With the recent upswing in housing activity, the business practices department of the Calgary Real Estate Board (CREB) has received a number of calls on how to handle multiple offers. Below are the rules and regulations from CREB to refer to when dealing with this situation.
Rule and Regulation 16.02
1. In the event two or more equally acceptable purchase contracts are received by the seller's associate, the chronological order in which the purchase contracts were received shall be drawn to the attention of the seller. (March 2010)
2. A buyer's associate shall not be allowed to attend the presentation of a competing purchase contract owing to confidentiality. (March 2010)
3. Under no circumstances may the price or terms of a purchase contract which is under consideration be disclosed as a means of obtaining a better purchase contract from another party. The price, terms or conditions shall not be disclosed, except to the seller.
4. In the event that the listing brokerage has more than one written offer to be presented, prior to any offer being presented, the listing brokerage shall inform the other competing cooperating brokerages of the existence of all other written offers and/or counteroffers, unless given a lawful written instruction to the contrary from the seller. Unless instructed not to, when the listing associate is dealing with competing offers, the names of the competing buyer’s associates and the brokerage will be provided to the associates representing the competing buyers. (March 2010)
5. Should the listing associate receive multiple purchase contracts, one of which being their own, all purchase contracts shall be presented by a listing brokerage representative. The sellers’ representative shall direct all purchase contracts to be submitted to the brokerage representative who will be presenting the purchase contracts and must make every effort not to seek out or take advantage of any information of any competing purchase contracts inadvertently sent to him. (March 2010)
6. Competing purchase contract(s) MUST be presented prior to the acceptance of any purchase contract by the seller. Except for 16.02 (4), the listing associate shall ensure all associates with competing purchase contracts are notified IMMEDIATELY of the current status of purchase contracts, before and after the presentation. (March 2010)
7. Except for 16.02 (4), only the existence of written competing offers shall be disclosed to competing brokerages. (March 2010)
Please contact the CREB Helpdesk at 403-781-1379 should you have any questions.