Make an offer to purchase in 10 easy steps
You’ve found your dream home and you’re ready to buy! Here’s how to make a formal offer to purchase to the owner in a few simple steps.
“There’s nothing very complicated about buying a property,” says Martin Desfossés, real estate coach at DuProprio. “And negotiating one-on-one makes the process simpler: first because the owner is the person who best knows the home and the neighbourhood, and second because good communication prevents misunderstandings and speeds up the discussion. You can even fill out the Offer to Purchase document together.”
1. Start by downloading and looking at the Offer to Purchase document available on the DuProprio site at Offer to purchase and other legal documents.
Make your offer!
2. Before filling out the document, discuss these points with the homeowner:
- Purchase price
- Date of occupancy
- Date of the notarized deed (depending on the occupancy date)
- Deposit (if required)
- Inclusions and exclusions (e.g. appliances, furnishings, etc.)
- Financing: The buyer commits to obtaining a mortage loan (typical deadline: 3 to 10 days)
- Inspection: If the inspection does note reveal any major defects, this condition is considered fulfilled
- Review of the Divided of Undivided Co-ownership Documents (if applicable)
- Conditional on the sale of another property (if required)
3. Fill out the form, using the Annotated Offer to Purchase for guidance. It’s also available on the DuProprio website.
4. Submit the Offer to Purchase to the seller.
5. The seller must respond to the offer to purchase within the time indicated on the document. Otherwise the offer will be nullified.
6. The seller has three options:
- Make a counter-offer
If the seller decides to make a counter-offer, this will mean proposing changes to the initial offer. If this counter-offer is accepted, it means the first offer to purchaseis valid, while taking into account the changes.
7. Once the offer to purchase has been accepted, the buyer must sign an Acknowledgement of Receipt. This confirms that the buyer has received the seller’s answer.
Fulfill the conditions
8. To finalize the agreement, the buyer must fulfill the conditions set out in the offer to purchase.
- 3 recurrent conditions in an offer to purchase
- Understanding the “72-hour clause” in the offer to purchase
9. If all the conditions are met in the time allocated, the offer officially becomes a legal contract binding both parties. The property is then considered sold.
10. Once these steps are done, all that remains is for the buyer and seller to give the offer to purchase to the acting notary along with the documents needed for the transaction.
In closing, consult a notary or lawyer to clearly understand the implications of an offer to purchase. They are the only professionals with the know-how to provide legal advice.