A short video tutorial and online web seminar are now available from the Ontario Real Estate Association (OREA) to help you understand Form 801. This is the new form that has been created to help you comply with legislation aimed at preventing phantom offers – fabricated bids that spark extra bidding.
The video and webinar describe in detail how to use Form 801: Offer Summary Document for Use with Agreement of Purchase and Sale.
The provincial government introduced new regulations that took effect on July 1. Amendments to the Real Estate and Business Brokers Act, 2002 (REBBA), were passed as part of Bill 55, The Stronger Protection for Consumers Act, 2013. This legislation was intended to address the issue of phantom offers in the marketplace. The introduction of phantom offers by registrants is considered to be a breach of ethics by the real estate industry’s regulator, the Real Estate Council of Ontario (RECO).
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Under the new legislation, all offers must be in writing and signed by a buyer. As well, the listing brokerage must keep for at least one year a copy of all unsuccessful offers received to present to a seller, or an “equivalent prescribed document.” OREA’s new Form 801 meets the criteria for an “equivalent prescribed document” but it is a summary, so it is much shorter than the normal agreement of purchase and sale.
Look for the video tutorial and webinar in the Members section of www.orea.com in the “Standard Forms” section. The association has also produced a blog post of frequently-asked questions about the new Form 801.
If you have more questions or comments about Form 801, send an email to: firstname.lastname@example.org
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