What is a bully offer and is it legal in Ontario?
A bully offer — also called a pre-emptive offer — is an offer submitted before a seller's scheduled offer presentation date, typically at a premium price and with a short irrevocability window, designed to pressure the seller into accepting before other buyers can compete.
Bully offers are legal in Ontario. A seller is not obligated to accept or even present a bully offer to review, but they must disclose to all registered buyers' agents that a bully offer has been received. Under the Real Estate and Business Brokers Act and applicable regulations, listing agents have disclosure obligations that protect the integrity of the process, though specific procedural rules have evolved and your agent can explain what applies to your situation.
As a buyer, submitting a bully offer may mean paying more than necessary. As a seller, accepting one means forgoing potential competing offers. There is no universal right answer — it depends on your goals and risk tolerance. Speaking with both your real estate agent and a lawyer before making or accepting a bully offer is advisable.
Key takeaways
- Bully offers are pre-emptive offers submitted before the offer presentation date.
- They are legal in Ontario, but sellers have discretion on whether to accept.
- Listing agents must disclose receipt of a bully offer to registered competing buyers' agents.
- Consult your agent and lawyer before making or accepting a pre-emptive offer.