There’s an OREA Form 160 which is used for related party disclosure.
The problem is that it is often used frequently to disclose situations which do not require disclosure.
Bob is a real estate agent and he is acting on behalf of his son, Bill in the purchase of a property. He completes Form 160 and submits it in advance of the Offer to the Listing agent. That’s fine, but in fact, neither the Listing agent nor the Seller really care. What difference does this make? Actually, nothing at all, who cares!
In that situation, the information need not be disclosed. There is no legal requirement under the legislation, however, there are two fact situations where such a disclosure would be required.
Bob is also acting for Mary and has her house listed for sale. Bob brings an Offer from Bill, together with the related party disclosure. Now, it’s relevant. Mary wants to know of the conflict of interest and how that matter will be handled.
In another situation, both Bill and Mary are interested in a particular condominium. Their Offers would be competing, and Bob would be drafting them both independently. Wouldn’t Mary like to know this potential conflict ahead of time? Absolutely, and that’s why this related party disclosure information is to be delivered to Bob’s clients, not the other side in a deal.
That also means that any Listing agent who says “Bring Disclosure” in their MLS listing has never read the legislation.
Brian Madigan LL.B., Broker