OREA Form 161
Let’s start out with Bob Smith. He is a commercial real estate agent working for ABC Realty, and he wants to sell his house. He decides to retain a friend, Margaret Sullivan of XYZ Real Estate since she works and specializes in residential transactions.
Since he is selling his own property, he needs to complete Form 161 “Registrant Disclosure of Interest Disposition of Property”.
Does Margaret need to sign?
No, she is not selling her own property and has no direct or indirect interest in Bob’s property.
Does ABC Realty need to sign?
No, they are not selling their own property and have no direct or indirect interest in Bob’s property.
Does XYZ Real Estate need to sign?
No, they are not selling their own property and have no direct or indirect interest in Bob’s property.
FORM 161
I ……………………………………………………………………………………………………………….
(Name of Registrant)
declare that I am a registered
Real Estate ……………………………………………………………….. representing
(Salesperson/Broker/Broker of Record)
……………………………………………………………………………………………
(Name of Brokerage)
in connection with a proposed Offer to Purchase/Lease/Exchange/Option of the Property known as ……………………………………………………………….. ………………………………………………………………………………………………………….
Please be advised that I own the Property or that I have an interest in the Property.
I hereby declare that the following is a full disclosure of all facts within my knowledge that affect or will affect the value of the Property: ……………………………………………………………………………………………………………………. ………………………………………………………………………………………………………………………………………………………………………………………………………………………………………….
Later in the Form it states:
…………………………………………………………………………………………………………………..
(Signature of Declaring Registrant’s Broker of Record/Manager of Brokerage).
This was very nice but is it actually necessary?
TRESA
Let’s have a look at the legislation:
“Acquisition or divestiture by registrant
32 (1) Unless the registrant first delivers to all other parties to the agreement the notice described in subsection (2) and the other parties have acknowledged in writing receipt of the notice, no registrant shall, directly or indirectly,
(a) purchase, lease, exchange or otherwise acquire for himself, herself, or itself, any interest in real estate, or make an offer to do so; or
(b) divest himself, herself, or itself of any interest in real estate, or make an offer to do so.
Contents of notice
(2) The notice referred to in subsection (1) shall be in writing and shall include,
(a) a statement that the registrant is a brokerage, broker or salesperson, as the case may be;
(b) full disclosure of all facts within the registrant’s knowledge that affect or will affect the value of the real estate; and
(c) in the case of a transaction described in clause (1) (a), the particulars of any negotiation, offer or agreement by or on behalf of the registrant for the subsequent sale, lease, exchange or other disposition of an interest in the real estate to any other person.”
Naturally you read the provision that says that Bob has to sign! But, nowhere does it say that Bob’s Broker or Manager or the other Brokerage or Listing agent needs to sign anything.
I suppose, OREA just made this up.
Brian Madigan LL.B., Broker