Making an Offer
Making an Offer
Once you have found a home that is right for you, it is time to make an offer.
There are 8 basic elements of an offer:
1. Parties & Property Address & Legal Description
A deposit shows your good faith and will be applied against the purchase of the home when the sale closes. Deposits are usually no more than 2%-5% of the purchase price. Deposits are then cashed upon acceptance of the offer by both parties, and held in a Real Estate Brokers trust account until closing.
4. Standard Ontario Pre-printed Terms
5. Chattels – Inclusions and Exclusions
Items within the home that will be included in the purchase price such as appliances, fixtures or decorations (i.e. drapes, mirrors etc.) are referred to as chattels. Do not assume that anything will be left behind. If you want it, put it in writing.
6. Closing or Possession Date
The date the title of the property is legally transferred and the transition of funds is finalized…the moving date!
7. Title Search Date
The time given to the buyer’s lawyer to search title of the property and to ask for documentation from the Sellers lawyer..this is usually 10 days to 14 days prior to possession date.
8. Schedule A – Custom Terms and Conditions
This is the “meat” of the offer…this is where the offer is customized to meet your unique requirements.
Items to consider in your offer:
- What are your conditions? Financing, property inspection, home insurance, well inspections, septic inspection, WETT inspection of fireplace, reviewing leases, reviewing income statements, sale of present home, etc
- Timing of conditions
- Size of Deposit (2% to 5% locally)
- Is there a survey? A survey is not a requirement for closing a transaction, but it’s nice to have
- What fixtures are included? What Chattels are included? What are you going to ask for? What don’t you want?
- Selecting a moving date
- Warranties, cleaning, other terms
- If you are buying a condo, you should ask that it be conditional on your lawyers review of the Status Certificate
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