The way offers are handled in competitive real estate situations is changing. As of March 17, a seller’s instruction to delay the presentation of offers will no longer be required to be an irrevocable client instruction, under the amended Rules of Cooperation.

To facilitate this change, we will phase out the Irrevocable Direction Regarding Presentation of Offers (IDRPO) form on March 17 and revert back to a Direction Regarding Presentation of Offers (DRPO) form.

This change complies with recent guidance from the BC Financial Services Authority (BCFSA).

The three real estate boards in the Lower Mainland introduced the IDRPO in 2022 as a means to help ensure that buyers receive a fair opportunity to present offers and create a structured process for offer presentations.

However, BCFSA has raised concerns that making an offer presentation decision irrevocable may not be in the seller's best interest. Sellers may need to adjust their strategy due to market conditions, personal circumstances, or other factors.

BCFSA also expressed concerns that requiring IDRPO could put REALTORS® in a conflict between following their clients’ instructions and adhering to board rules.

GVR, along with boards and associations across the province, sought legal opinions, which confirmed that BCFSA has the authority to issue guidance on this matter and that Realtors must comply.

Instead of waiting for regulatory enforcement, we’re proactively aligning rules to protect Realtors and ensure compliance.

• Seller flexibility: Sellers will once again have the ability to change their instructions regarding offer presentation timing.
• Regulatory compliance: The move to DRPO ensures Realtors are operating in accordance with BCFSA’s guidance and avoids potential disciplinary action by the regulator.
• Clear communication with buyers: While buyers may be concerned about the return of “bully” offers, the rules have been enhanced to increase the notification requirements that listing agents must follow, to ensure all interested buyers are notified if an early offer is received, maintaining a degree of fairness and transparency.

• Set expectations early: Buyers’ agents should educate their clients about the offer process, including the potential for changes in offer presentation timing.
• Encourage clear communication: Sellers’ agents should discuss presentation strategies with their sellers and document their decisions to ensure smooth transactions.
• Stay informed: You should familiarize yourself with the updated DRPO and the revised Rules of Cooperation surrounding it to ensure you’re prepared for this transition.

By making this change proactively, we aim to create consistency across the province while preserving professionalism and transparency in the market. 

• Read a side-by-side comparison of the existing IDRPO and upcoming DRPO rules.
• See a sample of the new DRPO form, which is expected to be live on WEBForms next week.