Canadian Real Estate/conditional offers


QUESTION: I am selling my house privatley,If i except an offer with a condition that there house sells.
My questions are as follows.
1-How much of a deposit should I require.
2-How long of a term should i give 1-2 month etc.
3-I have read that conditional offers are are really useless,they can back out anytime,is that true?
4-Im assumimg that after I except there conditional offer,and get an offer for more money later i cannot except that unless the previous offer conditions are waved.

ANSWER: Hi Mark,
I don't recommend accepting offers conditional on the sale of the Purchasers property! Waste of time in my opinion.
The deposit should be 5% of the Selling price ideally. Your Lawyer should hold the deposit in trust.
The term should be no longer than 2 Months and you should also install an "Escape Clause" in the offer allowing you to still offer your home for sale and if you receive another better offer from someone else that is preferred? You can give the first Buyer 24 hours written notice to either firm up or get out of the deal and return the deposit.
Again, I do not recommend this condition as they rarely work out in your favour.
If you must, try to sell your home Privately for a short time and if you're unsuccessful, then leave the job to a Professional Real Estate Agent. Any Buyer will realize your saving on Commission anyway and will reduce the selling price accordingly. Good luck,

---------- FOLLOW-UP ----------

QUESTION: Thx derek, still a little confused on your answer on the part about a better offer coming.when you say firm up , do you mean they have to match or better the new offer or firm there first offer and if they do im legally tied to that. Thx mark

Hi Mark,
I'll try to explain it a little better.
Offer 1 is for $300K Conditional on the SPP. (Sale Of Purchasers Property) With Escape Clause saying that you can still offer your property for sale. If you receive another offer from another Buyer that's acceptable to you and un-conditional? Then, you send an e-mail to Buyer / Offer 1 and tell them they have 24 hours to either firm up on their offer, (re-move the SPP Condition or step away from the deal. If you need me to explain it better you can leave me with your phone number and I'll call you.
I hope this helps.
Thanks, Derek Hamilton

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Derek Hamilton


Any questions relating to Residential Real Estate in the City of Toronto or Southern Ontario. How much is my home worth in todays market? What's involved in Buying Real Estate ? How much do you need for a down payment? What's involved in Buying a Condo? What's involved in Buying a Co-op? What do you need as a deposit? How to choose a good Real Estate Agent for your property? What should you do to prepare your home for the market? How much Commission should you expect to pay? What are the expenses when Buying or selling your property? Should you have your home Staged for the market? Derek Hamilton has made Toronto his home his whole life and knows better than most what the city has to offer! Use his 26 years of Award winning experience to work for you.


Residential Real Estate Sales Representative in Toronto Ont,Canada for 26 years. Award Winner for 24 straight years with Royal Lepage & Sutton Group. Prior experience was 10 years building new custom homes & Renovations in North Toronto. I have a total of 36 years experience in the Residential Real Estate field.

I also subscribe to the Georgian Triangle Real Estate Board in Collingwood & the surrounding areas.

George Brown College "Carpentry", Continuing Education with the Toronto Real Estate Board. Member sinse 1985.

Awards and Honors
Platinum Award 2000-2008, Presidents Gold Award 2009-2010-2012, Award Of Excellence 2011 25 Year Club for the Toronto Real Estate Board.

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