Are you using Form 801 properly?

There continues to be some misunderstandings about how to use OREA Form 801 – Offer Summary Document.

This form was created by OREA to give members a document to assist them to comply with Bill 55, which requires that a listing brokerage retain copies of all written offers to purchase or copies of a “prescribed document” (Form 801) for each of those offers.

Here are three things you should know about the completion of Form 801:

  1. In practice, the buyer’s representative can choose whether to provide the summary document and is not obligated to do so. The listing brokerage may have to complete Form 801 if that’s the document they intend to keep (instead of the offer).
  1. The listing brokerage must present all offers, regardless of whether a cooperating brokerage has provided an offer summary document or not. Form 801 is not part of the offer, so it is not required before an offer can be presented.
  1. An email or fax from the cooperating brokerage that there is an offer to present is sufficient for a listing broker to arrange for the offer presentation.

You can find this, and much more, information on RECO’s  Q & A Fact Sheet .  Check it out!

New ‘Registrar’s Bulletin’ on advertising compliance

From the Registrar’s office ….

In response to registrant feedback, RECO is making changes to further help registrants comply with regulations, starting with a new process to review advertising before it is published.

A new Registrar’s Bulletin describes a new procedure whereby RECO will review registrant advertising before it is published. RECO will review the advertisement when asked to do so by a Broker of Record. The bulletin also introduces a new process for registrant-based complaints about advertising. All registrants should review the bulletin as soon as possible.

The changes are intended to:

  • Elevate advertising compliance;
  • Promote accountability for brokerage advertising among brokers of record; and,
  • Encourage registrants to settle more disputes amongst themselves before taking a complaint to RECO.

The changes took effect January 1, 2016.

New Registrar’s Bulletin on advertising compliance

From the Registrar’s office

In response to registrant feedback, RECO is making changes to further help registrants comply with regulations, starting with a new process to review advertising before it is published.

A new Registrar’s Bulletin describes a new procedure whereby RECO will review registrant advertising before it is published. RECO will review the advertisement when asked to do so by a Broker of Record. The bulletin also introduces a new process for registrant-based complaints about advertising.

All registrants should review the bulletin as soon as possible.

The changes are intended to:

    • Elevate advertising compliance;
    • Promote accountability for brokerage advertising among brokers of record; and,
    • Encourage registrants to settle more disputes amongst themselves before taking a complaint to RECO.

The changes took effect January 1, 2016.

RECO News

Congratulations to Mike Cusano (RE/Max Escarpment Realty Inc.) on his re-election as Region 2 Director on the RECO Board of Directors.

New rules for written offers in effect on July 1, 2015

Earlier this spring, RECO issued an e-blast to brokers of record and branch managers regarding new rules for handling written offers, stemming from Bill 55, the Stronger Protection for Ontario Consumers Act, 2013. In response to feedback from brokers of record and branch managers, RECO has updated the fact sheet.

Bill 55, the Stronger Protection for Ontario Consumers Act, 2013, takes effect on July 1, 2015 and there are new rules you must know for handling written offers.   Your brokerage must create processes and policies that comply with these legislative changes.

RECO has prepared a detailed fact sheet about the changes. All registrants should review it so that they can ensure compliance as of July 1, 2015.

Here is an outline of the changes:

  • Offers must be made in writing. Please keep in mind that a written offer must be signed to be valid.
  • A registrant cannot indicate that they have an offer, unless they have a written offer.
  • The seller’s brokerage must keep a record of all written offers that it receives.
  • RECO is developing a process to confirm the number of offers that were received for a property.
  • RECO will provide updates between now and July 1 in response to questions that registrants submit.

To review the relevant changes, see section 35.1 of REBBA 2002 and section 19.1 of Ontario Regulation 579/05 made under REBBA 2002.

(Note:  OREA will design a new form for brokerages to use to comply with the requirements of Bill 55.  See following article and stay tuned for more information.)

Does RECO have your correct email address?

 

Effective August 1, 2015, RECO will begin sending electronic registration renewal reminders and will phase out the post card reminder.  Moving to electronic will allow RECO to provide registrants with multiple reminders to help everyone renew on time, avoiding any unnecessary interruptions to registration.  The initiative is a more sustainable approach, saving the thousands of post cards issued annually.It’s critical that RECO has an up-to-date email address for all registrants.  Please ensure that RECO has your correct email address!  Update your email address with RECO by using MyWeb.

RECO: Updated fact sheet on changes in handling an offer

Earlier in March, RECO issued an e-blast to brokers of record and branch managers regarding new rules for handling written offers; the new rules stem from Bill 55, the Stronger Protection for Ontario Consumers Act, 2013. In response to feedback from brokers of record and branch managers, RECO has updated the fact sheet.

New rules for handling written offers come into effect on July 1, 2015. Your brokerage must create processes and policies that comply with these legislative changes.

RECO has prepared a detailed fact sheet about the changes. All registrants should review it so that they can ensure compliance as of July 1, 2015.

Here is an outline of the changes:
• Offers must be made in writing. Please keep in mind that a written offer must be signed to be valid.
• A registrant cannot indicate that they have an offer, unless they have a written offer.
• The seller’s brokerage must keep a record of all written offers that it receives.
• RECO is developing a process to confirm the number of offers that were received for a property.

RECO will provide updates between now and July 1 in response to questions that registrants submit.

To review the relevant changes, see section 35.1 of REBBA 2002 and section 19.1 of Ontario Regulation 579/05 made under REBBA 2002.

(Note: OREA will design a new form for brokerages to use to comply with the requirements of Bill 55. Stay tuned for more information.)

CREA/OREA/RECO NEWS – Elections for the CREA Board of Directors

The annual election for the CREA Board of Directors will be held on March 28, 2015 at the 2015 CREA Annual General Meeting. Any qualified REALTOR® member who has

an interest in serving as a Director of CREA is strongly encouraged to run for a position on the Board of Directors.

The following positions are open:
• Three Director-at-Large positions, each for a two-year term.
• Four Regional Director positions, each for a two-year term, from each of the following regions:
·British Columbia/Yukon
· Manitoba
·Quebec
·The Atlantic Region

Candidacy forms must be received by CREA no later than January 27, 2015. Questions should be directed to Bill Harrington at 613.237.7111.

For complete information about the qualifications for Directors, the CREA elections and candidacy forms, go to http://www.rahb.ca/CREA/CREA_ElectionNotice2015.pdf