Ontario government launched consultation Thursday on possible change to Real Estate and Business Brokers Act.
Ontario home buyers may soon be able to find out the prices and conditions of other offers in bidding wars.
The government launched a consultation Thursday looking at the Real Estate and Business Brokers Act, and that’s one rule they’re looking at changing. Currently, if there are multiple bids on a home, the seller’s broker can only disclose the number of competing offers, but not the details of them.
Through this method in a hot housing market, buyers often can blindly offer more than what they initially planned on spending in hopes of beating their competitor.
“Allowing registrants to disclose the details of competing offers to other bidders may benefit both buyers and sellers by making this process more transparent,” the government says in its consultation document.
“Prospective buyers would have better information to inform their decisions, while sellers would know that potential buyers had not been deterred by the prospect of a blind bidding war.”
Realtors have been pushing for this change
The Ontario Real Estate Association has been pushing for a change to that rule and a broader review of the act, and they said they are thrilled consultations are underway.
“The rules governing realtors were set 16 years ago, when smartphones weren’t invented and fax machines were the norm,” CEO Tim Hudak said in a statement.