Protecting Buyers - and Yourself - in a Hot Market
With interest rates at record lows and not enough available housing stock to meet demand, buyers are willing to take risks to clinch a deal. Still, as a REALTOR®, they look to you for information on managing those risks. As you work in your client's best interest, in advising them don't forget to manage your own risks at the same time. That means documenting critical conversations, particularly when it comes to subject-free offers.
That's why BCREA has put together a PDF of multiple offer resources that includes a sample Buyer's Acknowledgment of Information (page 11) for you to adapt for your own use. The sample Buyer's Acknowledgment of Information asks the buyer to confirm that they have been informed that it would be in their best interest to make their offer on a property conditional on:
- receiving and approving a home inspection;
- confirming their ability to obtain financing necessary to complete the Contract of Purchase and Sale; and
- confirming their ability to arrange fire insurance on the property.
It also asks the buyer to confirm they have been given the opportunity to seek independent legal advice and "notwithstanding this information, the Buyer(s) have instructed the REALTOR® that they wish to make an offer without the conditions acknowledged above and are aware and understand the consequences of the same". This form will be coming to WEBForms soon.
The PDF of multiple offer resources is based on BCREA's course Multiple Offers - The Strategies, The Tactics and The Game Plan, and includes checklists, guidance on working with buyers and sellers, and resources to help inform and document your conversation with clients to help mitigate risk.
With multiple offers, it's important to comply with the Real Estate Rules, your real estate board's rules and regulations, the REALTOR® Code and any brokerage policies.
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