The Agreement of Purchase and Sale is the document that is commonly used in Ontario,Canada to make an offer to buy a house. It shows the buyer's intent to purchase a property and to negotiate the terms of the Sale. It is commonly referred to as an "Offer".
This document allows the Buyer to outline the conditions they wish to be placed in their offer to buy the seller's property. Some common examples of a Buyer's conditions include arranging financing for the property to be purchased or completing a home inspection.
The Seller, in turn, may want to make changes to the offer for the Buyer to consider. This process can continue back and forth several times in an effort to reach an agreement.
The Agreement of Purchase & Sale includes the Purchase Price, Deposit, Irrevocability, Completion Date, Chattels Included, Fixtures Excluded, Rental Items, HST, Title Search, Future Use, Title, Schedule A, Closing Agreements etc..
RE/MAX, Escarpment, Realty Inc., Brokerage
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Hi Everyone. It's Mark Woehrle, Remax Escarpment.We're going to talk about writing an offer today and the agreement of purchase and sale. On it we start out with the date, of course, we put in the buyer name and the seller name. We put down the address that you are looking to buy. We talk about the frontage and the depth and of course your purchase price.
After that, you are going to submit a deposit and we're going to give a time to the seller to respond to us.
One of the key components to your agreement of purchase and sale is the irrevocable date. It is the day and the time that the other party as to respond to your offer. Until then your offer is open and they can either accept your offer, reject your offer, or make you a counter offer. Or, if they really don't like your offer and they get something else that is even better, they don't have to respond to you.
The next thing that we will discuss is the completion date. That is the day that you would like to move into your new house. This again, is negotiable.
The next thing we talk about is chattels, which are things like your fridge, stove, microwave, dishwasher, washer, dryer, any sheds, riding lawn mower, stuff like that. Sometimes they tell you in the listing if those are already included or if you have to ask for them.
Then we talk about fixtures excluded. Sometimes sellers say, I want to keep this beautiful chandelier here. It's been in my family for three generations.
Then we talk about rental items. For example, a hot water heater is very common item to have rented. Some people also have furnaces or air conditioners, heating pumps, also on rental. You want to know about that.
The next thing we talk about is the HST. In a resale home the HST is generally included unless you did a lot of renovations.
The next thing we need to talk about is the title search date. This is the date that your lawyer will have until to search the zoning.
The use on your house most likely single family residential is what it can be legally used for. If you are buying a duplex, triplex, or a commercial building, you want to make sure that you can use your building for what you want to use it for. Don't just go by what the seller represents. Make your own inquiries always.
At the end of the agreement, you have to sign your name and date it. And I have to witness that for you and sign it myself.
The next part of the agreement we are going to talk about is generally called Schedule A and those are some of the conditions. The first condition is always to pay the balance of the purchase price subject to adjustments to your lawyer. Some more popular conditions are number one: Home inspection obviously. Number two: Financing. Number three: That you are getting insurance. Number four: That you are requesting a survey. And maybe you want to ask for the utility bills for the last year. Maybe you would like to view the property one or two or three more times. And if there is anything else that you would like to have as a condition, you can ask for it in this section here. Any questions please give me a call. Mark Woehrle, Remax Escarpment Real Estate, 905-512-1846 on the web www.markwoehrle.com