As of March 17, 2025, and as per eMemo #4325, members will no longer be able to use the Irrevocable Direction Regarding Presentation of Offers (IDRPO) form. Rather, a new version of the Direction Regarding Presentation of Offers (DRPO) form will be used.
History
In October 2022, the Irrevocable Direction Regarding the Presentation of Offers, or IDRPO replaced the former DRPO. The IDRPO was introduced to promote public confidence in the way that REALTORS® handle multiple offers, by increasing transparency and providing all buyers with a fair opportunity for their offers to be presented. The IDRPO was intended to prevent pre-emptive, or “bully” offers from being accepted in circumstances where a delayed offer presentations was previously advertised.
The essence of the IDRPO was that, once signed by the consumer, it could not be amended or revoked. It was irrevocable.
The Rules of Cooperation (ROC) were amended to incorporate the IDRPO, therefore making it mandatory for Members to use the IDRPO.
The Issue
In the fall of 2024, the regulator (BCFSA) contacted the BCREA about its concerns with the IDRPO. Specifically, the “irrevocable” nature of the IDRPO is contrary to the obligations of REALTORS® pursuant to the Real Estate Services Act (RESA). Licensees have a fundamental fiduciary duty and role in providing advice to clients, especially during the often- stressful process of buying and/or selling property.
BCFSA advised that the IDRPO, once signed and effective, prevented REALTORS® from changing their advice to clients, and clients from changing their instructions to the licensee in an evolving transaction.
Further, the IDRPO delayed offer presentations but did not relieve agents of their requirement to communicate offers to clients, even where the offer has expired.
Finally, the IDRPO created an irreconcilable conflict for REALTORS® between their BCFSA regulatory requirements (duties to clients) and their obligations as Board Members to comply with Board rules (ie. the ROC).
The Transition to a new DRPO
After legal consultation, it was determined to discontinue use of the IDRPO and transition to using a NEW version of the DRPO. This transition ensures that REALTORS® will be compliant with regulatory requirements, while balancing transparency, fairness, and seller autonomy.
This transition will also provide consistency across transactions, therefore making it easier for consumers and REALTORS® to navigate offer presentations without additional regulatory burdens.
Maintaining Fairness for Buyers
With the new DRPO, if a “bully” offer arises, REALTORS® can advise their sellers that they have the option to notify other potential buyers and invite them to submit and present offers earlier than planned. Therefore, interested buyers will have the opportunity to compete fairly, while providing a seller with the flexibility to make decisions in their best interest.
REALTORS® are encouraged to educate their clients at the outset of the offer process. This includes explaining the possibility of bully offers and how sellers can respond. Establishing clear expectations ensures that buyers are prepared for various scenarios and will reduce frustration should presentation dates change.
Additionally, any direction by a seller to delay presentation of offers must now be noted in BOTH the Public and REALTOR® Remarks and must state ‘No presentation of offers until (a specified date/and/or time)’, providing increased transparency to the public.
A sample of the new DRPO form is available here.
Source: Professional Standards