (DORTS)?
A: DORTS is a mandatory form introduced in 2018 for real estate transactions in British Columbia, Canada. It ensures transparency and protects all parties involved by disclosing the relationship between the real estate agent and their client.
Q2: Is the DORTS form required for presale condos in BC?
A: Yes, Realtors in BC are required to discuss DORTS with purchasers of new construction and presale condos and townhouses.
Q3: What is the main purpose of the DORTS form?
A: The form is designed to clarify the relationship between the real estate agent and their client, ensuring the client understands their rights and responsibilities throughout the transaction.
Q4: What are the duties of a real estate agent when representing a client?
A: They must act in the client’s best interests, disclose all relevant information, avoid conflicts of interest, and maintain client confidentiality.
Q5: What if I’m not a client of the real estate agent?
A: As a non-client, a real estate professional may offer limited services. They are not acting in your interests and must share any information you provide with their clients in a transaction.
Q6: Am I required to sign the DORTS document?
A: Buyers and sellers in BC are not required to sign this document. However, Realtors are obligated to present it when discussing potentially confidential information.
Q7: How does the DORTS form impact the real estate transaction process in BC?
A: The form ensures that clients are fully informed about the agency relationship, allowing them to make informed decisions throughout the process.
Q8: Is a Client Required to sign the Disclosure of Representation in Trading Services Document?
A: No. Realtors are required to present this document to their clients. Clients and non-Realtors are not required to sign this document.
Conclusion
In summary, the Disclosure of Representation in Trading Services form is a critical aspect of real estate transactions in British Columbia, and understanding its purpose and requirements is important for anyone looking to buy a new or pre-construction home in the province.