Question:
I am the Listing agent and have received an indication from a Buyer’s agent that my Seller will not accept.
Am I “obligated” to Respond within the Irrevocable Time?
Answer:
If you are inquiring about the legal provision in the Agreement of Purchase and Sale, then it is only a time limit for “acceptance”. If acceptance takes place within the irrevocable period, then the Offer becomes a “Contract”. Otherwise, you are still negotiating, talking, posturing or spinning your wheels.
If the time period is sufficiently generous and the Offer is worth dealing with, then naturally one should start negotiating within the time frame. It’s artificial, of course, and if not changed, continues to place pressure on both sides to work to a conclusion. This can get you in trouble, if your client doesn’t understand this.
It is customary (but not mandatory) to provide some sort of response within the time frame, either by way of a signback, request for a delayed response, or explanation and indication of your appropriate time frame.
That’s the case residentially. If it’s commercial, you won’t hear back until they are good and ready.
Brian Madigan LL.B., Broker
www.OntarioRealEstateSource.com
Am I Obligated to Respond within the Irrevocable Time? (Ontario)
Question:
I am the Listing agent and have received an indication from a Buyer’s agent that my Seller will not accept.
Am I “obligated” to Respond within the Irrevocable Time?
Answer:
If you are inquiring about the legal provision in the Agreement of Purchase and Sale, then it is only a time limit for “acceptance”. If acceptance takes place within the irrevocable period, then the Offer becomes a “Contract”. Otherwise, you are still negotiating, talking, posturing or spinning your wheels.
If the time period is sufficiently generous and the Offer is worth dealing with, then naturally one should start negotiating within the time frame. It’s artificial, of course, and if not changed, continues to place pressure on both sides to work to a conclusion. This can get you in trouble, if your client doesn’t understand this.
It is customary (but not mandatory) to provide some sort of response within the time frame, either by way of a signback, request for a delayed response, or explanation and indication of your appropriate time frame.
That’s the case residentially. If it’s commercial, you won’t hear back until they are good and ready.
Brian Madigan LL.B., Broker