Welcome changes to real estate assignment regulations in BC
|Changes to Assignments in Real Estate Contracts
On May 10, the BC Government amended the Real Estate Services Regulation to require changes in the way the assignment of real estate contracts are addressed.
Effective on May 16, 2016, unless otherwise instructed by their clients, real estate contracts prepared by licensees must state that the contract cannot be assigned without the written consent of the seller, and that any profit from an assignment goes to the initial seller. This applies to both residential and commercial transactions, with the exception of development units (as defined in section 1 of the Real Estate Development Marketing Act – www.bclaws.ca/civix/document/id/complete/statreg/04041_01#section1).
To make compliance as easy as possible for REALTORS®, BCREA will amend the related standard forms to include the following paragraph: The Seller and the Buyer agree that this Contract: (a) must not be assigned without the written consent of the Seller; and (b) the Seller is entitled to any profit resulting from an assignment of the Contract by the Buyer or any subsequent assignee.
It’s important to note that buyers and sellers still have the ability to amend or entirely strike out these provisions. The point is that including this information creates an opportunity for both parties to decide how they want assignments handled.
BCREA is also helping to ensure consumer awareness of the changes. On May 10, BCREA published a news release, and the Association is also supporting the Council’s efforts to help ensure consumers are aware of these changes.
BCREA is the professional association for more than 20,000 REALTORS® in BC, focusing on provincial issues that impact real estate. Working with the province’s 11 real estate boards, BCREA provides continuing professional education, advocacy, economic research and standard forms to help REALTORS® provide value for their clients.
To demonstrate the profession’s commitment to improving Quality of Life in BC communities, BCREA supports policies that help ensure economic vitality, provide housing opportunities, preserve the environment, protect property owners and build better communities with good schools and safe neighbourhoods.