Sharing Offer Content
This section is entitled “A note about content of other offers”:
“You may have seen articles in the media about open bidding, or an open offer process.
Buyers in Ontario who have made an offer on a property are entitled to know the number of competing offers. Sellers choose how much other information, if any, they want to share about the offers they receive.
If you are a seller:
• You decide how much information you want to share about the competing offers.
• Your agent will advise you based on the characteristics of your property, market conditions, the content of the offers you receive and other things.
• You need to provide clear written direction to your agent before the content of any offers can be shared. Personal or identifying information contained in offers cannot be shared.
If you are a buyer:
• You decide whether you want to participate in a process where the content of your offer might be shared with other buyers.
• Your agent can tell you the steps to take to avoid having the content of your offer shared with other buyers.
• Be aware that the seller can make the decision to share the content of offers at any time. You may not know in advance.”
COMMENT
The entire concept of “open bidding” was designed to help the Buyers, but it doesn’t, it only helps the Sellers.
Let’s assume that 10 prospective Buyers are interested in a property listed at $1 million. One Offer is at $1.1 million or $100,000.00 over asking. Likely this Offer will simply be accepted, no sharing.
On the other hand, the high bidder is at $1,012, 000.00. So, we have $12,000.00 over asking. Now, the Seller may choose to start sharing the high bid among the 10 prospective Buyers to encourage someone to stretch just a little bit higher.
There are numerous rules which will affect the manner of disclosures and you should work with an agent who knows the rules and how to employ them to your advantage.
Brian Madigan LL.B., Broker