Real estate transactions have historically been cloaked in mystery. For years the public and industry professionals have been asking for more transparency. Now it seems the government might finally be listening. The Ontario government is currently looking to modernize the Real Estate and Business Brokers Act (REEBA)
How real estate in the province works now, the seller’s broker is only required to reveal the number of other offers. Other details around the offers, such as bidding amount, do not have to be shared. This causes buyers to be misled, often inflating offers to outbid competitors. This creates a bidding war, which ultimately causes higher prices and leads to overinflated markets.
Toronto is already struggling with an affordable housing crisis, and many real estate agents believe transparent bidding could help ease it. The REEBA also hasn’t been reviewed in over 20 years. Industry experts point out that real estate practices were vastly different back then. As prices continue to rise, it is not surprising that the government is now looking into modernizing the legislation.
“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.”
This move wouldn’t just help buyers either. Sellers would be able to get more information and leverage better deals. Price wouldn’t become the sole selling decision. Overall, transparent bidding would make the real estate process more fair and sustainable. It’s rare that the public, industry professionals, and government are on the same page.
If you want to learn more about transparent bidding or need help with real
estate contact me today!