When you think you’ve found your dream home, you may be tempted to make an offer and sign the deal as soon as possible — but beware.
Once you have made an offer, you cannot modify it. The seller can accept it, refuse it, let it expire by not responding or make a counter-offer, that is to say, change the offer and return it signed. It’s then up to you to accept the counter-offer, decline it, let it expire, or make a counter-offer yourself. Thus, several counter-offers can be made. And, even if your offer is conditionally accepted, it cannot be changed unilaterally.
Cesia Green, a real estate lawyer with Wall-Armstrong & Green in Barrie, Ontario, and author of the natural/estate blog, explains that an offer becomes firm once all conditions, such as that legal review, financing and inspection, are satisfied. To withdraw a firm offer, both parties must agree to terminate the contract, she says, and sign a “reciprocal release”.
However, she adds: “if only one party wishes to terminate the offer, it is tough to force the other party to cancel it”.
While there are slight differences between provinces and urban and rural areas, real estate experts say buyers should consider several steps before signing an offer to ensure their purchase will be carried out as smoothly as possible.
- Are my finances in order?
Offer prices are usually based on the sale price of comparable properties in the area, considering the condition of the property, its location and any additional elements included; a real estate agent can help you prepare a reasonable offer. According to Richard Laurendeau, a broker with RE/MAX Westcoast in Richmond, British Columbia, when you’re ready to submit a request, make sure you’ve secured a pre-approved mortgage that roughly matches the price you list in the offer. ‘offer. Also, make sure that the funds you need to set aside for your down payment will be available on the transfer date. - Do I fully understand everything I sign?
Be sure to read the purchase and sale agreement carefully to determine what you have agreed to buy, warns Ms Green. Pay particular attention to the section of each contract that lists fixtures (such as ceiling fans) that are excluded and movable property (that is not permanently attached, such as appliances) that is included. For example, she adds, you may think the blinds will stay on the property, but the seller doesn’t have to leave them there if it’s not specified in the agreement. “It’s essential to know these facts because you may be disappointed on the day of the transfer of ownership if you are not sure,” she says. A professional who deals with real estate regularly, such as your real estate agent or lawyer, can guide you through the agreement process, adds Ms Green. - Did I ask the right questions to the right specialists?
Several provinces are “buyer beware” territories. In these situations, Mrs Green adds that the seller cannot deliberately hide facts, but he is not obliged to tell you anything. According to Mrs Green, two kinds of defects affect homes: those that are “discoverable” — which you or a competent inspector can find — and which are not. Is rotten under the paint due to water damage, the seller would be responsible for this damage. Sellers aren’t supposed to hide damage without repairing it,” she says. “But if the seller thinks that all damages have been thoroughly repaired, they are not obligated to disclose past issues.” Therefore, home inspections and searches by an attorney are critically important. Lawyers conduct title searches at the registry office to find facts like easements, restrictions and mortgages held by the current owner that may prevent the title from passing to you free and clear of all charge or with restrictions on your usufruct, adds Ms Green. They must also conduct off-title searches to find unpaid property tax or utility bills. As lawyers guide buyers through the process in all provinces, they must conclude.
