On July 17, 2023, potential home buyers in the Lower Mainland will be given a little more assurance that they know their offer was presented fairly in a multiple offer situation.
Between 2010 and mid-2015 I didn’t see a single multiple offer situation. I’m sure some agents had heard of them and even come across them previous to the 2008 economic collapse (probably in the hot 2005-06 market) but it was far from a regular occurrence. Then in mid-2015 they suddenly started coming up everywhere. By 2016, almost every transaction I dealt with had multiple bids involved. Naturally, professional REALTORS brushed up on the protocol, and carried out our duties as expected and required.
However, as multiple offers became more common, there have been many complaints, both formal and informal, regarding the multiple offer process. Some buyers felt that their offer may have never been presented or that the listing agent may not be honest with how many offers there were. Although brokerages are required to maintain a record of all offers, the general public wasn’t provided any way of really finding out if there was, in fact, a multiple offer situation, or not – at least not without a formal complaint and investigation.
But this will change. Some, including those in the industry, might say it’s too little too late, but maybe it’s just a good start. The new requirements are set by the three real estate boards (Real Estate Board of Greater Vancouver, Fraser Valley Real Estate Board, and Chilliwack & District Real Estate Board) and not by the provincial regulation (the British Columbia Financial Services Authority), so the rules will only apply to the Lower Mainland region.
Under the new rule, in a multiple offer situation the Listing Brokerage must:
Prior to presenting any offer, complete the new Disclosure of Multiple Offers Presented (DMOP) form, listing each offer to be presented, the date of the offer and the name of the Cooperating Brokerage involved, or alternately that the buyer was unrepresented.
At the time of acceptance of any offer, or in the event that all offers have been rejected, the Listing Brokerage shall have the completed DMOP form signed by the seller.
The Listing Brokerage shall provide a copy of the signed DMOP form to each Cooperating Brokerage and unrepresented buyer as soon as possible, but at the latest within one (1) calendar day after acceptance of one (1) offer, or rejection of all offers.
To be clear, buyers will NOT be provided any form or assurance at the time of the offer. Listing agents will also not disclose any details such as the offer price, conditions, or reason(s) given by the seller for accepting or rejecting the offer(s). This intent behind the rule is to give buyers with rejected buyers an assurance that their offer was presented and that they were, in fact, in a multiple offer situation.