Is MultiBID legally compliant?

Being legally compliant revolves around the Code of Ethics that governs licensed broker/agents in their geographical area of practice.  In Canada (which is where MultiBID is currently operating) those regulations are governed at a Provincial level.

For example, in Ontario the Code of Ethics provides the following obligations and permissions for consideration:

Fair Practice:

Fairness, honesty, etc. #

3. A registrant shall treat every person the registrant deals with in the course of a trade in real estate fairly, honestly and with integrity.  O. Reg. 580/05, s. 3.

Best interests #

4. A registrant shall promote and protect the best interests of the registrant’s clients.  O. Reg. 580/05, s. 4.

Conscientious and competent service, etc. #

5. A registrant shall provide conscientious service to the registrant’s clients and customers and shall demonstrate reasonable knowledge, skill, judgment and competence in providing those services.  O. Reg. 580/05, s. 5.

Ability to use a third party service (such as MultiBID):

Agreements with third parties #

22. A registrant shall not, on behalf of a client of the registrant, enter into an agreement with a third party for the provision of goods or services to the client unless,

(a)  the registrant has disclosed in writing to the client the subject-matter of the agreement with the third party and the identity of the person responsible for paying for the provision of the goods or services;

(b)  the client has consented to the registrant entering into the agreement with the third party; and

(c)  the registrant has disclosed in writing to the third party the identity of the person responsible for paying for the provision of the goods or services.  O. Reg. 580/05, s. 22.

The handling of competing offers and protection of details:

Competing offers #

26. (1) If a brokerage that has a seller as a client receives a competing written offer, the brokerage shall disclose the number of competing written offers to every person who is making one of the competing offers, but shall not disclose the substance of the competing offers.  O. Reg. 580/05, s. 26 (1).

(2) Subsection (1) applies, with necessary modifications, to a brokerage that has a seller as a customer, if the brokerage and the seller have an agreement that provides for the brokerage to receive written offers to buy.  O. Reg. 580/05, s. 26 (2).

Summary:

MultiBID is entirely compliant for the following reasons.

1. FAIR: All potential buyers have access to the same selling property details as provided by the listing agent.  Also, since MultiBID is open-site and not an MLS (Multiple Listing Service), property details can be branded and provide additional assets such as listing agent intellectual property, supporting accreditations and more.
2. AGREED UPON SERVICE:  Prior to a selling or buying agent being authorized to use the MultiBID service, proper authorization and consent must be provided.  This ensures that the permissions and requirements to use a third party service have been obtained and therefore permissible.
3. DISCLOSURE COMPLIANCE:  Using MultiBID requires that the buyers consent to using the sellers offer which is provided openly and clearly before the live bidding event.  This sellers offer is the same for all buyers and any conditions, clauses or modifications to the sellers offer must be agreed upon in writing by the sellers (not to be shared publicly) prior to the live bidding event.   As such, since no written competing offers are being submitted, there is no worry of accidental disclosure of competing offers and avoids all potential violations.