Read the latest updates regarding blind bidding, blind real estate offers, and the new rules for auction-type bidding for buyers and sellers.
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- Ontario Bringing More Transparency to Real Estate Offer Process And Strengthening Professionalism
- Why Ontario’s New Rules On Blind Bidding Won’t Lower House Prices
- Changes Including Opt Out Choice On Blind Bidding Coming To Home Buying In Ontario
Statement from OREA CEO Tim Hudak on new real estate regulations introduced by Government of Ontario
The Government of Ontario introduced new rules today that will bring more transparency to the home buying and selling process. The changes will make real estate transactions more open by allowing home buyers to see information about other offers being made on a home, provided the seller and other parties consent. These changes were part of a package of reforms the Ontario Real Estate Association (OREA) worked closely with the Province to bring forward, which strike the right balance between adding more transparency to the offer process and protecting a homeowner’s right to sell their home how they want, instead of blanket bans on the traditional offer process.
In a somewhat unexpected move, the Ontario government is introducing regulations to end blind bidding on real estate transactions. There’s just one catch: home-sellers get to choose whether bids are shared or not.
This new regulation comes into effect in April 2023. It is just one measure that the government is introducing to update the Trust in Real Estate Act (TRESA), which was established in 2020.
At face value, ending blind bidding should bring more transparency and potentially lower prices. However, the changes may not make housing more affordable. The odds are, prices will continue to increase. Here’s why.
TORONTO — The Ontario government is giving property sellers the option of disclosing the details of competing offers, but not going as far as to ban blind bidding.
Minister of government and consumer services Ross Romano said in a statement that sellers will get to choose if they want to “opt for an open offer process” and share bids.
“Sellers will no longer be limited to selling their property through a closed or traditional offer system,” he said.
Blind bidding, a practice where buyers bid for a home without knowing the size of competing offers, is pointed to by some as one of the drivers behind inflated home price gains.
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