There’s a new trend in real estate. The Seller lists at an unreasonably low price in order to attract bidders. Does the Seller have to sell at the advertised price?
Here is a relevant section from the Competition Act:
Competition Act – R.S.C., 1985, c. C-34 (Section 74.05)
Marginal note: Sale above advertised price
74.05 (1) A person engages in reviewable conduct who advertises a product for sale or rent in a market and, during the period and in the market to which the advertisement relates, supplies the product at a price that is higher than the price advertised.
A sale of real estate by a property owner is exempt from the Act. That applies to 99.9% of deals.
A builder selling multiple properties would be subject to the Act.
Advertised prices of real estate services would also be caught by the Act.
Brian Madigan LL.B., Broker