Agreement of Purchase and Sale
Making an offer to purchase a Mississauga property
Finding the right home from an extensive database of Mississauga real estate listings is tough. Coming up with a suitable offer to purchase your home, draw up the Agreement of Purchase and Sale, followed by endless documentation and paperwork to conclude the deal is even tougher. This is the time you need an experienced local realtor. The offer needs to include all clauses, sales details, legally binding issues, etc, all of which only an experienced realtors can help you with.
Agreement of purchase & sale and offer process
Before you sign any offer, Amit walks you through the agreement of purchase and sale and patiently explains the offer process including important clauses, legal documentation, terms and conditions etc so you know exactly where you stand. Amit is an experienced negotiator and you can be reassured he will manage your offers and counter-offers in the most efficient way possible in minimum time. There are several types of offers to help seal the deal for agreement of purchase and sale that are explained below.
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
The offer 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.
Important elements for a purchase offer
- Price: The offered price depends on the market, buyers and the asking price. Usually the 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 home when your sale closes.
- Irrevocability
- Completion date
- Conditions: The offer to purchase is made conditional to various clauses to protect buyers and sellers. These conditions can be unique to different situations. In general, they can fall under "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 others.
- 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 transfered to the buyer and funds are received by the seller. Once you have signed the agreement of purchase and sale, you should follow these steps for a hassle free closing.
