Have you ever heard of "The Disclosure of Representation in Trading Services" (DORTS)?

What is DORTS and what to look out for?

In 2018, the Disclosure of Representation in Trading Services form was made necessary for real estate professionals as part of the Real Estate Services Act’s Real Estate Rules.

Consumers must be informed about whether or not a real estate agent will represent them as a client and what obligations they have to clients and non-clients. When a customer becomes a real estate agent’s client, the agent is obligated to act in their best interests. On the other hand, customers may deal with real estate agents without becoming clients and they will get restricted services and must be aware of the dangers of being non-clients (also known as unrepresented parties).

In British Columbia, licensed real estate professionals must provide customers with information about the services they anticipate, the risks of going it alone in a real estate transaction, and commissions. Real estate professionals assist and ensure that customers have the information to make wise choices in a real estate transaction by providing these disclosures. It’s just one of the ways that real estate agents in British Columbia maintain professional standards by adhering to laws and regulations meant to safeguard customers.

The central concept behind Disclosure of Representation in Trading Services (DORTS) is to notify a realtor’s clients about their rights in the relationship and the obligations and responsibilities the realtor owes them.

Representation's Advantages

Consumers must determine whether they want to be clients of a licensed real estate professional or act independently as an unrepresented party when contemplating a real estate transaction. As a client, you may anticipate the following as a result when you choose a licensed real estate agent to represent you:

Expert advice

Realtors in British Columbia acquire specific training. The provincial Real Estate Services Act, which attempts to safeguard customers’ interests and regulates licensed BC Realtors, and the Real Estate Council of BC ensure that BC Realtors are qualified and informed. In addition, they have the authority to investigate and sanction people who have engaged in professional misconduct.

What should you expect as a client?

As a client of a real estate professional, you owe BC Realtors the following particular legal responsibilities, which you do not owe as an unrepresented party.

Loyalty must be a top priority for them.

Conflicts of interest should be avoided at all costs; any scenario that interferes with their obligation to act in your best interests should be avoided. In addition, they must fully disclose any information they have that might influence your choices. They are obligated to keep your information confidential until you permit them to do so.

As a client, you have many options in BC. Licensed Realtors work via “brokerages” to deliver their services. When you become a real estate agent client, the agreement you sign is with their brokerage. All of the firm’s Realtors represent you as a brokerage agency. Accordingly, all are subject to the same legal obligations as those listed above.

Only your selected realtor acts as your designated agent. Without your agreement, they may not disclose your private information to other brokerage agents. Confirmation of Disclosure A Realtor must give you the DORTS form before providing any trading services. This statement is accurate not just for residential properties; it must also be provided to people working with a real estate professional to rent or lease property, as well as those involved in commercial real estate transactions.

After reading the DORTS document, sign the form to acknowledge that you have received this consumer protection information. Your agent must sign and submit the disclosure form to their brokerage. In the case you decide that you don’t need a realtor after reading the DORTS paper, they may provide you with the Disclosure of Risks to Unrepresented Parties form.

What is the difference between DORTS and working with a Realtor (WWR)?

Working with a Realtor (WWR) was introduced before DORTS. WWR was replaced by DORTS in June 2018. For various reasons, the changes to how realtors are regulated changed in BC in 2018 as there have been several high-profile incidents of realtors doing things they shouldn’t have done before the 2018 changes. We also noticed a rapid rise in real estate prices in Vancouver. The Real Estate Services Act revisions are thought to result from the BC government and media criticizing the real estate sector for rapidly increasing real estate prices in the Vancouver region.

Visit BCFSA to learn more about DORTS.