The Elements of an Offer
Here's a quick reference to the elements of a Promise to Purchase as it is called in Quebec or Offer to Purchase elsewhere. Your agents knowledge and experience can play a large part in how the negiotations will take place.
1. Price
Depends on the market and the buyers, but generally, the price offered is different from the asking price. Discuss with your agent what price you want to offer on the property.
2. Deposit
Shows the buyer's good faith and will be applied against the purchase price of the home when the sale closes. Your agent can advise you on a suitable amount to offer.
3. Terms
Includes the total price the buyer is offering as well as the financing details. The buyer may be arranging his/her own financing or may ask to assume your existing mortgage if you have an attractive rate.
4. Conditions
These might include "subject to home inspection," "subject to the buyer obtaining financing," or "subject to the sale of the purchaser's property."
5. Inclusions and exclusions
These may include appliances and certain fixtures or decorative items, such as window coverings or light fixtures.
6. Closing or possession date
Generally, the day the title of the property is transferred to the buyer and funds are received by the seller, unless otherwise specified (except in Manitoba and Quebec).
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