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OREA Standard Forms & Clauses help to facilitate almost every real estate transaction in Ontario. OREA Forms resources provide Members with the education and updates required to be successful in their business.

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Vital Forms information affecting REALTOR® business, including but not limited to, regulatory requirements.

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This Member resource provides thorough answers to popular questions on topical issues. Downloadable files are available.

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Agreement of Purchase and Sale (APS)

Agreement of Purchase and Sale Information and Details

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Disclosures

To Disclose or not Disclose

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Representation Agreements

Duties and Obligations of Representation

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TRESA and Regulations

The Latest in Legislation

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OREA State of Emergency Clauses

Q1. Can the Seller and Buyer agree to terminate an Agreement of Purchase and Sale they entered into even if COVID-19 was not a factor?

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Q2. Was the ELEC-1 Electronic Signature Consent Clause revised because of COVID-19 situation?

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Q3. As the listing brokerage representative, do I have to provide the Seller the lockbox for key drop on closing?

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Q4. Is the State of Emergency-4 video conferencing clause to allow a salesperson to video conference for identification and signing documents?

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Q5. Should I use the OREA State of Emergency Clauses exactly as they are or can I revise them if the buyer or seller wants to negotiate something different?

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Q6. Can I send OREA a clause that I or my brokerage created for COVID-19 for OREA review and approval?

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Q7. In the event a closing cannot take place, without the inclusion of any OREA State of Emergency clauses, how would this situation be managed?

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Q8. OREA Agreements of Purchase and Sale Form deposits section references, deposit ‘by Negotiable Cheque’ will this be changed to include Electronic Transfer?

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Q9. If I can't show the buyer a unit or they cannot complete an in person inspection, what clause should I add to the Agreement of Purchase and Sale?

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Q10. Should there be a clause asking the seller to reveal any Covid 19 personal or property issues prior to a buyer taking possession?

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Q11. Why would a Member/REALTOR® ever want to allow termination of an agreement?

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Q12. How can anyone know how many days that it would take for Land Registry to close a deal after re-opening, should this be something the buyer and or seller be agreeing to?

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Q13. Can one or all OREA State of Emergency Standard Clause(s) be inserted into an existing Agreement pending completion, by way of an Amendment?

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Q14. Are we adding something into Agreements of Purchase and Sale for our Salesperson protection during this emergency crisis?

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Q15. What should I do if a buyer or seller lawyer does not agree with an OREA Clause and they have different opinion and clause to insert into an agreement?

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Q16. My brokerage and other brokerages have established form(s) that are supposed to be used when I list or negotiate with buyers and sellers, should I send them into OREA to approve before I use them?

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Q17. Beyond a lockbox, what device could exist for key drop to consider?

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Q18. Would the OREA State of Emergency Clauses apply to tenancy agreements as well?

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Q19. Will the State of Emergency Clauses be deleted once COVID-19 pandemic is resolved?

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Cannabis Legislation Update

Q1. How many Cannabis plants can be grown under the new legislation?

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Q2. How would a Member know if legal Cannabis growth property history will matter to their prospective buyer?

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Q3. Is the listing data sheet going to be revised to identify if the property has or has had Cannabis activity?

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Q4. Can a listing brokerage force a buyer to accept their APS Schedule B, containing a clause which reads “the Seller does not provide Cannabis representation or warranty”?

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Q5. As a listing salesperson working with or for a seller, what provisions are needed in an Agreement of Purchase and Sale regarding Cannabis?

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Q6. Are there OREA Forms that could assist with determining if the property has Cannabis growth history?

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Q7. As a co-operating salesperson working with a Buyer, what provisions are needed in an APS regarding Cannabis?

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Q8. As a listing salesperson is there anything I need to ask a seller regarding growth or use of Cannabis?

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Q9. When will OREA have forms revised to address Cannabis?

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Q10. When will OREA have forms revised to address Cannabis?

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Q11. Can condominium Rules/Bylaws, Board ban the selling of a condominium to someone who will grow or smoke Cannabis?

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Q12. Can a Landlord ban a tenant from growing and/or smoking Cannabis after legalization date Oct 17th, 2018?

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Q13. With respect to legal Cannabis activity what experts do I need to suggest to a buyer or seller to consult with before or within sale or lease negotiations?

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Q14. Will OREA have a Webinar on this Cannabis topic?

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Form #400 Agreement to Lease – Residential Update

Q1. Can the OREA Form #400 Agreement to Lease - Residential be used by Members after April 30th 2018?

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Q2. What are the revisions to OREA Form #400 and/or to OREA LEASE/RES Standard Clauses due to RTA amendments effective April 2018?

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Q3. When must the new government required standard lease form be used?

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Q4. Where can the new government standard lease form be found?

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Q5. Will the government standard lease form be available on WEBForms?

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Q6. Can a term(s) be added to the OREA Form #400 Schedule for landlord and tenant negotiations, even though it or they may also be found on the government standard lease form?

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Q7. Can a Member attach the government standard lease form as a Schedule/Addendum to the Form #400, within their negotiations, for landlord and tenant review and awareness of the standard lease document content?

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Q8. Will OREA be creating any further clauses for optional use by members when using the Form #400 Agreement to Lease – Residential and negotiating with their consumers?

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Q9. How does a brokerage collect brokerage service remuneration/commission with HST?

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Q10. Is the new government lease form mandatory for Members to use?

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Assignment APS

Q1. Is an assignment possible if the original Agreement of Purchase and Sale is with a builder?

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Q2. When is an assignment of a contract done?

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Q3. Shouldn't Brokers Of Record play a bigger role in relation to information and guidance?

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Q4. Does the original purchase price include any upgrades paid separately, such as in a new home sale agreement between the buyer and the builder?

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Q5. When is the balance of the Assignment Agreement paid by the Assignee and when is the original deposit paid back to the Assignor?

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Q6. Who pays the assignment fee from the builder or other related expenses?

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Q7. Are there OREA standard clauses for assignment situations?

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Q8. If the original seller makes another $100K over the original purchase price, does the real estate agent get more commission?

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Q9. Are there tax implications for any parties in an assignment situation, such as HST or capital gains tax.

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Q10. Does a clause in the schedule regarding the occupancy phase need to be included?

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Q11. What happens to the original commission that was to be paid on closing?

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Q12. Who pays the land transfer tax?

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Q13. What about house trailers in a park where the land is leased? Does the landowner have the right to know of a pending assignment?

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Q14. What happens if the builder delays? Does the Assignee have the same choices?

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Q15. Can the Assignee and Assignor use the same lawyer?

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Q16. Should one be concerned when the assignment is to a corporation i.e. limited liability?

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Q17. Once the assignment has been executed and completed and deposits have been paid, is the original buyer free and clear of all liability?

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Q18. Does the Assignor need the service of a lawyer?

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Q19. Can the Assignee pay deposit monies and balance monies when the Assignment Agreement is closed (original assignment closing date)?

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Form #801 Offer Summary Document

Q1. Is Form #801 needed for an offer to lease residential?

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Q2. Why doesn’t the seller sign a Form #801?

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Q3. What happens in a multiple offer scenario?

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Q4. How does the buyer do a counter offer and not see the seller info?

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Q5. If this document is for the listing brokerage side to satisfy the legislation, why are so many buyer brokers so adamant about having a signed copy returned?

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Q6. What if the listing is offering limited service to the seller, does the seller’s brokerage have to retain a copy of each offer or a copy of Form #801?

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Q7. Can a listing brokerage fill this out for all offers submitted to their office?

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Q8. So many listings state “Form 801 must accompany all offers.” If there is only one offer, why are they insisting on this form?

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Q9. Is a listing agent required to disclose how many offers were received to non-participants if the offer’s registered?

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Q10. Must each sign back have a new form?

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Q11. What if my client doesn’t want to provide his name etc. prior to the listing being presented? Would it not suffice that I send an e-mail saying I have the offer, and provide Form #801 if and when there are multiple offers?

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Q12. If the buyer’s agent asks how many offers were received and requests copies of all the Form #801s, should the listing agent send them to the buyer’s agent, or does the buyer’s agent have to send a request to RECO?

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Q13. If the buyer has not signed Form #801, can it be used as the summary record?

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Q14. Can a listing brokerage demand a Form #801 from a brokerage working with a buyer submitting an offer?

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Q15. Does the listing brokerage have to disclose all offers to all registrants?

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Q16. Can office policy mandate the use of Form #801?

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Q17. If the listing brokerage asks for Form #801 and the buyer brokerage fills it in, and then if a counter offer is submitted by both the seller and buyer, respectively, who has to fill in and sign Form #801?

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Q18. What is the purpose of having the seller’s contact information?

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Q19. Why is Form #801 one-sided? Why is one not created when offers are presented by the seller?

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Q20. If sign backs are considered new offers, and Form #801 is one way, what form does the listing representative use when signing back?

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Q21. What if the original and counters offers were done on the same copy? Do you need to photocopy the offer between counters?

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Q22. Does one copy of the offer, with all changes made, meet the requirement?

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Q23. There isn’t enough room to write in all of the sign backs. Form #801 only allows for one counter offer. If the offer goes back and forth more than two times, where do we write in the additional sign backs?

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Q24. Can a sales person say that they do not have an offer but have been advised that one is being prepared?

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Q25. If I have a listing that only gets one offer and it’s accepted then technically I have a copy of the offer on file. Do I still need a Form 801?

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Q26. If you are the listing agent and you have a signed offer from a buyer client, is Form #801 sufficient or do you need both Form #801 as well as copies of every offer and counter offer?

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Q27. What if the co-operating salesperson refuses to submit the form?

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Q28. If RECO is contacting the listing brokerage to follow up on complaints then why is the seller’s contact information required on Form #801?

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Q29. Are inquiries anonymous or transparent?

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Q30. What recourse does a buyer agent have if it’s revealed that the number of actual offers doesn’t match what is in a brokerage file?

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Q31. How are you guaranteed that your offer has been presented?

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Q32. Why does the buyer’s representative need access to the seller’s e-mail address, phone number etc.?

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Q33. Why could you not use Form #109 instead of 801?

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Q34. How long has this form been in effect?

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Q35. How many offers do you count if you have an offer with 4 renditions?

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Q36. I am an owner of a small brokerage. When we receive offer(s), can we just keep these copies of the offers as opposed to Form #801?

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Q37. How can we ask the listing agent to have the seller sign or acknowledge Form #801?

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Q38. Is a counter offer from the seller not considered an offer?

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Q39. If the offer is accepted do you have to keep all the copies?

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Q40. After Form #801 is completed by the seller's rep does the buyer's rep need a copy of the form?

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Q41. What if the buyer broker refuses to submit the form?

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Q42. If an offer is not accepted by the seller, does the buyer’s rep need to keep a copy of Form #801 or is the rejected offer sufficient?

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Q43. Can I provide my own e-mail address in the seller’s contact information section?

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Q44. What happens if the seller does not want their contact info to be included on the form?

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Q45. Under the legislation can a salesperson say to a buyer’s broker that they do not have an offer in hand yet but have been advised that one is being prepared?

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Q46. If you are presenting an offer at a home with no access to a photocopier/scanner how can a brokerage for a seller keep a copy of the offer received?

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Q47. I was told that if you double end your own listing you need both Form #801 and a full copy of ever offer/counter offer. Is this correct?

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Q48. Can a buyer request that there be no record of their unaccepted offer?

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Stickhandling Offers

Q1. Does there need to be a Trust Deposit Disclosure in an offer (usually in a Schedule B)?

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Q2. If you put the client’s “what if an offer comes earlier?” direction in writing in regards to pre-emptive offers and a pre-emptive offer comes forward, is it true you don't have to call all the other buyers, as long as this is stated in the listing?

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Q3. Do we keep the fact of a pre-emptive offer from our sellers?

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Q4. What do you do if the pre-emptive offer expires before the published offer date?

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Q5. Do we withhold the fact that someone has brought in a pre-emptive offer until the written presentation date and time?

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Q6. Please clarify the obligation to inform others if one of the multiple offers is from the listing brokerage buyer client. Should I do this every time or only if there is a benefit to the seller (financial or other)?

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Q7. If there is an illegible Agreement of Purchase and Sale and I am redoing an offer, which date should be used - the date on the original Agreement of Purchase and Sale or the date when the newly created offer is signed?

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Q8. If there is only one offer do we need to use Form #801?

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Q9. When presenting an offer in multiple offer situations, whose property is the offer? Does the co-operating salesperson have to leave his offer open and/or on the table with the seller? I have a seller that is taking their full time considering an offer from a buyer, but I am concerned regarding my buyer client’s privacy and about the listing brokerage shopping the offer to the competing offers.

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Q10. Does the listing salesperson have to disclose that they have received any offers in the past that were not accepted?

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Q11. Can a buyer still retract their offer if the co-operating salesperson delivers a Form #801 to provide proof of an offer to the listing salesperson/brokerage?

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Q12. How does Form #801 play into disclosing to the listing salesperson offer details such as irrevocability and buyer’s name? Does it mean the listing office can't disclose any offer details to any other party?

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Q13. If you are the listing salesperson and you have an offer on "Sign-Back" (from a seller to the buyer) do you have to advise the "Sign-Back" offer buyer/co-operating agent if you receive another offer in the meantime? Especially, considering that the second offer could be higher than the sign-back offer?

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Q14. Can you refuse someone from entering an open house if they refuse to sign the Open House Registration?

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Q15. The trend today seems to be that homes are listed a bit under market value to attract a bidding war and top dollar for the sellers. A seller asked me the other day "but what if we list under market value and only get one offer and at asking price?" Can the seller refuse to accept an offer presented at full price?

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Q16. What is the best form to disclose to a client particulars and or brokerage/salesperson agreement of a Collateral Agreement?

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Q17. I am concerned regarding a brokerage shopping an offer to the competing salesperson and offers. A listing salesperson specifically approached me and said the other salesperson was calling his client to change his offer. He then asked me if I would change mine.

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Q18. When a firm offer is presented and accepted, could the buyers still be able to do an inspection for their own purposes? Could the seller or sellers’ agent discourage the inspection after the firm offer has been accepted?

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Using E-Signatures with Integrity

Q1. Which electronic software is best to use?

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Q2. Is there an e-signature consent form?

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Q3. Is there a standard e-signature clause in the pre-set section of the Agreement of Purchase and Sale or Listing Agreement?

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Q4. Should an e-signature clause be inserted in an Agreement of Purchase and Sale?

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Q5. If the e-signature software includes a consent page prior to opening or signing the document does that cover getting consent or does a clause also need to be used in the Agreement?

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Q6. Is a witness signature required with electronic signatures?

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Q7. Can software such as Adobe Acrobat be used to obtain e-signatures along with a clause in the Agreement or is it mandatory to use a document signing service?

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Q8. Are varied font electronic signatures, created by the electronic signature software providers, acceptable?

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Q9. Are the licenced third party providers found on the OREA website the only companies that are acceptable to use for e-signatures?

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Q10. Are there any hands on courses available to learn how to use electronic signatures?

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Q11. I am not certain if my brokerage has an e-signature use policy, can I go ahead and use e-signature software if they do not have a policy?

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Q12. Is it acceptable to use a tablet for electronic signature for an Agreement of Purchase and Sale?

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Q13. If the e-signature software embeds the date/time along with the signature on the signature line of an OREA form, does that mean that the "date field" on the OREA form can be left blank?

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Q14. How can a paper trail be followed if emails are not used to obtain signatures?

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Q15. Are lenders or lawyers balking at e-signed documents?

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Q16. Can another brokerage sales representative make it mandatory for my clients to use electronic signatures in an offer?

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The OREA Forms team welcomes all contact from Members. Don't hesitate to email us at StandardForms@orea.com with your questions, comments or suggestions.

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