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Send Us a MessageWhat You Need to Know about Residential Purchase Offer
There is nothing more exciting than finding the perfect place to call home. However, if you are in the process of making that purchase a reality, you will have to submit an offer of purchase. This is the buyer’s offer. It is a contractual document that a seller can accept or reject. The agreement will lay out the terms on which a buyer is willing to purchase the house or property.
Since an offer to purchase is legally binding, it is essential to understand what you are sending. There can be profound implications if the agreement is not completed correctly.
An offer to purchase is a sale agreement between a buyer and seller. Once the seller accepts and signs the offer, the deal becomes legally binding. It will lay out the purchase price and any conditions like the possession date or stipulations that could affect the sale of the property.
An offer to purchase is usually prepared by the buyer’s realtor. You are not required by law to enlist the help of your real estate lawyer with your offer to purchase before it is sent to the sellers. However, your lawyer will be able to guide you through the legal document and ensure you don’t encounter any issues or surprises later on.
Most realtors will have a standard document template prepared by the Alberta Real Estate Association (AREA) they use to complete your offer to purchase. This will be a Residential Real Estate Purchase Contact when you buy a house or a Residential Resale Condominium Property Purchase Contract when you buy a condo. These should include but are not limited to the following:
The seller must agree to hand over the property under the conditions laid out in the offer to purchase. Any failure to do so can result in the buyer withdrawing their offer.
Once the seller agrees to your firm offer and signs an acceptance, you are obligated to carry out the purchase. In most cases, you can not cancel an offer to purchase. It is irrevocable at this point, so as a buyer, you must be confident of what you are sending when you do.
Other scenarios where an offer to purchase might fall through include the following:
In most cases, the offer will be exchanged via the two parties’ real estate agents. The real estate agent for the buyer and seller will consult with their client on whether or not the offer is advisable.
Before signing an offer to purchase, it is in the buyer’s best interest to ensure that their financing details are in order. This will make the transaction as smooth as possible. Get pre-approval for a mortgage from your financial institution, have your deposit money available, and have ready coverage for any other associated fees.
Once you declare your interest to the seller’s real estate agent, documents for the offer to purchase will be prepared. Although realtors usually prepare the offer, it is a good idea to consult a competent real estate lawyer to ensure that the offer reflects your wishes.
Thoroughly review the offer to purchase before passing it along to the seller. This will give you greater peace of mind that you are getting the property you have in mind and that there will be no surprises in the future.
Request as much information about the property as possible before submitting an offer to purchase. This includes past history of the property (for example, if there are leases in effect, if it was ever involved in a grow operation, etc.) and any information that might devalue the property for a potential buyer.
A standard offer to purchase requires the seller to disclose all latent material defects of the property. By signing a standard offer to purchase document, the sellers confirm that they have disclosed all relevant information about a property.
When you buy through a realtor, they usually assist you with your offer to purchase. Also, they may discuss potential pitfalls with a real estate lawyer. If you wish to review your purchase offer with a lawyer, contact us to get started. Whether this is your first home or next investment property, we are here to make the process seamless and painless, and answer all your real estate questions. Having a lawyer that represents you and has your best interest in mind is necessary for closing a real estate transaction.
The DLegal team is here to support. We will do our best to assist or connect you with those who can help.
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