Buying a House

Step 6: The offer to purchase and sale

Congratulations! if you've made it to step 6 you've jeust found your dream house but remember, the legal implications of buying a home are crucial. Before making your offer, make sure that you are fully aware and knowledgeable about the extent of the commitment.

Be aware of the extent of the commitment

The offer to purchase is a very important document that is legally binding on the parties. It is a contract in which one person offers to buy another's property under certain conditions. Never sign an offer to purchase too quickly. The offer to purchase includes all the details required to identify the property and the conditions of the transaction such as:

• address and lot number
  amount of the deposit
  date of possession
  distribution of taxes
  length of time that the offer is valid (generally between 24 and 48 hours)
  what is included or excluded in the sale price (e.g., light fixtures, drapes, carpets, household appliances)
  approval of mortgage loan (amount, rate, term)
  satisfactory inspection of premises by an expert
  sale of your current house
  any other condition(s) deemed appropriate

What happens once the offer is made?

The seller can accept or refuse your offer to purchase. If he/she refuses a counter offer will be made which you can either accept or reject. If you refuse the counter offer, you may make another counter offer. Once an offer is accepted by the seller, it consitutes an agreement to sell.

Once an offer to purchase has been accepted, neither party can refuse to carry it out. Otherwise the seller or buyer can be sued for damages and the buyer can lose their deposit.

Upon completing the sale, make sure that your notary or lawyer has all the necessary documents on hand. Review with them the adjustment statement that details the amount that has to be signed over to the seller in order to conclude the sale. Your notary will pay the seller in your name with your funds.