It is possible to use OREA Form 650 for Open Houses, but that was not really the intention when it was drafted.
When a Listing Brokerage has no one available to conduct an Open House and the Seller would like one conducted the Brokerage may wish to bring in another Brokerage. That’s because they can only delegate to their own sales representatives.
The other Brokerage needs some sort of status and relationship to the Seller.
So, Form 650 works. It has two Brokerages working side by side.
- Brokerage A —– Brokerage B
This works well when there is a divorce and Brokerage A represents the husband and Brokerage B represents the wife.
However, that is not our present relationship.
It would be preferred to have:
- Brokerage A (on top)
- Brokerage B (working under them
This second arrangement is Sub-agency. Brokerage A is in charge and makes all the decisions. Brokerage B still has fiduciary duties to the Seller. So, the Seller will have to sign and acknowledge this arrangement.
You can use Form 650, but it wasn’t intended for this purpose, and there’s no OREA Sub-agency agreement, so you will have to draft one. Form 650 will have to be amended to make reference to an “open house”.
Brian Madigan LL.B., Broker