Making an Offer to Purchase

Once you have found the home of your dreams, you need to present the vendor with an Offer to Purchase or an Agreement of Purchase and Sale.

Submit the offer in writing to avoid any potential disputes. Keep in mind, the Offer to Purchase or the agreement of Purchase and Sale is a legal document. As such, if the seller accepts your offer, the document becomes a legally binding contract and you are required by law to purchase the home under the terms stated in the offer.

If you are working with an agent, he or she will facilitate the processes by using standardized forms to prepare the offer. If you do not have an agent, be sure to include the following information in your offer:

•The total purchase price being offered.

•If there is a deposit, the amount that you are willing to pay to a trust account on behalf of the notary or agent. This amount will be deducted from the total amount.

•The date on which you would like to take possession of the home.

•The terms under which your offer was submitted (e.g.: mortgage financing approval, a home inspection within two weeks of the purchase date, the prior sale of your home).

•Any chattels and/or contingencies, such as renovations and/or items (e.g. furniture and fixtures) included in the sale of the home.

•The amount of your mortgage, the repayment terms and the interest rate. If your financial institution refuses to grant you a mortgage, the seller may oblige you to resubmit your application to a creditor of his choice. For this reason, it is very important that you specify your limits.

•The date on which the offer becomes null and void.

The real estate agent is under the obligation to inform you if any other offers have been made. The vendor can refuse your offer and make a counteroffer, which can then be renegotiated. Make sure that any and all modifications to the terms, conditions and price are set out in writing so that nothing is missing from the offer once it is finally approved and becomes a legal binding contract.