In an effort to stop unethical practices by sales agents in Ontario's hot housing market, the provincial government has announced new rules governing their recordkeeping. The market, with its record-low interest rates, has rebounded with ferocity, instituting bidding wars for buyers in places such as Toronto.
In Toronto, people looking to purchase a new home typically offer a price higher than the asking price in order to be able to purchase. Sales agents may then come back, claiming another bidder has come in with an even higher offer and asking if the person can come up with more. This practice has served to drive up prices on even bungalows into the million-dollar range.
Although it was already against the law for sales agents to claim they have competitive bids when one doesn't exist or to claim there are more bidders than there are, it was previously difficult to prove that had really occurred. Under the new rules, real estate agents will be required to keep records of all successful bids submitted for properties for six years following the purchase. They must also keep records of all unsuccessful bids for one year. This will help provide a paper trail for people in the event that they suspect their sales agent engaged in unethical behavior to drive up the price of their home.
Just like other financial matters, real estate transactions sometimes involve people who are willing to act in a less than ethical manner in order to secure larger commissions for themselves. People who are in the market may want to seek the help of a real estate lawyer in order to make certain they are protected. A lawyer may be able to investigate submitted offers by requesting copies of the submitted bids. He or she may also be able to help file complaints in the event such activity is discovered.
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