Humber/Ontario Real Estate Course 3 Exam Practice

What could result in legal problems for sellers considering multiple offers?

1. The sellers tell the salesperson that they will only consider offers that exceed $610,000. The two offers of $612,000 and $614,000 have the same closing date, so they counter them both at $620,000 and will sell to which of those two buyers accepts the offer first.

2. The sellers are not interested in any of the offers, but will reconsider any offers submitted by 11 p.m. that evening.

3. The sellers want to review the offers in random order, not in the order received. They decide to accept the 4:30 p.m. offer.

4. The sellers counter the $614,000 offer with an altered closing date that better suits their needs.

5. The sellers reject all offers outright without providing any feedback or counteroffers.

6. The sellers increase the listing price after receiving offers.

The correct answer is: The sellers tell the salesperson that they will only consider offers that exceed $610,000. The two offers of $612,000 and $614,000 have the same closing date, so they counter them both at $620,000 and will sell to which of those two buyers accepts the offer first.

The situation described where sellers tell their salesperson to only consider offers that exceed a certain amount and then counter two offers simultaneously with the same price creates potential legal issues. This approach can lead to complications because both buyers believe they have a fair chance to accept the counter-offer, which results in a lack of clarity and transparency in the negotiation process. If one buyer accepts the counter-offer and the other buyer is led to believe they had an equal opportunity, it could lead to claims of misrepresentation or an unfair process, resulting in legal disputes. In real estate transactions, it is critical that all parties involved are clear about the process to ensure fairness and to avoid potential liability. When handling multiple offers, it's important to have a well-defined process that treats all buyers fairly and transparently to prevent misunderstandings or feelings of being misled. The other scenarios, while they may involve various levels of risk or challenges, don't inherently present the same direct legal complications related to the handling of multiple offers as the first scenario does. For example, rejecting offers without feedback may not be considered legally problematic, although it's less courteous and may affect seller reputation. The same goes for altering an offer or reviewing in a different order—these practices can also result in complications but don’t