Misrepresentation and deceptive practices rank among the most frequent complaints in British Columbia’s real estate sector, according to a new report from the BC Financial Services Authority (BCFSA).
The regulator has released its inaugural Consumer Complaints and Investigations Report, summarizing its processes for handling consumer complaints and highlighting key themes and outcomes from the 2023/24 fiscal year.
The report revealed that BCFSA received 1,234 complaints against the real estate sector during the 2023-24 fiscal year, which ran from April 1, 2023, to March 31, 2024. During the same period, BCFSA closed 1,690 real estate-related complaints, leaving 609 cases unresolved as of the fiscal year’s end.
Misrepresentation accounted for 20 percent of all real estate complaints, with issues including incorrect property measurements and inaccurate information about zoning, land use, or tenancies. Deceptive practices and conduct unbecoming, along with unlicensed activity, each comprised 17 of complaints. Other common themes included breaches of client duties, disclosure failures, and conflicts of interest.
BCFSA used a range of responses to address complaints. Formal enforcement actions included 21 instances of monetary penalties, some of which were accompanied by license suspensions or cancellations. Informal measures were more frequent, with 248 advisory letters issued, two undertakings agreed to, and 27 instances of voluntary compliance. However, many complaints (374) fell outside BCFSA’s authority, while 895 were dismissed due to insufficient evidence. Another 62 complaints were either withdrawn or abandoned.
“As part of BCFSA’s vision to be a modern, effective, and efficient regulator of the BC financial services sector, we aim to provide consumers with resources that support consumer protection. This inaugural report is an important resource that supports that vision, while offering increased transparency on BCFSA’s consumer-facing processes,” said Blair Morrison, CEO of BCFSA.
The report also noted that insurance was the second-most complained-about sector, with policyholder dissatisfaction over claim decisions and settlements driving complaints.
The Consumer Complaints and Investigations Report, which will be published annually, aims to reflect ongoing developments and trends in BC’s financial services sector. Morrison emphasized that the report’s transparency will help consumers better understand the authority’s processes while reinforcing protections across industries under its oversight.