Put your specs on and grab a large mug of strong coffee. This is a look at rule changes being made to the Rules of Cooperation, taking effect on October 17, 2022. I’d suggest, after October 17, you delete earlier versions of the Rules of Cooperation from all your devices. Remember, you can always access the most current version of these Rules (and the REALTOR® Code of Ethics, for that matter) here.

Some significant changes to certain rules are being made. Other changes are more of the house-keeping variety. Most of the rules have not been changed at all. I’d suggest you closely review the side-by-side comparison document. It’ll show you the old rule next to the new rule. 

But first, a few words about how we got here. All laws, codes, edicts and rules change over time. That’s true of governments, and its true of professional associations and regulators. Standards change because people change. People’s opinions change, based on what happens to them collectively. 

How many times have you heard someone say, “There oughta be a law about that” or, “we should change that rule it’s stupid/outdated/irritating/no longer applicable/no one needs it anymore,” etc. Think Arrivcan App, there’s some pretty strong opinions on both sides as to whether or not its’ associated rules should still be in effect.

Why and how do our Board’s professional standards change? Let me count the ways:

1. Governments tell us to change or add to our rules. Think Virtual Office Websites, for example. And, perhaps in the future, “you can’t entertain a blind multiple offer bidding process anymore.”
2. A court decision reveals a gap in our contracts and/or our standards. We changed agency representation more than once, starting in the early 1990s through to 2018, to deal with court decisions and later, regulator decisions. Think, “You can’t be a limited dual agent anymore.”
3. A new thing is invented, people start to use it, and governments/regulators/courts and/or the public say, “Woah, we need some rules here.” Think our ban on taking cash deposits and doing deals using crypto currency.
4. Housekeeping changes: Think, pronouns and grammar and harmonizing rules to mesh with each correctly.
5. Member input: Think, “I got the shaft again in another multiple offer presentation. An early offer came in, no one told me and now, I’ve been fired by my buyers and my commission is out the window. Do something about it.”
6. Staff sitting around, dreaming up rules just to irritate members. Honestly, gang, that simply doesn’t happen. We’ve got enough to do – there’s little time to be found that could be used to think about new standards that no one is asking for.

It’s a long process. Trust me, I know, because I’ve sat through a multitude of excruciating meetings, listening to all the back and forth about why we need (or don’t need) to do something. I’d rather hear nails scratching a blackboard, notwithstanding the very good, pleasant folks in the room. REBGV/FVREB/CADREB “own” the Rules of Cooperation. CREA “owns” the REALTOR® Code of Ethics. So, CREA is the keeper of the list of potential changes to the Code, and the Metro-Vancouver boards are the keepers of the list of potential changes to the Rules of Cooperation. 

Every year each of the boards drags out its list of potential changes and we have a series of meetings to discuss them. Who’s at these meetings? Representative managing brokers and REALTORS® from each board, along with a lawyer and board staffers. Potential changes are discussed by the group. 

Sometimes an agreement is a slam-dunk. Sometimes its not. Notwithstanding, each board has the same Rules of Cooperation. But board cultures are different. Sometimes one board’s suggestion just doesn’t get past the other two boards. Then, some horse-trading is done with the goal of getting an agreement. 

Always, at the back our minds, is how a rule change may affect members’ day-to-day practices and how it'll affect members’ collective reputation. 

Finally, the lawyers read the group’s recommended wordings and practices to ensure everyone stays out of jail. After that, each board’s Board of Directors reviews the proposed changes. And then, when all three boards’ directors have agreed, we pull the trigger on an implementation date.

Table of contents

Here's my review of the significant changes, with wording changes underlined and bolded. Use the table below to jump to a rule.

Housekeeping changes 

Here's my review of the housekeeping changes, with wording changes underlined and bolded. Use the table below to jump to a rule.

“The By-laws of the Board, including the Code of Ethics and Standards of Business Practice, apply to all transactions and activities. The Rules of Cooperation are enforceable under the By-laws of the Board. Members shall not accept instructions from a client that contradict or override the requirements of the MLS® System or the Rules of Cooperation, except as expressly permitted within these Rules of Cooperation. Failure to comply with any of the Rules of Cooperation renders the offending Member liable to discipline under the Board’s By-laws and may result in the suspension of MLS® privileges.”

Kim's take: 

Many of the services and things we use on a daily basis (including mobile phones, bank cards and social media) are subject to the provider’s “terms of use.” Those terms often contain clauses saying, “if you use my mobile phone/network/credit card/social media, you’re agreeing to my terms of use. Your use constitutes your acceptance of those terms.”

When faced with a complaint a member will sometimes try to argue that “their client told me not to” and since a client instruction has be followed, the instruction trumps professional standards. That argument has failed because the MLS® System’s “terms of use” include meeting the requirements of the Rules of Cooperation. The new wording emphasises this.

“In the case of a residential listing contract, the Listing Brokerage must state that the seller has either completed and signed the appropriate Property Disclosure Statement, or does not wish to or is unable to do so. Unless otherwise instructed by the seller in writing, a Listing Brokerage shall, upon request from a Cooperating Brokerage, provide a copy of the Property Disclosure Statement to the Cooperating Brokerage for its use. A copy of the Property Disclosure Statement posted to the MLS® System would satisfy the Listing Brokerage’s obligation under this Rule.”

Kim's take:

The Property Disclosure Statement is a good risk management tool. That’s why it was created. What’s the point of having the form and then refusing to give it to the member trying to sell your listing? Seller’s instructions to the contrary, the added wording requires the form (questions answered or no) to be given to the buyer’s agent on request, whether or not an offer has been written. Save yourself some time: Post the form as an associated document then, you satisfied the rule and don’t have to dole out the form to members on a piecemeal basis.

“Documentation required for listings on the MLS® System shall include the standard form MLS® Listing Contract or Authority to Lease – Commercial Contract, including Schedule “A” describing the real estate services to be provided, and any completed Irrevocable Direction Regarding Presentation of Offers form. In the case of strata MLS® listings, documentation shall also include one of the following, in accordance with Section 6.04 [Strata Properties] of these Rules of Cooperation: 

(a) proof that the strata documents defined in Section 6.04(a) have been ordered or received; or

(b) a copy of the Seller’s written instructions to the Listing Brokerage as set out in Section 6.04(c).

Where a listing is to be entered onto the MLS® System by Board staff, all of the required documentation as noted above AND the data input form must be submitted to the Board. Where a listing is entered onto the MLS® System by the Listing Brokerage, listing documentation must not be sent to the Board unless specifically requested by the Board, in which case all requested documentation must be provided within one (1) business day.”  [Note: the rule continues with a requirement to obtain a Privacy Notice and Consent form from every seller, which has not changed.]

Kim's take:

This new wording makes it a requirement to include an IDRPO form, if completed by the seller, in the brokerage’s listing file and included in the documentation sent to the Board either for loading the listing or upon request for Broker-loaded listings. And, “strata docs,” as defined in 6.04, also become a required document at the time of listing; hopefully, dealing with a major irritant for buyers’ agents who tell us they can’t get these documents because seller’s agents haven’t ordered them, or they are otherwise unavailable.  This requirement to provide proof that strata documents have been ordered/received has been a policy of REBGV since April 12, 2021, but this now codifies it as a rule for all three of the boards.

“All Members are responsible for ensuring that prior to posting any documents to the MLS® System, they have secured all the necessary consents to that information being posted. Without limiting the generality of the foregoing, and unless otherwise instructed by the seller in writing: (a) a copy of the basic title search, or other documentation necessary to confirm ownership, must be posted by the Listing Brokerage to the MLS® System as an associated document within 24 hours of the listing becoming active on the MLS® System. -- see also 3.26 [Title Searches]; and (b) a copy of the registered strata plan must be posted by the Listing Brokerage to the MLS® System as an associated document within 24 hours of the listing becoming active on the MLS® System. -- see also 6.04 [Strata Properties]

Where written instructions have been received from the seller not to post the required document(s) under (a) or (b) above, a copy of the seller’s written direction must be posted by the Listing Brokerage to the MLS® System as an associated document within 24 hours of the listing becoming active on the MLS® System.”

Kim's take:

A reference to “other documentation necessary to confirm ownership” has been added to the basic title search requirement. Think Land Owner Transparency legislation. And, in cases where the seller has instructed their agent not to post either the title search or the registered strata plan as an Associated Document, those written seller instructions must now be posted to the listing as an Associated Document since members tell us it is sometimes difficult to get a written confirmation from sellers’ agents that they actually have those written instructions in their hands.  So, no matter what, something about title (and registered strata plan) must be posted as an Associated Document within 24 hours.

“(c) Members are not permitted to delete information from the listing for the sole purpose of making such information not available in the MLS® System for future reference. This includes, but is not limited to, photos, brochures, remarks, measurements, associated documents, and data.”

Kim's take:

Just like photos, remarks, measurements and data, there’s a lot of good information in Associated Documents. And, that information helps give context to the listing information for members who have not seen the property or to those who want to use the listing in their CMAs. Now, Associated Documents are classified in the same way as other listing information and must not be deleted.

Note: Associated Documents are automatically purged from the MLS® System after three months, but this rule ensures they remain available to members within that three-month window.

“Access to listings on the MLS® System shall be made available to all Members subject to these Rules of Cooperation. 

(a) A new listing that cannot be shown for a defined period of up to five (5) calendar days from the effective date of the listing will be accepted as a contingent listing, and such contingency, including the specific date on which showings will be accommodated, must be stated on the Schedule “A” and noted in the REALTOR® Remarks. Any such written direction by a seller to delay showings must be complied with by the Listing Brokerage. A new listing that cannot be shown for an undefined period or a period that exceeds five (5) calendar days from the effective date of the listing will not be acceptable for listing on the MLS® System, and the Listing Brokerage will be advised accordingly. 

(b) If an existing listing cannot be shown for a defined period of up to five (5) calendar days, the listing will be considered a contingent listing and the details of the contingency, including the specific date on which showings will be accommodated, must be in writing on an Amendment of Multiple Listing Contract form signed by the seller and must be added to the REALTOR® Remarks by either the Listing Brokerage or the MLS® Department. Any such written direction by a seller to delay showings must be complied with by the Listing Brokerage. An existing listing that cannot be shown for an undefined period or a period that exceeds five (5) calendar days cannot be active on the MLS® System, and a Hold Action not exceeding fourteen (14) calendar days or cancellation instruction must be submitted in the appropriate form. Failure by the Listing Brokerage to submit the appropriate documentation will result in the listing being removed from “Active” status and placed in “Cancelled” status, and cancel protected until the expiry date of the listing.

(c) Unless there is an irrevocable direction by a seller to delay presentation of offers, in the event the Listing brokerage receives a written offer during a “no show” period, the Listing Brokerage shall, prior to presenting the offer, inform all Cooperating Brokerages that have requested a viewing appointment, or who have requested in writing to be kept informed about offers, that an offer is scheduled for presentation.”

Kim's take:

New requirements underline the importance of following client instructions with regard to delayed showings and that, once the listing has been entered onto the System, a Multiple Listing Amendment Form must be used to add instructions to delay showings. The specific date when showings start must also always be repeated in the listings’ REALTOR® Remarks. Listings subject to an IDRPO (see 4.02), do not require notifications to buyer agents who’ve asked in writing to be kept informed about offers during a “no show” period since now, IDRPO listings must publish the date that offers will be presented and do not allow early offers to be presented.

“In order to confirm registered ownership of the property, except where the title search is provided by the Board, the Member must conduct a basic title search, or other search necessary to confirm ownership, prior to, or at the time of taking a listing. A search must be conducted on all listings of property for sale submitted to the MLS® System except business-without-land listings. Unless otherwise instructed by the seller in writing, a copy of the basic title search, or other documentation necessary to confirm ownership, must be posted by the Member to the MLS® System as an associated document within 24 hours of the listing becoming active on the MLS® System. Where written instructions have been received from the seller not to post the required document(s), a copy of the seller’s written direction must be posted by the Member to the MLS® System as an associated document within 24 hours of the listing becoming active on the MLS® System. (See also 3.12 [Consent to Post Documents to the MLS® System])”

Kim's take:

It's critical to have the necessary documentation to establish who the property owner(s) are. A basic title search is required unless other documents are produced that establish property ownership – for example, documents produced via a search of the Land Transparency Act Registry.  As stated in 3.12, the brokerage is required to post as an Associated Document either the title search document, or the seller’s instruction that the title search document not be posted, within 24 hours of the listing going live.

“In order for auction listings to be placed on the MLS® System, in addition to complying with these Rules of Cooperation, the Public and Internet Remarks must contain a statement indicating whether the seller is willing to accept offers prior to the auction date.”

Kim's take:

The requirement that the listing price must be the minimum reserve bid agreed to by the seller, has been removed.

“(a) Unless otherwise instructed by the seller in a completed Irrevocable Direction Regarding Presentation of Offers form signed by the seller: 

(i) offers must be presented to the seller without delay; and

(ii) offers must be presented to the seller through the Listing Brokerage, but a Cooperating Brokerage submitting an offer shall have the right to be present during the presentation. 

(b) Any irrevocable direction by a seller to delay presentation of offers must be noted in the REALTOR® Remarks and a copy of the seller’s completed Irrevocable Direction Regarding Presentation of Offers form must be posted by the Listing Brokerage to the MLS® System as an associated document within 24 hours of the listing becoming active on the MLS® System or, if not a new listing, within 24 hours of the seller completing and signing the form.

(c) Once an irrevocable direction by a seller to delay presentation of offers has been received, the Listing Brokerage shall not accept a cancellation of the listing until the expiry of the delayed presentation period.

(d) Any irrevocable direction by a seller to delay presentation of offers must be complied with by the Listing Brokerage. None of the specifics or terms of any offer received by the Listing Brokerage during the delay of presentation period may be communicated to the seller until the expiry of the delayed presentation period even though the offer may meet or exceed the list price or the offer may be stated to expire prior to the delayed presentation period.

(e) Unless otherwise instructed by the seller in writing, the Listing Brokerage shall without delay make the seller’s decision on the offer known in writing to the Cooperating Brokerage that submitted the offer. A copy of the seller’s written instruction shall be provided to the Cooperating Brokerage upon request.

(f) The Listing Brokerage shall be required to retain a copy of all offers presented, in accordance with legal requirements but in any event for no less than one year after presentation.”

Kim's take:

The changes made to Rule 4.02 are significant. They are intended to address major member and consumer concerns in situations where an early offer has resulted in buyers being pressured and also (sometimes) not being properly notified that an early offer is under consideration by the seller. These concerns have hurt our collective reputation and have caused the regulator and governments to express concerns as to a perceived lack of transparency. This rule has been amended more than once over the past 10 years. Each time, with the goal of improving how members deal with delayed offers. Sadly, a number of members have suffered significant fines by the Professional Conduct Committee for failing to observe this rule’s (now former) requirements. 

On October 17 the new IDRPO form is required for delayed offer presentations and MUST BE POSTED AS AN ASSOCIATED DOCUMENT, and the date of offer presentation must be stated in the REALTOR® Remarks. The new system is simpler and more transparent. No special action is necessary if offers are to be considered as they come in. If, however, sellers want to delay the presentation of offers to a future date they must now agree to make their direction irrevocable. Meaning, they are agreeing in advance that no early offers will be presented and agree that their agents will not be telling them any details about any offer that may have been received, even if those offers exceed the listing price or expire before the delayed presentation date. As always, it’s critical that sellers’ agents understand and obtain their clients’ informed consent. 

Note that this rule does not prohibit disclosing to the seller the mere existence of a written offer, just any details about that offer. This can be a slippery slope. A best practice would be to get early direction from your sellers as to whether or not they want you to tell them if an early offer comes in - whilst reminding them that the IDRPO wouldn’t allow you to provide any information about what’s in the early offer.

For existing listings already subject to a DRPO requirement, the former 4.02 requirements still stand namely, the obligation of the seller’s agent to inform buyer’s agents who’ve asked in writing to be kept informed that an early offer has come in – with no offers being presented until all buyers’ agents have been notified would still apply. We don’t expect “old” DRPO listings will be in effect for very long after October 17.

And please note the new rule does not allow, until the end of the delayed offer period, the cancellation of a listing that is subject to an IDRPO.

And, no additional clauses are allowed to be added to the new IDRPO form. We have seen members try to get around the old rule (and some have been disciplined for it) by adding wording like “seller reserves the right to view offers early”. Adding any wording to the standard form will invalidate the form.

The rule continues to require the seller’s agent to advise the buyer’s agent of the seller’s decision on their offer without delay. The old rule stated that the decision had to be provided in writing only if requested by the buyer’s agent. The new rule now requires that the decision ALWAYS be provided in writing, unless the seller’s agent has written instruction from the seller not to advise the buyer’s agent, in which case if the buyer’s agent asks to see that seller’s written instruction, the seller’s agent must provide it to the buyer’s agent.  

Please see Rules 3.11 and 3.12 above.

“Except where prohibited under Section 4.02(c) of these Rules of Cooperation, the cancellation of an MLS® listing will be processed by the MLS® Department upon the written request of the Listing Brokerage, in a form acceptable to the MLS® Department.” 

Kim's take:

This is a housekeeping change harmonizing 3.18 with 4.02, which prohibits the cancellation of a listing while an IDRPO is in effect.

“All counter-offers must be presented to the buyer through the Cooperating Brokerage unless otherwise instructed by the buyer in writing, and to the seller through the Listing Brokerage unless otherwise instructed by the seller in writing. With the consent of the buyer receiving the counter-offer, the Listing Brokerage submitting the counter-offer shall have the right to be present during the presentation. Unless otherwise instructed by the seller in a completed Irrevocable Direction Regarding Presentation of Offers form signed by the seller, the Cooperating Brokerage submitting the counter-offer shall have the right to be present during the presentation.”

Kim's take:

This rule has been harmonized with IDRPO references in 4.02.

“In the event that the Listing Brokerage has more than one written offer to be presented, the following procedures shall be adhered to: 

(a) unless otherwise instructed by the seller in writing, the Listing Brokerage shall, prior to any offer being presented, inform the other Cooperating Brokerages involved of the existence of the other offers or counter-offers, without disclosing their specific terms and conditions, provided, however, that should all but one offer or counter-offer be withdrawn prior to presentation resulting in there no longer being more than one written offer to be presented, the Listing Brokerage must so advise the remaining Cooperating Brokerage prior to presentation of their offer; 

(b) the Listing Brokerage should present each competing offer and counter-offer to the seller in the order in which they were received; 

(c) the Cooperating Brokerage submitting the offer or counter-offer may be present, unless otherwise instructed by the seller in a completed Irrevocable Direction Regarding Presentation of Offers form signed by the seller, only during the presentation of their particular offer or counter-offer and then shall withdraw from the premises but hold themselves available while the other offers and counter-offers are being presented in a like manner; 

(d) the Listing Brokerage shall ensure that all offers and counter-offers are presented up until the time an offer has actually been accepted (NOTE: Listing Brokerages are required to notify the seller of all offers up to the time of completion.); and 

(e) after all offers and counter-offers have been presented, the Listing Brokerage shall consult in private with the seller. (NOTE: Subject to any limitations to which the seller has agreed, the Listing Brokerage has a responsibility to give the seller their proper recommendations without prejudice to any particular offer and always in the best interest of the seller.) 

A copy of the seller’s written instruction obtained under subsection (a) shall be provided to the Cooperating Brokerage upon request.”

Kim's take:

References to the IDRPO have been harmonized with 4.02.

“(a) A Member shall not conduct themself nor permit their employees to conduct themselves in such a manner as to prejudice their own reputation or the reputation of the Board. 

(b) A Member shall not injure falsely or maliciously, directly or indirectly, the reputation, prospects or business of another Member.”

Kim's take:

The amendments are intended to make this rule’s wording more inclusive. Note, Rule 9.07 – Terms of Use - has also been re-worded in this way.

“MLS® VOW Participants must maintain a record of the name, e-mail address and, if required by the MLS® VOW Participant the street address supplied by the Registrant, and the user name of each Registrant during the currency of the Registrant’s password and for not less than one hundred and eighty (180) days after the expiration of the validity of the Registrant’s password.”

Kim's take:

The requirement for a VOW Participant to record the VOW Registrant’s telephone number has been removed.

As I shared with you in the spring, 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 coming 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. 

This form has not yet been finalized. We’re still working on the details with the other boards and will update you when this work is complete.