August 20, 2004

IMPORTANT

Re: Offers to Purchase

It has recently come to the Commission’s attention that real estate salespeople are presenting offers to purchase that may be in contravention of section 22(1) of The Real Estate Brokers Act which reads;

Contents of offer to purchase

22(1) Every offer under section 21 shall, before execution by either a vendor or a purchaser, clearly show the following particulars:

(a) the date on which the offer is made;

(b) the names and addresses of the offerer and offeree;

(c) the street address or legal description of the real estate concerned;

(d) the price offered by the offerer and the terms and conditions of the purchase;

(e) the amount of deposit, if any, made by the offerer at the time of the offer and whether or not the deposit is to form part of the purchase price;

(f) any promise, undertaking or guarantee made or given by the broker, authorized official or salesman that he will…etc;

Your attention is directed to clause (d) in particular as presenting an offer without a price is an incomplete offer and may not be dealt with by the listing agent as the offer isn’t a valid offer and is also a violation of The Real Estate Brokers Act.

Please be advised that if the Commission receives a complaint or uncovers offers to purchase being prepared without the price or any other violation under section 22(1) of the Act, the salesperson and broker may find themselves before the Commission as subjects of a disciplinary hearing and/or prosecution for violation of The Real Estate Brokers Act.

Note: It is the responsibility of the broker to review all offers to purchase.

W.D. Baluk
Registrar
The Real Estate Brokers Act