#Terminology Tuesday: Irrevocable

When making or looking at a real estate offer, there are several important deadlines and timeframes to consider. One of the least intuitive of these might be the irrevocability clause.

The word IRREVOCABLE means "not able to be changed, reversed, or recovered".  And that is basically what it means in reference to a real estate contract.

When you make an offer, there is a clause in the standard OREA form to make it irrevocable for a specific period of time.

"This offer shall be irrevocable by (Seller/Buyer) until (time) on the (date) day of (month), 20xx, after which time, if not accepted, this offer shall be null and void and the deposit shall be returned to the Buyer in full without interest."

Until that deadline has passed, the offer can not be changed or withdrawn by whoever made it (typically the buyer first, but this applies to counter-offers from the seller to the buyer as well).  The party to whom the offer has been made has until that time to accept it and communicate acceptance.

While not technically required for a contract in general, the nature of real estate makes this a pretty standard part of the process.  It gives the seller assurance that the buyer will be bound but also gives time to consider other offers that might come in.  And it gives the buyer an idea of when to expect an answer, not held in indefinite limbo while a seller considers it and possibly waits for other offers to come in.

On that note, a shorter time period can put pressure on the sellers and is generally better for buyers, while a longer time period works in favour of the sellers as they can bide their time a little to see if anything else does come in.  In practice, it's a balancing act between giving what is necessary and trying to protect your own interests as well.  The listing may ask for a 24 hour irrevocable, but the buyer is not strictly required to oblige that request, just like they're not required to give full price or any other terms outlined in the listing.

But then, the seller may be from out of country, in hospital, or any of a bunch of other possible scenarios that might require some time to respond, and a shorter deadline may not be feasible. You might just be shooting yourself in the foot and irking the seller for no reason.  And even if there is no 'good reason', it's still one thing the seller is looking for that you're not giving them, so it all has to be considered strategically and with an overall view of the rest of the offer.

Make sure you work with a competent and experienced real estate professional, and trust their advice.

Market Media Monday - October 20, 2025

 A curated list of recent headlines relevant to real estate in Canada, with short excerpts. Click each headline link to read the full article on the source site.

[ Canadian Real Estate Sellers Flooded The Market With Record Inventory ]
"Canadian real estate sellers all had the same brilliant idea last month: list before inventory surges. Canadian Real Estate Association (CREA) data shows September sales hit a multi-year high, but the volume remained tepid—especially in contrast to the record flood of new listings. Market balance is now the weakest since the ’90s real estate crash, helping push prices even lower."

[ September home sales up 5% as real estate association expects strong end to the year ]
"The Canadian Real Estate Association has upgraded its forecast for home sales in 2025, saying it now expects a softer decline this year as activity continues to rebound. It comes as September home sales rose 5.2 per cent from a year ago, marking the most activity for the month since 2021."

[ No recovery yet as housing sales in Canada decline in September ]
"However, this was the best month of September for sales since 2021, CREA senior economist Shaun Cathcart said. “While the trend of rising sales that began earlier this year took a breather in September, activity was still running at the highest level for that month since 2021, and that was true in July and August as well,” Cathcart said. Compared with August, home sales in Canada declined by 1.7 per cent, marking the first monthly decline since April."

[ GTHA condo market falls to 35-year low, report shows ]
"Once the country’s hottest real estate region, the Greater Toronto and Hamilton Area condo market hit a 35-year low this year, according to a new report by real estate research firm Urbanation."

[ Canada’s big banks diverge on 2026 rate forecasts as easing cycle nears its end ]
"For most of this year, the markets have been focused on how quickly interest rates might come down. But a quieter conversation is starting to take shape, one that’s less about how far rates will fall and more about when they might start rising again."

#Terminology Tuesday: Closing Day

More formally referred to as Completion Date, or sometimes Date of Possession, the Closing Day is the day the sale "closes" - when the buyer pays the seller and ownership is transferred.

Closing can happen any time during the day, usually up to about 4:00pm.  My experience is that many sales close earlier in the day, but one of the more typical delaying factors is how promptly the buyer's mortgage lender gets the funds to the buyer's lawyer (the lawyer obviously can't pay the seller's lawyer until this happens).

Market Media Monday - October 13, 2025

A curated list of recent headlines relevant to real estate in Canada, with short excerpts. Click each headline link to read the full article on the source site.

[ Canada’s fall housing market is off to ‘low-key’ start, RBC report shows ]
"Canada’s fall housing sales saw an “uneven and fragile” market in September, a new report from the Royal Bank of Canada shows. September data from local real estate boards showed a “low-key start to the fall for Canada’s housing market,” the report said."

[ Canada faces wave of mortgage delinquencies and arrears, says national housing agency ]
"The country’s housing agency projects that a growing number of Canadians will struggle to make payments as they renew their mortgages this year and next. A top economist from the Canada Mortgage and Housing Corp. (CMHC) says it is monitoring the situation “very closely.”"

[ Christmas may come early for Canadians with Mortgage rate renewals ]
"Markets are currently pricing in a nearly 60 per cent likelihood that the BoC will cut by 25 basis points at its Oct. 29 meeting"

[ Average asking rents drop for 12th straight month to $2,123 in September: report ]
"Average asking rents in Canada fell 3.2 per cent in September from a year earlier to $2,123, marking the 12th straight month of annual declines. The latest monthly report from Rentals.ca and Urbanation said asking rents for purpose-built apartments were down 2.1 per cent from a year ago to an average of $2,093, while asking rents for condominium apartments fell three per cent to $2,226."

[ Investing in Growth Nodes: How Master‑Planned Communities Boost Property Values ]
"Location is a critical factor in real estate value, but certain areas consistently deliver stronger returns. One of these are growth nodes, or places where development, infrastructure, and population expansion intersect to create concentrated demand. They often form around transportation corridors, employment centres, and major commercial hubs, setting the stage for steady property appreciation."

When it's time to sell, don't get bought

Have you ever been bought?  I know, I know, what kind of question is that.  But in the real estate business, there is a term "buying the listing" that many people are blissfully unaware of.

Buying the listing refers to inflating the value opinion you give on a property to sway the sellers to list with you rather than your competition who might give a lower - but more accurate - price evaluation.  Because once they have you listed, you're stuck with them under contract even if you reduce the price.

Just to be clear, we're not talking about when the seller gets advice and makes the decision to list higher anyways - and sometimes the market does surprise even the professionals.  This term refers to an agent intentionally inflating their price opinion to stand out from their competition.

You might ask, "WHAT?  Does that really happen?"

Sadly, yes.  I think most of the time it is an honest difference in price evaluation and most agents are decent folk like anyone else, but like any business we have our mix of all types. 

I have sometimes seen sellers I have given a price evaluation go and list with someone else at a higher price.  Sometimes a much higher price.  And then sit on the market for a while before eventually selling at a price close to what I said in the first place. 

As I watch these scenarios, I can't help wondering if they were just "bought" by an agent giving a higher price evaluation or if it was the seller ignoring advice and listing high.  And I sometimes wonder if I would get those listings by simply inflating my price evaluation.  Moot point, of course, because it's not my style.

To avoid this happening when you are looking to sell, if you have two price evaluations done and one is higher than the other, at least get a third to see how they compare.  If the third is still high, then give it a try, because maybe there is something the lower one is missing. 

But if it's closer to the lower one, give it serious thought before listing with the higher price agent or you might regret your choice after wasting much more time getting sold than you should have.