For candidates preparing for the British Columbia real estate licensing exam, understanding the intersection of human rights law and real estate practice is non-negotiable. Real estate professionals serve as the gatekeepers to housing and commercial property, and with that role comes a strict legal and ethical obligation to ensure equal access. This mini-article covers the essential regulations surrounding protected classes and discrimination, forming a crucial component of your broader study plan. For a comprehensive overview of all exam topics, be sure to bookmark our Complete BC Real Estate Trading Services Licensing Exam Exam Guide.

The BC Human Rights Code and Real Estate

In British Columbia, discrimination in the real estate sector is primarily governed by the BC Human Rights Code. The Code protects individuals from discrimination in several areas of daily life, including the purchase of property and tenancy.

For the BC Trading Services Exam, you must be intimately familiar with two specific sections of the Code:

  • Section 9 (Purchase of Property): Prohibits discrimination against a person or class of persons regarding the purchase or sale of commercial or residential real estate.
  • Section 10 (Tenancy Premises): Prohibits discrimination in the leasing or renting of residential and commercial spaces.

Licensees are subject to the oversight of both the BC Human Rights Tribunal and the BC Financial Services Authority (BCFSA). A violation of the Code is simultaneously a violation of the Real Estate Services Act (RESA) and the REALTOR® Code of Ethics.

Recognized Protected Classes in British Columbia

To avoid discriminatory practices, licensees must know exactly which characteristics are legally protected. Under the BC Human Rights Code, it is illegal to deny someone the right to purchase or rent property based on the following protected classes:

  • Indigenous identity
  • Race, colour, or ancestry
  • Place of origin
  • Religion
  • Marital status or family status
  • Physical or mental disability
  • Sex, sexual orientation, or gender identity/expression
  • Age (specifically protecting those 19 years and older)
  • Lawful source of income (Note: This applies specifically to tenancy under Section 10, not to the purchase of property under Section 9).

Data: Common Human Rights Complaints in BC Housing

Understanding where violations most frequently occur can help licensees remain vigilant. Below is a representation of the most common grounds for discrimination complaints filed with the BC Human Rights Tribunal regarding housing and tenancy.

Percentage of Housing Discrimination Complaints by Ground (BC)

Prohibited Practices in Real Estate Trading Services

Discrimination in real estate is rarely as overt as a sign on a door. Often, it takes the form of subtle, systemic practices that licensees must actively avoid.

Steering

Steering occurs when a licensee guides prospective buyers or renters toward or away from certain neighborhoods based on their protected class. For example, assuming a buyer of a specific ethnic background would only want to look at homes in a neighborhood with a high concentration of that same ethnicity is a form of steering.

Blockbusting (Panic Peddling)

Blockbusting is the illegal practice of inducing property owners to sell by exploiting fears that individuals of a certain race, religion, or other protected class are moving into the neighborhood. This tactic was historically used to drive down property values for speculative buying.

Discriminatory Advertising

Section 7 of the BC Human Rights Code prohibits publishing or displaying any advertisement that indicates discrimination or an intention to discriminate. Phrases like "perfect for a mature couple" (discriminates against family status) or "must be employed" (discriminates against lawful source of income in rentals) can trigger human rights complaints. For a deeper dive into compliant marketing, review our guide on advertising regulations and compliance.

Practical Scenario: Dealing with Discriminatory Client Instructions

The Scenario: You are the listing agent for a detached home in Burnaby. Your seller client tells you, "I've lived in this neighborhood for 40 years. I only want you to show the house to traditional local families. Do not bring me any offers from foreign investors or new immigrants."

The Application: As a licensee, you owe your client obedience, but only for lawful instructions. Because the seller's instructions violate the BC Human Rights Code (discrimination based on place of origin and family status), you cannot comply.

The Action: You must explain to the seller that their request is illegal under provincial law. If the seller insists on maintaining this discriminatory condition, you must refuse the instruction and withdraw from the agency relationship. Failing to do so makes you complicit in the discrimination. To understand the limits of client obedience, read our article on the fiduciary duties of agents.

Exemptions Under the Law

The BC Trading Services exam will test your knowledge of the rare exceptions where discriminatory practices are legally permissible. These exemptions are narrowly defined:

  • Seniors' Housing (Age Restriction): Under recent changes to the Strata Property Act (following Bill 44), stratas are no longer allowed to restrict rentals or enforce age restrictions, with one major exception: stratas may enforce a 55+ age restriction to preserve seniors' housing.
  • Shared Accommodation: The prohibition against discrimination in tenancy does not apply if the tenant will be sharing sleeping, bathroom, or cooking facilities with the owner of the property. In these intimate living arrangements, the owner has the right to choose their roommate based on personal preference.
  • Non-Profit Organizations: Certain non-profit organizations that exist to promote the welfare of a specific marginalized group may restrict their housing to members of that group.

Historical Restrictive Covenants and Title

When examining title documents, licensees may occasionally spot historical "restrictive covenants" that dictate who can own or occupy the land based on race or religion. These were common in the early 20th century.

For exam purposes, you must know that under Section 222 of the BC Land Title Act, any covenant that restricts the sale, ownership, occupation, or use of land based on sex, race, creed, colour, nationality, ancestry, or place of origin is entirely void and of no effect. The Registrar of Land Titles has the authority to strike these from the title. For more information on title charges, visit our guide on deeds and title transfer.

Enforcement and Disciplinary Action

Licensees who engage in discriminatory practices face severe consequences from multiple authorities:

  1. BC Human Rights Tribunal: Can order the licensee to cease the discriminatory behavior, pay compensation for lost opportunities, and pay damages for injury to dignity, feelings, and self-respect.
  2. BC Financial Services Authority (BCFSA): Can investigate the licensee for professional misconduct under RESA, resulting in license suspension, cancellation, reprimands, and significant administrative penalties.
  3. Real Estate Boards: Can expel members for violating the CREA REALTOR® Code of Ethics.

Frequently Asked Questions (FAQs)

Can a BC landlord refuse to rent to someone receiving income assistance?

No. "Lawful source of income" is a protected class under Section 10 of the BC Human Rights Code. Refusing a tenant because their rent will be paid via income assistance, disability benefits, or a housing subsidy is illegal discrimination.

What should a licensee do if a buyer asks to only see homes in "neighborhoods with good schools"?

While asking for "good schools" is not inherently discriminatory, licensees must be careful not to engage in steering. The best practice is to direct the buyer to objective, third-party school ranking data and let the buyer select the specific neighborhoods or school catchments they wish to view.

Are strata corporations allowed to restrict families with children?

No. Following the implementation of Bill 44 in late 2022, strata corporations in BC can no longer enforce age restrictions that target families with children. The only permitted age restriction is for 55+ communities (seniors' housing).

Does the BC Human Rights Code apply to commercial real estate?

Yes. Both Section 9 (Purchase of Property) and Section 10 (Tenancy Premises) apply to commercial real estate. A commercial landlord cannot refuse to lease a retail space to a business owner based on the owner's race, religion, or other protected characteristics.

If a seller discriminates, is the listing agent liable?

Yes, if the agent complies with the discriminatory instructions. Licensees cannot use "I was just following my client's orders" as a defense. An agent must advise the client of the law and terminate the agency relationship if the client refuses to comply with the BC Human Rights Code.