In 2020, FVREB revised the rules regarding presentation of offers, to provide greater clarity and protection for both the agent and the client. Coinciding as it did with the onset of the pandemic and subsequent frenetic market activity, the changes may have been easy to overlook. In this article, we encourage members to familiarize themselves with the applicable rules within the Rules of Cooperation before using the Direction Regarding Presentation of Offers to ensure they are clear on how to use and how not to use the form.
Rule 4.02 deals with the Presentation of Offers:
(a) Unless otherwise instructed by the seller in a completed Direction Regarding Presentation of Offers form signed by the Seller,
| (i) offers must be presented to the seller without delay; | |
| (ii) offers must be presented to the seller through the Listing Brokerage, but a Cooperating Brokerage submitting an offer shall have the right to be present during the presentation; and | |
| (iii) the Listing Brokerage shall without delay make the seller’s decision on the offer known to Cooperating Brokerages that had submitted offers. If requested by the Cooperating Brokerage such decision on the offer shall be provided in writing. |
The Direction Regarding Presentation of Offers form has only two clauses, which when either or both are initialed by the seller provide clear direction to the Agent.
| ‘I hereby instruct my Agent ____________________________________________’ ___ To receive and present all offers without buyers’ representatives being present. And/or ___ That I/we will not review offers until: __________ Day of __________________ Year ___________, at ____________ |
These are the only two clauses (related to Rule 4.02(a)(i) and (ii)) which the Direction Regarding Presentation of Offers form provides direction on.
Listing agents act at their own risk if they use a Direction Regarding Presentation of Offers form to include content which provides additional direction other than those conditions mentioned above.
Members also act at their own risk if they do not follow the REALTOR® Code, FVREB By-laws, and Rules of Cooperation – including Rule 4.02(b), which speaks to when an MLS® Listing indicates “No Offers Until” (i.e., when a DRPO form would be used). The Rule reads as follows:
(b) When an MLS® listing indicates ‘No Offers until (a specified date or time)’;
| (i) the Listing Brokerage must maintain a record of all Cooperating Brokerages who have requested in writing to be kept informed about offers or possible changes to the published offer presentation date and time; | |
| (ii) in the event the Listing Brokerage receives a written offer and the seller wishes it to be presented prior to the published presentation date and time, the Listing Brokerage must obtain a revised Direction Regarding Presentation of Offers form, signed by the seller, and must update any such instruction that has been published in the listing and posted as an associated document, all prior to presenting the offer; and | |
| (iii) prior to presenting the offer, the Listing Brokerage must notify all Cooperating Brokerages that have requested in writing to be kept informed, that an offer will be presented earlier and must give those Cooperating Brokerages equal and, where practical, concurrent opportunity to present their offer. |
Regardless of what is stated in the signed Direction Regarding Presentation of Offers form, any member not adhering to these requirements, or to the requirements in any other sections of the Rules of Cooperation, REALTOR® Code, or FVREB By-laws, could be subject to an investigation and discipline of the member by the FVREB’s Professional Conduct Committee.
For further information, members are encouraged to first contact their managing broker.
Source: FVREB MLS® and Professional Standards