Incident of one of my friends (say ABC) :

ABC liked a house, Sale price $ 315 K, ABC wanted to put an offer, seller said all offers to be accepted on a particular day. Fine, that day, my friend offered $ 300 K, with home inspection clause. There were 2 other people, after some time, seller told my friend in pvt that he has confirmed offer (meaning without any clause) of $ 316 K. He said if ABC wanted to bid (literally it became an auction) higher ?

ABC thought and then offered $ 316 K + his broker agreed to pay $ 1 k frm his comission.

Seller agreed when suddenly another purchaser arrives. Half an hour later, after seller had pvt meeting with new buyer, abc was told, seller has a higher offer frm this new buyer so he can not accept abc's offer.

Private auction ???

No contract is firm solid until it is on paper. There can be verbal discussions which I've seen happen. Unless the "Confirmation of Acceptance/Execution" section is signed on the contract it is not a done deal. A verbal deal is never a firm deal unless written/signed on the Agreement of Purchase and Sale contract.

-----------------------------------------------------------------
Vimal Patel, Realtor
Homelife Royalcorp Real Estate Inc., Brokerage
Cell: 416-887-3745
Office: 905-856-6611
Fax: 905-856-6232
vimal.patel@gmail.com
http://www.vimalpatel.ca" rel="nofollow">LINK