Seven Offers Submitted


We had an agent show one of our listings, he said he has shown his client 20 properties and is going to put conditional Offers in on 7 of them simultaneously.

He says it is perfectly legal because the Offers are conditional and the conditions can be waived or not at the buyers sole and absolute discretion. I do not think he was going to disclose this in writing to the sellers. Is this legal and ethical?


7 Sellers are all entitled to the deposits, whether conditional or not. The client likely cannot afford to pay 7 deposits and lose 6 of them for nothing. This is a great way to get into the business or if he’s been around for a while, then to exit the business. His own client will sue him, as will the 6 Sellers on the defaulted deals. Those 6 will also sue the Buyer and take away the one deal they got. So, this should be lots of fun!

Bhasin v Hrynew (13 November 2014) is a decision of the Supreme Court of Canada confirming that that good faith contractual performance is requirement of a contract. There is no “weasel out” provision. The obligation is to use one’s best efforts to complete and close the deal as agreed.

Is it legal or ethical? That all depends on the buyer! Let’s assume that they happen to be a developer and wish to acquire and assemble all 7 properties. That would be fine. However, if it’s simply one single Buyer who can only afford one house, then this crosses the threshold both legally and ethically.

Brian Madigan LL.B., Broker

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