Thursday, October 20, 2022

At a glance (2 minute read):

  • Use our resources to better understand the Rules of Cooperation changes that went into effect October 17, 2022.

Changes to the Rules of Cooperation that make a seller’s instruction to delay the presentation of offers an irrevocable instruction went into effect October 17, 2022.

To help you understand the change, and other rule changes, we've created a guide with a side-by-side comparison between the new and existing rules:

You can also read the Ethics Guy® Kim Spencer’s article outlining each rule change the rationale behind them. 

We've also created an interactive PDF of the Rules of Cooperation for you to easily navigate. 

Here are answers to some questions we've received from members regarding the October 17 rule changes.

Will the new Irrevocable Direction Regarding Presentation of Offers (IDRPO) form replace the current DRPO form?

Yes, you should start using the new IDRPO form as soon as it becomes available on WEBForms.

When will the IDRPO be on WEBForms?

We're uploading the new IDRPO to WEBForms on October 12. We’ll remove the old DRPO form on October 17.

If I have a DRPO completed before October 17, do I need to complete the IDRPO to replace it?

No. If you have a DRPO signed and in effect before October 17, it'll be unaffected until the presentation date has come and gone.

Why are we doing this?

Over the last few years, there's been greater scrutiny about how the profession’s rules deal with multiple offers, delayed offer presentations and the scarcity of information from seller’s agents as to the number of offers received.

Rather than leave it to government to insist on solutions, we want to define new standards and processes to handle these scenarios. The goal of this change is to increase transparency and accountability and decrease buyer and REALTOR® frustration with the process.

Are there more changes coming?

Yes, we’re also continuing to work on a new mandatory “List of Offers and Counter-offers Presented” form to provide greater transparency for buyers and their Realtors when multiple offers have been presented. We anticipate implementing this form in the next few months.

The form would itemize the date and brokerages involved in all competing offers. The listing broker and the seller would be required to sign this form. The listing Realtor would then need to provide it to the buyers’ agents, who submitted offers, shortly after one of the offers/counter-offers has been accepted. The form’s exact content and timing of delivery are still being worked out with our partner boards.