TRESA: Are You Ready for Open Bidding?

So, you are a Buyer and the Seller wants to “shop your bid”.

In fact, they will go around and tell everybody what your bid was and everything else about your Offer, including all the wording contained in the clauses you had drafted up to protect you. They just can’t reveal your name or anything which might identify you.

Are you happy with that arrangement?

You also know that if you are unsuccessful, and your entire Offer was distributed among all the other bidders and perhaps others, that there are some outstanding implications.

Here’s what the relevant TRESA section provides:

“(b)  if the seller directs, share the substance of the competing written offers with every person who is making one of the offers.” (s.27.2)

There is a specific authorization to “share the substance” with “every person who is making one of the offers”.

It clearly does not contain any provision precluding publicizing all this same information on the internet, on MLS, on social media etc. Certainly, it would be good if it did, but who knows…..!

Now, you might lose out on this particular property, but what about others! You are likely to face off against the same prospective bidders in the same neighbourhood, in the same price range until they become successful or they decide to simply move on.

This means that they will know:

  • Your strategy
  • Your available funds
  • Your risk assessment
  • Your reaction time
  • Your conditions.

This could provide them with insight and guidance as to how to “out negotiate” you for the next property.

Is that fair? Is that reasonable?  Do you want to participate?

How do you as the potential Buyer protect yourself in this type of scenario?

Brian Madigan LL.B., Broker

Comments 2

  1. Right along the lines as to what CREA wants to do to interfere with a Seller’s right to limit legitimate Exclusive Listings to 48 hours! How do these bodies figure that they get to override agency and contract law?

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