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Multiple offer situation (bidding war)

Français : Situation de surenchère (offres multiples)

Situation where multiple buyers submit simultaneous offers on the same property. The seller may choose the best offer or invite all buyers to present their best and final offer.

Definition

In an active seller's market, multiple offers may be submitted simultaneously for a given property. In practice, Quebec rules:

- The listing broker (seller's) must inform all interested buyers that other offers are present — without disclosing the content of these offers - The seller may decide to open offers one by one, or invite all buyers to submit their 'best and final offer' simultaneously - Transparency is mandatory on the number of offers, but not amounts

Buyer strategies in a multiple offer situation: - **Price**: offer above asking price - **Conditions**: reduce or eliminate conditions (risk to assess) - **Flexibility**: accommodate the seller's preferred possession date - **Escalation clause**: offer $X and commit to outbid any other offer by $Y up to a ceiling of $Z

Danger of unconditional offers: waiving inspection or financing condition exposes the buyer to significant risks.

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This definition is provided for informational purposes only and does not constitute legal, tax, or financial advice. For a personal situation, consult an AMF-licensed mortgage broker, notary, accountant, or the relevant financial institution.