It’s Time to Make an Offer (Agreement of Purchase and Sale)
When drafting an offer there are 7 basic elements of an offer:
Includes the legal address, legal description, names of the buyers and seller, and the brokers involved.
The price offered for the property.
The deposit demonstrates your good faith to the seller and will be applied against the purchase of the home when the sale closes. Deposits cheques are always certified and are usually no more than 3-5% of the purchase price. Realtors can give you guidelines for how much this should be. Deposits are made out to the listing company “in trust” (Example: Remax Hallmark, In Trust). The listing company cashes the cheque and holds it in its trust account until closing.
Terms and Conditions
Clauses designed to protect buyers such as conditions for financing, home inspections, and selling of a purchaser’s property. Realtors will advise you as to how much time you need for the conditions. All warranties made by the homeowner about the property, together with survey clauses, are located here.
Chattels Included and Fixtures Excluded
Chattels are generally those items that are not attached to the house and are movable. For example if the buyers wants the appliances to be included in the purchase price they would declare that in this section. Don’t assume that any chattel will be left behind. If you want it, it needs to be put in writing. Fixtures are generally those things that are attached to the house and therefore stay with the house as part of the transaction. If the seller does not wish to include a certain fixture in the transaction, such as a family heirloom or special light fixture, the seller will declare those items in the agreement.
Closing or Possession Date
This is the date when the buyer receives legal title (ownership of the property) and when the funds are transferred to the seller. Closing dates are usually 30 to 90 days from the date when the offer is presented.
Title Search Date
The buyer’s lawyer has until this date to search title of the property to ensure the buyer will receive clear, clean title on closing.