Here's a question that a client had asked. I wanted to share the question and answer, as it might help someone else. If you have any questions about real estate or know someone that wants assistance buying or selling a property in the Greater Toronto Area, give Karen a call
Karen Law
Toronto Real Estate Broker
Century 21
Direct: 1-647-836-2895
www.KarenLaw.ca
***TRANSCRIPT BELOW***
QUESTION: Can a Buyer Submit an Offer on a Property that is Sold Conditional? Can a Seller Accept Another Offer (e.g. a Better Second Offer) When A Property is Sold Conditional?
ANSWER: The short answer is "no" in the Greater Toronto Area for residential real estate
See transcript below:
• 0:01 - 1:00
Hey guys, I just had a client ask a question and I thought it would be helpful to share it with you along with the answer in case anybody else had the same question. So my client is a purchaser and they saw a property that they really like online and they would like to go see it. Now I found out that the house is already sold conditional on mortgage financing and this condition expires just past this weekend on Monday. And then my client then said to me "Is it possible to see the property and then if we really like it, can we submit an offer that is perhaps better than the offer they already have on the table?" So, in short, the answer is "No". In the greater Toronto area where I practice real estate once a property is sold conditional, there is no opportunity for another purchaser to step in during that conditional period and submit an offer.
• 1:00 - 2:00
So the seller is not able to consider any other offers during that conditional period. They are obligated towards that first deal that is on the table. So in this case with my client who is the purchaser, the only opportunity that they have for this particular property, is if the deal that's on the table falls apart. So if for some reason that first purchaser cannot obtain their mortgage financing and the deal falls apart, that means the property is available again for sale and we can step in, look at the property and submit an offer where the seller would actually consider our offer and go from there.
• 2:00 - 2:49
I know that in perhaps different states, different provinces and there might be a certain term or clause in an agreement, where a seller is able to entertain and look at other offers during a conditional period. So it might be different for the location that you are in, you will want to double-check with your local agent there. But for the Toronto area, I can tell you that during the conditional period the seller is not entertaining any other offers at that time. And going back to the possibility where a seller is able to entertain other offers during a conditional period, usually there is a stipulation in that Clause where if a seller receives a second offer during that conditional period, what happens is that the first buyer
• 2:49 - 3:32
will have the opportunity to match that second offer if the second offer is better. And if the first buyer is not able to match that offer in terms of the price or terms, then the seller is usually able to proceed with the second offer. So you will want to check the terms and conditions again with your local area. But in short, the answer is "No" for the greater Toronto area. If you guys have any questions at all about real estate or, you know anybody that would like assistance in selling or purchasing a property in the Greater Toronto Area, give us a call. We will be there to help you.
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