Competing Offers: The RECO Rules (Ontario)

Question:

What are the RECO rules that states that in a multiple offer situation, the listing brokerage must disclose a multiple representation situation?

For clarity purposes: Brokerage A lists a home and receives offers on it from Brokerage A, Brokerage B and Brokerage C. Where does it say Brokerage B and Brokerage C must be informed about the competing offer from Brokerage A?

Answer:

In a competing Offer situation, three disclosures are required:

1) the number of offers that have been submitted; 
2) whether any of the buyers are represented by the same brokerage as the seller; 
3) whether the seller’s brokerage has an agreement to reduce their commission for buyers who are represented by a certain brokerage.

You will find the obligations set out in s. 26, s. 17 and s. 25 respectively.

Brian Madigan LL.B., Broker

www.OntarioRealEstateSource.com

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