Moreover,
Demystifying economy | real estate::
Posted at 8:00 a.m.
Why don’t house buyers have the right to know the offers of other buyers? Similarly, There were cases where a buyer improved his offer unnecessarily and therefore paid too much. Therefore, It just seems to contribute to the increase in the real estate market and benefit real estate agents, right?
Marcel Nollet
It is frequent that a buyer. Consequently, who embarks on the demystifying economy | real estate: shopping of a property is surprised by this rule. Consequently, It comes from Regulation on the conditions of exercise of a brokerage operation. Similarly, on the ethics of brokers and on advertising of the Real estate brokerage law.
Paragraph 96 indicates that “the broker. Consequently, the agency manager must, when another holder of a license collaborates in the realization of a transaction, reveal to him the existence of any transaction proposal, whether or not accepted; However, he cannot reveal the content to him. ”
It is the self -regulatory organization of Quebec Real Estate Broker (OACIQ) which must monitor that the Real estate brokerage law be respected. it is the Quebec Minister of Finance who has the power to modify this law. For the moment, the Minister of Finance has not expressed an intention to change the rules about the demystifying economy | real estate: blind auction.
The application of these regulations ensures that when several buyers are in competition to acquire the same property. the real estate broker must notify each of the buyers whenever a new purchase promise has just been filed. Always without revealing the amount of offers.
Buyers who have made a promise to purchase can then offer even more money. to the seller without knowing if they have already offered him the highest amount.
Several documented cases fall under situations where a buyer has paid $ 10. 000 to $ 40,000 more to get a property in overbid when he had already made the highest promise to buy.
Do the promises of purchase made blind make the price of properties in general? No clear conclusion has been emerged so far. demystifying economy | real estate: Experts and studies contradict each other. The Canadian market has not been the subject of a specific study on this subject.
The question was debated in the National Assembly. with public consultations in 2021, of memories, of study reports made in other countries, of opinions of lobbies which defend their interests and, finally, new consultations in 2025 within the framework of bill 92, which have not changed anything on this subject.
In Ontario, since 1is April 2023, the buyer can disclose the price of the offers he receives. It is not compulsory.
In a transaction. there is the buyer who wants to pay the cheapest possible and the seller who wants to obtain the best possible price. If the seller. the broker who represent him have the impression that the blind auction will get a demystifying economy | real estate: better price, they will be tempted to choose this option.
When the remuneration of real estate brokers is based on the sale price. the higher the amount of the transaction, the better the commission.
Demystifying economy | real estate:
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