Making an Offer
You’ve found that perfect house! And, you’re ready to make an offer. But, how does that go? What do you need to do? What are the first steps?
When you’re ready to make an offer, the first step is letting your sales representative know. Following that, your Realtor® will prepare an Agreement of Purchase and Sale. This document will include any custom clauses you may require. Most Buyers put conditions on their offer. And, honestly, some conditions are lifesaving.
And, we’re back to financing. Even if you’ve been pre-approved for a mortgage, the property will require an appraisal. This step is mostly for the lender. An appraisal assures the lender the price you’re paying falls within accepted market value. Once your financing has been approved, you’re required to provide written notice to the Seller in the form of a waiver of amendment before the expiry of the condition. While this may sound complicated, your Realtor® will help you.
Still a bit confused about financing? Let’s take a step back to our financing page.
Sometimes, you miss the glaring defects in a home. A home inspection condition can save you from a bad purchase. When you add this condition, it allows the opportunity for a property inspection by a qualified and licensed home inspector. As a result of this inspection, you’ll be notified of any major defects in the building prior to your entering into a firm agreement. Without this clause, you’re not safe in case of structural damage or defects.
For the offer to be valid, it must contain specific dates and times. This outlines what time period the offer is valid for. Usually, the offer is valid until the next day at midnight, though sometimes this period is longer. Once that period passes, the offer is considered ‘dead.’ Because of this, the time frame is called the irrevocable period.
You and your Realtor® can discuss the time period that works best for every situation.
The requisition date involves a lawyer. It’s the period of time your lawyer has to determine if there are any issues with the title of the property. Generally speaking, the requisition date is usually 30 days prior to the completion date.
Fixtures are permanent items. Usually, these are physically attached to the property. For example, a bathtub, sink or toilet permanently plumbed in would be a fixture. Technically, anything nailed to the building is also a fixture. Items screwed to the home, however, are chattels. A commonly contented area, fixtures and chattels can be confusing when buying a resale home. So, if there’s any doubt, make sure to discuss with your Realtor® what you expect to come with the home. Sometimes, the highlight of the home might not be coming with it.
Buying a condominium? Listen up. This condition allows your solicitor to review the condominium’s documents. Letting them review these documents ensures the corporation is financially sound. They’ll also ensure it meets all the requirements of the Condominium Act. Under this act, the property management company has up to 10 days to prepare the Status Certificate. They can also charge a maximum of $100 for this service.
Every purchase and sale in real estate requires this. For Fintrac, the Brokerage must obtain an Individual Client Information Record. This record sets out the Buyer/Seller name, address, and date of birth. Further, it also outlines the nature of your principal business and/or occupation. To receive this, you’ll need to produce a valid form of ID. For example, a birth certificate, driver’s license, and passport would all qualify. For more information, visit Fintrac’s site.
This date is also known as the closing date. In short, it’s the date of ownership transfer. Often, the buyer and seller negotiate this date. In that regard, any date you both agree to will work.
The money. In order to buy a home, you have to produce a deposit. Therefore, a deposit cheque/bank draft must accompany the offer to the Seller. While the amount may vary, it’s generally between 5% and 10% of the purchase price.
Chattels: the things the home doesn’t come with. Professionals don’t deem chattels part of the home. Therefore, you must specify in your offer the chattels you want with the property. While you might be denied, it’s always best to ask. From there, your Realtor® can negotiate for you.
Common chattels buyers often request include:
- area rugs
- light fixtures (ceiling fans and chandeliers)
- wood burning stoves and accessories
- kitchen appliances (microwave ovens, refrigerators/ freezers, stoves and ovens)
- washers and dryers
- window air conditioners
- garage door openers
- storage sheds
- playground equipment
- garden furniture
- central vacuums and equipment