New Real Estate Rules Target Phantom Property Bids

New Ontario real estate rules effective 07/01/15 will bring transparency to real estate bidding wars.

New real estate rules in Ontario aimed at comforting home buyers goes into effect July 1, 2015. The rules will limit a property seller’s real estate broker to only discuss offers to purchase that have been received in writing and signed by a potential buyer.

You are suggesting there might be competing offers when there may or may not be.

Under the new rules, an offer must have been submitted in writing, signed and made ready for delivery, in order to be counted. A real estate professional may no longer say an offer has been submitted when none has.

  • Current rules state that valid offers must be signed.
  • Now agents are also being made to keep records.

The goal of the new real estate rule is assure potential home buyers on a specific property that there actually are real buyers interested in taking the property off the market, and not just “phantom bidders.”

Continue watching this real estate news video for more details…