Can I Sue My Real Estate Agent for Negligence in BC? Understanding a Realtor’s Duties to Clients
For most people, buying or selling a home is one of the biggest financial decisions they will ever make. That’s why clients place significant trust in their real estate agents to provide accurate information, protect their interests, and guide them through the transaction. But what happens when the real estate agent makes a serious mistake?
In British Columbia, real estate agents owe important legal and professional duties to their clients.
When a real estate agent fails to meet their obligations and a client suffers losses, there may be grounds for a professional negligence claim.
What Duties Does a Real Estate Agent Owe Their Client?
A real estate agent’s standard of care is a question of law, and their duties are both contractual and of a fiduciary nature. A real estate agent must act in their client’s best interests and provide competent professional services. Their key duties include:
- disclosing all known material information;
- following clients’ lawful instructions;
- acting in the client’s best interests and avoiding conflicts of interest;
- communicating offers promptly;
- maintaining confidentiality; and
- recommending professional advice when necessary.[1]
Breaches of professional conduct standards inform the standard of care owed by real estate agents, although they are not determinative in and of themselves.
Unless the alleged negligence involves non-technical matters or is so egregious that it is clearly below the standard of case, expert evidence is generally required.[2]
What Must Be Proven?
To establish a successful negligence claim against a real estate agent, a plaintiff must show that:
- the real estate agent possessed a special skill;
- the real estate agent undertook to apply that skill for the assistance of the plaintiff;
- the plaintiff relied upon such skill;
- the conduct of the real estate agent fell below the requisite standard of care of a reasonably prudent brokerage and/or real estate agent at the material time; and
- the plaintiff suffered damage as a result of the breach of the standard of care.[3]
Case Example: Shave v. Century 21 Assurance Realty Ltd., 2022 BCSC 183
In the case of Shave v. Century 21 Assurance Realty Ltd., the plaintiffs had immigrated to Canada from the United Kingdom in January 2018. While searching to purchase a home, they retained a real estate agent, and with the real estate agent’s help, they entered into a contract of purchase and sale for the property.
The plaintiffs did not know that recent amendments to legislation had made the property subject to a 20% foreign buyers’ tax. As they did not have their permanent resident status at the time of completion of the purchase, the plaintiffs were required to pay an additional 20% in taxes. They sued their realtor, claiming that they would have waited to purchase a property until after they were permanent residents and no longer “foreign buyers” had they known about the recent changes in the legislation.
The court found that a reasonable real estate agent would understand that the risk, or requirement, of paying an extra 20% for a family home would be an extremely important piece of information for prospective purchasers. In failing to notify the plaintiffs of the existence of the foreign buyers’ tax and failing to encourage them to seek independent legal advice, the real estate agent did not meet the standard of a reasonably competent realtor.
The court held, amongst other things, that if the real estate agent had advised the plaintiffs about the existence of the foreign buyers’ tax and told them to seek legal advice, no loss would have been suffered in the circumstances.
Ultimately, the court apportioned 75% of the liability to the real estate agent, 20% to the solicitor assisting with the purchase, and 5% to the plaintiffs for contributory negligence.
What Should You Do If You Suspect Realtor Negligence?
If you believe your real estate agent failed to protect your interests:
- gather your contracts, emails, and transaction documents;
- keep a record of events and document losses you experienced; and
- seek legal advice promptly to understand your options.
Contact Watson Goepel LLP for Assistance
At Watson Goepel LLP, our litigation team assists clients with real estate disputes, professional negligence claims, and property litigation across British Columbia.
We help clients assess potential claims, protect their rights, and pursue appropriate remedies when real estate professionals fail to meet their legal obligations.
Key Takeaways
- Real estate agents owe professional duties to their clients.
- Professional negligence by real estate agents can result in significant losses to their clients.
- Common issues include non-disclosure, misrepresentation, conflicts of interest, and failing to follow client instructions.
- Clients may have legal remedies when a realtor’s conduct falls below professional standards and they experience losses as a result.
- Early legal advice can help protect your rights.
Disclaimer: This content is provided solely for informational purposes and is not intended for use in any legal proceeding. You should consult a qualified lawyer for advice tailored to your specific circumstances.
[1] Zhong v. Alan Hu Personal Real Estate Corp., 2025 BCSC 40 at para 84, citing Mulligan v. Stephenson, 2016 BCSC 1941 at para. 113; Real Estate Services Rules, B.C. Reg. 209/2021, s. 30
[2] Shave v. Century 21 Assurance Realty Ltd., 2022 BCSC 183,at para. 62
[3] Beacock v. Moreno, 2019 BCSC 955, at para. 109.
