On Saturday, April 4, 2020, the Government of Ontario has now prohibited the hosting of open houses.

The government also added requirements that short-term accommodation rentals can only be provided to individuals who need emergency housing during the state of emergency.

How Is This Affecting The Real Estate Industry?

There are many other situations during a real estate trade that typically involve personal contact, such as signing documents and in-person client communications. The real estate industry is rapidly adapting and agents have gotten very creative at offering alternatives, including:

• Using virtual tours, 360 walk-throughs, mobile measurement applications and digital floor plans instead of in-person viewings

• Using electronic documents and signatures, instead of paper documents

• Using electronic funds transfers instead of certified cheques/bank drafts

• Communicating with clients via written communications, smartphone technology applications, and video conferencing, instead of face-to-face

Are You Still Allowed to Buy/Sell Real Estate?

Yes, the government has sent a clear signal that real estate trading may continue. However, this is not business as usual and health & safety remains paramount. Health authorities have asked all Ontarians to reduce or eliminate in-person interactions.

Real estate agents are still allowed to take new listings because some people have to sell for various reasons but the agent is under no obligation to do so. The services that are available to prepare a listing may also be more limited than usual like staging for example.

What About Tenant Occupied Properties?

We recommend avoiding all tenant-occupied properties at this time – it is simply not worth the health risk and logistical challenges. If you must list a property, pay particular attention to the tenant's health and safety including: reducing the number of in-person showings required by asking buyers to assess their interest through virtual options first. If they remain interested, you could work out a plan to safely view the property. Viewings should only occur with the tenant's consent, however.

Can Buyers to Make Their Offers Conditional on a Satisfactory Showing?

There is nothing in the Real Estate and Business Brokers Act, 2002 that would prohibit such a practice. However, you should seek advice from your lawyer about the pros and cons. Language should be inserted into clauses that protects both the seller in case the buyer then refuses to provide or unreasonably delays a final, written decision about whether they will waive the condition or not and the buyer to make sure they can satisfactorily view/inspect the property.

How Are In-Person Aspects of Real Estate Being Conducted?

While there is no substitution to in-person visits for inspections, taking measurements, etc. many services like mortgage appraisals are currently being performed through entirely virtual/remote means. Many of these activities can still be performed, you just need to be creative about it and work with everyone affected.

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