Agreement of purchase & sale and offer process
Before you sign as any offer, Amit walks you through the agreement of purchase and sale, explain the offer process including important clauses, legal documentation, terms and conditions etc. Amit is an experienced negotiator and he will manage your offers and counter-offers.
Types of offers
- Firm Offer to Purchase: Usually preferable to the seller because it means buyers are prepared to purchase the home without any conditions.
- Conditional Offer to Purchase: Usually means there are one or more conditions on the purchase, such as "subject to home inspection", "subject to financing" or "subject to sale of buyer's existing home". The home is not sold until all the conditions have been met.
Acceptance of Offer
An Offer to Purchase is presented to a seller who may accept the offer, reject it, or submit a counter-offer. The counter-offer may be in reference to the price, closing date, or any number of variables. Offers can go back and forth until both parties have agreed to terms or either side ends the negotiations.
Some important elements of offer
- Price: Depends on the market and the buyers, but generally, the purchase price offered is different from the asking price.
- Deposit: The deposit shows the buyer's good faith and will be applied against the purchase price of your Mississauga Toronto area home when your sale closes. As your buyer agent, Amit will advise you on the suitability of the amount of the deposit being offered.
- Terms: Includes the total price the buyer is offering as well as the financing details. The home buyer may be arranging his/her own financing or may ask to assume your existing mortgage.
- Conditions: The offer to purchase is made conditional to various clauses in order to protect the buyers and the sellers. These conditions can be unique to every situation. In general, they can be subject to- "home inspection", "buyers obtaining financing", or "sale of seller's property", "lawyer's approval", "condominium status approval", " survey", "home handed over clutter free", "revisit" and many more.
- Inclusions and Exclusions: These might include appliances and certain fixtures or decorative items, such as window coverings or mirrors.
- Closing or Possession date: Generally, the day the title of the property is transferred to the buyer and funds are received by the seller. Once you have signed the agreement of purchase and sale, you should follow these closing steps for a hassle free closing.