Banning Bully Offers Won't Make Ontario Real Estate Any More Fair (Blog)

to ban"bully," or pre-emptive, offers. While the proposal has the noblest of intentions in"levelling the playing field" for home buyers, such a measure would only restrict choice and agency for home sellers, while overlooking a key compliance gap that has remained prevalent in the market.A bully offer is a bid to purchase a property before the designated offer date indicated on the listing.

The existing REBBA 2002 makes it crystal clear the steps listing agents must make when receiving pre-emptive offers: should they receive a bully offer their clients are willing to work with, they must notify in writing anyone else who had expressed"An expression of interest includes parties that have booked viewing appointments, have viewed the property, have informed the brokerage or the listing representative that they will be submitting an offer on the property, or have submitted an...

As they are ethically bound to always act in their client's best interest, listing agents are obliged to ensure their sellers have every opportunity to consider all possible offers available to them — and you should expect any agent worth their salt to frantically hit the phones once a bully comes in. Unfortunately, not all agents will do this due diligence, either because they have their own vested interest in the outcome of the transaction, or they simply don't wish to do the legwork.

in listings they would reserve the right to accept bully offers without providing notice. This is in breach of REBBA 2002, and prompted a requisite warning from RECO. This lies bare the true issue of compliance in the real-estate industry, and the need to give RECO the teeth and resources it needs to actually enforce the issue. While incorrect offer handling makes up the bulk of, it can take months — or even years — under the current system to achieve any recourse. It is here that efforts to improve the system should be focused, rather than removing sellers' autonomy to work with any offer they choose, regardless of when they receive it.

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