In the high-stakes world of real estate, bidding wars can drive prices sky-high. But when sellers misrepresent the existence of competing offers to push buyers into overpaying, the consequences can be serious—and costly.
A recent Ontario Divisional Court decision, Tran v. Brickman, offers a cautionary tale for sellers and agents alike.
The Backstory
In early 2020, an experienced real estate agent listed her local home for $1.5 million. The plaintiffs offered $1.25 million, but the seller delisted the property, hoping for a better price. A month later, she relisted it—this time at $1.25 million—intending to spark a bidding war.
The plaintiffs’ agent indicated they might stretch to $1.3 million, but that was the top of their budget. Negotiations unfolded via text, and the seller made several claims about other offers:
• “Two other registered offers for tonight”
• “One offer just dropped”
• “Another agent said their party would improve their offer”
• “Current offer until 11 pm I may accept”
• “Your offer is a lot less than another I received”
Ultimately, the plaintiffs increased their bid to $1,305,000, which the seller accepted.
The Twist
After closing, the buyers discovered there were no other registered offers. They sued, claiming they were misled into overpaying.
The seller argued that she never said the offers were written and that her minimum price was $1.35 million. But the court wasn’t convinced.
The Court’s Findings
The trial judge ruled that:
• The seller’s texts gave the impression of active competition.
• No written offers existed, meaning there was nothing legally capable of acceptance.
• The plaintiffs were induced to bid higher based on false representations.
Damages were awarded based on the “loss of chance” to negotiate a fair price. The judge calculated this as the midpoint between the listing price ($1.25M) and the final sale price ($1.305M), awarding $28,600.
On appeal, the seller argued that verbal interest should count as “registered offers.” The Divisional Court disagreed, stating:
“Oral puffery is not a registered offer or an offer capable of acceptance or presentation.”
The appeal was dismissed.
Key Takeaways for Sellers and Agents
• Misrepresenting offers—whether intentional or not—can lead to legal liability.
• Only written, signed offers count as “registered” or legally binding.
• Transparency during negotiations is critical to maintaining trust and avoiding lawsuits.
In competitive markets, it’s tempting to use aggressive tactics. But as Tran v. Brickman shows, honesty isn’t just ethical—it’s essential.
Meet Author Mark Wesgate:
Your Trusted Realtor in Oakville,Burlington,Hamilton
When it comes to buying or selling your home, you deserve more than just a transaction—you deserve a partner who understands the market, listens to your needs, and delivers results with integrity.
Mark's a dedicated Realtor with Royal LePage Plus located in our Oakville, Ontario location. With deep roots in this community and a passion for helping people find their perfect place.
Whether you’re a first-time buyer, a seasoned investor, or looking to sell your family home with top level marketing .Mark's here to guide you through the process with clarity, confidence, and care.
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