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How does my Realtor help me manage my offers?
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Pre-closing viewing
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Remember!
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A buyer interested in purchasing your property will make an offer and put down a deposit. The buyer's Realtor communicates the offer specifying the offers terms and conditions to you or your Realtor. The offer states how much the buyer is willing to pay and details the conditions.
The Agreement of Purchase and Sale is designed to protect both buyers and sellers. It is important to ensure that the information contained therein is in accordance with that of the listing contract and the Buyer’s request. |
The Agreement of Purchase and Sale contains a clause that allows the buyer to view the property, before closing, to ensure it is in the same condition as it was when the offer was made.
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Make sure you read and understand any offer you receive as this will become a legal contract. Ask your Realtor any questions you may have and consult a lawyer if you feel it necessary so that no doubt remains in your mind. |
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The parties to the offer
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Costs relating to repayment and cancellation
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Declarations
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The Agreement of Purchase and Sale must identify the parties bound by contract, i.e. the seller and the buyer. It should also indicate the names and addresses of the seller and buyer.
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The costs relating to the repayment and cancellation of any debt secured by a mortgage and not assumed by the buyer must be borne by the seller. |
Your declarations in the listing contract must also appear in the offer. If some elements do not appear, you can add them using a counter offer to the Agreement to Offer and Purchase. |
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Object and term of the contract
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Ownership documents
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Closing Date
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As its name indicates, the object of the Agreement of Purchase and Sale is the purchase of real estate. The term sets a deadline after which the Agreement of Purchase and Sale becomes null and void. It should be noted that the use of the Nova Scotia Real Estate Commission approved “Agreement of Purchase and Sale” form is compulsory form for residential real estate when a brokerage representative (a Realtor) is participating in the transaction.
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The Agreement of Purchase and Sale states the obligations of the seller regarding the titles of ownership. Thus, the seller must supply the buyer with a valid title of ownership, free of any debt, charge or other restriction of private or public law other than the usual easements. The seller's lawyer must, therefore, supply authentic copies of the deed. |
Checking the dates
Ensure the dates for the closing, the conditions and the occupancy are in accordance with your needs and do not allow access to your home until the closing is complete. |
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Description of real estate
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Defect or irregularity
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Inclusions and exclusions and conditions
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The Agreement of Purchase and Sale should contain a detailed description of the real estate (including property identification number(s) [PID]), street address and items to be included as well as conditions to be met. If the real estate is a condominium, the contract must specify the number of parking and storage spaces and their identification numbers.
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The Agreement of Purchase and Sale has a mechanism to protect the buyer who finds a defect or irregularity in the property after signing the offer to purchase. This is called an inspection clause. |
Make sure the included and excluded items are indicated in your consent and that the buyer's conditions are achievable in the time period specified. |
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Receiving an Offer
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Declarations and obligations common to the parties
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Receiving offers
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| The Agreement of Purchase and Sale is a contract through which a Buyer undertakes to purchase the seller’s home. In return, the agreement also indicates that the Seller undertakes to sell the home once the Agreement of Purchase and Sale has been accepted. |
The Agreement of Purchase and Sale contains a number of declarations and obligations which apply to both parties:
• the adjustments relating to property taxes, general taxes, co-ownership expenses, fuel reserves and income or expenses relating to the real estate;
• the date of closing;
• the inclusions and exclusions.
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As seller, you have the right to receive all offers presented as a result of the listing of your real estate. You are completely free to reply or not to reply to them. |
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Price and deposit
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Reference to addendums
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Conditions
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| The Agreement of Purchase and Sale must indicate clearly the purchase price offered by the buyer. When presenting an Agreement of Purchase and Sale, the buyer will give the listing brokerage a deposit. There is a section to this effect in the Agreement of Purchase and Sale. The deposit must be placed in a brokerage trust account and will be deducted from the balance to be paid upon the closing. |
The Agreement of Purchase and Sale may contain a reference to addendums and schedules. These are part of the Agreement of Purchase and Sale.
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After you've negotiated and accepted the buyer's offer, there will often be some conditions-that one or both of you will need to complete before the sale can close. An offer of this nature is very common and referred to as a conditional offer. For example, your buyer may need to secure sufficient mortgage financing or sell his or her current home within a certain period of time. Or, you may have to correct flaws in your property that a home inspection or well and septic inspection reveals. Alternatively, there may be an adjustment in the bid price to allow for these flaws.
When the conditions are satisfied within the allotted time frame, the offer becomes "firm and binding." If not, the deal falls through and the deposit is returned to the buyer.
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Declarations and obligations of the buyer
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Conditions of acceptance
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Offer Conditional on Sale of Purchasers Property
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| The Agreement of Purchase and Sale contains a clause stipulating that the buyer has examined the real estate and declares that they are satisfied therewith. However, in many cases the buyer will bring in a building inspector, water and septic inspectors where applicable and the offer may also contain other conditions. In the case of a condominium, the agreement specifies that the buyer will examine the declaration of the condominium, including the by-laws of the condominium and the reserve fund before confirming his.her satisfaction. |
The conditions of acceptance of the Agreement of Purchase and Sale will set a deadlines for two specific aspects of the offer, i.e. acceptance and notification. The acceptance deadline of the Agreement of Purchase and Sale sets a time and date that the offer is open for acceptance by the seller and by which the buyer must be notified that the offer has been accepted. This deadline is important: if not adhered to, the offer is null and void. Once all terms are agreed to by both the buyer and the seller, the offer to purchase becomes an Agreement of Purchase and Sale. |
When an offer is presented where the buyer needs to sell their current home, you should ensure that an escape clauses is included in the offer (or add an escape clause in a counter offer). Before you agree to a conditional offer based upon the Sale of the Purchaser’s Property. An escape clause will usually state that if you receive another acceptable offer while you're waiting for conditions to be met, your first buyer must either waive the condition(s) and close the sale or forfeit the deal. Firm Offer to Purchase: The buyer will purchase the home without any conditions. If the offer is accepted, the house is sold. |
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Delivery of the real estate
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Signatures
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Conditional Offer to Purchase
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The Agreement of Purchase and Sale contains a clause by which the seller promises to deliver the real estate in the condition in which it was when the buyer examined it.
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The Agreement of Purchase and Sale must include the buyer's and seller's signatures as well as that of their respective spouses, if applicable. Each copy must bear the original signature of each of the parties. In addition, a witness's signature is recommended. Should there be any changes or additions to the wording of the agreement, they must be initialled by all parties.
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The buyer has placed one or more conditions on the purchase. The offer could be subject to home inspection, financing, or the sale of buyer's existing home. The offer is not firm until all the conditions have been met.
Acceptance: The seller agrees to all the terms and conditions in the Offer to Purchase.
Rejection: The seller does not agree with all of the terms and conditions in the Offer to Purchase and rejects the offer.
Counter offer: The seller agrees with some of the terms and conditions of the offer, but not all of them. The seller then makes a counter offer. The counter offer may change the price, the closing date, or add or delete conditions. When the buyer receives the counter offer, he or she can accept the new terms and conditions or reject them.
A signed counter offer (or offer to purchase and sale) is a binding contract. Make sure you understand and agree to all of the terms before you sign. You may want to have a lawyer review the offer first. |