by Paul Cowhig, Professional Standards Advisor
In this article, I am going to address Rules of Cooperation, 6.04 Strata Properties, and in particular 6.04 (a) (ii):
Please read the full article below and note: at the time you are taking a listing for a Strata property, you are required to request extensive documentation related to the property.
That being said, what you are required to “obtain” and what you are required to “post” are two different matters.
“Obtaining” documents:
6.04 Strata Properties
a. Unless otherwise instructed by the seller in writing, for each strata MLS® listing, the Listing Brokerage shall at the time of taking the listing obtain:
- current relevant strata corporation documents including but not limited to two (2) years of strata council minutes and strata corporation minutes,
- registered strata corporation by-laws,
- financial statements,
- registered strata plans, and
- information concerning special assessments, either proposed or levied.
This means, you must order the relevant documents at the time of taking the listing. Not sometime later. Not when someone brings you an offer. Not when someone asks to see those documents, but “At the time of taking the listing.”
Why does this matter?
Buyers’ agents and their clients should not have to wait days or even weeks for those documents. This is one of those ways we cooperate with one another and show professionalism. It shows all our clients how we work together for the benefit of all parties.
For your seller’s sake, you want buyers to have access to all the information they need to make an informed decision in a timely manner.
Facilitating ready access to all the required documentation and information a buyer needs to consider is one of the ways you fulfill your fiduciary obligations to your seller.
Continuing on with Rule 6.04…
i) A copy of the Request for Strata Corporation Records and Documents shall be retained on file in the office of the Listing Brokerage. The Listing Brokerage shall produce any such documentation upon request by the Board.
Brokerages must keep a copy of the Request for records and documents in order to show that the documents were ordered when they were supposed to be.
ii) Unless otherwise instructed by the seller in writing, a copy of the registered strata plan must be posted by the Member to the MLS® System as an associated document within 24 hours of the listing becoming active on the MLS® System. A copy of the seller’s written direction must be provided to the Board upon request. – see also 3.12 Consent to Post Documents to the MLS® System
“Posting” documents:
While many members post all or many of the strata documents on Paragon, the only one you must post is the Registered Strata Plan.
b. Unless otherwise instructed by the seller in writing, the Listing Brokerage shall, upon request by a Cooperating Brokerage after the seller and buyer have an accepted Contract of Purchase and Sale, provide to the Cooperating Brokerage current relevant strata corporation documents including but not limited to those documents referred to in (a) above and a current Information Certificate (Form “B”).
c. In the event that the Listing Brokerage has received written instructions from the seller not to provide all or some of the documents described in (a) and (b) above to buyers and Cooperating Brokerages, a notation to that effect must be included in the REALTOR® Remarks, and, where the seller is not providing such information directly to buyers and Cooperating Brokerages, the Listing Brokerage shall provide written authority from the seller to the Cooperating Brokerage to obtain the Form “B” and other pertinent information directly from the strata corporation. The responsibility for the cost of these documents should be detailed in the appropriate condition clause in the Contract of Purchase and Sale.
Here’s a quick summary regarding obtaining and posting of documents for strata properties.
You NEED to have the proper consents and permissions.
- Remember there is private information in these documents and not just anyone is entitled to see this information. Some Strata corporations have restrictions on what information owners can authorize the release of and when.
3.12 Consent to Post Documents to the MLS® System: All Members are responsible for ensuring that prior to posting any documents to the MLS® System, they have secured all the necessary consents to that information being posted.
You MUST do the following, unless otherwise instructed by the seller in writing:
- Obtain the relevant strata corporation documents including but not limited to two (2) years of strata council minutes and strata corporation minutes, registered strata corporation by-laws, financial statements, registered strata plans, and information concerning special assessments, either proposed or levied.
- Post the copy of the Registered Strata Plan.
Whether you post the other documents is up to you but, at the very least, you must have those documents available for cooperating agents who have the right to request them.
As you can see from reading the rules above, your obligation to obtain, post and share these documents can be countermanded by the seller. There may be very rare circumstances where that could happen.
For the vast majority of cases, it is in your sellers’ best interest to have those documents readily available for buyer agents. In the event your seller has a legitimate reason to withhold that permission you must:
- Have written instructions from the seller, directing you to not comply with this rule.
- Make note of that fact in the REALTOR® Remarks.
- Provide written authority from the seller to the cooperating Brokerage to obtain the Form “B” and other pertinent information directly from the Strata Corporation.
- Reference the responsibility for the details and responsibility for the cost of these documents in the appropriate condition clause in the Contract of Purchase and Sale.
Remember, the amazing power and value of the MLS® is built on cooperation. Together, we provide an incredible suite of services to our clients, but it only works if we can rely on each other to do our parts clearly and efficiently and play by the rules.
Please do not hesitate to share your comments on this with me at 604-930-7606. We all learn together and feedback from you in the field is extremely important to us as we are constantly looking at the rules and how they align with practise in the real world.
Thank you.
Source: FVREB Professional Standards & Communications