Filling out an offer to purchase form in 10 steps

There are several essential steps to navigate on the property buying journey and decisions made at each stage could have a major impact on a real estate transaction. The first step in the journey involves filling out an offer to purchase form. Whether it’s a potential buyer’s first rodeo or they have plenty of experience, knowing how to properly complete and submit this document will only increase the chances of success. Our guide reveals 10 key steps to drafting a sound offer, adapted to each situation of course.

Overview:

• 1. Download an offer to purchase form
• 2. Make an offer
• 3. Complete an offer to purchase form
• 4. Submit an offer to purchase to a seller
• 5. Receive a seller’s reply
• 6. Sign an acknowledgement of receipt
• 7. Comply with conditions listed in an offer to purchase
• 8. Draft a legal agreement between the parties
• 9. Finalize a transaction with a notary
• 10. Take possession of a property
• FAQ

1. Download an offer to purchase form

The first step is the simplest. An offer to purchase form is the starting point for everything. This official document, required for every transaction, formalizes the intention to buy. It’s available on the DuProprio site in the Offer to purchase and other legal documents section, ready to be completed, signed and submitted. No need to make it complicated, everything is designed to be fast and straightforward.

2. Make an offer

An offer to purchase isn’t just about the money. “Certainly, the amount offered is central to any negotiation but there are other details to be worked out as well,” says Elena Maria Bejan, notary at DuProprio. Several factors need to be taken into account to ensure that everything is complete and well-defined:

• Selling price This is the cornerstone. It’s always recommended to examine the current state of the market to estimate market value to make your offer is competitive.
• Date of possession This is when a buyer takes possession. A key component, as both parties have to agree on the time when a property will be officially transferred.
• Date of notarial deed Both parties appear before a notary on this day to sign a deed of sale.
• Inclusions and exclusions Are appliances, furniture, curtains included? It has to be specified to avoid any ambiguity. This is a point that can be negotiated by the parties involved.

And that’s not all! There are conditions safeguarding a buyer during the process, too:

• Conditional on financing A buyer commits to getting a mortgage loan and presenting an unconditional mortgage commitment within a standard period of 14 days. An offer can be cancelled if financing was denied. If a buyer wants to pay in cash, they must provide proof of funds within a standard period of 10 days.
• Conditional on inspection A buyer can make their offer conditional on a home inspection. The condition is fulfilled if no major defects are revealed. However, if a problem is uncovered, that may lead to renegotiating or even cancelling a promise to purchase.
• Conditional on verifying documents related to a divided or undivided co-ownership property It’s crucial to make sure a buyer is fully aware of the rules on divided or undivided co-ownership. That includes an undivided co-ownership agreement, monthly condo fees, internal rules or any other legal issue that may have an impact.
• Conditional on a buyer selling their property first Sometimes, a buyer has to offload their property before buying another one. In a situation like this, an offer may be conditional on a buyer selling their property within a given time.

All these elements make up an offer to purchase that is now thorough and carefully considered by taking into account the needs and expectations of both parties. The goal is to fully understand each condition to avoid any complications afterward.

3. Complete an offer to purchase form

Once an offer is determined, it’s time to fill out the form. Make sure every ‘i’ is dotted and every ‘t’ is crossed in order to confirm its accuracy before submitting. This document will define the terms of the agreement. The template provided by DuProprio is self-explanatory and easy to understand.

Need help with this step?

 See how to complete an offer to purchase

4. Submit an offer to purchase to a seller

When an offer is ready, it can be sent to a seller by email, hand-delivered or even sent by registered mail. It’s important to provide a response time (generally between 24 and 72 hours) so expectations can be managed and both parties aren’t left hanging for too long. Negotiations can now officially start.

5. Receive a seller’s reply

A seller must respond to an offer by the deadline provided or an offer will be automatically cancelled. This is why it’s so important to clearly communicate the deadline. If a promise to purchase is accepted, the transaction moves forward.

If a seller wants to make a counteroffer, they must clearly provide a new response time. This is an essential step to let a potential buyer know how long they have to think about it. In the event of a counteroffer, certain terms in an agreement may be negotiated, particularly the selling price or suspensive conditions, before reaching a compromise.

6. Sign an acknowledgement of receipt

When an offer is accepted, a buyer signs an acknowledgement of receipt that an offer was received and an agreement was reached on the transaction.

7. Comply with conditions listed in an offer to purchase

If an offer is accepted, it’s time to fulfill suspensive conditions outlined above in point #2. One of the most common is to get financing. If, for whatever reason, funds are not released by the agreed-upon deadline, a seller may back out of an offer with no consequences.

If a condition to inspect a property is included and major defects are found, negotiations can take place to adjust the selling price or ask for repairs before finalizing a sale. If the parties fail to reach an agreement, they may exit a transaction without penalty.

When a buyer already owns a property, a condition for the sale of their current property may be included in an agreement. Until this is settled, a seller can keep searching for other people interested in buying their property thanks to the 72-hour clause that keeps the door open to new offers.

“While a buyer is trying to sell their property within the timeframe outlined in an offer to purchase, a seller may very well receive and accept a second offer,” explains Elena Maria Bejan. “The first buyer now has two options: cancel their offer to purchase or cancel all the conditions of their offer still not been fulfilled or waived, including the condition for the sale of their property. Or their second option would be to show they have the financing or necessary funds to buy.”

It’s vital to ensure a property is what it claims to be. Verification of title deeds, absence of undisclosed easements or unpaid mortgages… everything must be checked out to avoid any unpleasant surprises later on.

8. Draft a legal agreement between the parties

If all conditions have been meet by the deadline provided, an offer officially becomes a legal contract binding both parties. The property is then considered sold.

9. Finalize a transaction with a notary

Last but not least, the final step involves completing an agreement before a notary who verifies all legal documents, drafts and registers the final deed of sale at the land registry office. After these formalities are fulfilled, a property is officially transferred to the buyer, funds are released to the seller and the deal is done.

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10. Take possession of the property

Once a sale is concluded after signing before a notary, the buyer becomes the owner. This is a defining moment when all the work put in comes to fruition. Taking possession happens on an agreed-upon date, often the same day a notarial deed is signed. The keys officially change hands at this time and the new owners can start making the new house their home, whether they plan to move in immediately or undertake renovations. This step marks the end of the buying process. A property is ready to welcome its new occupants.

Need a promise to purchase form?

Documents to download

FAQ

Where to find an offer to purchase form?

Easily find this and other free forms on the DuProprio site. Once on the site, go to the Buy section to access the Offer to purchase and other legal documents page.

What documents need to be completed to make an offer to purchase?

The most important form is the Offer to Purchase form (Residential, Revenue Property or Commercial). Other documents (Declaration of the Seller, Amendments and Notification of Fulfilment of Conditions, Counter Offer, etc.) may also be required.

How to make an offer to purchase?

Simply complete an offer to purchase form and include all the details, like an offer being made, conditions (financing, inspection, etc.) and date of possession. This form is then submitted to a seller by email, hand-delivered or sent by registered mail.  

Did you know that the team of notaries at DuProprio can answer any questions you have about the transfer of ownership? ¹ Watch our short and informative videos to learn everything about our services and the steps involved in a commission-free sale.