Multiple Offers

Purpose:  To assist real estate professionals in handling multiple offer situations.

This bulletin applies to real estate brokerages, brokers, associate brokers and associates.

As a general rule, sellers or buyers, or their real estate representatives, do not have a duty of “fairness” to each other during the buying and selling process. Ultimately, in a multiple offer situation, the seller determines what process will be followed.

It is critical for a brokerage and all of its associates to conduct themselves in a way that maintains the trust and confidence of the client in a multiple offer situation. This includes:

Seller’s Representative

          
Buyer’s Representative

Special Considerations – Multiple Offers & Conflict of Interest
If a real estate broker is registered with a common law brokerage and represents the seller, and one of the offers comes from a buyer who is represented by an industry professional at the same brokerage there is a conflict of interest. This type of conflict of interest requires extreme care.

Implementing designated agency within a brokerage can help reduce the occurrence of these conflicts. The seller and interested buyers will have written service agreements that have designated agent(s) within the brokerage as their sole agents and each client can continue to benefit from representation, even in a multiple offer situation, as long as the same designated agent(s) is not representing both parties.

If the designated agent(s) is representing the seller and also represents one of the buyers (in a multiple offer situation), under these circumstances, the best option is to refer one of the parties to another real estate professional within the brokerage.

Related information
Legislation

Information bulletins

 

home