The Ontario government will introduce new regulations, effective next year, that will enable home sellers to disclose the details of competing bids on their properties if they choose.
Sellers will no longer be limited to selling their property through a closed or traditional offer system," says Ross Romano, Ontario minister of Government and Consumer Services.
By giving sellers the option of what the province calls an "open offer" process, the government hopes to help make the home-buying process more transparent.Critics disagree however, saying the rules could add confusion and will do little to bring down inflated prices. Many feel that sellers shouldn't be allowed to choose whether the bidding process is transparent or blind because it would defeat the purpose of ending blind bidding (since it's in the sellers' best interest to keep buyers in the dark).
Under the current system of blind bidding, potential homebuyers submit their offers without knowing the contents of competing bids. Currently real estate brokerages must disclose the number of written bids but not the content of those bids.
Under the new regulations, sellers will have the option to open the bidding process and make all offers transparent. Real estate brokerages would have the option to disclose details of competing bids at the discretion of sellers.