Jessica, a licensee, receives an offer on her seller client's property. The offer includes a subject clause: 'Subject to the Buyer selling their current property located at 789 Maple Crescent by November 30th, 2023.' Jessica's seller receives a second, stronger unconditional offer before the first subject has been removed. What should Jessica advise her seller to do, assuming the first offer has no time clause?

Question: Jessica, a licensee, receives an offer on her seller client's property. The offer includes a subject clause: 'Subject to the Buyer selling their current property located at 789 Maple Crescent by November 30th, 2023.' Jessica's seller receives a second, stronger unconditional offer before the first subject has been removed. What should Jessica advise her seller to do, assuming the first offer has no time clause?

Answer options: ✅ Inform the buyer of the first offer about the competing offer, giving them an opportunity to waive their subject.

• Accept the stronger unconditional offer immediately, assuming the first offer will not remove its subject.
• Wait until November 30th for the buyer of the first offer to remove their subject, as per the initial agreement.
• Advise the seller to counter the first offer, proposing a shorter subject removal period.

Correct answer: Inform the buyer of the first offer about the competing offer, giving them an opportunity to waive their subject.

Explanation: When dealing with offers containing 'subject to sale' clauses without a time clause (also known as a 'kick-out clause'), if a second offer comes in, the seller can inform the first buyer and give them a defined period (e.g., 24-48 hours) to firm up or remove their subject. This is common practice to facilitate the sale while protecting the seller's interests, often detailed in an 'accelerator' or 'time clause' addendum to the CPS.