Multiple offers복수 오퍼 (경쟁 오퍼)

What is it?

Multiple offers means two or more buyers have made an offer (a written proposal to buy) on the same home. People also call it "competing offers" or a bidding war.

Under Ontario law, only written offers received by the seller’s brokerage count as competing offers. A verbal offer, or an offer that has not been submitted yet, does not count. That is RECO’s guidance (RECO is the regulator of real estate agents in Ontario).

In Toronto and the GTA it is common for a popular home to have an offer date, when all offers are reviewed at the same time. See "Offer presentation" for how that works.

The Ontario rule: the number is disclosed, the seller decides about the contents

The TRESA regulation (Ontario’s real estate law) in force since December 1, 2023 handles competing offers like this.

• Number of offers: the seller’s brokerage must tell every person who made a written offer how many competing written offers there are. This is mandatory.
• Contents of offers: only if the seller directs it in writing may the brokerage share the contents (price, closing date, conditions and so on) with every person who made an offer. Without that direction, nothing can be shared.
• Partial sharing: the seller can direct that only parts be shared, for example the closing dates but not the prices.
• Never personal information: the names of the people making offers, or anything that would identify them, can never be shared. An agent cannot follow a seller’s direction to do so.
• Same brokerage on both sides: if the seller’s brokerage is also helping one of the buyers, it must tell every other buyer who made a written offer, before any offer is accepted.

What is an "open offer" process?

The "open offer process" or "open bidding" you read about in the news is when the seller lets other buyers see what is in the offers. But the law does not set out any open-offer procedure. It only allows an agent to share contents when the seller gives written direction.

So it differs from home to home and seller to seller. The seller can decide before offers come in or after, and can change their mind at any point. As a buyer, you may not know in advance.

If you do not want to take part in a process where offer contents are shared, talk to your agent about ways to protect your offer, such as asking to submit a confidential offer. The seller does not have to agree.

Step by step

1. Check the listing for a note such as "offers reviewed on <date> at <time>". A seller can set such a date only with written direction to their agent.
2. Your agent tells the seller’s brokerage that you will be submitting an offer (registering the offer). You can ask how many offers have been registered.
3. Submit the written offer by the deadline: price, deposit, conditions, closing date and the irrevocable time (how long the seller has to accept).
4. The seller’s brokerage tells every buyer who offered how many competing offers there are. If the seller directed it, parts of the contents are shared too.
5. The seller reviews the offers with their agent. They can accept one, sign one back with changes, ask some buyers to improve their offers, or reject all of them.
6. Offers that are not accepted simply expire when their irrevocable time passes. If you handed in a deposit with the offer, you get it back.

Does the seller have to take the highest offer?

No. The seller chooses which offer, if any, to accept. Price is only one part. The seller also looks at conditions, the closing date and the deposit. A slightly lower offer with no conditions and the right closing date can win over a higher offer with many conditions.

RECO tells buyers plainly: a competing offer situation does not necessarily mean the home will sell for more than the asking price, and an offer at or above asking does not guarantee it will be accepted.

RECO also warns sellers that buyers have other options. A seller who negotiates too hard may find that the best offer was already the most that buyer could do, and the other buyers have moved on to other homes.

How a buyer should prepare

• Set your limit first and keep it: before the offer date, decide the most you will pay for this home and do not let the competition push you past it. RECO’s buyer checklist also says to set your ground rules in advance and stick to them.
• Be careful about dropping conditions: many buyers drop the financing or home inspection condition to compete. RECO says pre-qualifying for a mortgage does not make it safe to drop the financing condition from your offer. Skipping an inspection can mean expensive surprises later.
• Have the deposit ready: a larger deposit can make your offer stand out. The deadline to pay it is whatever your offer says, and it can be short, so ask your bank ahead of time how to get a bank draft quickly.
• Keep the irrevocable time reasonable but short: many buyers make the offer good until late on the offer date. A long irrevocable gives the seller time to hold your offer while negotiating with others. Decide the time with your agent.
• Ask whether contents will be shared: you can ask whether the seller plans to share offer contents. You may not get an answer, and it can change later.
• Your own agent’s role: your buyer’s agent advises and negotiates for you. Whether to take part in a competing situation, and how much to offer, is your decision.

If you doubt the number of offers

What if you were told "there are five offers", raised your price, and later suspect it was not true? A person who made a written offer (or their agent) can ask RECO to inquire how many written offers the seller’s brokerage really received. The law (TRESA section 35.1) gives you this right.

RECO asks the brokerage for copies of the offers, confirms the number and tells the person who asked. If the number does not match what you were told, it can become a formal complaint. The seller’s brokerage must keep copies of every written offer it receives, which makes this check possible.

Someone who did not submit an offer cannot ask for this inquiry.

Example