New rules aimed at cooling frustrations in Manitoba real estate market
New rules for Manitoba real estate agents who deal with multiple offers on a home will take effect at the end of March.
The Manitoba Real Estate Association developed the new rules, while clarifying existing ones, in response to a record number of complaints from prospective homebuyers caught up in bidding wars in 2007, said spokesman Taras Luchak.
Although many of the complaints were unfounded, Luchak said the degree of "buyer exasperation" with the process indicated more transparency was needed to restore confidence.
Under the new rules:
* Real estate agents will have to ensure potential buyers know they are competing for a home if there is more than one offer.
* The agents will have to let the prospective buyer know which offer is being considered by the seller.
* Potential buyers will still need to ask if the number of offers on a property has changed.
Potential buyers can also ask for the names of competing agents, although they cannot have access to the names of the buyers themselves, Luchak said.
If the buyers better understand the rules, they should have more confidence that "there really hasn't been any misdealing on the part of the seller or the listing agent," Luchak said.
Homebuyers should feel more empowered during the house-hunting process as a result of the new rules, he said.
There are about 1,600 Manitoba real estate agents, most of them in Winnipeg.
In February, 60 per cent of Winnipeg homes sold for more than the asking price. |
