Tips for a Seamless Property Purchase Offer
You are about to become a homeowner. After several visits, you have finally found the perfect house. But before getting the keys, there are several steps to take, including the offer to purchase. Here are a few tricks to avoid making mistakes.
What is an offer to purchase?
The offer to purchase is a pre-contract between the buyer and the seller. It is called a pre-contract because a second contract will formalize the transfer of ownership from one individual to the other.
However, the offer to purchase has an important legal value: once it’s signed by both parties, the buyer is obliged to acquire the property, and the seller to sell it to him. The cost of the house is defined, as is the deadline for responding. If you like several houses, making several offers at the same time is not advisable as you may end up in trouble.
The offer to purchase usually contains certain conditions, such as sufficient financing, an acceptable inspection report or the sale of the buyer’s property.
Writing a good offer to purchase
Filling in the offer may seem simple, but there are several details you need to understand.
- Fill in all the details of the buyer and seller, including their name, address, telephone number and email address. This will allow your notary to contact the parties.
- Make sure the offer is to the right seller. You will need to check with a reliable source, such as the City’s assessment roll, the tax bill or the land registry. Beware of agents or caregivers: although they are important in the negotiation, they are only third parties to the transaction.
- Check the property documents. For example, does the certificate of location in the seller’s possession reflect the current state of the property? If the plan does not show the position of each structure on the property, this should be a red flag. The report may also reveal crucial information about municipal regulations. The age of the document could be questioned through case law.
Remember that an offer to purchase must contain all the information related to the transaction and be as accurate as possible. It cannot be cancelled, even if you change your mind. Both parties must honour their commitment, or be sued for breach of contract.
Having the support of your notary during real estate transactions is a must. Even if you can’t wait to have the keys to your new property, don’t skip any steps. You’ll be even happier when all the procedures have been completed… according to the rules.