Highest Offer Clause
Understand highest offer clauses in Canadian real estate — what they are, how they work, and their impact on negotiations.
August 08, 2025
What is a Highest Offer Clause?
A highest offer clause is a provision in a purchase agreement allowing a seller to match or exceed the highest competing offer received during negotiations.
Why a Highest Offer Clause Matters in Real Estate
In Canadian real estate, highest offer clauses can increase competitive bidding and help sellers secure the best price.
Key points:
- Typically used in multiple-offer situations
- May allow the seller to request proof of competing offers
- Must be clearly defined to be enforceable
Understanding highest offer clauses helps buyers and sellers strategize during competitive negotiations.
Example of a Highest Offer Clause in Action
The seller added a highest offer clause to the agreement, giving them the right to match any higher competing bid.
Key Takeaways
- Allows seller to match or exceed highest competing offer
- Often used in competitive bidding scenarios
- Encourages buyers to make stronger offers
- Must be clearly worded to avoid disputes
- Can affect buyer confidence and strategy
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