3 recurrent conditions in an offer to purchase
There are a number of common conditions in an offer to purchase a property that must be adhered to, whether you’re buying a house or a condo. Until each and every one of those conditions has been met (and in a timely matter), the sale is not considered complete.
These involve pertinent forms that could require the advisement of a notary (which can be provided to clients of DuProprio).
Here are a few common conditions in an offer to purchase that are required of every property sale.
1. Pending a favorable inspection
The sale of a property is often conditional on it passing a home inspection. This means that a certified inspector will need to be brought in and must fill out a report.
After the inspection has been completed and is ruled satisfactory, and one of the main conditions in an offer to purchase has been taken care of, the buyer can then proceed with the sale of the house or condo. However, if the inspector finds any major faults or flaws, the potential buyer can also withdraw their offer entirely.
2. Obtain suitable financing
Obviously the buyer can’t purchase the property unless he/she has the necessary funds required by the lending institution to complete the deal. According to the Legal Resource Centre, getting approved for suitable financing is one of the most important conditions in an offer to purchase that must be met. In all, a certain amount will be required for a down payment on the house and a number of fees will also have to be factored in for costs associated with the inspection, notary, and land transfer taxes.
3. The offer is conditional on the sale of the purchaser’s property
Some deals are conditional pending the seller being able to sell their own home before acquiring the new one. One of the most common conditions in an offer to purchase, it’s an agreement that must be mutually understood and agreed upon between the two parties. If this stipulation is worked into the offer and if the purchaser is unable to sell their property, they will be able to withdraw their offer on the new home.
Don’t let conditions in an offer to purchase intimidate you – once you understand what is required you can go into the selling process armed with knowledge and confidence.