Ontario to allow home sellers to opt out of blind bidding, but won't ban it
BNN Bloomberg
The Ontario government is giving property sellers the option of disclosing the details of competing offers, but not going as far as banning blind bidding.
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.
The move by the provincial government is part of a bigger reform to the Trust in Real Estate Services Act.
The changes, which also includes a new code of ethics for real estate agents, more clarity for buyers during the home buying process and greater powers for the Real Estate Council of Ontario to go after bad actors, are set to take effect on April 1, 2023.
