RE/MAX CROSSROADS RULES & REGULATIONS BULLETIN:
Presentation of Offers
DID YOU KNOW?
• The Seller still has the right to delay presentation of Offers.
• You should prepare and register an Offer on a property that your Buyer has an interest in as soon as possible.
• The Seller has the right to change their mind.
The presentation of Offers falls within the jurisdiction of RECO. Below are 11 of the most common asked questions to TREB on this subject:
Q #1: Do you have to inform other REALTORS® that there are other Offers?
A: Section 26 of the RECO Code states that when the Brokerage that has a Seller as a Client receives a competing written Offer, the Brokerage shall disclose the number of competing Offers.
It is important for agents to advise front desk of the number of registered Offers so they can pass on this message to showing agents when booking appointments.
RECO CASE: The Registrant did not advise another Brokerage of a competing Offer. $7,000 Penalty.
Q #2: What if one of the competing Offers is from the same brokerage?
A: That Offer and Client will be treated in the same manner as everyone else.
Q #3: If I am representing the Seller and the Buyer, can I present my own Offer?
A: Your office policy may dictate the method of presentation.
Q # 4: I have a commission arrangement with my Seller stating that if I am also representing the Buyer in the same transaction, I will reduce the total commission if my Offer is accepted. Does this have to be disclosed and how?
A: Section 25 of the RECO Code states that if a Brokerage has a Seller as a Client and an agreement between the Seller and the Brokerage contains terms that relate to a commission that may affect whether an Offer to buy is accepted, the Brokerage shall disclose the existence of AND THE DETAILS of those terms to any person who makes a written Offer to buy.
Q #5: When Buyers are made aware that they are in competition and they don’t want to be, can they withdraw their Offer?
A: Yes - provided the Offer hasn’t been given to the Listing Salesperson or faxed over. If your Buyer Client has given you a direction not to present because they do not want to be in competition, then you have to follow that direction. Remember to call the Listing Salesperson and advise of the withdrawal.
Q #6: I have shown a property to my Buyers and they are considering putting in an Offer. I have called the Listing Salesperson and asked are there any Offers currently registered on the property. Does the Listing Salesperson have an obligation to tell me?
A: Your office policy may dictate how you would answer this.
RECO CASE: The Registrant led a Co-operating Salesperson and the Buyers to believe that there was a competing Offer when there wasn’t. $10,000 Penalty.
Q #7: Can the Listing Salesperson make a unilateral decision not to inform his/her Seller Clients of an Offer that has been registered?
A: Section 24 of the RECO Code states that all written Offers must be conveyed to your Client as soon as possible.
Q #8: Who receives a copy of the Agreement of Purchase and Sale?
A: Section 28 of the RECO Code states that a Registrant shall use his/her best efforts to ensure that all parties to the Agreement receive a copy.
RECO CASE: The Registrant failed to deliver a copy of the Agreement of Purchase and Sale. $4,000 Penalty.
Q #9: I have been told my Offer has to be faxed. Are there any written rules regarding faxing of Offers?
A: TREB MLS® Rule R-375 states that if the Seller directs that the Co-operating Brokerage not be in attendance during an Offer presentation, the Listing Brokerage shall indicate such requirement as an exclusion on TREB’s MLS System and provide written direction from the Seller upon request of the Co-operating Brokerage.
Q #10: How can I deal with a Listing Brokerage who is insisting that all Offers are to be faxed and does not allow a Co-operating Salesperson to attend the Offer presentation?
A: The following are some suggestions from TREB on how to handle faxed Offers:
• We have to assume it is the Seller’s direction.
• Don’t fax the Offer over until you have advised your Buyers of the situation.
• Always use a fax cover sheet, Form 130 (or equivalent).
• A Buyer Client has the right to withdraw his/her Offer until the Offer has been delivered to the Listing Salesperson either by fax or in person.
Q #11: What should you do when an Offer becomes illegible?
A: Section 27 of the RECO Code states that you must make your best efforts to ensure the Agreements are legible. To ensure legibility, the Salesperson produces a new typed Offer reflecting what he believes to be all agreed changes. The parties review and sign the new Agreement.