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Preparing For the Offer
The first step is to discuss the Keys Elements of the Offer
with Michael. The Offer is made in the form of a Contract
of Purchase and Sale.
The Key Elements of an Offer:
| 1) |
Price - Depends on the market conditions and how much
you are willing to pay. |
| 2) |
Deposit - Shows good faith to the seller (typically
5% of the price). The deposit is due at the time your
offer is accepted or upon subject removal. Therefore,
it is important to understand that you will need to have
5% of the purchase price available for payment once the
offer is accepted or upon subject removal. This deposit
goes into a trust account and is put toward the purchase
of the home on the completion date. |
| 3) |
Conditions - These are the "Subject
to's…" After your offer is accepted these are
some examples of conditions which have to be met before
the offer becomes binding on both sides. You usually have
about 5 working days to meet all conditions.
| · |
Obtaining Financing with acceptable terms &
rates. |
| · |
Approving the Property Disclosure Statement. |
| · |
Approving the Title Search of the property. |
| · |
Approving an Inspection by a qualified home inspector.
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| · |
Approving the Strata Documentation(not applicable
for detached houses). |
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| 4) |
Inclusions and Exclusions - These are the items on the
property you would like and would not like as a part of
the purchase price. These may include appliances, certain
fixtures, etc. |
| 5) |
Offer Acceptance Time Frame - This is the deadline for
the sellers to accept, refuse, or counter your offer.
Usually it is 24 hours. |
| 6) |
Possession Date - The day you get the keys and can move
into the property. The possession date usually falls 2
months after the date of the offer. |
| 7) |
Completion or Closing Date - Generally, the day the
title of the property is legally transferred and the transaction
of funds is finalized unless otherwise specified (in other
words, the day you have to pay for the home). In BC the
Possession Date is legally 1 to 3 days after the Completion
Date. The Completion date is important because the Completion
date must fall before the date of expiry on your pre-approved
mortgage. |
Once you have discussed with Michael about the key elements
of an offer. Michael will create and complete with you the
Contract of Purchase and Sale. Once you have signed and initialed
all the necessary sections of the Offer, we are now ready
to present the offer.
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