There is an opportunity under the new TRESA Legislation to share the contents of various competing offers if the Seller wishes to do so.
Some Buyers may be opposed to this.
OREA’s solution was to draft Form 108, the Notice of Revocation.
Here’s the wording from the Form:
“Pursuant to the following term of the Agreement of Purchase and Sale between the above parties, dated the …………. day of…………………………………, 20……………, regarding the above property:
“Notwithstanding anything to the contrary contained in this Agreement of Purchase and Sale or any Schedule thereto and notwithstanding that the Seller has the right pursuant to the Trust in Real Estate Services Act, 2002 to disclose the details and content of this offer, if the Seller, Seller’s Brokerage, or any other person discloses the whole or any part of the details or content of this offer to any person prior to acceptance, then upon written notice to the Seller prior to acceptance this offer shall forthwith be revoked and become null and void and any deposit shall be returned to the Buyer in full without deduction.” the Buyer hereby notifies the Seller that the offer is forthwith revoked and null and void.
Comments: …………..”.
First, that revocation paragraph has to be included in the Offer and then once the information is distributed to others, then the Notice can be sent out, if the Offer has not been accepted.
However, what are Buyer agents actually doing. They are sending out this document as part of their overall submission,
So, the Listing agent receives:
- Form 801
- Confirmation of Cooperation and Representation
- Offer
- Form 108
Naturally, if you sent along the Notice of Revocation with the package, you immediately gave notice that your Offer was revoked.
Be careful, if you are the Buyer’s agent, you have no Offer.
Be careful, if you are the Listing agent, since this Offer cannot be accepted. It’s already been revoked!
Brian Madigan LL.B., Broker