Every year OREA makes revisions to our standard forms to account for changes in practise and law. Sometimes new forms are introduced as well. This year, 3 new forms are introduced. The most important revisions are below but a full list is available here
Important Changes
Listing Agreements
The most consequential change this year is to the Listing Agreements.
The Commission clause has changed to address total commission owed to the listing brokerage when there is no cooperating brokerage. Now that this included in the Listing Agreement itself, the remuneration clause can be removed from the Schedule A effective immediately.
New Forms
1) OREA Form 218 - Representation Agreement
Can be used when providing services other than listing a property, for example Letters of Opinion or Open House for another brokerage.
2) OREA Form 223 - Commission Agreement
Have you ever been in a situation where you are representing a buyer and come across a seller who does not want representation? This new form may help in establishing a commission agreement.
Under TRESA, a brokerage cannot enter into a commission agreement with a self represented party. (TRESA 13.3.1). Form 223 is an agreement between the seller and the buyer (not the brokerage) to pay commissions owed through the proceeds of the sale.
Note this is an updated suggestion from OREA instead of using the remuneration clause as outlined in the RECO bulletin in the APS.
Can be used when you have a buyer client who wants to purchase a home from an SRP seller, a mere posting or perhaps a builder
Make sure you have a signed BRA with your buyer first.
Have form 223 signed before presenting offer to seller.
See OREA Member Guidance PDF for further details
IMPORTANT: If deposit on offer is less than total commissions owed, add standard clause SRP/Mere-1 into APS.
3) OREA Form 602 - Disclosure
Used to make disclosures to other side while remaining compliant with legislation. Typically these are disclosures for multiple buyer clients to Buyers, material facts, remuneration, conflicts, deposits or 3rd party goods and services.
See OREA Member Guidance PDF for further details.
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