Promise to Purchase and Negotiations
After visiting different properties, you finally find one that’s worth making an offer on. So what are the next steps?
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After visiting different properties, you finally find one that’s worth making an offer on. So what are the next steps?
This is the formal legal agreement to purchase a property. Once the seller accepts the offer, it then becomes official. The offer may be conditional, meaning it's subject to factors such as financing or inspection. If either condition is not met, you then have the right to modify or cancel your offer even if the seller has already accepted it.
Your Proprio Direct broker will always be with you to help you make the right decisions and to complete the offer.
Some wording you'll likely find on the promise to purchase form.
That’s you.
The actual home seller.
The amount offered, hoping that the seller will accept it.
Your Proprio Direct broker is there to make sure no details is left out in your offer.
Make sure you know what’s included in the sale (washer, dryer, microwave oven, curtains, fixtures, etc.). Leave nothing up to chance.
Usually less than 48 hours, this is the delay you give the seller to respond to your offer.
Usually 30, 60 or 90 days after the signing of the offer, this refers to the date you take possession of your new house.
Since each transaction is unique, you will probably want to add important conditions such as a thorough home inspection.
You signed the deal now your real estate broker is responsible for presenting it to the home seller and/or his broker, when applicable.
That’s fantastic, congratulations! You have the right to modify or cancel the promise to purchase, even if the seller has already accepted it.
Although it rarelly happens, an offer can be rejected. In such case, your real estate broker will attempt to find out why and to establish whether there has been a misunderstanding.
In general sellers attempt to change the offered price for a higher amount; they may even remove or adjust certain conditions. Afterwards, it will be your turn to bid again by indicating further changes or simply accepting the counter-offer.
Avoid surprises!
This is something not to be overlooked since it can help detect any defects or malfunctions in the building's structure, systems and physical components. To properly identify any potential structural damage, the inspector will check the property and do an in-depth examination of the following: heating and cooling system, plumbing and electrical, roof, attic, walls, ceilings, floors, windows, doors, foundation, basement and more. He will then prepare a comprehensive report detailing all his findings.
Barely costing more than a few hundred dollars, a property inspection can protect your from unpleasant surprises.
Your Proprio Direct broker can recommend you several home inspection specialists.
Congratulations! Negotiations were successful, but for the property to be considered officially sold, there are some crucial "closing" stages that must be finalized.
The notary is normally designated by the buyer. His role is to verify and prepare legal documents and titles that will be transferred to the buyer.
Furthermore, it is also the notary’s responsibility to receive the proceeds of the sale, to calculate and make adjustments to those proceeds, to subtract your broker’s commission, and to refund the balance of your mortgage to your financial institution.
If any major work has been done to the property, it’s preferable to include receipts and warranties.
The notary will contact you to confirm the date and time for the signing of the deed of sale.
Under provincial legislation, the transfer of any property is subject to the billing of a land transfer - also known as the famous Welcome Tax (see "Property Transfert Calculation" form).
All that’s left now is getting ready to move.