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B.C. boards introduce new disclosure form for multiple offer situations

In an effort to promote transparency and build trust in the real estate transaction process, three of British Columbia’s largest real estate boards will be implementing a new disclosure form for multiple offer situations.

The Real Estate Board of Greater Vancouver (REBGV), Fraser Valley Real Estate Board (FVREB), and the Chilliwack and District Real Estate Board (CADREB) will implement the form on July 17, requiring realtors and sellers to complete, sign, and share the form with all parties who made an offer on a property.

 

Balancing transparency and protecting privacy

 

The new “Disclosure of Multiple Offers Presented” form aims to address concerns raised by homebuyers participating in multiple offer situations by providing additional information about competing offers.

According to a news release from REBGV, the form will list each offer received by the seller and include the name of the real estate brokerage that submitted the offer on behalf of a client. The form will be signed by both the listing agent and their client and must be provided to all parties who submitted offers no later than one calendar day after the seller makes a decision.

The disclosure form will not include the price of the various offers nor the conditions or reasons behind the seller’s acceptance or rejection of a particular offer. The boards say this measure aims to protect a seller’s negotiating position in case the sale fails to complete after accepting an offer.

 

Addressing market realities and public demand 

 

Jeff King, CEO of REBGV, expressed confidence that the new form will bring comfort to prospective homebuyers, assuring them that every offer was fairly presented and considered. He stated, “The real estate profession believes that this change will help inform the public and build greater trust in the real estate transaction process — specifically in instances when competition and emotion run highest.”

Baldev Gill, CEO of FVREB, says the implementation of this new disclosure form follows extensive research and discussions by a committee of brokers and realtors in response to the record-breaking market activity experienced during the pandemic.

Gill adds, “By providing a record of the number of offers received, this change aims to increase buyers’ confidence in the process by demonstrating that their offers are always presented and considered by the seller.”

 

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