Unrepresented Parties in Real Estate – Beware
Consumers who choose to conduct a real estate transaction without a real estate professional are soon to be known as “unrepresented parties”. Following the Independent Advisory Group Review for the Office of the Superintendent of Real Estate (OSRE), consumer protection has been reaffirmed as the priority in real estate transactions in BC. As a result, the Real Estate Council of BC (RECBC) is urging consumers to seek their own real estate professional. Why?
Well, for instance, when you are an unrepresented buyer walking into a new condo sales office you need to understand that the person who greets you is actually representing the developer, which means that they will likely be sharing all relevant information you unwittingly share with their employer.
This could include for example:
• your motivation for buying,
• your financing capability, and
• your preferred terms and conditions.
The representative of the developer often fails to establish the nature of the relationship at the outset. If the buyer is unrepresented, then there is a high probability of confidential information being disclosed, e.g., personal, private, sensitive, family, financial, etc.
You need to be extremely cautious about sharing any confidential information with anyone who represents a party with opposing interests to yours, no matter how comfortable the sales person might make you feel. They do not represent you and, to that effect, you will be asked to sign an unrepresented buyer form at sometime during the transaction; most times that happens too late!
As a buyer it doesn’t cost you anything to get your own real estate representative, and while your best interests are being served, your confidentiality will not be compromised. While you aren’t required to have a real estate professional represent you in a real estate transaction, the expert advice, protection, and oversight that comes with being the client of a real estate professional can be very helpful.
BUYER BEWARE. Over the next few years there will be many new home sales made in BC and, as real estate professionals, we’d like you to know how to protect yourself before entering into a contract. For instance, you must have been provided adequate time to have read and understood the 1” thick Disclosure Statement, e.g., delays, parking, substitutions, etc., before entering into a contract. This is one part of the unrepresented process where many unsuspecting consumers are deceived or put under extreme pressure, so make sure you know what you are doing beforehand.
These are examples as to why the RECBC is urging consumers to seek their own real estate professional, so carefully consider the risks before deciding to be an “unrepresented party” in a real estate transaction. If you are looking for a local Port Moody or City of Coquitlam Realtor, call Jessica today: 604-561-8892