The post Conditions of purchase and sale offer first appeared on Ahmed Amin Real Estate Broker.
]]>Before presenting Purchase and sale offer to a seller you must be sure that all inclusions and conditions are reflecting your best interest. Make sure to follow all recommendations of your real estate agent in Toronto. The most important conditions are listed below however more conditions can be added if you wish or if your real estate agent suggests adding in order to avoid any complications at later stage. Each condition states time limit to be waved otherwise the offer will be null & void and the deposit will be returned in full to the buyer.
Main conditions are usually related to the financing, home inspection and property title clearance. Some additional important conditions are various based on type of property. For offers to buy houses in Toronto, recent land survey and conforming to zoning by laws conditions are main requirements. As for condominiums in Toronto, a status certificate for the condo corporation checked by your lawyer is a must, especially if you consider one of the condominiums downtown Toronto.
A closing date or transaction date is a part of the purchase and sale offer inclusions, but considered as a condition. This is the date when funds are transferred from the buyer financing company to the seller, final contracts are exchanged between lawyers, and buyers’ name is registered to property title as the owner. The closing date can be very important negotiating factor. Sometimes sellers accept offers with lower price because of the fixable closing date, in case seller needs time i.e. to buy a new property and to move in there or for any other reason. However, there are situations when the owner needs to close the deal as soon as possible, and so he or she is willing to accept the offer with matching closing date even if the offered price is much lower than the property asked price.
There is a common conditions recently added to an offer of purchase and sale. If the owner wants to buy another property, selling of the subject property will be conditional to buying a new one. Or if the buyer wish to sell his current property before buying a new one, his offer for the new property will be conditional upon selling his old one. This is a legitimate condition and you may see it in your offer.
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]]>The post Drafting Purchase and sale agreement offer part “1” first appeared on Ahmed Amin Real Estate Broker.
]]>As a first time home buyer, most probably you have never seen the purchase and sale agreement forms before. There is nothing to be worry about in that regard. You don’t need to think what or how to write. Your Toronto Real Estate Agent will help you to fill out that offer. There are standard forms approved by OREA (Ontario Real Estate Association). Each Real Estate Agent in Toronto is trained to draft the offer correctly and legally to guarantee that the best interest of his clients is met.
In the standard forms of Purchase and sale, you will find spaces to fill out with information such as: the name of the buyer(s) and their representing Realtor, an offered price and the expiry date of the offer known as “irrevocable date”. You will see a set of general terms and conditions. There will be a space to add any further conditions that you or your Real estate agent believe necessary for protecting your rights. Such conditions may regard subjects with direct relation to the property or buyers themselves.
You also need to be clear about what the price you are offering includes. Houses and condominiums in Toronto are very unique with regard to what can be considered as chattels and fixtures of the property. By the law all fixtures are included in the selling price but chattels are not. If you wish to include any of the chattels in your offer, you have to state that in your offer to avoid later complications.
Fixtures are items fixed in the property and within the area of the property. These can be items inside unit, such as built-in stove or fire place, or those in the surrounding areas, such as tool room or covered shelter in the backyard of a house. Chattels however are portable or personal use items that do not belong to the property, such as furniture.
Changing some or all fixtures, i.e. build-in dishwasher, to different older ones after showing the property to potential buyer is a legal challenge to the seller. This practice used to be common issue with older condominiums downtown Toronto but, thanks to legal restrictions, it has been eliminated.
The post Drafting Purchase and sale agreement offer part “1” first appeared on Ahmed Amin Real Estate Broker.
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