How Do New Changes in Forms and Rentals on MLS Affect Calgary Condo Sellers?

CALGARY, Alberta - March 27, 2014 - PRLog -- As of February 4, 2014 some significant changes were introduced by the Real Estate Board of Alberta in terms of forms and allowing rental information to now be posted onto MLS.

The forms have been improved to now include plain language in order to make it easier to understand.

As far as the new forms, one of the major changes is that there isn't a separate listing agreement for condo seller like there was previously. Instead, there is a common agreement for residential, condo, and country sellers alike. The difference is that there will be appropriate schedules or a supplemental statement of details amended to a document.

Another major change is the addition of the electronic clause.  With this new clause, emailing as a method of communication can now be used. An electronic signature can now serve the same purpose as signatures in ink.

When dealing with condo sales, or any real estate transaction, an important and mandatory form required is the Consumer Relationship Guide, previously called the Agency Relationship Guide. This is not a contract, but is a required first step to entering into any transaction with a real estate agent.

The Real Estate Council of Alberta calls the new form a “simplified consumer-friendly guide, with clearer, plain language wording”. Real estate agents have a regulatory obligation to discuss the guide with all consumers they interact with.

The new forms have simplified the explanation of transaction brokerage, which is when an agent represents both the seller and the buyer in a given transaction.  This has always been a debate of discussion and sometimes confusion, but now the duties of the agent are described in an easy-to-understand format.

The listing contract is down from 9 pages to 5 pages. There is better organization of clauses, such as inclusions and exclusions that have been moved to the beginning of the form. It is universal to country, residential or condo and is not separate like it was prior.

A very important question for sellers is what to disclose and what not to disclose as part of the process. The new forms makes it clear as to what is considered a material latent defect, something the home seller is required to disclose. The form that will be used is the Defect Disclosure form and will be used for instances when a property falls in the flood plains.

Realtors can now provide rental listing service on MLS.  The new rental service can be beneficial to a homeowner. For instance, if the home owner has to put up their unit temporarily before selling it, they can now use the services of the realtor to rent out their property.

For more information about these changes or if you are looking to buy or sell a Calgary condo, please contact Karim Hassam at khassam@cirrealty.ca or at 403-689-9594.