A strata manager, John, who manages Strata Plan EPS5678 in Surrey, discovers that a contractor he frequently recommends to the strata corporation (and from whom he receives a referral fee for each successful contract) has just been awarded a painting contract worth $25,000 by the strata council. What action is John legally required to take?

Question: A strata manager, John, who manages Strata Plan EPS5678 in Surrey, discovers that a contractor he frequently recommends to the strata corporation (and from whom he receives a referral fee for each successful contract) has just been awarded a painting contract worth $25,000 by the strata council. What action is John legally required to take?

Answer options: ✅ He must disclose the referral fee arrangement to the strata council and the owners, and ensure he did not influence the council's decision.

• He must immediately terminate his contract with the strata corporation due to the conflict of interest.
• He must decline the referral fee for this particular contract, but can continue future arrangements.
• He does not need to take any specific action as long as the referral fee is a standard industry practice and disclosed in his management contract.

Correct answer: He must disclose the referral fee arrangement to the strata council and the owners, and ensure he did not influence the council's decision.

Explanation: BCFSA Real Estate Services Rules 5-11 (formerly 3-3, 3-4, 3-5) require a licensee to disclose any actual or potential conflict of interest, including receiving remuneration from a third party, to the client (the strata corporation) in writing and obtain their consent.