OREA Form 801 ~ Commentary
Bill 55 comes into force on 1 July 2015. For real estate agents, it will permit e-signatures and will require the Brokerage acting on behalf of the Seller to retain either:
1) A copy of all Offers, or
2) A copy of a prescribed document.
The choice with this, lies with the Brokerage acting on behalf of the Seller. The arrangement can be either Client services (agency) or Customer Services (non-agency).
The documentation must be held for a period of one (1) year to permit RECO to undertake an investigation and inspection.
The issue is the number of Offers, the number of participants, and the ultimate question, of course, is whether the Seller’s Brokerage is “pumping up” that number. Are there any “phantom Offers”, that is, fake, “made up” buyers.
Just a quick review, here’s what’s required by the legislation:
“1. The name and signature of the person who made the offer to purchase the real estate.
2. The name and contact information of the seller of the real estate.
3. The name of the brokerage and of the broker or salesperson who acted for the seller.
4. The name of the brokerage and of the broker or salesperson who acted for the person who made the offer.
5. The address, legal description or other identifier of the real estate on which the offer was made.
6. The date and time the offer was made.
7. The date and time the offer was received by the brokerage for the purposes of presenting it to the seller, and the means by which the offer was received, such as in person or by fax.
8. If the brokerage presented the offer to the seller, the date of presentation.
9. The date and time, if any, until which the offer was irrevocable.”
OREA has come up with its own Form, namely, Form 801. I have said previously that 801 was not in compliance with the legislation.
So, here are the reasons:
1) It substitutes its own view of the intent of the legislation, and
2) It contains additional information which is not necessary.
The legislation uses the term “made” with respect to Offers. Rather than simply use the word “made”, OREA Form 801 substitutes the term “submitted”.
It’s possible that “made” and “submitted” mean the same thing. In fact, OREA is counting on that. I think they may be right. But, then again, why guess! If they are wrong, then, there’s trouble.
My Offer Document Summary uses the term “made”. I have to admit I actually like the term “submitted” better, but I do know for absolute certainty, that my Form is in compliance with the legislation.
You read above exactly what the legislation requires. Once you have that information on the Form, there’s no need for anything else.
Let’s look at the OREA 801 Form. Here’s the extra information specified:
• Presentation time
• Signed Back
My point simply is that this information is NOT required, so, don’t put it in. This is based on the KISS principle, nothing else.
The additional information makes OREA Form 801 “non-compliant” with the legislation.
There’s probably no harm done, in many cases, but in some cases there might be.
Brian Madigan LL.B., Broker