Preparing an Offer

An offer is more than a legal document. It’s an emotional event. Here’s how to help make sure all the decisions you make are good ones.

Making an offer can be an intense experience. For instance, you may decide that this is the perfect home in which you will live happily ever after. It’s a lovely dream, but it may not come true — at least not in this house. Try not to get ahead of yourself by moving into a house in your mind’s eye before the deal is completed. Whenever an offer is made, you have to be prepared for it to be rejected.

Once you’ve found a home that meets both your needs and your price range, you can present the vendor with an Offer to Purchase or an Agreement of Purchase and Sale. This offer or agreement is legally binding. It should not be made casually.

Your offer or agreement will include:

• Basic details, such as your legal name, the name of the vendor, and the legal and civic address of the property.
• The purchase price. In a first offer, price is negotiable, so you may want to start lower than your maximum affordable cost.
• The chattel or items in the home which will be included in the purchase price. These may include window coverings, appliances or satellite dish. Whatever items are in or around the home that you think are included in the sale should be specifically stated in writing in your offer.
• All financial details. The amount of deposit, any interest to be paid on it and details of mortgage financing.
• The closing date. The day you take possession of the home. Usually 30 or 60 days from the date of agreement, but with some home sales, it’s often 90 days or longer.
• Request for a current land survey of the property.
• Expiration date and time indicates when the offer becomes null and void.

In addition, it is common to make a conditional offer. For example, you may make an offer that is good only on the condition that you obtain mortgage financing or that the house passes a home inspection.

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Preparing an offer is a very complicated offer that requires an in-depth knowlowledge of various laws and regulations. Please contact Martin Zielinski to help you with your next Mississauga Real Estate Transaction.