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Offer Strategy · Legal Risk · Irrevocable Period

Submitting Offers on Two Properties at Once:
The Legal Risk Nobody Warns You About

“I’ll offer on both and take whichever gets accepted” sounds reasonable. But if both sellers say yes during the irrevocable window, you have two binding contracts simultaneously — and no easy exit.

Irrevocable Clause
Multiple Offers
Buyer Default Risk
Contract Law

The Irrevocable Clause: A Formal Legal Commitment, Not a Soft Deadline

Every Ontario Agreement of Purchase and Sale contains an irrevocable clause that specifies a date and time by which the buyer cannot withdraw the offer. The moment a seller signs their acceptance before the irrevocable expires, the contract becomes legally binding — instantly, with no grace period. Submitting an offer in Ontario is not an expression of interest. It is a formal legal commitment that becomes a binding contract the second the other party accepts.

What Happens When Both Offers Get Accepted

1

A Scenario That Happens More Often Than You Think

You submit Offer A on Property 1 ($800K, irrevocable until 11:59 PM tonight) and Offer B on Property 2 ($750K, irrevocable until 10:00 PM tonight).

At 9:45 PM, the seller of Property 2 signs acceptance. At 11:20 PM, the seller of Property 1 also signs acceptance.

Result: You are now legally bound to two simultaneous purchase contracts. You cannot simply “choose one” — both sellers have valid, enforceable claims against you.

2

The Legal Consequences of Abandoning One Contract

The seller of the property you cannot complete has the right to:

Forfeit your deposit — typically 5% of the purchase price
Sue you for damages — if they subsequently sell for less, they can claim the price difference plus their costs (legal fees, carrying costs, relisting expenses)
Pursue specific performance — in rare cases, a court may order you to complete the purchase

On an $800K property, exposure can easily exceed $50,000–$100,000 in combined deposit loss and damages.

3

Your Agent’s Professional Exposure

A buyer’s agent who assists in submitting simultaneous offers — knowing the client cannot complete both — may face professional discipline under RECO’s Code of Ethics. Agents have a duty to assess their client’s financial capacity and intent, and facilitating a situation the client cannot close is a breach of that duty. This isn’t just your problem; it’s your agent’s professional liability too.

Safer Strategies When You’re Interested in Multiple Properties

Strategy 1: Wait for the First Result

The safest approach: wait for the first offer’s irrevocable window to expire or be rejected before submitting a second offer.

Strategy 2: Stagger the Irrevocable Times

If you must submit both, set irrevocable times that do not overlap — ensure one expires before the other’s window opens.

Strategy 3: Use Protective Conditions

Offers with conditions (financing, inspection) give you a potential legal exit — but this isn’t foolproof and still creates contractual exposure.

Strategy 4: Plan With Your Agent First

Tell your agent you’re interested in multiple properties before anything is submitted. A good agent will help you navigate this without creating legal exposure.

My Rule: I Need to Know Before You Submit Anything

When a buyer tells me they’re interested in two properties, my immediate response is: “Let’s talk strategy before we touch an offer form.”

Sometimes the right move is to prioritize one property and walk away from the other for now. Sometimes it’s to stagger irrevocable times carefully. Sometimes it’s to use a short irrevocable period on the less-preferred property to get a quick answer before committing to the other.

What I will never do is submit two offers simultaneously without a clear plan for what happens if both are accepted. The short-term upside of “covering two bases” isn’t worth the legal exposure.

Key Legal Warning

Ontario’s REBBA (Real Estate and Business Brokers Act) and RECO’s Code of Ethics require agents to assess their client’s financial capability and purchasing intent before submitting offers. Knowingly assisting a client who cannot complete both transactions simultaneously may be considered a breach of professional obligations — exposing both the buyer and the agent to legal and regulatory consequences.

FAQ

What does the irrevocable clause mean?

It sets the deadline by which a buyer cannot withdraw their offer. Seller acceptance before the irrevocable time creates an immediately binding contract. There is no grace period or cooling-off right.

Both offers got accepted. What are my options?

Contact a real estate lawyer immediately. Your practical options are limited: complete the one you can afford and negotiate a settlement with the other seller (who may still pursue damages beyond your deposit). There is no clean exit from a binding contract.

How long is a typical irrevocable period?

Usually 24–48 hours for standard transactions. Offer nights may compress this to just a few hours. The shorter the window, the lower the risk of simultaneous acceptance — but the risk still exists within the window.

Looking at Multiple Properties? Let’s Build a Safe Strategy

Being interested in more than one property is normal. Submitting offers without a plan isn’t. Let’s talk before you submit anything.

Arthur Zhao · Broker · FRI · ABR · SRS · 📞 416-277-3836 · arthurzhao.realtor


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