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Offer to
Purchase
Once an interested buyer has been
found, a written offer to purchase your
property will be prepared. This offer is
usually recorded on a standard form
entitled:
Contract of Purchase
and Sale
Your listing agent will explain to you
the process of receiving and reviewing
offers. Do not be surprised if you are
presented with offers which differ
dramatically from your listed asking
price; the listing agent is under an
obligation to bring all written offers to
you for your consideration. If several
offers are brought to you at once, you are
under no obligation to accept any one
offer over another.
What should the offer contain?
All offers to purchase your property
will contain a number of important details
that you must consider.
The offer should include:
| date of offer.
full legal names and addresses of
both the buyer and the seller.
full legal description of the
property.
amount of the deposit.
sale price
amount of the cash down payment and
details as to how the remainder of the
purchase price will be financed.
date for completion of the sale.
Date for possession of the
property.
a list of the conditions that must
be satisfied before the sale can take
place (normally called subject clauses
or condition precedent).
a list of items that are not
attached to the building (normally
called chattels), but which are to be
included in the sale price; for
example, drapes, refrigerator, stove,
etc.
date and time at which the offer
expires.
the signature of the buyer and his
or her occupation. |
What are your options?
When you receive your one or more
"offer to purchase" your, home, it is in
your own best interest to give
considerable time and attention to
reviewing each offer carefully. Your
listing agent will assist you to
understand the terms and conditions
contained in the offer, and will provide
you with any advice you request, but
ultimately the decision is yours.
Before you decide, you may wish to have
your agent prepare a revised estimate of
the net cash proceeds you will receive on
completion of the sale, based on the sale
price and financing arrangements stated in
the offer.
You have three options:
1. Accept an offer EXACTLY as it stands
If you decide that you would like to
accept an offer, be sure you know the
precise meaning of each term in the
written offer BEFORE you sign the
document.
Once you, the seller, sign a Contract
of Purchase and Sale agreeing to its
terms, and your acceptance has been
conveyed to the buyer, it becomes a
legally binding contract.
Legally binding means both you and the
buyer will be bound by the terms of the
contract and must perform your respective
obligations as stated. Your performance
can be enforced in a court of law.
If you are uncertain about any clauses
contained in the offer, you may wish to
consult a lawyer before signing the
contract; however, keep the expiry date of
the offer in mind if you decide to
postpone acceptance!
2. Make a counter-offer
If you change anything at all in the
original offer, you are considered to have
rejected that offer and to be making a new
offer from you to the buyer. This new
offer is usually referred to as a
"counter-offer".
The risk in making a counter-offer is
that if the buyer has changed his or her
mind and rejects the counter-offer you do
not have the option of returning to the
original offer and accepting it.
If after making a written offer you
decide you don’t want to purchase the
property, it may be possible to revoke the
counter-offer. Many legal problems can
result from revocation of a counter-offer,
so you should seek professional advice
about the correct procedure to follow.
3. Reject the offer
You are under no obligation to accept
any offer or to make a counter-offer. If,
however, you reject an offer which exactly
meets all the terms you agreed to in the
Listing Contract which you signed with
your listing agent, you could be/are
legally obligated to pay the commission.
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