Make an Offer

 

Once you have found the perfect home you would like to buy, you need to make your Offer to Purchase. The Offer to Purchase or Agreement of Purchase and Sale is a legal document and should be prepared by your real estate agent or your lawyer.

Your offer or agreement should typically include:
• Your legal name.
• Your proposed purchase price.
• A list of items in the house (called chattels) to be included in the purchase price.
• Amount of your deposit.
• Closing date. This is the date you will take possession of the home (usually 30 or 60 or 90 days from the date of the agreement).
• Time for which the offer is valid.
• Any other conditions you would like to include in your offer i.e. approval of mortgage financing, a home inspection

Your real estate agent will present the offer to the vendor. The amount of your deposit is flexible and normally is about 2% -5% of the purchase price. The deposit will be held in trust and applied to your down payment at the time of closing. Do not be surprised if the vendor does not accept your original offer. Everything is negotiable, so expect some bargaining. Once both parties are satisfied and your offer is accepted, it becomes a binding contract between you and the seller. If you are buying from a builder, the offer will include a breakdown of items included in the purchase price such as taxes, deposit schedule, etc.