TRESA's Open Offer Process — The Game-Changing Real Estate Rule Most Markham Buyers Don't Know About
Ontario's TRESA Phase 2 introduced the open offer process. Michael John Lau & Neeraj Moolchandani explain how this rule changes the bidding war dynamic for Markham buyers and sellers.
On December 1, 2023, Ontario's Trust in Real Estate Services Act Phase 2 came into effect — bringing with it one of the most significant changes to the offer process in Ontario real estate history. Yet two and a half years later, most Markham buyers have never heard of the open offer process, and most sellers have never been properly informed of their options under it. Michael John Lau and Neeraj Moolchandani, top real estate agents in Markham Ontario, make TRESA literacy part of every buyer and seller conversation. Here is the complete guide.
What TRESA's Open Offer Process Actually Is
Under TRESA Phase 2, sellers now have the option to open the bidding process and share details of competing offers with other buyers. If the seller chooses an open offer process, the buyer would be informed of competing offer details including prices, terms, conditions, deposits, and closing dates. All personal information that could identify the prospective buyer continues to remain private.
Before TRESA Phase 2, Ontario operated exclusively on a blind bidding system. Buyers in a multiple offer situation knew only the number of competing offers — they had no information about price, terms, or conditions of other bids. This created a system where buyers routinely overbid — sometimes dramatically — because they had no information to calibrate a rational offer.
Seller-Controlled Option: TRESA does not mandate open offers. It creates a seller-controlled option. Sellers will decide upon listing the property, with their chosen agent, whether they would like to conduct a closed offer process or open offer process when it comes to offers on their home. This will then be disclosed on the listing through the real estate agent remarks.
What Can and Cannot Be Disclosed
Under TRESA, a seller can authorize the release of certain aspects of competing offers, such as the price, while keeping other details confidential. This selective disclosure allows the seller to share strategically — for example, sharing price and closing date but not conditions.
Absolute Privacy Protection: What can never be disclosed, regardless of seller direction: the identity of the person making the offer. Personal information that could identify the buyer is protected absolutely under TRESA — no exceptions.
The seller may also change their mind at any point throughout the offer process. As long as the seller's agent includes this flexibility clause in the listing, the seller can shift from open to closed or vice versa as offers arrive.
How This Changes the Markham Offer Night Dynamic
In the current Markham market — where multiple offer situations are less common than in 2021 but still occur on well-priced properties in premium school catchments — the open offer process creates a fundamentally different strategic environment for buyers.
In a closed offer situation, buyers must decide their maximum price based on their estimate of what competing buyers will offer — which is essentially a guess. In an open offer situation where the seller has directed price disclosure, buyers know the actual competing price and can make a rational decision about whether to improve their offer or accept that a competing buyer values the property more than they do.
For Markham buyers in multiple offer situations on premium properties in Bur Oak Secondary School catchments, Unionville, or Box Grove, TRESA's open offer framework — when invoked by the seller — can prevent the dramatic overbidding that characterized the 2021 and 2022 market. A buyer who can see that the competing offer is $1,220,000 does not need to offer $1,300,000 to "feel safe" — they can offer $1,235,000 rationally.
Effective date of the new rules
Decided upon listing the property
Buyer names are never disclosed
Navigate Offer Night with Confidence
Whether you are buying or selling, Michael John Lau & Neeraj Moolchandani will help you leverage TRESA rules to protect your financial interests.
Book a Free Call (647) 370-8885The Strategic Considerations for Markham Sellers
For Markham sellers, the decision to use an open or closed offer process should be made strategically with your listing agent before offers arrive — not reactively in the moment.
An open offer process works in the seller's favour when there are multiple qualified buyers who genuinely want the property and are likely to improve their offers when they can see competing bids. The transparency of knowing another buyer is close can motivate a reluctant buyer to extend further.
A closed offer process works in the seller's favour when the seller believes their property has high emotional appeal that would generate irrational offers — and when transparency would reduce that irrationality. Many buyers in highly competitive Markham micro-markets have learned from past losses and will offer more aggressively when they cannot see what they are competing against.
Transparency can be powerful in the right situation — but it's not automatically better. The best approach depends on market conditions, buyer demand, property type, and the kind of competition your home is likely to attract.
Michael John Lau and Neeraj Moolchandani, top real estate agents in Markham Ontario, advise sellers on open versus closed offer process strategy as part of every listing preparation — and guide buyers through how to calibrate their offers in both frameworks.
📞 Contact Michael John Lau & Neeraj Moolchandani, REALTORS®
🌐 www.callmikelau.com |
🏡 www.livinginmarkham.ca |
🏢 www.kaizenrealestate.ca
Frequently Asked Questions
What is TRESA's open offer process?
Under TRESA Phase 2, sellers have the option to share details of competing offers—such as price, terms, and conditions—with other buyers, while keeping the buyer's identity strictly confidential.
Do sellers have to use the open offer process in Ontario?
No, TRESA does not mandate open offers. It is a seller-controlled option decided upon listing the property. The seller can also change their mind and switch between open and closed processes at any time.
How does the open offer process affect bidding wars in Markham?
It allows buyers to see actual competing prices, enabling them to make rational decisions rather than blindly overbidding. This can prevent the dramatic overpaying seen in the 2021-2022 market.
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