There are six key elements of an offer to purchase real estate. They are:
Price
Depending on the local market conditions and information provided by me, your Real Estate Professional, the price you offer may be different from the seller's price.
Deposit
Your deposit, or earnest money, shows good faith. This is an amount that you must have available at the time that you make an offer to purchase. As your buyer representative, I can advise you on an appropriate amount. The deposit is normally paid by certified cheque or bank draft, made payable to the listing brokerage. The cheque is deposited in the selling brokerage's trust account and will be applied against the purchase of the home when the sale closes.
Terms
Includes the total price offered and the financing details. You either arrange your own financing, or ask to assume the seller's mortgage, especially if it has an attractive interest rate. I work with a number of mortgage brokers, banks and trust companies. I will ask you about your financing early in the house buying process. It's crucial that you are pre-approved for a mortgage, so that you can move forward quickly when you find the property you want.
Conditions
These might include "subject to home inspection", "subject to you obtaining financing", or "subject to you selling your property".
Inclusions and Exclusions
These might include appliances and certain fixtures or decorative items, such as window coverings or mirrors. These items would remain in the house.
Closing or Possession Date
Generally, the day the title of the property is legally transferred and the transaction of funds finalized.
If you would like to like to see an example of the standard "Agreement of Purchase and Sale'" as used by members of the Toronto Real Estate Board, please click here. This will open an Adobe Acrobat PDF file in a new window.
You will need Acrobat Reader installed on your system to view the document. If you don't have Acrobat Reader, you can click here to get it. Acrobat Reader is free software.
If you would like more information on the elements of an offer, or for more information on buying a home please do not hesitate to call or simply complete the form below. This is a free service and there is no obligation of any kind.
I only collect personal information necessary to effectively market and sell the property of sellers, to assess, locate and qualify properties for buyers and to otherwise provide professional services to clients and customers. I do not sell, trade, transfer, rent or exchange your personal information with anyone.
