Open Bidding: Let’s Hire a “Puffer”

The Liberals were elected federally and one of their platforms was a change to real estate transactions eliminating “blind bidding”. This means that every Buyer would know what the competing Buyers have bid.

Constitutionally, there is a question as to whether the federal government has any jurisdiction to legislate in this area. Property and civil rights fall within provincial jurisdiction.

Nevertheless, and, of course, subject to Court challenge, the Liberals have said that the federal government has the jurisdiction to enact criminal legislation. This is true, and naturally, they could pass legislation which would make it an offence under the Criminal Code for homeowners, sellers, agents and brokerages to engage in any practice which constitutes blind bidding.

So, let’s open things up! The Seller can hire a “puffer” to bid on the sale of the property! That’s allowed under provincial laws. The puffer simply bids up the price continuously until we are in the right range, wins the deal, and then assigns the property over to the next highest bidder.

Lots of people could make a living by being a “Real Estate Puffer”.

Brian Madigan LL.B., Broker

www.OntarioRealEstateSource.com

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