New Rules Introduced To Cut Down On “Phantom Bids”

Ontario has put forth new rules saying that before an agent tells buyers there are competing offers on a property, they need to have written proof.

This is to combat “phantom bids” something that supposedly happens when multiple buyers are interested in a property and an agent hints there are other offers, but they don’t really exist.

The Real Estate Council of Ontario was recently quoted in the Toronto Star saying, “We don’t believe that it’s a rampant practice, but if it happens, it’s very serious and we would take it very seriously.”

Brokers can be fined up to a maximum of $50,000 and agents can be fined up to a maximum of $25,000 if they are found to be breaking the rules.

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