Ontario Real Estate Licensing Exam Practice · Question
A seller accepts a conditional offer. Before the conditions are fulfilled, the seller receives a firm, higher offer. Which of the following is the seller legally permitted to do?
In an Agreement of Purchase and Sale with conditions, the seller is generally able to accept a 'backup offer' which only becomes binding if the first conditiona
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Question: A seller accepts a conditional offer. Before the conditions are fulfilled, the seller receives a firm, higher offer. Which of the following is the seller legally permitted to do?
Answer options: ✅ Present the new offer as a backup offer, subject to the first offer's conditions not being met.
- Immediately accept the new offer and inform the first buyer their offer is no longer valid.
- Demand that the first buyer waive their conditions immediately or the offer will be rescinded.
- Ignore the new offer until the conditions of the first offer have either been fulfilled or waived.
Correct answer: Present the new offer as a backup offer, subject to the first offer's conditions not being met.
Explanation: In an Agreement of Purchase and Sale with conditions, the seller is generally able to accept a 'backup offer' which only becomes binding if the first conditional offer fails to firm up. This is a common practice in real estate negotiations.
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