What is an Irrevocable Direction Regarding the Presentation of Offers?
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.