Ontario has allowed open bidding for real estate
The authorities have reformed the rules of buying and selling.
New rules for buying and selling real estate in the province of Ontario are coming into effect and are intended to provide more clarity for buyers and sellers. However, the changes made to the legislation are not as drastic as some had hoped.
The rules, which went into effect Friday, Dec. 1, include the ability for sellers to use an open bidding process and disclosure of brokers and brokerage services.
What's changed
First, the open bidding option gives the seller the ability to disclose proposed prices to potential buyers, something that was previously prohibited to do.
Second, previously, if buyer's and seller's agents worked for the same brokerage firm, they were subject to the so-called multiple representation scenario, given the potential conflict of interest. In these cases, the agents could only act as intermediaries and were limited in the amount of information they were permitted to disclose. By appointing specific agents, the buyer and seller will be exempt from multiple representation under the new rules.
Third, the reform includes a modified code of ethics. The information guide that clients receive from the agency before entering into a contract is also being transformed.
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