The offer to purchase, also known as a promise to buy, is made in writing. This is a legal document by means of which a commitment is made to buy a property. This document also stipulates that the seller agrees to sell the property once the offer to purchase has been accepted. You can either accept or reject the offer. If you accept the offer, it becomes an irrevocable contract and you must respect its terms and conditions. Failure to do so makes you liable for legal action. If you reject the offer, you can then make a counteroffer, which can in turn be accepted or rejected.
(1) The main elements of an offer to purchase
Identification of contracting parties: must contain the names and addresses of the persons bound by the contract.
The object and length of the contract: as its name indicates, the object of an offer to purchase is to buy a property.
Description of this property: must contain a detailed description of the property (the address, cadastral designation, the measurements and lot dimensions).Inclusions and exclusions: for example fixtures, window treatments, etc. The price.
The down payment: proof of the buyers good faith. It is usually 5 to 10% of the offer to purchase price. A higher down payment can help convince the seller that you are a serious buyer.
Statements and obligations of the buyer and seller.
The closing date: this is the date you take possession of the property.
Defects or irregularities: the offer to purchase contains protective clauses for the buyer who discovers defects or irregularities after the contract is signed.
Request for a recent certificate of location for the property (right of
ways, servitudes on easements). Conditions for acceptance: deadlines for acceptance and justification of the offer to purchase. The signature. Please note that it is standard to submit an offer to purchase that is conditional on the financing of your mortgage loan or on the results of the property inspection.
(2) The counteroffer
The counteroffer is used to include or exclude certain elements, modify the price or add certain precisions to the original proposal. The buyer can either accept this counteroffer or make another counteroffer.
(3)Transfer of ownership
Once the offer to purchase or counteroffer has been accepted, the transaction must be made legal. This stage requires the participation of a lawyer. You must send him/her a signed copy of the offer to purchase.
First, the notary will conduct a title search. This search is made to guarantee the purchaser incontestable title of ownership. The notary will use the certificate of location to see if the house was built in accordance with municipal by-laws and zoning laws. He/she will also make sure that lot dimensions are exact, that the neighbour’s property does not encroach on your land, etc. The notary will also check that all taxes are paid and that there is no legal mortgage on any personal property left by the seller.
Second, the notary will draw up the deed of sale; this step will give your purchase legal status. The notary must clearly specify any clauses and conditions necessary to protect your rights.
Third, the notary will prepare a statement of adjustments confirming the sales price, indicating the amount that the buyer owes the seller as well as the down payment balance and adjustments. The buyer must pay by certifiedcheque.
Finally, the notary will register the transaction at the registry office. You are now a property owner and ready for your new projects!
专门私售网站: www.bytheowner.com
Bing Shi
HomeLife/Prosperity Land Realty Inc.
Sales representavie
Cell: 416-893-2849
E-mail: [email protected]
