OREA contributor and real estate professional Ray Ferris answers this question according to TRESA regulations, including whether the buyer can withdraw their offer in such circumstances.
In compliance with TRESA regulations governing whether sellers must upfront declare whether they will conduct a blind bidding or an open transparent process, it is imperative for us as buyer’s agents to engage in more extensive discussions with our clients going forward.
For instance, under the new regulations, such as Tressa, it becomes essential to broach topics with our buyers, asking how they would feel if the seller disclosed the terms of their offer to other potential buyers. Some buyers may express acceptance, acknowledging it as part of the property-selling process, while others might vehemently oppose the idea. Those opposed may insist that the terms of their offer remain confidential, fearing that the disclosed information could be used against them by competing buyers, potentially resulting in them paying more than necessary.
Recognizing these potential scenarios, it becomes crucial to have candid conversations with buyers. If a buyer strongly objects to the idea of the terms of their offer being revealed, we can incorporate a clause into the Agreement of Purchase and Sale. This clause would automatically render the buyer’s offer null and void if the seller chooses to disclose its terms, ensuring the buyer’s protection and upholding their initial conditions of confidentiality.