Phantom Offers in Ontario (targeted by Bill 55)
With the prevalence of bidding wars in Toronto and the GTA, have come “phantom offers”.
These are Offers that are imaginary. They don’t exist. Someone has simply alluded to them for the purpose of “pumping up” the bids. Really, there’s nothing more to it. They are all “make believe”.
Effective 1 July 2015, there will be new rules. They are set out in Bill 55. While the purpose is to flesh out the phantom Offer in bidding wars, the new rules will apply across the board.
The reason is rather simple. It’s not really possible to determine whether there is just one bidder or two (or more) in any given situation. So, if that matter is left to one’s discretion, then something is easily going to be overlooked.
So, we will look at the following:
- The new rules,
- RECO’s explanation,
- RECO’s questions and answers,
- OREA’s new Form 801,
- My own Bill 55 Compliance Form.
Brian Madigan LL.B., Broker