Eight Basic Elements of an Offer

The Offer

Eight Basic Elements Of An Offer

1. Basic Details

This includes the address and legal description of the property, and the names of the vendor, purchaser and brokers involved.

2. Price

Depending on the market conditions, your opinion of the value of the home and the information I have provided, the price you offer may be different from the seller's asking price.

3. Chattel - Inclusions and Exclusions

Items within the home that will be included in the purchase price such as appliances, fixtures or decorations such as drapes or mirrors are referred to as chattel. Don't assume that anything will be left behind. If you want it, put it in writing.

4. Deposit

Decide on the deposit that you will provide to consumate the offer. The deposits can be provided upon tendering the offer or upon acceptance. The amount will vary from a thousand dollars to several thousand dollars, depending on the “norm” in your specific market and the price of the home. If you aren’t sure, talk with Mike futher about the deposit.

5. Terms

These include the total price of your offer as well as the financing details. You may arrange your own financing or may ask to assume the seller's mortgage, especially if it has an attractive interest rate. There will also be an expiration date and time after which the offer is no longer valid.

6. Conditions

These might make your offer subject to home inspection, to your obtaining financing or to your selling your property.

7. Closing or Possession Date

This is the date money changes hands and you get the keys. Your lawyer will handle the details for you.

Note: The day before or the morning of Closing we will do the final inspection and report back to your lawyer.

8. Request for a Current Survey of the Property

If the vendor does not have one, you may wish to make one obtaining a land survey a condition of the closing. In most cases, the vendor will not pay for a new survey. As discussed earlier, you can ask the vendor to provide a "Declaration of Possession" or you could buy a "Title Insurance" policy instead. If however, you are planning to add to the house or build a garage, the best idea is to request a new survey - you'll likely need it to get your building permits.

Forward: Making an Offer and the Process

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