Conditional Offers: Considering Other Offers
I recently read an excellent article on RECO.ca by Joseph Richer, that outlines what a seller can do if they accept an offer on their home that is conditional on the buyer selling their exiting home. Right now because the market is so hot, this hasn’t been the case in the Hamilton-Burlington area, but when the market slows down, as it tends to fluctuate, and also, it does slow in the winter months too. He gives some great advice on how a seller can move forward in the event that a seller does not sell their home, and tips on how to proceed.
“… As a seller, you are allowed to consider other offers when you accept an offer that is conditional on the sale of the buyer’s existing home.
This is because the sale of the home does not become final and binding until all of the conditions in that offer have been fulfilled or waived. To avoid any confusion, a good practice is to ensure that the conditional buyer is aware that you, as the seller, intend to continue to market your home to other potential buyers.
Before you accept that conditional offer, you’ll want to talk to your real estate representative about including an “escape clause” in the Agreement of Purchase and Sale with the first buyer…”
“… If you decide to use an escape clause, you should make sure that the second agreement contains a condition that the offer is accepted only if the first agreement falls through.
It’s important to note that such provisions during the negotiation stage may affect the second buyer’s decision to make an offer, but you can discuss the pros and cons of this approach with your sales representative…”
To read the full article, please click here.