If you hire an unlicensed assistant, you are responsible for ensuring that any tasks or projects assigned to them, do not cross into activities that require a licence from BCFSA. Having an employment contract with the brokerage that details what the unlicensed assistant is being hired to do can help protect you should suspicion arise that your assistant has been trading without a license. You must remember that having an assistant who will be privy to your clients’ confidential information is material information that must be shared with your client. It is always advisable to make these disclosures in writing to protect you should a complaint be filed with BCFSA. PurposeThis guideline will help you understand what services unlicensed assistants can provide and what services unlicensed assistants may not participate in. These services will vary depending on the real estate sector you work in.
GuidelinesKnowing What Trading Services Unlicensed Assistants Employed by Real Estate Professionals Can Do(a) What an Unlicensed Assistant Can Do Unlicensed assistants can:
(b) What Unlicensed Assistants Cannot Do Unlicensed assistants cannot:
Knowing What Rental Property Management Unlicensed Assistants Employed by a Brokerage Can DoThe following lists do not apply to unlicensed assistants employed directly by real estate professionals and only to unlicensed assistants employed directly to the brokerage. Other licensing exemptions can be found here. (a) What Unlicensed Assistants Can Do Unlicensed assistants can:
(b) What Unlicensed Assistants Cannot Do Unlicensed assistants cannot:
(c) Condition Inspection Reports BCFSA considers a move-in or move-out inspection report, or the Condition Inspection Report as provided by the Office of Housing and Construction Standards, to be a contract between the landlord and tenant. It sets out an agreement between the landlord and tenant as to what repairs must be completed at the start of the tenancy, and what repairs the tenant is responsible for at the end of the tenancy, and the amount of the deduction from the tenant’s security deposit (and pet damage deposit if applicable). In most cases, your written service agreement between the landlord and brokerage authorizes you to enter into contracts on behalf of the landlord, which includes completing and signing condition inspection reports. Unlicensed assistants cannot perform these tasks because the definition of rental property management includes “negotiating or entering into contracts.” Employees of the brokerage who work under the caretaker exemption in the Real Estate Services Regulation (“Regulation”) are not able to negotiate contracts on behalf of a real estate professional and cannot conduct move-in or move-out inspections. Strata Management and Unlicensed Assistants Employed by a Brokerage(a) What Unlicensed Assistants Can Do Unlicensed assistants can: 1. Under the general direction and supervision of the brokerage or a real estate professional engaged by that brokerage:
2. As authorized on a case-by-case basis by the brokerage or a real estate professional engaged by that brokerage an unlicensed assistant can:
3. For the approval of the brokerage or a real estate professional engaged by that brokerage an unlicensed assistant can:
(b) What Unlicensed Assistants Cannot Do Unlicensed assistants cannot:
Understanding the Risks of Hiring an Unlicensed Assistant Who Also Works at Another BrokerageCan unlicensed assistants be hired to work at multiple brokerages? There are inherent risks in permitting assistants to work at multiple brokerages, could create conflicts of interest that real estate professionals are required to take reasonable steps to avoid and disclose to your clients per the Real Estate Services Rules (“Rules”). Unlicensed assistants are often privy to confidential information about your clients. When assistants work for real estate professionals, you as the employer are obligated to ensure that your staff to not violate the rules concerning confidentiality by sharing information with those who should not have access to it. If your assistant is working at multiple brokerages, they have information about your clients that could be carried over to another brokerage. Similarly, if you are representing a client and your assistant also works with the real estate professional representing the client on the other side of the transaction, you could be creating a conflict of interest. It would be difficult to prove that you were not privy to the confidential information your assistant had. Click here for further information on confidentiality and duties to clients. Managing Broker ConsiderationsAs a managing broker, it is your responsibility to know who is providing services on behalf of your brokerage. While assistants are often hired by the real estate professionals licensed to your brokerage, their staff is providing services on the brokerage’s behalf. Outlining rules in your brokerage policy manual to require real estate professionals to notify you when they hire assistants will help in your duty to supervise and know what is happening at the brokerage. The policy manual should also outline what activities the brokerage permits both licensed and unlicensed assistants to engage in. Your policies should also include a vetting process for assistants including a criminal background check, and a determination of whether the individual has ever been licensed and/or disciplined by BCFSA. Unlicensed assistants who want to work for multiple real estate professionals at different brokerages, or multiple real estate professionals within your brokerage can cause a potential issue. When assistants work for multiple brokerages, they are privy to confidential client information from that brokerage. Should the assistant share that information with the other brokerage, or should it appear likely that information was shared, the respective real estate professional and brokerage could be sanctioned for violating their duty of confidentiality. Should the assistant wish to work with multiple real estate professionals within your brokerage, you must first consider your brokerage model. Under designated agency, the same potential conflicts that could arise when an assistant works at multiple brokerages exists here as well. Confidential information about each designated agents’ clients could be provided to other designated agents (either unintentionally or intentionally). Under brokerage agency, this would not be an issue. Best practice would be to restrict any assistant from working with any other designated agent or brokerage while employed by one of your real estate professionals. Applicable Section of RESA/Real Estate Services Regulation/Real Estate Services Rules
DefinitionsReal estate services: means
Rental property management services: means any of the following services provided to or on behalf of an owner of rental real estate:
but does not include an activity excluded by regulation Strata management services: means any of the following services provided to or on behalf of a strata corporation:
but does not include an activity excluded by regulation Trading services: means any of the following services provided to or on behalf of a party to a trade in real estate:
but does not include an activity excluded by regulation Client: means, in relation to a real estate professional, the principal who has engaged the real estate professional to provide real estate services to or on behalf of the principal Which of the following items are necessary to create an agency relationship?Consent: Consent of both the principal and the agent is necessary to form an agency relationship. More specifically, both the principal and the agent must consent to the agent acting on the principal's behalf and subject to the principal's control.
Which phrase below best describes the meaning of the term annual percentage rate APR )?Which phrase below best describes the meaning of the term Annual Percentage Rate (APR)? The true and actual cost of the amount financed.
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