Handling Multiple Offers 

Key Principles to Follow

Greater Calgary Real Estate's Policy on Multiple Offers

At Greater Calgary Real Estate, we are committed to providing transparent, fair, and ethical services to all clients. Our policy on handling multiple offers aligns with the Calgary Real Estate Board (CREB) Rule 11.05, “Multiple Offer Communication Requirements,” and the Real Estate Council of Alberta (RECA) guidelines.

General Procedure for Multiple Offers

1. Informing Competing Brokerages (A)

• As soon as a seller’s representative becomes aware of multiple written offers, they must inform all competing brokerages about the existence of those offers unless instructed otherwise by the seller in writing.

• Tip: Communicate quickly and efficiently to ensure compliance and maintain transparency.

2. Providing Competing Buyer Representatives' Information (B)

• The seller’s representative must provide the names of the competing buyers' representatives and their brokerages to any competing buyer representatives upon request.

• Tip: Maintain accurate and updated records of buyer representative details for easy access.

3. Withdrawn Offers (C)

• If a competing offer has been withdrawn during ongoing negotiations, the seller’s representative must inform all competing brokerages.

• Tip: This disclosure ensures compliance with legal requirements and maintains transparency.

Important Disclosures

1. Do Not Disclose Multiple Offers (Unless Instructed)

• If a seller chooses not to disclose multiple offers, the seller’s representative must comply with this decision. However, if the seller chooses to disclose, the agent must also inform other agents about any offers that have been rescinded.

2. Independent Advice

• Sellers should be reminded to seek independent advice from a lawyer, lender, or other professional service providers before signing any agreement to ensure they are fully informed of their rights and options.

Guidance for Buyer Agents

1. Time Is of the Essence

• Buyers must ensure their offers are presented on time. As a buyer’s agent, submit all offers immediately to the seller’s representative.

• Tip: If there are delays, communicate promptly with your broker for further instructions.

2. Disclosures and Transparency

• In a multiple-offer situation, ensure clarity on how offers will be disclosed and how communication will proceed. Submit all offers in a timely manner.

Industry Guidelines

Both CREB and RECA have established detailed guidelines for handling multiple offers. Agents must familiarize themselves with these guidelines to ensure compliance.

• CREB Rule 11.05 outlines communication requirements for multiple offers, including notification to competing brokerages.

• RECA’s Guidance emphasizes fairness and transparency in all transactions.

When is It Legal to Hold an Offer?

• When a buyer’s agent submits an offer, it is typically time-sensitive. The seller’s representative must present it promptly.

• Holding offers until a specified time is acceptable if it does not breach the "Time is of the Essence" clause. Consult with your broker and legal counsel if there is any uncertainty.

Best Practices and Tips for Agents

• Document Everything: Keep clear and organized records of all communications, offers, and counteroffers.

• Communicate Regularly: Maintain open communication with competing agents to ensure transparency.

• Set Expectations: Educate your clients on the multiple-offer process, potential outcomes, and timelines.

• Follow Legal Instructions: Adhere to the seller’s written instructions and comply with all legal and regulatory guidelines.

Assess Your Knowledge:

Answer the following questions:

1. What is the role of a seller’s representative when there are multiple offers on a property?

2. How should competing brokerages be informed about multiple offers?

3. If a buyer’s agent is submitting an offer in a multiple-offer situation, what steps must be followed to ensure compliance?

By following these guidelines and keeping current with CREB and RECA regulations, we ensure that our real estate transactions are handled with integrity and legal compliance.

For any questions or clarifications, feel free to contact your manager or the compliance team.