When it comes to real estate transactions, more transparency is both needed and wanted.
The Ontario government is looking to the public for input on modernizing the Real Estate and Business Brokers Act (REBBA). Currently, the seller's broker is only required to reveal the number of offers. The details of the offers do not need to be shared.
READ: Majority Of Toronto And Vancouver Real Estate For Sale Sees Bidding Wars
With bid details hidden under a cloak, buyers can be misled into inflating offers in an effort to beat out competitors. This, of course, results in a bidding war and ultimately higher priced markets.
According to the government's consultation documents, it's been nearly 20 years since the act has been reviewed. So it's no surprise that the government wants to review the rules.
READ: In Toronto’s Real Estate Battle, Bidding Wars Come At A High Cost
“We need to make sure the rules governing real estate professionals, and the brokerages that employ them, are efficient, fair and up-to-date with modern realities," said Mister Bill Walker. "This review is part of our government’s plan to strengthen consumer protection, increase transparency and make life better for the people of Ontario.”
READ: The Need For Transparent Real Estate Bidding & Other Legislative Change
In addition to seeking feedback on how competing bids should be regulated, the consultation document is also seeking public opinion on the act's code of ethics and the education standards for real estate brokers and salespeople.
Residents of Ontario can give their feedback by completing the online survey by March 15, 2019.
