TRESA's Open Offer Process: What Ontario Agents Need to Know About the New Bidding War Rules

Blind Bidding Is Over in Ontario -- If Sellers Want It to Be

One of the most significant changes in Ontario real estate practice arrived with Phase 2 of TRESA (Trust in Real Estate Services Act) on December 1, 2023 -- but many agents are still getting to grips with what the Open Offer Process actually means in practice, particularly as multiple-offer situations return to some freehold segments this spring.

Under TRESA, sellers now have the legal right to instruct their agent to disclose the specific contents of competing offers to other buyers in a multiple-offer situation. That means the price, closing date, deposit amount, and conditions of your buyer's offer can be shared with every other buyer at the table.

The blind bidding war that defined Ontario real estate for over a decade is no longer the only option. It's now the seller's choice.

Exactly What Can and Cannot Be Disclosed

The rules are specific:

Can be disclosed to competing buyers	Cannot be disclosed
Purchase price offered	Buyer's name
Proposed closing date	Buyer's address
Deposit amount	Any personally identifying information
Conditions (financing, inspection, etc.)	Buyer's agent's name (if separately identifying)
Irrevocability date and time

The brokerage is still required to disclose the total number of registered offers to all competing buyers -- that was already the rule. What's new is the ability to share the specific terms.

Critical point: the process is entirely the seller's choice. They can opt for full transparency (disclose everything to everyone), partial transparency (disclose only the price, for example), or maintain the traditional closed process. And they can change their mind during the offer process.

The Seller Strategy Implications

For listing agents, this creates a more complex strategic conversation at the listing appointment. The decision isn't just "do we hold offer night?" but also "do we run an open or closed process?"

When an open process makes sense

• High-demand properties with multiple interested parties where sellers want to maximize price through transparent escalation
• Properties where the seller is confident their home will attract genuinely competitive offers
• Markets with multiple buyers competing in the same price range, where transparency might encourage holdouts to participate

When a closed process remains better

• Slower markets (most of the 2026 GTA, frankly) where there's only one or two buyers -- opening the process reveals your weak hand
• When the seller's primary concern is privacy, not maximum price
• When deal terms beyond price (flexible closing, waived conditions) are more important than competing on price alone
• When buyers may withdraw if they discover they're competing against emotionally motivated buyers who will overpay

In a buyer's market like spring 2026, with average days on market exceeding 50 and properties selling at 97% of list, the practical need for an open offer process is limited. But agents should still understand it -- and have the conversation with every seller.

The Buyer Representation Critical Move: The Confidentiality Clause

This is where buyer agents need to pay close attention. If you're representing a buyer in a multiple-offer situation and you don't want their offer terms disclosed to competing parties, you need to insert a Confidentiality Clause into the Agreement of Purchase and Sale.

How it works:

• The clause explicitly states that the buyer does not consent to their offer terms being shared with other buyers
• If the seller discloses the terms despite the clause, they're in breach of contract
• That breach gives your buyer the legal right to walk away and retrieve their deposit

Standard form contracts do not automatically include this protection. Every buyer's agent operating in a potential multiple-offer scenario should discuss this with their client and make a conscious decision about whether to include it.

The Self-Represented Party Problem

TRESA Phase 2 also created the "Self-Represented Party" (SRP) designation -- buyers who choose not to work with an agent. And this interacts with the Open Offer Process in ways that create serious risks for unrepresented buyers.

Under TRESA, agents are legally prohibited from providing services, advice, or opinions to SRPs. A listing agent in a multiple-offer situation has no obligation to explain the Open Offer Process to an unrepresented buyer, advise them on the Confidentiality Clause, or suggest any protective measures. Their legal duty runs entirely to the seller.

An SRP who walks into an open offer process without understanding it could find their exact offer price shared with competing buyers, who then simply outbid them by $1,000 -- a dynamic that costs the buyer potentially tens of thousands of dollars in a competitive situation.

This is worth communicating clearly in your marketing. Buyers who try to save money by going unrepresented in multiple-offer situations are now exposed to strategic risks that didn't exist before TRESA Phase 2.

Compliance Obligations for Listing Agents

If your seller opts for an open process, there are strict fairness requirements:

• Disclosed information must be shared equally with all registered competing buyers -- not selectively leaked to preferred parties
• Any accidental disclosure of personal identifying information triggers RECO regulatory consequences
• Your brokerage's written policies must address the Open Offer Process -- check whether yours has updated its compliance documents
• Your listing agreement should document the seller's choice of process before offer night begins

RECO has been increasing enforcement scrutiny on TRESA compliance issues. The Open Offer Process is a relatively new provision where errors are most likely to occur. Getting the documentation right from the start protects you, your seller, and your brokerage.

The Practical Takeaway for Spring 2026

In most of Ontario's current market -- dominated by buyer's market conditions, single-offer scenarios, and extended days on market -- the Open Offer Process will remain a relatively rare tool. But agents should be fluent in it, because:

1. Well-priced freehold properties in established neighbourhoods are still attracting multiple offers
2. As market conditions improve (expected in late 2026 and into 2027), multiple offers will become more common
3. Buyers and sellers are reading about this change and asking questions -- you need authoritative answers
4. The Confidentiality Clause protection for buyers is an immediate, practical tool you can use right now to add value in any offer situation

TRESA changed the rules. Understanding them deeply is what separates professional representation from mediocre representation.