An interested buyer will submit a legal “OFFER TO PURCHASE” on an “AGREEMENT OF PURCHASE AND SALE” form. This offer will contain written details of all provisions of the offer and will be signed and dated by the buyer. The Sellers representative will formally present the offer to the seller and to all decision-makers. The buyer’s representative may also be present.
After receiving the offer, the seller has three options:
- Accept the offer.
- Reject the offer.
- Make a counter offer.
If something in the offer is unacceptable, rather than rejecting it outright, the seller can make a counter offer by making the changes they wish and initialing those changes. The counter offer is then presented back to the Purchaser for them to accept, reject, or “counter” back to the seller. This is why the form is called an “Agreement of Purchase and Sale.”
NEGOTITATING AN OFFER can take a few hours or a few days. The experience and knowledge of your representative is critical in helping you through the process. Your chosen representative should be able to provide helpful advice, accurate information and assistance in professionally negotiating the best price and terms for YOU.
SEVEN MAJOR ELEMENTS IN AN OFFER
PRICE: The price a purchaser is willing to pay for your home.
DEPOSIT: The deposit shows the buyer’s good faith and will be held in trust by the Real Estate Company who has listed the property. It will be applied against the Purchase on closing.
TERMS: Terms include everything from the financing details, closing dates, inclusions and exclusions, etc.
CONDITIONS: There may be conditions such as receiving a "status certificate", “subject to a home Inspection” or “financing” that must be satisfied before the home is sold firm. A home is not really SOLD until all conditions have been met.
STATUS CERTIFICATE: A Status Certificate is a short report on the current status of a condominium corporation. If you are buying a resale condominium, it is important that your agreement of purchase and sale is conditional, upon review of the Status Certificate by your lawyer. Typically, a status certificate takes 10 days from the original order date to be delivered to the sellers representative who will then forward it onto the purchasers representative. Hence, it is standard for the status certificate clause to be conditional for 15 days, providing enough time for delivery and review.
INCLUSIONS/EXCLUSIONS: Anything that is not a fixture must be noted to either stay or go. A fixture is described as anything attached to your home.
CLOSING DATE: The day title is transferred to the new owner and the funds transferred to the seller.
IRREVOCABLE DATE: The time and date the offer is considered alive. If the irrevocable date passes without acceptance by both parties, the offer is null and void.