Real Estate Offers in Ottawa
Tom Witek can help you make an offer to buy your new home.
Once you have found a home that meets both your needs and your price range, you draft an offer with your sales representative and he presents the offer to the vendor or vendor’s listing brokerage representative. Here is a link for your review. This is an agreement of purchase and sale that you will sign when negotiating the price, terms and conditions. This form can only be used by licensed sale representatives after a Buyer Representation or Seller Representation Agreement has been signed. This form is attached for information purposes only: Agreement of Purchase and Sale
The main elements of the offer include:
1. Legal names of buyer and seller, and the legal description and
municipal address of the property.
2. The purchase price
3. Deposit (minimum $1,000, but the more you give the more favourable
position you will take with the vendor in a multiple offer situation)
4. Expiration date and time of the offer also called irrevocable time.
5. The closing date and the title search date.
6. All the conditions that are appropriate, usually less conditions
will create a more favourable offer.
When your real estate agent presents your offer to the vendors the following three scenarios can occur: Your offer is accepted without any changes, Your offer is outright rejected, Your offer is countered.
The Offer is accepted by the vendor:
It is up to you and the vendor, now, to fulfill the conditions that have been negotiated in the offer.
A. You have money in the account on which the deposit has been drawn.
B. Fulfillment of Financing condition (if applicable), make sure your lender
gives you a commitment letter on that property (specific municipal address)
C. Fulfillment of Inspection clause (if applicable).
D. Fulfillment of other conditions (if applicable).
E. Fulfillment of all conditions within the time clearly specified in the
offer. In some, cases extensions are granted by the vendor, but if the
conditions are not fulfilled on time, the deal might become null and void.
F. The vendor has to comply with any terms and conditions stated in the offer
during the time agreed upon by both parties.
The Offer is rejected by the vendor:
The vendors might simply reject your offer if they think you are low-balling them, or your terms and conditions are unacceptable. After your offer is rejected, you may change the price and conditions and draft another new offer. This initiates the offer negotiation process again.
The Offer is countered by the vendor:
The vendor may change any terms or conditions stated in the offer. In most cases, price change and closing dates are negotiated. After the offer is accepted by both parties you will need to do the following: show your lawyer the agreement to take note of crucial dates, meet all conditions as stipulated in the offer, your lawyer will search the title to make sure it is free of all encumbrances, the lawyer will check into any liens on chattels and outstanding taxes, the lawyer will communicate with the lender to arrange for smooth transfer of mortgage funds, you will need to arrange for transfer of utility services, you will receive a statement of adjustments from your lawyer and you will be notified about the payable amount which you will have to provide to the lawyer through a certified check.
Moving Checklist – Notifying various parties of your address change
Friends and acquaintances, landlord (if necessary), insurance brokers, schools, post office, phone company, electricity/hydro, natural gas, heating company, cable, doctor, dentist, lawyer, veterinarian, banks, employer, income tax, family allowance, CPP, Old age security, driver’s license, car dealers, credit card companies, clubs, associations, charities, any subscriptions and clubs.
Tom Witek’s Homes Buying System