Real Estate

Can an accepted offer be rescinded?

  • Last Updated:
  • Sep 21st, 2020 11:34 am
Deal Guru
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Mar 23, 2008
11350 posts
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Edmonton
bobbings wrote: You have a point but if the buyer decides to back out, going to court is the only real possibility to get it resolved and fighting a court case costs $$$. In the end, fighting for the principle of things is not really worth it. Also, it's more likely a seller's market right now anyways so OP could relist and sell for more.
As far as I can tell, the OP didn't say where they were located, or whether they were the buyer, the seller, or some noisey third party.

C
Deal Expert
Jan 15, 2006
15050 posts
12375 upvotes
Richmond Hill
7thEye wrote: Never ever accept an offer with conditions. I would sign back with no conditions. It’s a sellers market with multiple offers right now. No need to bend
Can't use a blanket statement like that. Really depends on the area.
Deal Expert
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Feb 11, 2009
17428 posts
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Toronto
7thEye wrote: Never ever accept an offer with conditions. I would sign back with no conditions. It’s a sellers market with multiple offers right now. No need to bend
I'm sorry, but this is terrible advice. Unless you're in a bidding war situation where there are 2 like for like offers, one no conditions, and the other with, your statement is completely off.

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Real Estate Agent, MAcc, CPA, CA
[OP]
Member
Jan 17, 2016
212 posts
26 upvotes
7thEye wrote: Never ever accept an offer with conditions. I would sign back with no conditions. It’s a sellers market with multiple offers right now. No need to bend
Wait a second... In what province/city/town/area is it a seller's market? I thought there was a huge economic stress due to a virus.
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Sep 14, 2006
8586 posts
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automorphism wrote: Wait a second... In what province/city/town/area is it a seller's market? I thought there was a huge economic stress due to a virus.
Most of the GTA is a seller's market right now. Check out the "Coronavirus impact on Real Estate" thread here in the forum.
TEAM CANADA!!!!!!!!!!!
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Jan 15, 2006
15050 posts
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Richmond Hill
automorphism wrote: Wait a second... In what province/city/town/area is it a seller's market? I thought there was a huge economic stress due to a virus.
Aside from Downtown Toronto, it's a complete shit show in the GTA. Recently helped a buyer in Markham with the purchase of a freehold townhouse for $950k, just a month ago same units were selling for $905k. Don't even get me started on rentals in the GTA (I had a $3000/mth penthouse in Markham that had multiple offers and all the offers the tenants were willing to pre-pay rent from 6-mths to a full year), the competition is fierce with that one as well LOL. I have a listing coming up soon that is over $3M in an area that ranges from $2M to $1XM and the $2M-$4M homes are selling within 30 days. Pandemic? Crash that everyone was expecting? Honestly I hate the market when it's like this, it's not healthy and it's a lot of pressure on the buying side.
Deal Addict
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Jan 2, 2012
3883 posts
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Toronto
bobbings wrote: You have a point but if the buyer decides to back out, going to court is the only real possibility to get it resolved and fighting a court case costs $$$. In the end, fighting for the principle of things is not really worth it. Also, it's more likely a seller's market right now anyways so OP could relist and sell for more.
Nobody is going to court for principle. It's about $$$.

If the seller can prove the buyer acted in bad faith, and can convince the court of this, then at a minimum the seller will be entitled to keep the entire deposit amount even if they end up getting more for home after re-listing. There is no need to show losses/damages to keep the deposit.

In addition if the seller gets less for the home and has damages exceeding the deposit, they can get that as well.

Proving buyer acted in bad faith though is incredibly hard, which is why so few of these ever go to court. Buyers are under no obligation to give proofs to the sellers on why they are invoking one of the clauses, it's up to the sellers to call their bluff which can get expensive if buyers acted in good faith.
Sr. Member
Feb 19, 2019
821 posts
886 upvotes
Stouffville ON
7thEye wrote: Never ever accept an offer with conditions. I would sign back with no conditions. It’s a sellers market with multiple offers right now. No need to bend
I hope people don't listen to such advice.
I don't think OP said what or where he or she is selling.
It's not a sellers market in DT condos, and I don't think there is a sellers market if Fort McMurray right now, one glove doesn't fit all, not every Canadian lives in GTA, and even within GTA many properties will be sold with conditions.
Full Time and Full Service Realtor
Deal Expert
Jan 15, 2006
15050 posts
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Richmond Hill
senasena wrote: I hope people don't listen to such advice.
I don't think OP said what or where he or she is selling.
It's not a sellers market in DT condos, and I don't think there is a sellers market if Fort McMurray right now, one glove doesn't fit all, not every Canadian lives in GTA, and even within GTA many properties will be sold with conditions.
This! Just submitted an offer this morning with full conditions in Markham and property is being sold at market price without an offer date.
Sr. Member
Feb 19, 2019
821 posts
886 upvotes
Stouffville ON
EP32k2 wrote: This! Just submitted an offer this morning with full conditions in Markham and property is being sold at market price without an offer date.
Exactly, I had some accepted with conditions in last month or so, but about double the amount without any conditions.
Also had a fair share of bids we didn't win.
One has to be flexible and adjust to market conditions and a particular scenario.
Full Time and Full Service Realtor
Deal Fanatic
Dec 24, 2005
5537 posts
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Furcorn wrote: Good luck backing out after inspection because of a $1 paint blemish. That would be negotiating in bad faith.
you don't need to disclose the issue
nor do you need to show a copy of the report you paid for
Jr. Member
Oct 14, 2010
160 posts
81 upvotes
Toronto
EP32k2 wrote: Aside from Downtown Toronto, it's a complete shit show in the GTA. Recently helped a buyer in Markham with the purchase of a freehold townhouse for $950k, just a month ago same units were selling for $905k. Don't even get me started on rentals in the GTA (I had a $3000/mth penthouse in Markham that had multiple offers and all the offers the tenants were willing to pre-pay rent from 6-mths to a full year), the competition is fierce with that one as well LOL. I have a listing coming up soon that is over $3M in an area that ranges from $2M to $1XM and the $2M-$4M homes are selling within 30 days. Pandemic? Crash that everyone was expecting? Honestly I hate the market when it's like this, it's not healthy and it's a lot of pressure on the buying side.
Can you legally accept more than 2 months of rent, even if offered by the tenant?
Deal Expert
Jan 15, 2006
15050 posts
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Richmond Hill
budwizestest wrote: Can you legally accept more than 2 months of rent, even if offered by the tenant?
Landlord didn’t request. Tenants volunteered pre-payment. But legally, no as it will not be enforceable if it went in front of the board.
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Sep 14, 2006
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rob444 wrote: Nobody is going to court for principle. It's about $$$.

If the seller can prove the buyer acted in bad faith, and can convince the court of this, then at a minimum the seller will be entitled to keep the entire deposit amount even if they end up getting more for home after re-listing. There is no need to show losses/damages to keep the deposit.

In addition if the seller gets less for the home and has damages exceeding the deposit, they can get that as well.

Proving buyer acted in bad faith though is incredibly hard, which is why so few of these ever go to court. Buyers are under no obligation to give proofs to the sellers on why they are invoking one of the clauses, it's up to the sellers to call their bluff which can get expensive if buyers acted in good faith.
Fighting in court and the costs associated makes it not worth it. I’m not stating they’re literally fighting for the principle of things only. When you are guaranteed a win then maybe you pursue it but one of the poster here posted a court case awarding the sellers the win but costing them $100k. Hardly worth it in my opinion which is why I said “principle.”
TEAM CANADA!!!!!!!!!!!
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Jan 2, 2012
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Toronto
EP32k2 wrote: Landlord didn’t request. Tenants volunteered pre-payment. But legally, no as it will not be enforceable if it went in front of the board.
If the tenants offered it will be enforceable. There is legal precedent on this: https://www.rentalhousingbusiness.ca/on ... -up-front/
The case was appealed and in a decision dated February 12, 2014, Superior Court judge Frank Marrocco agreed with Justice Barnes and explained that while a landlord could not require a tenant to pay more than first and last month’s rent as a condition of the tenancy, if the tenant offered to pay more money in advance and the landlord accepted the payment, then it would be legal.

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