When is an Offer not an Offer?
The following explanation is courtesy of my broker, Sutton Group-West Coast Realty:
“In an environment of multiple offers, a listing agent might be presented with an offer containing what is generally referred to as a ‘‘referential purchase price clause’’ (RPPC). The RPPC is a means by which a buyer endeavors to establish a purchase price by reference to prices contained in competing offers. The thrust of the RPPC is for a buyer to piggyback on the next highest bona fide offer which is acceptable to the seller. Such a clause might read as follows:
The purchase price is $1,000 above the price offered in the nearest competing bona fide offer acceptable to the seller to a maximum price of $350,000. The seller agrees to provide a copy of such nearest competing offer on acceptance of this offer.
A 1985 House of Lords decision from the United Kingdom held that a referential offer is an offer that does not stand on its own and which is not understandable without reference to another bid. The House of Lords held that referential offers were invalid.
The B.C. Court of Appeal, in the case of The Bank of Nova Scotia and Yoshikuni Lumber, held that an offer by one bidder which is dependent for its definition on the offers of others is invalid and unacceptable, as being inconsistent with and potentially destructive of the very tendering process in which it is submitted.”
In essence, a Referential Offer is seen as a tactic that does not play within the real estate rules. When you work with an agent who knows and abides by those rules, you know what you are dealing with. This means you can respond accordingly. We are currently in a market where you have to want to win…it’s game day, baby!
So, if you think I would be a good fit to work with you and your family, and you are not already working with a Whistler realtor, please contact me.
It’s a Good Life in Whistler!
Marion Anderson *PREC email@example.com (604)938-3885