Receiving more than one offer can be positive for a seller, but the situation becomes more complicated when the property is already subject to an accepted agreement with conditions. At that point, the exact wording of the existing agreement matters.
This article provides general Ontario real-estate information. It does not determine what a particular seller can or cannot do under a signed agreement. If another offer arrives while an existing transaction is conditional, obtain advice based on the actual contract before taking action.
An Accepted Conditional Offer Is Still an Agreement
A common misunderstanding is that a seller is automatically free to accept another offer simply because the first agreement contains a buyer condition. That should not be assumed. The parties’ rights and obligations depend on the terms of the signed agreement, the condition language, deadlines and any other applicable clauses.
What If a Better Offer Arrives?
A second offer may have a higher price, fewer conditions, a different deposit or a more attractive closing date. But a better-looking second offer does not by itself erase the seller’s obligations under an existing agreement.
The seller’s Realtor should identify the situation promptly and, where contractual rights are uncertain or material, recommend that the seller obtain advice from an Ontario real estate lawyer before signing anything that could conflict with the first agreement.
Competing Offers and Backup Offers Are Not the Same Thing
Before a property is under contract, multiple buyers may compete for the same property. After an agreement has already been accepted, another buyer’s offer may need to be structured differently depending on the circumstances. A so-called backup offer can involve conditions or wording that recognize the existing transaction, but sellers should not use a generic template or assume that one structure fits every deal.
Do You Have to Let the First Buyer Match?
Do not assume there is an automatic right to match another offer. Whether any such right exists depends on the contract. Likewise, do not assume a seller can simply demand that a buyer waive a condition early unless the agreement provides a mechanism that allows it.
What Sellers Should Review
- the exact condition and its deadline;
- any escape, notice or other clauses in the agreement;
- deposit terms and closing date;
- whether the second offer is intended to be immediately binding or conditional on the first transaction ending;
- the risks of signing inconsistent agreements; and
- whether legal advice is needed before responding.
Price Is Only One Part of an Offer
When comparing offers, sellers should look beyond the headline price. Conditions, deposit, closing date, included or excluded items and other terms can materially affect the strength and risk of an offer.
Prepare Before Offers Arrive
Before listing, discuss how offers will be reviewed, what terms matter most to you and how your agent will communicate if more than one buyer becomes interested. Preparation can make decision-making more orderly when deadlines are short.
If you are preparing to sell, explore my seller resources for North York, Richmond Hill and Markham.
Start With a Property-Specific Selling Plan
A good offer strategy begins before the listing goes live—with realistic pricing, preparation and an understanding of your priorities. I can prepare a complimentary, no-obligation home evaluation using relevant comparable sales and current competition.
This article provides general real-estate information and is not legal advice. Contract rights depend on the wording and circumstances of the transaction. Obtain advice from an Ontario real estate lawyer when appropriate.