You found the perfect home! What comes next?
Making an Offer to Purchase
Once you’ve found your new home, it’s time to finalize the deal. This can be one of the most emotional times within the home buying process, as you will make an Offer to Purchase or Agreement of Purchase and Sale which will bring you closer to owning a home. The Offer to Purchase is the official document that outlines the agreement between the seller and buyer of a property. It contains the particulars of the transaction such as the purchase price, deposit, conditions, date of closing etc.
What the Agreement will typically include, among other details:
- The purchase price
- A list of items (chattels) included in the sale
Chattels: Items of personal property, not affixed to the land or building and are, therefore not included in sale of pro property unless specifically included n the Agreement.
Fixtures: Items which are considered a part of the property, permanently fixed to the land or building and are, therefore included in the sale unless specifically excluded in the Agreement.
- Any conditions you may need to protect yourself (subject-to-financing and/or home inspection clauses, condition to revisit the property prior to closing accompanied by your real estate representative)
- Important dates such as the closing date for the sale of the property
Note: It’s always a good idea to have our lawyer/notary review the offer and the Agreement before they are signed by you.
Examples of Standard Conditions:
- A satisfactory home inspection
- Lender approval of mortgage financing to finance the purchase
When the conditions included in the Agreement are all met, the conditions are removed and the Agreement becomes binding on all parties.
Once the Offer or Agreement is provided to the seller by the potential purchaser, the seller can accept the offer, reject the offer or the seller can “sign back” or counter the offer. This process can be a stressful part of the home buying experience, but it ensures the end result is acceptable to all parties.
While there are many steps involved in the purchase of a home the information above is intended to give you a brief overview only of the Agreement of Purchase and Sale document. This Agreement is a very detailed legal document and must be discussed and explained in full by your Real Estate Professional and your Lawyer.
Excerpt taken from http://www.tdcanadatrust.com
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