The offer to purchase is an extremely important document in the negotiations leading to the acquisition of a new property, it is the contract by which the buyer agrees to purchase the property that is the subject of the offer. In return, the seller who accepts the offer to purchase agrees to sell under the determined conditions.
The offer to purchase will include the identification of both parties as well as a description of the property as detailed as possible (address, cadastral designation, measurements and land area). It should also specify, if applicable, whether the offered property is held in divided ownership or undivided ownership, and if it has parking spaces and storage facilities.
The offer to purchase should also specify the sale price and the deposit given upon acceptance of the offer, the expected date of the transaction, the inclusions and exclusions, the preparation of a location certificate, etc. The offer to purchase should also establish a deadline after which it will become null, allowing the property to be put back on the real estate market if the conditions specified in the offer to purchase are not met.
The offer to purchase should include a clause stating that the buyer will have the building inspected within a reasonable period of time and that their final acceptance is subject to satisfactory results from the inspection. Having the building inspected by a professional building inspector is a step not to be neglected. It is important, at this stage, to choose a recognized building inspector and, above all, to carefully read the inspection report related to your property. It is worth noting another undeniable advantage of a pre-purchase inspection. If a problem arises after the sale, the expert can be an important witness. They can generally confirm that the defect existed at the time of sale. They will also be able to present to the court an evaluation of the costs of repair and restoration.
In the acquisition of a condominium, the inspection report of the unit to be acquired must not only describe the current condition of the premises, but also provide an overview of the work that will be required in the coming years. This will allow you to assess the quality of the construction, evaluate the potential importance of your financial contribution in the years to come, and avoid being surprised by special assessments. Furthermore, as a prospective buyer, you must carefully read the condominium declaration. In all cases, whether it is a unit located in a newly constructed condominium or an older unit, it is important to familiarize yourself with this declaration. It governs the operation of the condominium, sets out the regulations, and frames the communal life of the co-owners.
The offer to purchase should also be conditional upon the buyer obtaining mortgage financing and, in some cases, the sale of their own property. Finally, the offer to purchase may include a clause providing for a property appraisal.
For their part, the seller must undertake that the property is free of hidden defects. They should also declare that they are not aware of and have not received any information that could diminish the value of the property (change of zoning, etc.). The seller remains responsible for defects they knew about but did not disclose to the buyer. In some municipalities, the seller must be able to prove that the property complies with municipal requirements for water supply, sewage, septic system, etc.
The offer to purchase therefore binds both parties. Failure to comply with the offer to purchase can have serious legal consequences for the party that refuses to fulfill the contract. If it is the seller who refuses to execute the offer to purchase, the buyer can demand that the court compel them to sell under the conditions stipulated in the offer to purchase. On the other hand, if the buyer no longer wants to fulfill their obligation, the seller can obtain a court order condemning the buyer to pay damages for the harm suffered.
Our team of notaries can draft your offer to purchase for a single-family residence, ideally, we can assist you in drafting your offer to purchase before you submit it to the seller.
We invite you to consult a member of the team at Notaire-Direct because they:If you do not have time to consult with us, visit our Frequently Asked Questions.
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