Revisions to OREA Standard Forms

OREA recently released the updates for the 2017 OREA Standard Forms and Clauses.
All information is available on the members section of OREA.com or go to http://www.realtorlink.ca/content/dam/realtorlink/on/hamilton/Forms/OREA-Summary-of-Revisions-2017.pdf for the 2017 Forms Summary of Revisions.

Many of the OREA Standard forms are affected by the revisions, including OREA Form 200 Listing Agreement – Authority to Offer for Sale, which now includes a new Electronic Signature clause.

OREA has also updated ‘OREA Forms Explained’, a member’s resource where 44 forms files are annotated to help members understand and use the forms. RAHB will be hosting an OREA Outreach 2017 Forms & Clause Revisions Update education session. The date of the session will be announced on Message of the Day (MOD) as soon as arrangements have been confirmed.

The new 2017 OREA Standard Forms are now available on the OREA website and WEBForms®. Printed forms will be available through the Realty Shoppe in mid-January.

New tutorial on OREA Form 127

OREA’s newest standard forms tutorial is now available online. The tutorial is a step-by-step video guide about how to complete Form 127, Condition(s) In Offer – Acknowledgement.

The purpose of Form 127 is to confirm that a buyer understands the risks and ramifications of not inserting certain conditions and/or of waiving certain conditions from an offer. The Form 127 tutorial walks you through the form section-by-section, explaining what and where information is required.

OREA’s standard forms tutorials are a new resource created to help you avoid common mistakes and costly errors when you are working with standard forms. Like forms explained documents, the tutorials are a short, practical resource you can use to help them fill out some of the most common forms. If you prefer more hands-on, concrete guidance, you will likely find the tutorials a welcome addition to the forms explained documents.

RAHB member is new OREA Director

Sean-MorrisonCongratulations to Sean Morrison (Royal LePage State Realty) on being acclaimed as OREA provincial director!  Sean will represent Southern Ontario on the OREA board of directors for a two-year term.

Sean served on the RAHB Board of Directors from 2012-15, and as Vice-President for two years.  He also served on numerous committees at RAHB.  Sean currently sit as a member on OREA’s Government Relations committee.

Alarm system leads to alarming lawsuit

The following article appeared in the January, 2016 issue of OREA’s “The Edge” by Merv Burgard, Q.C

It all began when a home owner arranged for an alarm system to be installed in his residence. The cost of installing the system was more than $700 and the package featured a keypad entry and basic alarm system. The owner also signed up for a monitoring service, which included a monthly charge of $45.14. A modem was installed that would trigger the monitoring device.

Some 18 months later, the same owner decided to sell his home. The agreement of purchase and sale (APS) stated: “Chattels included … Alarm system and equipment.” However, the only item listed in the Rented Equipment category
was as follows: “Hot water tank with the buyer to assume the rental contract.”

In the course of the property sale, a lawsuit ensued. The buyer and seller disagreed on whether the buyer was required to assume the monthly charges for the alarm system. The seller claimed that the buyer was to have taken over the cost of the alarm modem and monitoring system.

The judge in this case ruled that the APS was a “botched” agreement. It was not made clear to the court why the seller did not have the modem and alarm monitoring system removed from his prior residence and transferred to his new residence, to minimize costs. The seller stated that he did not know where the modem had been physically located. The judge ruled that the seller was responsible for the monthly charges. The seller’s claim against the buyer was dismissed.

Gu v Carnovale 2013 CanLII 60220
This content has been reproduced with permission from the Ontario Real Estate Association.

 

Brokers:  Do you have a brokerage policy for electronic documents and signatures?

OREA recommends that brokerages considering preparing an internal policy regarding the use of electronic documents and signatures.  The policy should set out how the brokerage will administer electronic documents and signatures in a way that satisfies legal requirements.

For more information about what your policy should contain, go to https://orea.com/~/media/Files/Members/OREA-Standard-Forms/
Announcements/v220150915BrokerCommuniquereECAElectronic
SignaturePolicies.pdf?la=en
(you will have to log in to the member part of the OREA website)

 

All members:  Do you know what’s involved when you use
electronic signatures?
OREA provided information about using electronic signatures to members in a communiqué in June.  In case you missed it, you can read it https://orea.com/~/media/Files/Members/OREA-Standard-Forms/2015-06-25-ECA-Announcement-for-Members.pdf?la=en  (you will have to log in to the member part of the OREA website).

OREA Standard Forms – New and revised forms/clauses for 2016

OREA recently released the 2016 Standard Forms and Clauses Summary of Revisions.  Full details regarding the new and revised forms for 2016 are outlined in a summary prepared by OREA, and all members and support staff are encouraged to review this document.  The Summary  can be found at https://orea.com/ (log in as a member, click on ‘Download Free Standard Forms and Clauses’ under Member Benefits, scroll down to 2016 Standard Forms and Clauses – Summary of Revisions under “Standard Forms”).

Note that OREA Form 200 “OREA Listing Agreement – Authority to Offer for Sale”, has not been changed; therefore, there is no cut-off date to discontinue use. Members may continue to use the OREA Listing Agreements dated 2015.  On the OREA website, this document appears as follows on the bottom of the page:

OREA

 

The 2016 Forms and Clauses can now be downloaded from www.orea.com, via the Members Only section.  The updates to WebForms® were to have been completed in December, 2015.

The forms, with changes for 2016, will be available in the Realty Shoppe in early January.

Emerge is back for 2015

OREA will be bringing you six new Emerge events across Ontario in 2015. Stay tuned for the exciting topics that will be covered and OREA’s great book give-away from Debra Trappen – Fire up! Taking Your Life and Business to 11.

image002

Ottawa – September 17, 2015, The Shaw Center

Peterborough – October 8, 2015, Holiday Inn Peterborough Waterfront

Sudbury – October 21, 2015, Holiday Inn Sudbury

Burlington – November 5, 2015, Holiday Inn Burlington Hotel & Conference Centre

Stratford – November 26, 2015, The Arden Park Hotel

Mississauga – December 8, 2015, Mississauga Convention Center

Bill 55 now in effect

Do you have your supply of forms to help you document written offers, as required by Bill 55?  RAHB is now stocking OREA’s standard form 801 “Offer Summary Document” to help you comply with Bill 55.  The form is also available on WEBForms.

E-signatures on the way!

Effective July 1, 2015, buyers and sellers in Ontario will be able to use electronic signatures on agreements of purchase and sale.

This was made possible by the recent proclamation of an amendment to the Electronic Commerce Act, 2000.

Electronic signatures on agreements of purchase and sale will help improve transaction efficiency by reducing the time required to complete a deal, help improve the consumer’s experience and save REALTORS® time and money.

The Ontario Real Estate Association (OREA) advocated vigourously over the last five years to have e-signatures become a reality for real estate transactions in the province of Ontario, and are to be commended for their efforts.

Go to http://rahb.ca/memberinfo/2015/electroniccommerceact.pdf.

 

Special  Professional Development course offering!

As of July 1, 2015, electronic signatures are permitted on Agreements of Purchase and Sale.  Learn more about electronic signatures in this important session.

Go Paperless
Tuesday, July 28, 2015
10 a.m. – Noon
Cost: Free
RAHB – McCullough Room

Click here for information and registration or contact Angela (angelam@rahb.ca) or Camryn (camrynh@rahb.c).

OREA designing form for compliance with Bill 55

The Ontario Real Estate Association forwarded the following information to all members on March 19.

Re:  Bill 55, the Stronger Protection for Ontario Consumers Act, 2013.

On July 1st, 2015, Ontario Regulation (307/14)<http://www.e-laws.gov.on.ca/html/source/regs/english/2014/elaws_src_regs_r14307_e.htm>, 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 its 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 selling 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 prepared a new Standard Form #801, “Offer Summary Document”, to help you comply with Bill 55.  It is available on orea.com (https://www.orea.com/Members/Standard-Forms); it will be available in WEBForms by mid-June.

REALTORS® Care! REALTORS® Ride for Charity

This year’s REALTORS Care® Foundation Motorcycle Ride for Charity will take place on July 8 , 2015, with the kick off taking place at the Ontario Real Estate Association (OREA) in Don Mills. This year’s goal is to raise $25, 000 for shelter related causes in Ontario.

The ride route and other details for the event are just being finalized; stay tuned for more information. You can also check out the REALTORS Care® Foundation website for information about signing up to ride or sponsoring a rider.

OREA designing form for compliance with Bill 55

The Ontario Real Estate Association forwarded the following information to all members on March 19.

Re:  Bill 55, the Stronger Protection for Ontario Consumers Act, 2013.

On July 1st, 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 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.
  • Bill 55 requires that the selling brokerage must retain copies of all written offers that it receives to purchase real estate or copies of all other prescribed documents related to those offers.

Ontario Regulation (307/14) outlines the required information that must be contained in a ‘prescribed document’ and states that the selling 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.

The OREA Standard Forms Committee will discuss Bill 55 compliance for brokerages and REALTORS® at its spring meeting and design a new standard form to help REALTORS® comply with Bill 55 and Ontario Regulation 307/14. It is anticipated this form will be released prior to Bill 55 coming into effect on July 1, 2015.

If you have any questions or comments please feel free to email standardforms@orea.com.