As of November 1, 2025, if you are working with a real estate agent for a residential property purchase or sale in Manitoba, you will see a new Offer to Purchase form in use.  Pursuant to an amendment to the Real Estate Services Regulation, realtors are required to use these new forms for any residential or condominium offer presented on or after November 1. 

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The reforms are intended to modernize the real estate system that has been in place in Manitoba for approximately 30 years.  The Manitoba Securities Commission, in consultation with the Manitoba Real Estate Association and legal stakeholders, formed a committee that crafted the new forms to better reflect current practices.  The changes are intended to provide more clarity and shift the risk allocation between parties.  The new forms are more in line with legal expectations and systems that are already in place in other provinces.

 

Every new Offer to Purchase will consist of two parts.  Part One being the Offer as presented by a Buyer and containing information related to the parties, the property and any terms specific to the Offer.  This part will be completed by the parties and their agents and can be amended or personalized as they see fit.  Part Two of the Offer contains standard terms that will apply to each transaction unless those terms have been specifically altered or changed in Part One of the Offer.   All parties will need to sign both parts for each Offer.

 

What to plan for if you are a Seller:

 

As a seller, you can still expect a buyer and their agent to complete and present the new form of Offer to Purchase.  However, a Seller is now required to provide some additional information in their acceptance or counteroffer that they should be prepared for:​

 

• Representations and Warranties – Part Two of the Offer contains certain standard representations and warranties that a buyer is entitled to reply upon.  If there are any changes or amendments to those, a seller is required to do this item in #9 in Part One or on a Schedule to the Offer.  This ensures that they are not making representations and warranties that are incorrect or inaccurate and could lead to problems later on.

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• Homestead Act Statement – A seller is now required to declare if the property is not homestead property, is homestead property and is registered in the names of both spouses or common-law partners or is homestead property but is not registered in the name of a current or former spouse or common-law partner that has homestead rights in the property.  A seller should confirm in advance who is on the title to the property and determine who has homestead rights on the property so that they can properly complete this section of the Offer.

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• Residency Statement – A seller is now required to declare if they will not be a non-resident of Canada within the meaning of the Income Tax Act on possession date or if they will be a non-resident of Canada within the meaning of the Income Tax Act on possession date.  If a seller will not be a resident of Canada on the possession date, then they are required to file a non-resident tax return within 10 days of the possession date.   A seller can start this process earlier to be prepared for the closing and should speak to their accountant and lawyer about it as soon as they make the decision to sell.  

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• Property Disclosure Statement (“PDS”) – The standard PDS has been updated and includes some additional statements that a seller should be aware of and prepared to complete.  A seller should review the new PDS form early in the sale process and complete this with their real estate agent once the property has been listed.

 

What to plan for if you are a Buyer:

 

There are still steps that buyers should take before and during the property buying process to be ready for when the right property comes along.  This includes obtaining a pre-approval for any mortgage financing, planning for a home inspection, arranging property insurance for the possession date once an Offer is in place, and ensuring that the funds necessary for any down payment and closing costs will be available prior to the possession date.  The more prepared a buyer is, the smoother the process will go.  This is especially so if a buyer is looking for a quick possession date. In particular, a buyer should be prepared for these new requirements in the Offer:

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• Possession Date and Occupancy – The new form sets a default possession time for not later than 6:00 p.m. on the stated possession date.  The Offer confirms that the parties have until 6:00 p.m. on the possession date to complete the transaction and that possession of the property shall be given to the buyer on the possession date at either 6:00 p.m. or upon the parties’ solicitors confirming that the transaction has been completed, whichever is earlier.

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• ​Completion of the Transaction – Previously if a buyer did not have all their funds (usually the mortgage proceeds) in place on the closing date, they paid interest to the seller on the outstanding balance at their interest rate until it had been paid in full.  Now, Part Two of the Offer states that if part of the purchase price is to be paid from proceeds of a new mortgage and the receipt of those funds is delayed, a buyer may extend time for payment of those funds for up to seven calendar days after the possession date under the following conditions:

 

       (a) the buyer shall pay interest to the seller on the unpaid funds, commencing the day after the possession date, to and including the day

            the funds are paid, at the policy interest rate of the Bank of Canada in effect on the Possession Date plus 7%;

       (b) the buyer shall pay the seller’s reasonable costs and expenses resulting from the delay to the extent that such expenses exceed the

            interest on the unpaid funds;

       (c) the seller shall have a lien or charge on the property for the unpaid portion of the Purchase Price, interest and expenses;

       (d) no alterations or renovations shall be made to the property until the balance of the purchase price, interest and expenses are fully paid.

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The current Bank of Canada rate is 4.45%.  If the balance of funds is not paid to the seller on the closing date, then the buyer would pay interest on the outstanding balance at 11.45% (based on today’s rate). This could be a significant amount over and above your down payment and closing costs.   

 

In many transactions this will not be an issue however, to ensure that there are no delays, the more efficient all parties involved in the transaction (realtors, mortgage brokers and lawyers) can be to finalize things at each stage, the more likely it is that everything will be in place for funds on the possession date.  This can all be assisted with a well-prepared buyer and allowing sufficient time from the date of the Offer to the possession date to ensure everything can fall into place.

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Conclusion

 

While the changes might not seem drastic, they will affect how real estate transactions are concluded in Manitoba.  Any buyer or seller should speak to their realtor or lawyer as to how their transaction may be impacted and what they can do to be prepared.​​​​​

 

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