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OREA introduces Standard Form #801 ‘Offer Summary Document’

On July 1, 2015, Ontario Regulation (307/14), which implements amendments made to the Real Estate and Business Brokers Act, 2002 (“REBBA”) under Bill 55, will come into force. These changes are intended to address the issue of “phantom offers” in the real estate marketplace.

What REALTORS^® Need to Know

Bill 55 introduced a number of changes to REBBA 2002, which created new requirements for real estate registrants. Most notably:

• Bill 55 prohibits a registrant working on behalf of a purchaser from presenting or representing an offer unless the offer is in writing and signed.

• Bill 55 requires that a brokerage must retain copies of all written offers to purchase real estate (that it receives to be presented to their seller) or copies of an equivalent prescribed document for each of those offers.

Ontario Regulation (307/14) outlines the required information that must be contained in a ‘prescribed document’ and states that the brokerage must retain a copy of the document or a copy of the written offer for a period of one year after receiving the written offer.

OREA has introduced Standard Form #801 ‘Offer Summary Document’. This form is currently available in a non-fillable format, on the Standard Forms Members Page.

OREA has requested their software provider companies to aim for mid June or earlier, to avail the fillable form version to members.

In addition, Form #801 ‘Offer Summary Document’ will be available in a ‘FORMS EXPLAINED’ version as well as a video tutorial.