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October 23, 2013

1

What Does “Conditionally Sold” Really Mean?

by mark mclean

mark it soldHappy Wednesday. Two interesting comments came out of today’s Mastermind centering around the conditionally sold status of properties, both worth mentioning here. In the first discussion, an agent had a client who was interested in a home that was recently sold conditionally on financing and a home inspection. The agent said that he had tried to book an appointment on the house despite its status and the listing agent had refused the request. He felt that the conditions would be met and the deal would firm up therefore showing the house would just be a waste of time. As it turns out, the deal firmed up BUT it should be noted that not every deal firms up. In fact, there was a time when deals, both conditional AND firm, fell apart all the time. It got me thinking about those unsteady deals… You know, the ones where the buyer asks for a couple of extensions on the conditions. Something doesn’t sit well. The buyer is simply buying time. What can you do? As an agent the job is simple. Pick up the phone and rustle up another offer. But wait, you can’t sell a house to two people. No problem. The second offer is conditional on the first deal falling apart. It’s worth the effort and as we move further ahead in our sales cycle, and see more conditional sales, you need to be prepared to entertain a different kind of “multiple offer”.
Here’s another one. An agent finds herself in multiple offers on a loft condo. Unfortunately the listing agent’s offer is accepted (big surprise). Ok, I will suspend judgement on how that happened, but what was surprising about this scenario is that seven days passed before the conditional deal was reported on TREB. Just so we are clear, TREB rules are pretty clear on this, conditional sales have to be reported (posted) within 48 hours. Yes, sometimes it takes a bit longer, like you’re waiting on a cheque, but 7 days? Checking with TREB’s DIS or Data Integrity Service, the fine, if convicted is a couple of hundred dollars. Let’s back up a second….I’ve got a lot listing, the phone is ringing off the hook, it’s sold fast but I can land a whole bunch more leads if I drag my feet on reporting it sold. I can hear the phone call now….”oh hi, yes that’s our listing. Well actually we just received an offer on that but as it turns out there is another one in building that we will be getting.” I only wish getting leads like that cost me $100.
It seems like this is just another trick of the trade we need to watch out for. FYI, I’ve got TREB on speed dial.

mark mclean

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1 Comment Post a comment
  1. Bruce Walker
    Nov 29 2013

    So you have a conditional sale, instead of coming forward with a waiver or notice, they bring an amendment. Does this mean you are entitled to look at other offers? I think we are going to see the use of escape clauses and it may be a disservice to your client not to allow the property to continue to be viewed.

    Reply

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