The What’s What of Selling Your Home
Here’s a handy guide to the most common terms being used in the Toronto real estate market.
Offer Date/Night – A designated date and time where any interested buyers can submit their offer to buy your home. This is also referred to as a ‘closed bid’ system. Potential buyers are not aware of each other’s offers. Each buyer’s agent submits the offer to the listing agent before the deadline, then the seller then confidentially decides which offer they would like to accept.
Multiple Offers – When two or more buyers have submitted offers on a property.
Registering an Offer – When a buyer formally notifies the listing brokerage’s office of the existence of an offer available for the seller’s review. Buying agents will call the selling agent’s office to register their buyer’s offer. Once an offer is registered with the listing brokerage’s office the agent is required to keep the buying agent up-to-date on the sales status of the property.
Pre-emptive Offers or Bully Offers – When a buyer submits an offer to purchase a property in advance of the offer date. This type of offer is meant to motivate the seller to accept before the offer date and is therefore usually much higher than the asking price. Sellers are not legally required to consider this type of offer. Usually a seller’s desire to accept pre-emptive offers is stipulated in the MLS listing.
Sold Conditionally – When a buyer and seller have come to an agreement on a purchase price with a condition that must be satisfied before the deal is considered firm. Common conditions include an inspection by a home inspector or a mortgage approval from the buyer’s bank.
Sold Firm – When a buyer and seller agree on all terms and conditions of the purchase. Neither buyer or seller can back out of the deal without losing their deposit and incurring legal penalties.
ELFS – An acronym for Electric Light Fixtures. These are usually included in the sale of a property unless otherwise stated in the listing.
Status Certificate (Condo Only) – The document that outlines the financial and legal status of a condominium corporation.
For a more in-depth glossary of terms, click here.