Disclosure of Multiple Offers form approved and added to Rules of Cooperation

The real estate boards across the Lower Mainland will implement a new multiple offer disclosure form on July 17 2023 that seller’s agents will be required to complete and communicate to buyer’s agents who participated in a multiple offer situation. 

The new Disclosure of Multiple Offers Presented (DMOP) form lists all of the competing offers received and the name of the submitting brokerage. The listing Realtor and the seller will be required to sign this form. The listing Realtor will then need to provide it to the buyer’s agents as well as to any unrepresented buyers who submitted offers, no later than one calendar day after the seller has decided on all the presented offers. 

To accommodate this change, the boards of directors at CADREB/ REBGV, and the FVREB, all recently approved changes to the Rules of Cooperation. 

This change is the result of considerable research and discussion by a committee of brokers and Realtors over the past few years. The intent behind this rule is to allow for greater transparency in multiple offer situations and to give buyers whose offers were not accepted comfort that listing Realtors and their clients review and consider all offers.

How will the new Disclosure of Multiple Offers Presented Form work?

Beginning July 17, the listing Realtor will need to complete a new form called the Disclosure of Multiple Offers Presented (DMOP) before they present any offer in a multiple offer situation.  

In the form, you will list each offer to be presented, including the date of the offer and the name of the cooperating brokerage involved, or a notation if the buyer is unrepresented by a brokerage. The seller must sign the form after all offers have been presented and they have made their decision. 

The listing Realtor must then provide the completed form to each buyer’s agent and unrepresented buyer as soon as possible, but no later than one calendar day after the seller accepts an offer or rejects all offers.

What about a seller’s privacy rights?

The committee that developed this change recognized the importance of maintaining a seller’s right to privacy within the negotiation process. 

Listing Realtors will not disclose the offer price, conditions, or reason the seller accepted or rejected the offer. The disclosure form will communicate the date of the offer and the name of the brokerage representing the buyer, or a note indicating if an offer came from an unrepresented buyer. 

The DMOP form will be available in WEBForms on July 13. You will be able to add it to your templates. 

Why is the rule changing?

With limited supply and increasing housing prices, multiple offer situations are becoming more prevalent, and buyers are getting frustrated with the home buying and selling process. 

By providing a record of the number of offers received, the new rule and DMOP form aims to increase buyers’ confidence in the process by demonstrating that their offers are always being presented and considered by the seller. 

“This new form will provide verifiable evidence to the home buying public that every offer is fairly presented and considered in the process. This will help alleviate potential misconceptions or misunderstandings that we have all seen show up in social and mainstream media during heated markets cycles like we saw in the pandemic,”   

“Ultimately, these changes will help build greater confidence and trust in the real estate transaction — specifically in instances when competition and emotion run highest.”

Watch for more information, including common FAQs, on this change in the weeks ahead.

DMOP Form HERE 
Rules of Cooperation change HERE
Full Rules of Cooperation updated version HERE
 

If you have questions or input on this change, please email us at eo@cadreb.com