The realtors in Ontario have banded together to call on the local government to stop 'bullying.'
Global News Canada reported that this 'bullying' comes from 'bully' offers, which they claim gives certain home buyers an 'unfair' advantage over other buyers. Ontario Real Estate Association President Karen Cox said that the government ought to make sure this won't happen anymore.
"Bully" offers are those submitted by a buyer, even without the established seller's price and offer date. This move, according to the report, elbowed out other competing buyers from offering a price and pressured the seller into accepting the said bid. Cox said that the ban of the practice will be a big help to make sure all buyers are able to make fair offers and allow sellers to take a look at and consider all bids.
The recommendation is only one of 28 submitted by the association to the government. The government is currently reviewing the Real Estate and Business Brokers Act. The association, meanwhile, is the governing body for a collection of 78,000 brokers and salespeople in Ontario.
Realtors have actually been asking the province to create a revision to the act since last fall, according to CBC Canada. The ruling was enacted last 2002, with the legislation needing to be updated to allow for more transparency for both buyers and sellers who are covered by the rule.
Cox added that some buyers have been using "bully" offers to zero in on their preferred properties. They have been using these moves to crowd out rival buyers in the market. Cox said that the unfair practice should be discontinued and that these moves should change. It was evident that the home-buying process was being affected heavily and that it creates an uneasy 'unfairness' to other legally-buying parties.
The association is also keen on creating other rules. It is asking the government to ban escalation clauses included in the offers. Aside from "bully" offers, these clauses are placed to 'defeat' any competing bid with an outright increase of the purchase price to the next highest offer. It is another mechanism that "bully" buyers are using to secure properties.
Realtors have also asked the government to spread more awareness about these unfair practices and to educate both buyers and sellers alike. The association had suggested more in-class training, required by the education, which will help standards to progress and improve professionally.