(Ontario)
Question:
I understand the meaning of irrevocability in an offer however I’m a bit confused by this statement.
“The offer can be revoked only before communication to the other party.”
If an offer was drawn up and had an irrevocability of April 22 at 11:59pm and they were going to present the offer at 8:00 pm, but the buyer decides they no longer want the house before the offer is presented, can the buyer revoke the offer?
Answer:
It’s unfortunate that the word “communication” was used, since it’s not quite right.
It’s not the indication that there might be an Offer, it’s the delivery of the Offer into the hands of the Seller, such that the Seller could accept it.
The presence of the seals locks in the “irrevocable time”, otherwise it could be revoked anytime prior to acceptance. But, the seals make the time period stick.
So, the question here, is whether the Buyer’s Agent sent over the Offer by email, fax or courier such that the Seller has it in his possession for possible acceptance. That’s really the point of no return. Until then, the Buyer could certainly say, “I‘ve changed my mind” and “I will be instructing my own Agent not to take it over, and not to proceed with the presentation”. Then, it’s revoked!
Brian Madigan LL.B., Broker
Comments 2
I understand the irrevocable time rules to a certain extent but have heard conflicting remarks on being able to exceed the irrevocable time if the person who has the offer in hand is making a change to the offer. No deposit has been given yet as per the Agreement of Purchase & Sale.
It has been remarked that the time frames are more to be adhered to if accepting an offer. Is this in fact correct?
Author
The time in the irrevocable provision only applies with respect to acceptance.
If someone is making a counter-offer, they can simply change the irrevocable time to whatever time they wish.