On January 1, 2012, the Calgary Real Estate Board introduced new and significantly different
operational procedures on how our industry reports the status of a current listing on the market. Prior to this date, all conditional offers on listings were to be reported as Conditionally SOLD with only the exception of a special clause offer that was not being reported. In most cases, a “special clause” offer was one where theBuyer had a condition on the offer that allowed them to sell their current home in a specific period of time, and if other offers on the same property came in then the first Buyer had a time limit to either remove their conditions and buy the property or void the sale and allow the second buyer to purchase the property.
The Board received legal opinions indicating we may be in breach of our fiduciary duties to the Seller by forcing them – through Board by-laws – to disclose what they considered to be confidential information on the status of their property sale.
Therefore, reporting of all conditional sales is at the sole discretion of the Seller and if they choose to not report that information, their REALTOR® representative is bound not to disclose any status information to any other REALTOR® asking for information on behalf of their Buyers.
We recognize this may cause some frustration and concern, and we want you to understand that this lack of information is not the result of what your representative was or was not doing. They will always attempt to get information and determine the status of the listing, but it is clear by the ACT that the other REALTOR® representing the Seller is bound by the confidentiality imposed in the non-reporting agreement.
This lack of disclosure is also in effect if you are looking at listings that your REALTOR® has listed. If, as it has happened in the past few days, you have put in an offer on a property that has been non-disclosed, your accepted or countered offer will come back with a Sellers Condition stating they accept your offer on the condition that the first offer(s) become(s) void.
This change is in harmony with changes being made across the country and are made with the Provincial Regulator supporting the Sellers’ rights for marketing their property. As this change evolves, we believe it will be less cumbersome, as it has been in effect in Edmonton and British Columbia for a few years.
We also believe many Buyers whose offers will be accepted will be writing in their offers to purchase a condition that the status of the listing be reported as conditionally sold. While this latter condition may not be acceptable to some Sellers, having this condition in writing on your offer is the only way you can insist on the status being reported.
We ask you to be patient with our industry as these new rules come into effect. If you should have any questions or concerns, you are certainly free to contact me with any questions or concerns.
I felt this information is important for Calgary home Buyers to understand. We as realtors are finding it frustrating but like any change it will become common place after the adjustment phase. If you have comments or opinions please comment below. We are always interested in hearing the publics thoughts.
