- A bully offer is an offer made before the date the seller said offers would be reviewed, and it is a practical tactic rather than a defined legal term.
- A realtor must communicate all offers to a client in a timely, objective and unbiased manner, although client duties can be modified by written agreement.
- Whether a seller can or should accept depends on the seller's instructions and the listing terms, so get advice before responding.
You see a home listed with an offer date a week away. Then a buyer's realtor calls with an offer that expires sooner. That is commonly called a bully offer or pre-emptive offer: an offer made ahead of the announced review date, usually at a price meant to make the seller decide early.
If you are the buyer, you want to know whether this is a sound approach. If you are the seller, you want to know what your realtor must do and how to respond. This article explains the realtor's obligations that apply, and where the answer depends on your documents and a lawyer's advice.
This article covers the law of British Columbia.
What a bully offer is, and what it is not
The term bully offer is market language, and how it applies to you depends on the facts. The rules for licensees speak of duties owed to a client and of dealings with an unrepresented party, a party to a trade who is not a client of a licensee for that trade. It simply describes timing: the offer arrives before the date the seller set for reviewing offers, often with a short deadline for the seller to respond.
Setting an offer date is a marketing choice. Whether a seller is bound to wait for it, or free to deal with an earlier offer, depends on the seller's own instructions to the realtor and the terms of the listing arrangement. A lawyer can confirm what applies to you.
What the seller's realtor must do
If you are the seller and the realtor's client, the realtor's duties include communicating all offers in a timely, objective and unbiased manner. That means an early offer should be passed on to you, not held back because the offer date has not arrived. The realtor must also act in your best interests and keep your information confidential.
Whether you can accept, counter or decline an early offer depends on your instructions and the listing terms, so it is worth confirming with a lawyer. A good question for your realtor is how the early offer compares with what you might expect on the offer date, and what you risk by waiting.
When an offer is presented to a seller, the licensee must also disclose the seller's payments to the listing brokerage, payments to any cooperating brokerage, amounts retained and other licensee remuneration. Ask for that information so you can see what the sale would cost.
What the buyer's realtor must do
If you are the buyer and the realtor's client, the realtor must act in your best interests, keep your information confidential and disclose all known material information about the services. Your realtor should explain the risks of a short-fuse offer, such as committing before you have completed inspections or financing steps.
Everyone involved is owed honesty and reasonable care and skill, including parties who are not clients. Before providing trading services, a licensee must disclose whether or not they will represent the party as a client. A realtor who represents a client must also tell an unrepresented party the risks of receiving assistance from them and recommend independent professional advice.
| Role | Key point for an early offer |
|---|---|
| Seller's realtor | Communicate the offer in a timely, objective and unbiased manner |
| Buyer's realtor | Act in the buyer's best interests and disclose known material information |
| Realtor who represents a client, toward an unrepresented party | Disclose that they represent a client, explain the risks of receiving their assistance and recommend independent advice |
Conflicts and dual agency
A fast offer can create pressure on a realtor's loyalties, especially when one brokerage is on both sides. A brokerage must not engage in dual agency. Designating individual agents does not by itself amount to dual agency unless the designated licensee represents both parties as clients. A narrow exception exists for remote locations, which requires disclosure to each party and a written dual agency agreement with each.
A licensee must also promptly and fully disclose a conflict to the client, in writing and separately from a service agreement. If you suspect your realtor has an interest on the other side, ask directly and ask for it in writing.
What to do next
- Sellers: ask your realtor to confirm in writing that every offer has been communicated to you.
- Sellers: read your listing agreement for anything about offer dates, and ask a lawyer if it is unclear.
- Buyers: decide in advance what conditions you can safely give up, and do not skip advice because of a short deadline.
- Both sides: ask for written disclosure of any conflict and of remuneration details.
- Both sides: keep a record of the time each offer was received and the terms of any response.
- Before signing anything, have a lawyer review the offer and any deposit arrangements. Deposit money for a trade is generally held by the brokerage as stakeholder.
Frequently asked questions
Does a seller have to wait until the stated offer date?
That depends on the seller's instructions and the listing terms, so it is worth confirming with a lawyer. What the rules do say is that the realtor must communicate all offers to the client in a timely, objective and unbiased manner.
Can my realtor refuse to show me an early offer?
If you are the realtor's client, communicating all offers in a timely, objective and unbiased manner is one of the duties owed to you. Client duties can be modified only by written agreement, and even then the brokerage must still supervise its licensees and protect confidential information. If you think an offer was withheld, you may complain in writing to the superintendent.
Is a bully offer binding on the seller?
Whether a bully offer binds a seller depends on the terms of the offer, whether and how it was accepted, and the documents involved. Speak to a lawyer before responding.
Where does the buyer's deposit go?
A brokerage must pay money received for a principal promptly into a BC interest-bearing trust account. Deposit money for a trade is held as stakeholder, not as agent for one party, unless the parties agree otherwise in writing or regulated circumstances apply.
Sources
- Real Estate Services Rules, s. 1 — bclaws.gov.bc.ca
- Real Estate Services Act, ss. 26–27 — bclaws.gov.bc.ca
Links go to official government, court and regulator pages. The law changes — confirm you are reading the current version.
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