The rejection of an offer by a buyer or
seller (offeree) with a simultaneous offer
made back to the offeror. In the typical
offer presentation process involving a
listed property, sellers are often willing
to counter offer or sign back the original
offer, rather than rejecting it outright. In
this instance, the counter offer is nothing
more than an offer to sell the property,
open for acceptance for a specified period
of time, and offered to a particular buyer.
A binding agreement/contract exists if the
counter offer is accepted by the buyers
within the time limit provided and
communication of this acceptance takes
place.
Risks
The person making the counter offer must
understand certain legalities in the
process. For example, assume that a seller
has rejected an offer by the buyer and
prepared a counter offer. Once the counter
offer is conveyed, the original offer as it
was presented has been rejected and,
therefore, ceases to exist. A degree of risk
is inherent when preparing a counter offer
since it releases the buyers from any
obligation with respect to the original
offer—they may have changed their minds or
have seen another property they wish to
purchase.
The seller should also be counseled
regarding the irrevocable date on the
counter offer since it is an offer to sell
and can be accepted by the buyers, the
property is effectively removed from the
market for the period that the counter offer
is open for acceptance. If another offer is
presented during that interval, the seller
is unable to accept it unconditionally until
the fate of the counter offer is determined.
Accepting the second offer could result in
agreeing to sell the property to two buyers
simultaneously. This situation can be
prevented by advising the seller to accept a
second offer on the condition that the
counter offer is rejected or, is terminated
by way of a mutual release.
Advantages
Several distinct sales advantages are
inherent in the counter offer when compared
with an outright rejection. Even if the
counter offer is at full price, the buyers
will have an indication of the terms upon
which the sellers will agree to sell the
property. Keep in mind that a listing does
not force the seller to sell under any
circumstances. If the counter offer is for a
reduced price, or some other concessions
have been granted to find common ground
between the sellers and buyers, then such
action does indicate a desire to negotiate
seriously on the part of the sellers and
keeps the transaction progressing.
Looking to Buy or Sell Luxury
Real Estate In Toronto, North York, Thornhill,
Woodbridge, Vaughan, Richmond Hill, Aurora, King
City and beyond...visit LuxuryBroker.ca
Mortgages247.ca 2011 Apply Online without Blackouts Mortgages247.ca is designed to provide competent and
reliable information regarding the subject matter covered. However it is
provided, free of charge, with the understanding that the authors are not
engaged in rendering legal, financial or other professional advice. Law and
practice often vary from province and province and if legal or other expert
assistance is required, the services of a professional should be sought. The
authors specifically disclaim any liability that is incurred from the use or
application of the contents of this website.
