As you have likely heard, offer nights have become quite popular in Toronto. An offer night is a designated date and time where any interested buyers can submit their offer to buy a home. This is also referred to as a ‘closed bid’ system. Meaning: buyers are not aware of the other prices being submitted. Each buyer’s Realtor submits the offer to the listing Realtor before the deadline and the seller then confidentially decides which offer they would like to accept.
Some common offer terms include;
Multiple Offers – When two or more buyers have submitted offers on a 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 it before the offer deadline 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.
Negotiation and speed is key in these circumstances.
Given how common multiple offers are in the city it’s extremely important you find a Realtor who can think fast, act quickly and change their negotiation strategy at the drop of a hat as the night goes on. While many times it will come down to price there are instances where that’s not always the case and a little creativity can actually help secure you the home you really want.
THE IMPORTANCE OF A LAWYER
Real Estate law is very unique. It is necessary to hire a real estate lawyer to complete your transaction. Once we have successfully bid on a property, I send all the documentation to the lawyer who then checks the title on the property, ensures there are no outstanding liens or encumbrances on the property and handles the transfer of title (or ownership) from the seller to you.
Depending on the property there are also often times I reach out to a lawyer in advance of us making an offer if there is something special I feel we need to have added protection for. I’ve found it is best to work with a real estate lawyer who is extremely familiar with Toronto properties, (both homes and condos) as a lack of area knowledge could hinder the deal unnecessarily.
I’m happy to provide you with names of lawyers I trust. Not all fee structures are the same and as with most things in life you get what you pay for. Reach out to me here for more information.