Holiday Closure

The OREA office will close for the holidays at 12 p.m. Tuesday, December 24th.  Normal business hours will resume on Thursday, January 2nd.  Happy Holidays!

Holiday Closure

The OREA office will close for the holidays at 12 p.m. Tuesday, December 24th.  Normal business hours will resume on Thursday, January 2nd.  Happy Holidays!

February 4th - 2005

New form helps with multiple offers

REALTORS facing multiple offer situations will find great value in a new OREA standard form entitled, Offer Presentation – Acknowledgement (Form 109).

REALTORS facing multiple offer situations will find great value in a new OREA standard form entitled, Offer Presentation – Acknowledgement (Form 109). This new form is designed to prove to the buyer that their offer was presented in cases where the offer has not been accepted or signed back. It’s also useful to verify that a seller’s counter offer has been presented to a buyer.

Multiple offers can be rewarding as long everyone involved remembers the basic principles of fair play and professionalism. REALTORS should know how to present competing offers in such a way that their clients are protected and other professionals and consumers are comfortable with the process.

There are rules for multiple offer presentations in the RECO code of ethics, the CREA code of ethics and, of course, each real estate board’s MLS rules and regulations. Multiple offer presentations are often part of heated, emotionally charged negotiations so it’s important to adhere to these principles and avoid any problems in the transaction.

The following excerpts from OREA’s Legal Pamphlet on Multiple Offer Presentations provide advice for REALTORS to handle competing offers effectively.

The best approach to the possibilities, benefits and risks of multiple offers is to discuss the various options with the sellers during the initial listing presentation. Advise them of your office policy on handling multiple offers and the sequence of presentations. Make the sellers aware of the possible pros and cons of these situations.

  • If they accept one offer, the other buyers may look for another property. If this offer is a conditional one and the condition is not met, there may not be any transaction at all.
  • If they counter an offer in any manner, the buyer may wait until the last minute and decide not to accept that counter-offer.
  • They should never counter several offers, as there is the danger that several buyers may accept at the same time resulting in competing contracts and litigation.
  • If they reject all offers and advise all the buyers to reconsider their positions and bring their best offers at a specific time, some buyers may decide not to participate.

REALTORS representing buyers should make their clients aware of the volatility of the market so that they can decide on their negotiation strategy. Buyers may decide to arrange financing and do property inspections in advance, forego chattels, make a higher than usual deposit, adjust the closing date or make other concessions that would make their offer more acceptable to the seller. Price may not be the only concern for the seller.

Learn more
Making a multiple offer presentation is complicated and the more knowledgeable a REALTOR is, the smoother the transaction will proceed. OREA offers continuing education courses on presenting multiple offers. Check the course listings in the Continuing Education section of www.oreacollege.com or your real estate board for details on upcoming seminars.

Be sure to also check out “Legal Forum” in the Members Only section of OREA’s web site at www.orea.com to find answers to commonly asked questions about multiple offers (under topic: Offers, subtopic: Multiple Offers). The OREA Legal Pamphlet entitled “Multiple Offer Presentations” is also available online in the member’s only section under “Legal Pamphlets.”

Dos and don’ts of multiple offers
Enjoy the rewards of multiple offers and avoid the pitfalls by keeping the following in mind.

DO:

  • Have a detailed office policy and review it regularly
  • Advise your clients of their choices.
  • Advise your clients of the other party’s choices
  • Tell other professionals the situation in accordance with the Code of Ethics and your client’s instructions.
  • Keep copies of all offers and counter-offers.
  • Make notes of any discussions and decisions.

DON’T:

  • Have your seller client sign back offers without careful attention to the conditions that may need to be inserted in each offer. Sellers only want to sell their house once!
  • Show favouritism to your own buyer clients or buyer clients in your own firm.
  • Renegotiate your commission without advising everyone involved.

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For more information contact

Ontario Real Estate Association

Jean-Adrien Delicano

Senior Manager, Media Relations

JeanAdrienD@orea.com

416-445-9910 ext. 246

Ontario Real Estate Association
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The trademarks REALTOR®, REALTORS®, and the REALTOR® logo are controlled by The Canadian Real Estate Association (CREA) and identify real estate professionals who are members of CREA. The trademarks MLS®, Multiple Listing Service® and the associated logos are owned by The Canadian Real Estate Association (CREA) and identify the quality of services provided by real estate professionals who are members of CREA. Used under license.

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