Ontario to allow buyers to see all bids on real estate sales, but only if the seller agrees (2022)

Ontario to allow buyers to see all bids on real estate sales, but only if the seller agrees (1)

Star Exclusive

Blind bidding, where homebuyers can’t see competing bids, has been blamed for contributing to soaring home prices in the GTA.

By Tess KalinowskiReal Estate Reporter

Tue., April 19, 20223 min. read

Video: Ontario to allow buyers to see all bids on real estate sales, but only if the seller agrees

Home-sellers in Ontario will soon have the option of allowing their real estate agents to share the contents of competing offers with the buyers bidding on their properties.

The current system of blind offers leads to bidding wars that some say contribute to soaring home prices in the Toronto region because buyers don’t know how much more they need to exceed the next highest offer.

The Ontario government is introducing new real estate regulations that will allow buyers to see competing offers but only if the home-seller chooses to go that route. Real estate agents, who have previously been prohibited from sharing the details of competing offers, would need permission from their seller clients to share the specifics.

The new open offer alternative that would begin next April is among a series of real estate regulations being announced by provincial Government and Consumer Affairs Minister Ross Romano on Tuesday as part of the Trust in Real Estate Act (TRESA) introduced in 2020. That legislation is the modernized version of the 2002 Real Estate Business Brokers Act.

The update includes a new Code of Ethics for real estate agents and more powers for the sector’s regulator, the Real Estate Council of Ontario (RECO).

“These regulations also allow RECO to go after bad actors taking advantage of vulnerable Ontarians by emboldening their disciplinary processes and expanding the scope of their jurisdiction to encompass the entirety of TRESA,” said the minister in a statement provided to the Star.

Video: How to Make An Offer for Your Buyer Clients in Ontario 🇨🇦

“By giving RECO these powers, we’re streamlining and speeding up the process needed to resolve issues and ensuring real consequences for those acting in bad faith,” he said.

Simpler standardized real estate forms and more stringent requirements for real estate agents to disclose their role around issues such as when a buyer and seller are using the same brokerage will ease the home-buying process, said the statement.

It’s not clear how many home-sellers would use the new open offer option given that the traditional practice of keeping offers secret can benefit sellers when buyers unknowingly offer significantly more than the next highest bid for a home.

But under the new rules, sellers who elect to share details of competing offers would be allowed to disclose only some of the particulars. For example, they might share closing dates or financing conditions that others have offered, but not disclose the prices being offered.

Sellers and their agents would have to share the agreed upon “open” information among all the buyers who are offering on the property.

Calls have been growing for more transparency in the real estate process. In its budget earlier this month, the federal government said it was developing a national plan to eliminate the practice of blind bidding in real estate.

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The industry has also been preparing for more open transactions with the Canadian Real Estate Association expected to pilot a feature on its Realtor.ca site this summer that will track in real time when offers have been registered on a property.

Auctions, commonly used in Australia, have been discussed as one alternative to the existing blind offer process. But auctioneers say there’s no guarantee buyers won’t get carried away even if they can see competing offers. Auction fever can take over in the excitement of an open auction, two auctioneers recently told the Star.

There are more real estate regulations still to be decided, including whether auctioneers selling property will continue to be exempt from the RECO rules.

Tess Kalinowski is a Toronto-based reporter covering real estate for the Star. Follow her on Twitter: @tesskalinowski

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FAQs

Ontario to allow buyers to see all bids on real estate sales, but only if the seller agrees?

The Ontario government is introducing new real estate regulations that will allow buyers to see competing offers but only if the home-seller chooses to go that route.

Can a buyer see other offers?

While some REALTORS® may be reluctant to disclose terms of offers, even at the direction of their seller-clients, the Code of Ethics does not prohibit such disclosure. In some cases state law or real estate regulations may limit the ability of brokers to disclose the existence or terms of offers to third parties.

Can a Realtor tell you what other offers are Ontario?

In Ontario, the seller's real estate broker or salesperson is required to disclose the number of competing offers to all buyers who have submitted a written offer. However, the terms and conditions of each offer are confidential to the seller and their broker or salesperson.

Can you ask to see other offers on a house?

Making an offer

You have to decide what you are going to offer to buy the house. At this point, you could ask your agent if they can see if there are any other offers on the house.

What is blind bidding Ontario?

When buying real estate, blind offers are submitted by potential buyers. As a bidder, you have no idea if you currently have the highest offer, nor do you know what other people have bid.

Can a realtor tell you what other offers are Canada?

There is also a legal obligation that a realtor can not disclose information on competing offers, though this rule will vary between provinces. In some areas, realtors are permitted to disclose the existence and number of competing bids, while others allow the disclosure of actual values with the consent of the seller.

Does an estate agent have to disclose offers to other buyers?

Do estate agents have to tell you about offers? An estate agent is legally obliged to tell you about every offer that is made, in writing. Even if the estate agent knows it's below the price you would accept, they still have to tell you the offer to allow you the opportunity to say no.

Does seller have to accept full price offer Ontario?

A seller must pay commission to their real estate agent if a full-price offer is presented, whether or not the offer is accepted, according to last month's ruling of the Ontario Superior Court of Justice.

Can you accept 2 offers on a house?

Yes. Buyers can negotiate multiple contracts on multiple accepted offers, and at the end of the process, they can choose the property they are willing to buy. Some buyers use it as a strategy to have back up contracts in case a deal fails to go through.

Can Realtors tell you about other offers?

yes and you can tell them the price of any offers received as long as you have sellers permission. You may with the Seller's permission.

Is there a way to see how many offers a house has?

4 Ways to Tell If There Are Multiple Offers on a Home
  1. Ask the Listing Broker. That's right! ...
  2. Look at Days on Market. If a property has been on the market for several months and still has scheduled open houses and regular showings, it's likely there are no other bids. ...
  3. Go to Open Houses. ...
  4. Watch the Price Point.
May 1, 2018

Can you find out how much someone has offered on a house?

Estate Agents can't legally tell you how much the other offers were for, but they will usually indicate if they were close to the asking price, which can help to inform your own decision.”

Can you put an offer on a house that already has an offer?

You can make an offer on a house that already has an offer, provided the executed contract has not been signed. You can also have an offer accepted in this situation, or ask the seller if they could put your on their back up list.

Videos

1. Bidding Wars - Real Estate Bidding War Rules in Canada
(Mike Lind)
2. How Do ASSIGNMENT Sales Work? Michael Duggal Toronto Real Estate Video Blog
(Michael Duggal)
3. What Ontario Gov’t Should Do To STABILIZE Real Estate Prices In GTA But Not Kill The Market
(SHUSTER REAL ESTATE)
4. Tips For Handling Bidding Wars (Real Estate)
(Lu Zhou)
5. Real Estate Webinar: Nine mistakes first-time homebuyers make in Ontario | May 26, 2020
(KPA Lawyers Professional Corporation)

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