Competing offers under TRESA in Ontario

When a listing brokerage receives competing written offers, it must tell every person making one how many written offers there are. It shares the substance of the offers only if the seller directs it, then with every offeror alike, and never anything that identifies who made an offer. It must also tell every other offeror if it serves a buyer in the same trade, and disclose any remuneration term that could affect which offer wins, before any offer is accepted.

Competing offers are where several TRESA rules meet at once: disclosure to buyers, confidentiality for the seller, multiple representation, remuneration and the duty to convey every offer. Exam questions test which duty is owed to whom.

The rules below are in O. Reg. 567/05 under the Trust in Real Estate Services Act, 2002, and in the Code of Ethics, O. Reg. 365/22. For the bigger picture, see our TRESA exam prep guide.

What must the listing brokerage disclose when there are competing offers?

For the last two, the brokerage must make best efforts to get a written acknowledgement and give a copy to anyone who signs one (s. 22.0.3(2); s. 23(5)).

Who counts as an offer, and who gets the number?

Only written offers count. A salesperson phoning to say an offer is "coming later tonight" adds nothing to the count, and no registrant may represent that a written offer exists unless it is in writing (TRESA, s. 35.1(1)(b)).

The number goes to every person making an offer, including a self-represented buyer. Telling them the count is accurate information, not advice. Every person a registrant deals with is owed honesty and good faith (Code of Ethics, s. 1), while a registrant may not give a self-represented party advice or opinions (Code of Ethics, s. 10). See self-represented parties under TRESA for where that line sits.

An offeror who doubts the count can ask the registrar to inquire. The registrar discloses the number of written offers to the person who asked, and may not disclose the substance of the offers or who made them except in prescribed circumstances (TRESA, s. 35.1(3) to (5.1)). The one prescribed circumstance is a seller's direction to share substance, and even then only the parts the seller directed, never identity (O. Reg. 567/05, s. 22.8).

When can the content of competing offers be shared?

Only on the seller's direction. Sharing is the seller's opt-in, never the default.

• All or part. The seller may direct that only parts of the offers be shared, for example completion dates but not prices (s. 22.7(2)).
• Everyone or no one. Whatever is shared goes to every person making an offer. The seller chooses which parts are shared, not which buyers hear them.
• Never identity. Shared information must not include personal information of the offeror or anything else that would identify them (s. 22.7(3)). Not a name, not a neighbourhood, not "a couple selling in Ajax".
• Changes. The seller can change the direction. Follow the latest one, and explain that terms already shared cannot be taken back.

Does the direction have to be in writing? The regulation says "if the seller directs" and does not use the word written (s. 22.7(1)(b)). The course teaches it as a written direction, and that is what the exam expects. It is also the safe course in practice: offer terms are the seller's confidential information, and the Code of Ethics bars disclosing a client's confidential information to a third party without the client's written consent, except as the law otherwise authorizes (Code of Ethics, s. 12). A written direction proves what the seller chose.

The seller's own confidences, such as their bottom line, stay private whatever the direction.

What if the listing brokerage also has a buyer in the race?

Two separate duties can apply, owed to different people.

The first applies even without multiple representation, for example in a brokerage using designated representation where different salespersons act for the seller and the buyer. The outside offerors receive a disclosure. They are never asked to consent to anything. For the representation side, see designated representation vs multiple representation.

How can a remuneration term affect competing offers?

If the listing agreement contains a remuneration term that may affect whether an offer is accepted, the brokerage must disclose the existence and details of that term to anyone who makes a written offer, before any offer is accepted (s. 23(4)). A common example is a lower total fee if the buyer is also the brokerage's client. That can make a lower price net the seller more, which is exactly why every offeror must know.

The rule requires disclosure, not refusal of the term.

Must every offer reach the seller?

Yes. A registrant conveys every written offer to the client as soon as possible, regardless of who made it, what it says or what remuneration is attached (s. 22.10(1) and (3)). The only exception is the client's written direction, such as holding offers until a set presentation time (s. 22.10(4)). A low offer cannot be held back to keep the evening tidy.

What are the seller's options with competing offers?

Three paths, and the seller's salesperson must explain each so the seller makes an informed choice:

After a new round, the same three choices return. As practice guidance, counter one offer at a time: two outstanding counters could bind the seller to two buyers. The salesperson promotes the seller's best interests (Code of Ethics, s. 8(1)); the decision is the seller's.

What does this look like on offer night?

Leila Haddad lists her townhouse on Cedarbrae Lane in Whitby. On the evening of offers, her brokerage, Northbank Realty, holds three written offers: $781,000 and $776,000 from outside brokerages, and $774,000 from a buyer represented by another Northbank salesperson under designated representation. Leila's listing sets a total fee of 4% of the price, dropping to 3% if the buyer is a Northbank client.

1. Count. Every offeror is told there are three written offers.
2. In-house buyer. The two outside offerors are told Northbank serves both Leila and a buyer in this trade, with best efforts to get written acknowledgements.
3. Fee term. All three offerors learn the 4% and 3% terms before anything is accepted. Net of fee before HST, $781,000 at 4% leaves $749,760; $774,000 at 3% leaves $750,780. The lowest price nets Leila $1,020 more.
4. Sharing. Leila directs in writing that completion dates be shared. All three offerors get the same dates, in the same words, with no names.
5. Choice. Leila decides to counter one offer, and the others are told she is not accepting theirs.

Frequently asked questions

Does the listing brokerage have to tell buyers how many offers there are? Yes. The number of competing written offers goes to every person making one, and the seller cannot direct otherwise.

Can a seller share one buyer's price with only one other buyer? No. Anything shared on the seller's direction goes to every person making an offer, and never includes anything that identifies an offeror.

Can the registrar show me the other offers? No. On inquiry the registrar discloses the number of written offers. Substance is disclosed only where the seller directed sharing, and identity never.

Do outside buyers have to consent if the brokerage represents a competing buyer? No. They receive a disclosure. Consent to multiple representation comes only from the brokerage's own clients.

How does ExamPass help you practise this?

ExamPass gives you hundreds of original scenario questions on competing offers, disclosures and representation, with every option explained, so you can tell which duty is owed to whom. The Study notes cover these rules across Course 2 and Simulation 1, and the Mock Exam, Drill Wrong Answers and AI Tutor help you find the traps you still fall for. If offer night is new to you, also read how to prepare for Simulation 1. See courses and pricing