So you’ve been stalking the Toronto real estate market for months and you’ve found your dream home and you’re ready to put in an offer. Your realtor lets you know that they are taking offers next Monday at 7pm and offers are to be registered by 5pm. What exactly does that mean? Sometimes it’s easiest to explain what it doesn’t mean!
Myth #1 – It won’t sell before the offer date
Bully offers, also known as pre-emptive offers are the norm in Toronto’s real estate market. The ONLY way to protect yourself from a property selling from under your feet, is to book a showing asap. That way if a bully offer gets registered, the listing agent MUST contact your agent to let them know. This is true even in the situation where the listing says “No pre-emptive Offers”. Sellers ALWAYS reserve the right to change their mind and take a pre-emptive offer. When that happens, the listing agent just needs to notify all agents that have expressed an interest in the property. Expressing an interest is having a showing booked (even if you haven’t seen the property yet), emailing the listing agent letting them know you’re interested, requesting the home inspection, etc.
Myth #2 – The Registration Deadline Means Something
When the listing says “Offers on March 23 at 7pm, please register by 5pm”, it’s very important to understand that the registration time of 5pm means NOTHING. That’s right, it means absolutely nothing. It is simply a request to let the listing agent know that you’ve got an offer by that time, so that they can let all the other interested parties know how many offers there are. In reality, very few realtors respect this deadline. Many will wait until just before the offer presentations begin, to register their offer. Even more importantly, is that offers can get registered AFTER offer presentations have begun. In fact, listing agents are legally obligated to present any and all written offers to their seller clients, regardless of when they are received. They are however required to follow certain protocol in these situations: