On December 1^st 2023 an entire new Trust in Real Estate Services Act (TRESA) came into effect in Ontario that changed the way Realtors deal with representation and disclosure to the public.

One of the biggest changes that was made is that it now allows for an “Open “Offer process where a seller can choose to disclose any of the terms of an offer including the price to other buyers.

Previously, it was more of a “closed” offer or blind offer system.

This may have a big impact on the multiple offer process going forward.

Prior to this when we were dealing with multiple offers, all the buyers would submit their best offer and had no idea what the other offers were. The seller would look at all the offers and just work with the best offer. So as a buyer you had to make sure to submit your best offer as you only got one crack at it.

Now the seller can review all the offers and tell their agent I would like you to go back and tell everyone that the best offer has a price of “whatever” or they can say I would like you to go back and tell them that one offer has “no conditions” (even though it may not be the highest offer)

The other offers can then decide whether they would like to improve there offer.

There are some pros and cons to this, and I will advise my clients to use different strategies for different situations.

The one advantage for sellers is that at any point in the negotiation process they can switch from a closed offer to an open offer system.

With all of that said I would guess only about 10%-15% of listings are going into multiple offers at this point and the ones that are, are priced lower on purpose to obtain multiple offers.

Had this law been in effect a few years ago it would have been wild.

I would love to know what your thoughts are on this change?

If you have any Real Estate goals in 2024. Reach out, I would love to help you accomplish them!

Have a Great Day!