Parts of an offer to Purchase

Parts of an Offer to Purchase Contract.

• Deposit: money provided in trust for seller, in order to demonstrate seriousness of buyer.  This goes towards the final purchase price once the offer is firm (buyer has satisfied all conditions of the offer)
  If the buyer can not satisfy conditions the deposit is returned. On the flip side if the buyer removes all conditions and the chooses to back out the purchase for any reason deposit is forfeited to the seller (and the seller may sue for breach of contract)

• Chattels: refer to movable personal property that is not fixed to the land or building. In real estate, chattels typically include items such as furniture 🛋️ 🪑, appliances, curtains, and any other personal belongings 📺 that can be easily removed from the property. Unlike fixtures, which are attached to the property and considered part of it, chattels can be taken with the owner when they move. If any chat ties are to stay these need to be specified in an offer to purchase!

• Fixtures: anything attached to the land or building are considered staying with the property and must be left behind if not specified in an offer to purchase. This means if damage would be caused by removing it i.e. you have screwed a shelf to the wall, it must stay unless you have added it to the “exclusions” in the offer.

• Price: instead of asking “what price will the other party take/pay” ask your trusted real estate professional what the trends are…are homes selling at list price, over asking or under asking as well as what are homes like these selling for🧐 in order to come up with the perfect offer, counter offer & or final price! We often can give you an idea of what price a property will sell at by looking at other similar sales activity but do not know exactly what the seller will take or a buyer will pay.

• Possession: take into consideration what an ideal date for you may be!  My suggestion is don’t pick a typical date such as; the 1st, 15th or last day of the month and not a Monday or Friday…why you ask? Few things.
  1.These are busy possessions dates and so renting a moving van or other move related things can be more expensive because they are in higher demand.
  2. Mondays and Fridays can be busy chaotic days, sometimes Mondays are holidays and Fridays lawyers, bankers etc are trying to get out of the office early to go 🏌️ golfing or fishing 🎣 If something goes wrong you may need to wait til the next business day which means all weekend to get the keys for your new place! Pick a Wednesday and the 7th or 24th for your date… you might just thank me!

• Conditions: A condition is a deal breaker with a day and time attached. It is a specific requirement or stipulation that must be met for the offer to be considered valid or for the sale to proceed. Conditions can vary but often include factors such as financing approval, satisfactory home inspection, or the sale of the buyer’s current property. If these conditions are not met within a specified timeframe, the offer may be voided, and the parties may not be obligated to proceed with the purchase transaction.

• Terms: In an offer to purchase, a term typically refers to a specific requirement outlined by the buyer or seller as part of the agreement. It could include details like the leaving or removing certain items, price, closing date, cleanliness of the property upon possession, or anything that both parties must agree upon for the sale to proceed, unlike conditions, terms just need to be fulfilled prior to money transferring hands but don’t stop the sale from proceeding.