With interest rates at record lows and not enough 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 advise 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.
It may be tempting to track your advice to buyer clients in an email but when push comes to shove (for example, a client loses a deposit because they weren’t approved for financing), that might not be enough. You’ll be better protected if you have a formal record of your advice to clients that they must initial to acknowledge receiving. That’s why BCREA has put together a guide to multiple offer scenarios 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”.
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