Changes to Offer Presentation Rules: IDRPO to be Phased Out on March 17
{Update March 2025}
The way offers are handled in competitive real estate situations is evolving. Effective March 17, the Irrevocable Direction Regarding the Presentation of Offers (IDRPO) will be phased out in favor of a Direction Regarding the Presentation of Offers (DRPO). This change aligns with recent guidance from the BC Financial Services Authority (BCFSA) and ensures greater flexibility for sellers.
What’s Changing?
Previously, the IDRPO required sellers to make an irrevocable decision about when offers would be presented, ensuring no early offers were reviewed before a specified date and time. However, under the updated Rules of Cooperation, this irrevocable requirement will no longer be in place. Sellers will now have the ability to modify their instructions regarding offer presentation at any time.
Why Is This Change Happening?
The IDRPO was originally introduced in 2022 by the three Lower Mainland real estate boards to create a fair and structured process for offer presentations, particularly in competitive markets. However, concerns have been raised by BCFSA, including:
- Seller Flexibility: The previous rules may not have always served sellers’ best interests, as they could not adjust their strategy based on changing market conditions or personal circumstances.
- Potential Conflicts for Realtors®: The irrevocable nature of the IDRPO could place Realtors® in a difficult position between following their clients’ evolving needs and complying with board rules.
- Regulatory Compliance: Legal opinions confirmed that BCFSA has the authority to issue guidance on this matter, requiring real estate professionals to align their practices accordingly.
To address these concerns, real estate boards across the province are proactively updating their rules to comply with BCFSA’s recommendations, ensuring consistency and legal alignment.
What Does This Mean for Realtors® and Clients?
- More Flexibility for Sellers
Sellers can now adjust their offer presentation strategy as needed, rather than being locked into an irrevocable decision. - Continued Transparency for Buyers
While the removal of the IDRPO may raise concerns about the return of “bully” offers, new notification requirements ensure that all interested buyers are informed if an early offer is received. This helps maintain fairness in competitive bidding situations. - Ensuring Regulatory Compliance
The shift to DRPO aligns with regulatory guidance, reducing the risk of disciplinary action for Realtors®.
What is an Irrevocable Direction Regarding the Presentation of Offers?
An Irrevocable Direction Regarding the Presentation of Offers (IDRPO) is a document that can be completed by a homeowner when selling their property through the Chilliwack & District Real Estate Board, Fraser Valley Real Estate Board, or Greater Vancouver Realtors® (the real estate board covering North and West Vancouver).
Why is the IDRPO Important?
In the absence of an IDRPO signed by the seller, the Boards' Rules of Cooperation require the following:
- Offers must be presented to the seller without delay.
- Offers must be presented to the seller through the listing brokerage, but a cooperating brokerage submitting an offer has the right to be present during the presentation.
The IDRPO gives the seller the ability to:
- Restrict the attendance of a cooperating brokerage during offer presentation.
- Delay the presentation of offers to a specific time.
What Does "Irrevocable" Mean?
"Irrevocable" means that once the seller signs the IDRPO, their direction cannot be changed until the expiration of the designated time period specified in the document.
How Does This Apply in Practice?
The IDRPO was introduced to prevent "bully offers" (offers presented before the designated offer day and time). It ensures that no offers are reviewed before the specified date and time, regardless of how attractive they might be.
Specifically, the IDRPO states:
- If offers are not to be reviewed until a specific date and time, the Designated Agent is instructed not to provide the seller with any details or terms of offers received before that time, even if:
- The offer meets or exceeds the listing price.
- The offer includes an expiration date that falls before the seller's specified review period.
What Should Sellers Consider Before Signing an IDRPO?
Before signing an IDRPO, the listing agent is required to:
- Explain the advantages and disadvantages of using the IDRPO.
- Advise sellers to seek independent legal advice to fully understand the implications of their instructions.
View a sample IDRPO here >>
In Summary
The Irrevocable Direction Regarding the Presentation of Offers (IDRPO) is a powerful tool that allows sellers to control when and how offers on their property are presented. While it can help manage the offer process and prevent "bully offers," it’s essential for sellers to fully understand its implications before signing.
If you’re considering selling your home and want to know more about how an IDRPO might work for you, our team is here to help. Contact us today to discuss your options and ensure you’re making the best decisions for your unique situation.