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, Markham’s top REALTOR® and CPA/CMA, makes 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.

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.

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.

The 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, Markham’s top REALTOR®, advises sellers on open versus closed offer process strategy as part of every listing preparation — and guides buyers through how to calibrate their offers in both frameworks.

Frequently Asked Questions

What is the TRESA open offer process?

Under TRESA Phase 2, sellers can choose to open the bidding process and share details of competing offers (like price, terms, and conditions) with other buyers, replacing the traditional blind bidding system.

Can buyers see who is making the competing offers?

No. While sellers can authorize the release of offer details like price and closing date, the identity of the buyer and any personal information that could identify them remains strictly confidential.

Should Markham sellers choose an open or closed offer process?

It depends on the strategy. Open offers work well when multiple qualified buyers are likely to improve their bids when seeing competition. Closed offers can be better when high emotional appeal might generate irrational, aggressive bids without transparency.