Question:
If a Seller has an accepted offer on their property conditional on the sale of the Buyer’s home, with an escape clause. Is there a rule that doesn’t allow that Seller to accept another offer on their home by serving the first buyer with a notice to remove conditions, if the new buyer also has a condition for sale of the buyer’s home, with an escape clause?
This would be basically bumping one buyer for another buyer with the same or similar SOBP condition.
Answer:
The standard clause reads:
“Provided further that the Seller may continue to offer the property for sale and, in the event the Seller receives another Offer satisfactory to the Seller, the Seller may so notify the Buyer in writing by delivery to the Buyer, or the Buyer’s Agent, or to the Buyer’s address hereinafter indicated. The Buyer shall have 48 hours from the giving of such notice to waive any and all conditions by notice in writing delivered to the Seller or the Seller’s Agent, failing which this Offer shall be null and void and the deposit shall be returned to the Buyer in full without deduction.”
That’s fine, that’s allowed based upon the standard OREA clauses.
It’s possible to restrict this somewhat, like for example, the second Offer would have to be for more money, have a larger deposit, close sooner.
But, all of those decisions are up to the Seller, because the Offer must be “satisfactory” to the Seller.
Technically, the Offers are not “competing”, but the new TRESA rules apply, and the issue might be whether or not the contents might be shared. That could be of benefit to Buyer #1, Buyer #2 or even the Seller.
Brian Madigan LL.B., Broker