Sign up for our Email Alert to have the latest listings emailed right to your mailbox.

Stages of buying a home

Purpose of the offer to purchase

The offer to purchase, also called a promise to buy, is a contractual document that obligates a buyer to purchase the property. This document also obligates the seller to sell his property once the offer to purchase is accepted. You can either accept or refuse the offer. If you accept it, it becomes a contract and you must respect the conditions or you can be legally pursued. If you refuse, you can make a counter offer, which can be accepted or refused. You can contact your lawyer or notary to complete the offer to purchase.

Main elements of the offer to purchase
The following categories are what you will find on a common offer to purchase.

Legal identity of the property:

• Identification of the buyers (name, address, profession).
• Detailed description of the home, address, dimensions and land surface.
• Declaration of buyers: Satisfaction declaration after the examination of the property.

          Price and method of payment:

• Price offered for the property.
• Deposit amount: By giving a deposit the buyers shows good faith. When dealing with a Realtor the deposit is held by the real estate company, when dealing with a FSBO, it would be safer that it be deposited in a lawyer's or Notary’s account.

           Conditions of sale:

• Community obligations: Both parties commitment to sign a sales act in front of the lawyer or notary of their choice
• Seller's obligations: The seller commits himself in delivering the property in the state it was during the visit. He also commits himself in providing a valid property title certificate of the property.
• Buyer's obligations: He commits himself to completion of contract terms (securing mortgage, home inspection….)
• Date of occupation: This date corresponds to the day where the transfer of the property will be effective; you will need to present yourself to the lawyer a few days before for transfer to be completed.
• Inclusions or exclusions: List of equipment that is included or excluded from the sale (lights, oven, dishwasher, dryer, etc...).
• Other conditions. You will find the following information:
• List of repairs to be completed by the seller.
• Conditional offer upon the favorable results of the inspection.
• Conditional offer on the sale of the property to the buyer.
• Other clauses: Do not hesitate to add your offer to purchase or your counter offers if you desire to precise the additional information.

          Delay of acceptance:

• Delay of acceptance: It is preferable to specify a delay for the acceptance or the refusal of the promise to buy by the seller. If they do not respond in the subscribed time, the offer will cancel itself and the deposit will be reimbursed.
• Buyer's signature.

          Seller's acceptance:

• Identification of the sellers and their signatures.

          Proof of reception:

• The two parties recognize having received a copy of the offer to purchase.

Counter offer

The counter offer or counter proposition is used to include or exclude certain elements, modify the price, change the date of possession or mention a point to the proposition. The counter offer can be accepted by the buyer, or in response, send another counter offer. Each counter offer is a new offer and the original offer becomes invalid, should the buyer or seller choose not to accept the counter offer all negations are finished.

Once the conditional clause is completed (mortgage loan, favorable inspection, etc...) only major problems like a discovery of a non-favorable title by the lawyer or an agreement between the seller and buyer may cause a break to the promise to purchase. If one of the parties refuses to follow up they can be prosecuted.

Lawyer and the transfer of property

The offer to purchase is used as a foundation in the sales act which will be completed by the lawyer or notary. Once the offer to purchase or the counter offer is accepted, the only thing left is to officiate the transaction. You have to send a copy of the promise to buy to the lawyer or notary of your choice. When dealing with a Realtor this will be part of their service, when dealing with a FSBO you will have to send a copy yourself. The lawyer will complete the following tasks:

1. Title examination
   By completing this research, they will be able to guarantee to the buyer an uncontestable title. It is with the help of a zoning certificate (See below)that theywill be able to verify if the house was constructed in accordance with municipal laws and if it conforms to zoning laws. Your lawyer will also ensure that the dimensions of the land are exact, that the property of the neighbor is not passing on their land, etc... They will also have to verify that the taxes are paid and the legal mortgages do not exist on the seller's property.
2. Editing of the act of sale
   This step has the effect of making the purchase of the house official. The lawyer will have to precise the clauses and essential conditions of the protection of your rights.
3. State of readjustment
   The state of readjustment confirms the price of sale, indicates the amount that the buyer has to give the seller as well as the balance of the initial payment and the readjustments. The buyer has to produce a certified cheque.
4. Subscription of the sale of the office of publicity rights

At the moment of the purchase of a used home, the choice of a lawyer or notary comes back to the buyer. To find a lawyer or notary, ask friends for referrals and check your local listings.

Zoning certificate / survey

The zoning certificate, or survey, describes the property by presenting a plan (land, principal building and dependants).

Financial institutions usually require an up to date localization certificate (survey).