All About The Offer To Purchase
When buying property, the applicant needs to complete and Offer to Purchase with the real estate agents to show their interest in the property.
The Offer to Purchase is basically a document stating the terms and conditions laid down by the seller and the agents regarding the sale of the property.
There is a sort of adrenaline attached to this process as other people may also complete an Offer to Purchase on the same property. It then becomes a competition between the applying parties of who can meet the necessary terms on time.
Certain information needs to specified in this document
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This is the date by which the seller needs to be out of the house and when the buyer can move in as agreed upon by both buyer and seller.
This is an amount agreed upon by buyer and seller which the buyer is responsible for if moving into the house before the agreed upon date.
Fixtures and fitting
Certain fixtures and fitting may not be removed from the house, for instance blinds hanging in front of a window, and may not be taken out of the house as it is a fixture in the structure. The buyer and seller need to agree upon which must stay and which can be removed.
In certain provinces the stove in the kitchen needs to stay there as it is seen as permanent fixtures.
Everything agreed upon must be indicated in the Offer to Purchase.
Conditions of sale
It may happen that the sale of the house is bound to certain conditions, for instance the sale of the house on both parties’ side.
This is common practise that the buyer can only afford to buy the new house if his current house is first sold.
Extra documents required
When buying new property, it is your right to insist on a signed electrical certificate by an Electrical Board approved electrician to indicate that the wiring of the house is in good order and up to standard.
Defects to the property
All defects to the property must be indicated on the offer to Purchase and arrangement to what will be done regarding the defects must be indicated.
Time limit to report other defects
Legally all defects must be indicated, but in the event that some errors are overlooked, a time limit has to specified for the buyer to indicated those errors. If the buyer does not report such errors within that time frame, the costs are on his own expense to repair the damage.
This may be information such as repainting of the house if necessary. These arrangements must be made on how these additional repairs and improvements to the house will be settled.
Cooling off period
This is a very important clause of the Offer to Purchase. To avoid impulsive buying or selling or financial problems on either side, a cooling off period is indicated in which time any of the two parties my cancel the contract and withdraw the offers without facing legal action.
DID YOU KNOW...
Did you know that the process of buying a house involves lots of legal contracts? Make sure you are empowered with world-class legal advice to save you from any fine print disasters that might harm you.