The B.C. Financial Services Authority (BCFSA) has started a discussion on new approaches pertaining to real estate commissions, disclosures, bidding wars and more, and while there’s a consensus around the goal of protecting consumers, professionals in the field are skeptical about how some of the ideas would play out.
BCFSA, the provincial Crown agency that regulates the real estate sector, recently published Strengthening Confidence in Real Estate Services, a discussion paper that describes potential new regulations with the purpose of building transparency and trust with consumers.
A ‘180’ on performance-based commissions
Tony Joe, a Victoria, B.C.-based Realtor, trainer and coach, told Real Estate Magazine that the proposals that most surprise him are ones dealing with commissions, particularly one that would allow agents to base their payment on the difference between the list and sold price.
“That has been a practice that has been frowned upon. It has always been a thing in B.C. that you’re not allowed to earn a commission that is based on performance,” he said. “This is a complete 180 from what we have been told all this time.”
BCFSA says the rules were once created to protect consumers with limited access to information, but given the availability of property pricing and assessment information today, “allowing commission structures that reward real estate agents for successfully negotiating a lower or higher price may encourage new commission models,” said the regulator in the discussion paper.
Given the varying consumer risks on the buyers’ and sellers’ sides, BCFSA may consider different proposed approaches for agents representing buyers and sellers, it said.
Vancouver Realtor Keith Roy said it’s an odd proposal, but he generally supports different compensation models.
“Realtors with 20 years of experience might be better than new Realtors and should be compensated accordingly,” he said in an email to REM.
“As long as transparency exists, it’s up to the (consumer) to make the decision”
The paper also brings up the idea of prohibiting agents from claiming commissions when they are a principal in the transaction (buyer or seller).
“This is one of the benefits of being a licensee. I feel that one will be problematic,” said Joe.
Joe said he believes claiming commission should still be allowed, provided all the disclosures are made.
“BCFSA is talking about transparency, and as long as transparency exists, then presumably the consumer will be happily made aware, and it’s up to them to make the decision.”
‘This will be a hot spot’
The paper opens for discussion the idea of banning “double ending,” a practice that sees the seller’s brokerage retaining the entire commission paid by the seller when the buyer is unrepresented.
“Double ending may make offers from unrepresented parties more lucrative for agents and can result in misaligned incentives as benefits accrue to a listing agent, not the seller,” it reads.
While data suggests only up to two per cent of buyers were unrepresented in 2025, said BCFSA, “double ending can erode trust and confidence in the industry since consumers expect that any cooperating commission is intended for buyer representation.”
Joe noted that BCFSA already banned dual respresentation, which according to him, “seems to be doing well.”
“I don’t really have an issue with banning double ending, said Joe. “But I do know that this will be a hotspot for licencees because it’s an opportunity for them to earn both sides of the commission.”
BCFSA tackles bidding wars
The discussion paper looks at supplying buyers with additional information when bidding goes into a second round. This change would require the seller’s agent to disclose to any buyer who is invited to make a new offer, or consider a counteroffer, the price of the highest active offer from the last round of offers.
Another approach the paper puts forth is a post-transaction reporting of multiple offers, which would require a seller’s agent to provide an anonymized report listing such information as the number of offers, the date of each offer, and the names of competing brokerages to all bidders, including the successful buyer.
“Sellers, of course, want the best outcome. To expose, the highest offer price on a second round kind of limits where the seller could end up,” said Joe. “This is a point that consumers should be weighing in on.”
Changing building since self-regulation ended
In 2016, former premier Christy Clark ended self-regulation for the real estate sector. BCFSA became the sole regulator for B.C.’s financial services sector, including real estate, in 2021.
Joe says the changes proposed in the new paper don’t shock him as they build on the changes of the last number of years since the industry came under tighter government regulation.
“They have taken on a very clear mandate of consumer protection, and I understand that. I don’t think that’s a bad thing necessarily,” he said.
Some of the proposed approaches would bring B.C. in line with regulations in other jurisdictions across Canada. For example, the paper proposes mandatory buyer service agreements, which were introduced in Nova Scotia in 2017.
What happens next?
BCFSA says the paper is not a formal consultation on changes, but rather an “opportunity to highlight key issues and invite dialogue on a proposed path forward.”
BCFSA has put out a call for feedback and pledges to publish a summary of what people said.
“If we decide to move forward with any of the proposed approaches, we will further engage industry and the public, including formal engagement on potential rule changes to help guide our decisions,” it said.
Courtney Zwicker is a digital reporter and associate editor for REM. Based in Atlantic Canada, she has over a decade of experience covering daily business news.
