Encyclopedia
Re-trade
When a buyer tries to cut the price or change terms after agreeing a deal, often after due diligence.
For example: Hypothetical: a buyer finds a roof issue and asks for a price reduction just before subject removal. (Illustration only, not a real deal.)
This is a general industry term with no single official definition. Your lease or contract wording controls.
Example only, not a real client. Say a buyer agrees to a price, then after due diligence asks for a big reduction over items that were known at the start. That is a re-trade. As a seller, you push back by pointing to the information you disclosed early.
What I’d tell a friend
Disclose known issues early as a seller. As a buyer, re-trade only for real new findings.
Why it matters to you
Late price cuts cost sellers time and leverage, because other buyers have often moved on. Sellers protect themselves with good disclosure up front, and buyers keep credibility by re-trading only on real findings.
How to use it in your deal
Buyers who find real problems should document them with reports and costs, and propose reasonable adjustments. Re-trading without good reason damages trust and reputation, and sellers may refuse or relist. Sellers can reduce re-trade risk by providing information early, including inspection reports, leases and disclosures, and by choosing buyers with good track records. Short, specific subjects help.
Licensees should keep both sides informed. If a re-trade happens, sellers can negotiate, refuse or accept, depending on the market and alternatives. A credit at closing, a holdback or a seller repair can solve a problem without changing the headline price. Keep backup offers warm until subjects are removed.
Buyers should know that word gets around in a small market like BC commercial real estate, and sellers remember who re-trades. If you suspect the issue was known and hidden, talk to your lawyer before negotiating.
Mistakes I see
Re-trading on known issues. Sellers hiding problems. Not documenting findings.
In BC and Vancouver
Contract law governs; good faith duties apply to subject clauses, with case law on CanLII.
Official sources: CanLII (court decisions) · BC Financial Services Authority
What it means
A re-trade is when a buyer tries to renegotiate the price or terms after agreeing to them, often during or after due diligence.
It may be fair when new problems turn up, but can damage trust when used as a tactic.
Handling it
Sellers can reduce re-trade risk by sharing reports and information up front, and by choosing buyers with strong records of closing.
Buyers should support any request with evidence, such as an inspection report or contractor quote. A fair, documented request is more likely to be accepted than a general demand for a lower price.
Questions to ask before you sign
- What did due diligence find?
- Is the issue documented?
- What's the cost?
- Are there other buyers?
Keep reading
Related terms: Subject clause, Due diligence, Subject removal
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General information for British Columbia only. It isn’t legal, tax, accounting or financial advice, laws and rates change, and reading it doesn’t make you my client. Any numbers or scenarios are hypothetical. Check the linked official source and talk to a lawyer, accountant or other qualified professional before you act or sign anything. See the terms and disclaimer.