Can someone ever retract an offer once submitted in multiples?
The Agent called me once she was aware there was a second offer and retracted it. Can she do that?
The answer is “yes” and “no”, but much more likely to be “no”.
Once the Buyer’s Agent has delivered possession of the Offer (standard OREA Form) to the Seller’s Agent or presented it to the Seller, then it’s irrevocable until its time expires. Let’s assume that’s 11:59 pm.
From the Seller’s perspective, it’s best to have several competing Buyers, and the Seller doesn’t want to be communicating that Buyers are now heading for the hills. So, the preferred strategy is to keep that Offer “in play”.
The Offer remains “in play” as long as the Seller defers consideration of it. If it is countered or rejected, then it is no longer open for acceptance.
Strategically, some Buyers might submit a “revocable Offer” in the first place. As you are aware there is no consideration for the 11:59 pm irrevocable time. The only thing holding that irrevocable time is the seal on the document. So, the Buyer could submit a revocable Offer which did not include a seal. The Buyer would have the right to withdraw the Offer any time prior to actual acceptance. Once it’s been accepted, it’s too late. Naturally, this requires some alterations to the standard Form OREA Agreement.
Brian Madigan LL.B., Broker