Are Open Houses Really Banned because of COVID-19 ?

Let me preface this article by saying that I believe now is not the time to be holding traditional open houses or engaging in any behaviour that could put others at risk by potentially spreading COVID-19. Let's all work together to "flatten the curve" and keep safe.

There has been a lot of confusion among real estate professionals and consumers right across the country when it comes to answering that question...and sadly, the answer is, it depends.

Traditionally sellers who list their homes host open houses with their real estate professionals to try and get as many potential buyers through as possible. This can increase the property's exposure to the public and hopefully increase the chance of someone writing an offer to purchase it. But right now the world is facing a pandemic that requires all of us to limit face to face exposure and keep at least 2 meters away from everyone else. That can be tough to do during a traditional open house.

With multiple people moving through a home, gathering in smaller rooms, touching surfaces such as door knobs and furniture, and the inability to know if someone coming through the home is sick, it is not realistic to expect that a real estate professional can control all the variables while still trying to answer consumer questions about the property and market your home.

You also have to consider that just like you, your real estate professional might have a family that they want to keep safe, and expecting them to risk their health, and the health of their loved ones is simply inconsiderate.

To help eliminate the risks posed by open houses, many real estate regulators and trade associations across Canada have strongly advised against open houses. In that vain, some real estate boards in Canada have also rightly removed the ability to market open houses on the MLS? System.

But confusion has been created in the differing language used by the many organizations that make up the real estate industry. While most have said that they "don't recommend", or "strongly advise against" open houses, a few have used much stronger language to drive their point home. Some have even gone as far as saying that open houses are "banned" or "prohibited".

So let us clarify this point...can a seller and their real estate professional host an open house in any format? Yes. There is no legislative ban on open houses, as long as you are complying with the provincial and federal health orders. There are many creative ways for consumers and real estate professionals to market a home and that includes open houses. Open houses can be held virtually by way of property video tours, and even over programs like FaceTime. Open houses can also be set up where potential buyers wait in their cars and go through the property one at a time while being instructed not to touch anything that is not included in the sale (e.g. furniture). The point is, as long as you are complying with the health official directives, you are permitted to market your home in any way that works for you and your real estate professional.

Now there are some other considerations you must keep in mind. When you hired your real estate professional to sell your home, you most likely signed a service or representation agreement. This can take the form of a listing contract. The contract will include the length of time the listing will last, and will outline what your real estate professional's responsibilities will be during the listing, and also what your responsibilities will be. These contracts may need to be amended to reflect the new reality we all find ourselves in. So, if for instance, your service agreement says that your real estate professional will do all showings in person, or run tours through your home, they may ask you to modify the contract to eliminate unsafe activities.

You may also determine that in light of all the restrictions, you want to terminate your listing and relist at a later date. Talk with your real estate professional and work together on a solution. There may be consequences to terminating a contract early so getting all the facts and working with the brokerage you have contracted with will be key. If necessary, get independent legal advice.

In the end, with some creative marketing, and a lot of collaboration with your real estate professional, while you may not be able to host traditional open houses, you can still have "open houses" that just look a little different then they traditionally have.

*This article only deals with owner occupied or vacant properties. Many provinces have enacted new legislation for tenanted properties allowing tenants to deny access to the home, even if it is listed for sale. Speak with your real estate professional or get independent legal advice for such a scenario.