Major Elements of an Offer
Before the offer to purchase is created, it is very important that you have been at least pre-qualified or better yet pre-approved by a lender.
This is one of the best negotiating tools a buyer can have. It shows the seller that you are financially able to purchase the home. After you have found the right home, it is time to prepare the offer.
PRICE Dependant on local market conditions and your opinion of value, the price you offer may differ from the seller’s asking price.
DEPOSIT The deposit shows your good faith and will be applied against the purchase price of the home when the sale closes. We advise you on the appropriate amount. The cheque is cashed and held in our Trust Account, andt his is refundable to you prior to condition removal if you do not move forward removing conditions.
TERMS & CONDITIONS These might include a home inspection, obtaining financing, or subject to you selling your current property.
INCLUSIONS & EXCLUSIONS These might include appliances and certain fixtures or items such as a water heater.
POSSESSION DATE This is when you take ownership of the property, and when the funds are transferred. A
typical possession is about 30 days after conditions are removed.
CONDITIONAL OFFER TO PURCHASE Means that you have placed an offer on a property subject to one or more conditions like financing or home inspection. The home is not sold until all conditions have been met.
ACCEPTANCE OF THE OFFER Your Offer to Purchase will be presented as soon as possible. The seller may accept the offer, reject it, or submit a counter. The counter offer may be in reference to the price, possession date, or any other terms, conditions or inclusions.
HAVE THE HOME INSPECTED Having the property inspected by a qualified inspector will give you peace of mind and confidence that you’ve made the right decision.
HIRING A LEGAL PROFESSIONAL A legal professional is there to represent your interests and to provide the legal
documentation required. We work with a number of lawyers who specialize in real estate.
Accepted Offer: What Happens Now?
During the next 7-14 days, you will have conditions to meet. We will assist you in meeting the following obligations:
DEPOSIT CHEQUE A certified cheque, money order or a personal cheque is written to the buying agent’s Brokerage In Trust upon writing the offer. This deposit will either go toward your down payment, be returned to you if conditions fail to be met, or be forwarded to the seller should you walk away from the deal after removing conditions.
FINANCING A copy of the Offer To Purchase will be sent to your mortgage lender. They will review it and confirm with a letter stating if they will provide financing for the home. Lenders may require more documentation to approve the deal such as an appraisal, copies of the home inspection, or a copy of the real property report.
PROPERTY CONDITION DISCLOSURE STATEMENT Also known as the PCDS, this form is filled out by the owner and outlines the condition of the home. You will have time to review and sign it if you stipulate this as a condition, however a PCDS isn't always available for a property as some Sellers have never lived in the home (Estate Sales, Landlords etc).
SURVEYOR’S CERTIFICATE OR REAL PROPERTY REPORT Will be provided by the seller if requested as a condition and/or if available.
INSPECTIONS The purpose of a home inspection is to identify any structural, electrical, and mechanical problems. Other inspections can also be requested such as sewer lines, furnace, fireplace, and engineer inspections. These inspections are your responsibility to schedule and to pay for.
REMOVAL OF CONDITIONS If the conditions you have stipulated in the contract are finalized and you are prepared to move forward with the sale, it’s time to make it official. Signing the Removal of Conditions signifies that the sale is firm.
