Commission proposes new approach on key residential real estate practices

Winnipeg – In a move toward continued modernization and improvement of the requirements governing Manitoba’s real estate market, the Manitoba Securities Commission (Commission) has today announced a call for industry and public comment on proposed amendments to two key real estate documents.

Following the successful introduction of The Real Estate Services Act (RESA) on Jan. 1, 2022, the Commission is now proposing revisions to both Residential Offers to Purchase (ROTP) and Property Disclosure Statements (PDS). The ROTP is a mandatory form that registrants under RESA must use in the sale of single-family residential houses and condominium units, while the PDS is a voluntary form introduced in 2011.

The Commission developed the proposed new forms in conjunction with the Manitoba Real Estate Association, representatives of the Manitoba Bar Association, and through consultation with the real estate brokerage industry and legal community, in an effort to update these documents to reflect current real estate practices.

“The current Offer to Purchase was developed in the late 1990s,” says Keith Schinkel, Registrar of Real Estate for the Commission. “In many respects, it is not reflective of today’s landscape. Our recommended changes are a substantial revision from the current forms, and we want to ensure they include input from all sectors to best serve the needs of consumers and industry.”

Notable changes to the ROTP include:

• Dividing the forms in to two distinct parts; one setting out the specific details of the transaction, and a second detailing more general terms and conditions;
• Assuming that the balance of the purchase price will be paid on closing, instead of the mortgage proceeds being delayed;
• Revising the standard representations in the Offers to better reflect the expectations most purchasers would have;
• Facilitating the voluntary use of electronic fund transfers for deposits and other payments, reflecting the trend to digital commerce.

“The process around buying and selling residences has changed greatly since these forms were last revised,” says Schinkel. “The land titles process is now electronic and digital commerce is playing an increasing role in day to day life, particularly in the wake of the pandemic. These proposed revised forms attempt to reflect these changes and better align them with current practices.”

In a significant change, the proposed revised PDS will no longer use ‘Yes’ or ‘No’ responses, but ‘Correct,’ ‘ Incorrect,’ or ‘Do Not know,’ reflecting the fact that items have been changed from questions to statements. The scope of the sellers’ responses have also been clarified to cover their specific period of property ownership, except where otherwise stated.

The Commission anticipates the new forms will be adopted by Q4 2023, after giving the real estate brokerage industry and the legal profession sufficient time to adapt to the new forms.  In the meantime, the current forms remain in effect.

The Commission is publishing the proposed revised ROTP and PDS forms for comment on their website at this time. The Commission invites members of all affected sectors to submit their comments on the proposed revisions to the Commission by email or by letter before Dec. 31, 2022. A full overview, along with the proposed revised documents, summary comments, and contact information, are available for public review at mbrealestate.ca.

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The Manitoba Financial Services Agency (MFSA) is a Special Operating Agency of the Province of Manitoba that administers and enforces legislation for the province’s securities and insurance sectors, real estate and mortgage brokers, credit unions, caisses populaires, trust and loan companies, and pensions. The Agency is comprised of The Manitoba Securities Commission, Financial Institutions Regulation Branch , and The Office of the Superintendent- Pension Commission.

Media Inquiries:                      
Jason Booth, Communications Coordinator, MFSA  |  204.945.1660 |  jason.booth@gov.mb.ca