Brian Madigan LL.B., Broker
BRMadigan@iSourceRealEstate.com

RE/MAX West Realty Inc.,
Brokerage
Independently owned and operated

96 Rexdale Blvd. 
Toronto, Ontario 


Phone: 416-745-2300
Toll Free: 1-888-507-0817

 

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Delivering the Self-Destructing Offer

December 22, 2013 - Updated: December 22, 2013

If you have a self-destructing Offer, you obviously need to know how to deliver it, in order to make it work.

 

Basically, you need to have two envelopes, an inner envelope and an outer envelope.

 

The inner envelope contains the self-destructing Offer.

 

The outer envelope contains the instructions. It is addressed to the agent. It is designed to notify the agent that the inner envelope contains the self-destructing Offer.

 

So, it should have a cover note, that says something like this:

 

 

Ms. Ruth Jones,

XYZ Real Estate Brokerage

 

My client, Mr. William Smith has instructed me to present an Offer to your client, through you to purchase 123 Main Street, Toronto.

 

My client is concerned that you might use his Offer once registered to generate other offers in an attempt to create a bidding war.

 

Consequently, my client’s Offer contains a provision that immediately renders his Offer null and void in such event.

 

The specific wording of that clause is as follows:

 

This Offer is submitted to the Seller on condition that it is the only Offer open for acceptance and under consideration by the Seller. In the event that there is another Offer, then this Offer shall become null and void”.

 

{Note: use the specific wording, there are several different self-destructing clauses}

 

For further reference to the self-destructing offer, and various options, please refer to:

 

http://www.isourcerealestate.com/blog/p/the-self-destructing-offer-may-help-with-bidding-wars

 

The inner envelope is entrusted into your possession, in escrow, only to be opened in the presence of your client.

 

The Offer is open for acceptance until 8:00 pm tonight.

 

The purpose of this cover letter, is to give you fair warning, that should you decide to proceed, having opened the inner envelope, or having generated another offer, then my client’s Offer is null and void and not capable of acceptance by your client.

 

Kindly contact the undersigned at 416- 367-1610, should you wish to discuss this matter.

 

Sincerely,

 

Robert Zimmerman, Broker

ABC Realty Inc., Brokerage

 

 

 

This type of self-destructing Offer, doesn’t work as well in fax transfers since everything is all out in the open, nor will it work well when e-mail Offers are permitted.

 

This self-destructing Offer is workable in the hand-delivered method or by courier as contemplated herein.

 

Naturally, it could work in an actual presentation without the “extra drama” or the two envelopes.

 

Brian Madigan LL.B., Broker

www.iSourceRealEstate.com


Tagged with: bidding wars delivery self-destructing offer ontario law
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Brian Madigan LL.B. Broker

RE/MAX West Realty Inc. Brokerage

Independently owned and operated

96 Rexdale Blvd. , Toronto Ontario,

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