Real estate services dominated consumer complaints in British Columbia last fiscal year, according to the inaugural Consumer Complaints and Investigations Report 2023-2024 from the BC Financial Services Authority (BCFSA).
Real estate services complaints by the numbers
The sector accounted for the largest share of complaints received and resolved between Apr. 1, 2023, and Mar. 31, 2024. Of the 1,711 complaints submitted to BCFSA, 1,234 were real estate-related—more than 70 per cent of all grievances.
The regulator also resolved 1,690 real estate complaints during this period, with a focus on clearing a backlog of cases inherited after BCFSA’s integration with the Real Estate Council of BC and the Office of the Superintendent of Real Estate in 2021.
Over the past three years, BCFSA says it has reduced its overall inventory of real estate complaints from 1,538 in August 2021 to 609 open complaints as of Mar. 31, 2024.
Source: BCFSA Consumer Complaints and Investigations Report
Top themes
The report underscores key areas of consumer dissatisfaction, with misrepresentation being the leading complaint theme, accounting for 20 per cent of real estate-related grievances. According to BCFSA, these cases often involved inaccurate or incomplete property information, such as incorrect measurements, zoning details or tenancy disclosures.
Other concerns included:
- Deceptive or unbecoming conduct (17 per cent): Actions undermining public confidence in the industry.
- Unlicensed activity (17 per cent): Instances of individuals or companies conducting real estate transactions without proper licensure.
- Failure to fulfill duties to clients (15 per cent): Breaches related to confidentiality, material disclosure, and overstepping authority.
How complaints are resolved
BCFSA employs a multi-step approach to managing complaints, assessing each for risk and prioritizing those with potential consumer harm. In fiscal 2023-24, resolution methods included:
Formal enforcement actions: Monetary penalties (21 cases), with one including license suspension or cancellation)
Informal enforcement actions: Voluntary compliance agreements (27 cases), letters of advisement or warnings (248 cases)
Other outcomes: In 895 instances, complaints were dismissed due to insufficient evidence.
BCFSA regulates real estate agents, brokers, property managers and strata managers, and can also investigate and take action if an unlicensed person or company is performing real estate activities that require a licence in B.C.
Read the full report here.
