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Offer to Purchase Real Estate


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Offer to Purchase Real Estate Page of
Seller(s) initials: ______________ Date: __________________________<br/><br/>Buyer(s) initials: ______________ Date: __________________________ Page of

Offer to Purchase Real Estate

THIS OFFER TO PURCHASE REAL ESTATE (the "Offer"), DATED  ______ day of ___________________  __________


___________________________ of _________________________
(the "Buyer")


- TO -

___________________________ of _________________________
(the "Seller")



The Buyer wishes to submit an offer to purchase a certain completed home from the Seller under the terms stated below.

IN CONSIDERATION OF and as a condition of the Seller selling the Property and the Buyer purchasing the Property (collectively the "Parties") and other valuable consideration the receipt of which is hereby acknowledged, the Parties to this Offer to Purchase Real Estate agree as follows:

  1. Real Property
  2. The Property is located at  ______________________________________. Further details describing the land description can be found attached to this Offer. All Property included within this Offer is referred to as the "Property".
  3. Sales Price
  4. The total purchase price of $__________ (the "Purchase Price") that is to be paid for the Property by the Buyer is payable as follows:
    1. The initial earnest money deposit (the "Deposit") accompanying this offer is $______________. The Deposit will be paid by cash on or before ______________. The Deposit will be held in escrow by ______________________________ until the sale is closed, at which time this money will be credited to the Buyer, or until this Offer is otherwise terminated; and
    2. The balance of the Purchase Price will be paid in cash or equivalent in financing at closing unless otherwise provided in this Offer. The balance will be subject to adjustments.
  5. Return of Deposit
  6. ______________________________ will return the Deposit to the Buyer if the Offer is rejected or expires prior to acceptance.
  7. Sales Tax
  8. If the sale of the Property is subject to Goods and Services Tax ("GST"), then such tax shall be in addition to the Purchase Price. If the sale of the Property is not subject to GST, the Seller agrees to certify on or before the Closing Date that the sale of the Property is not subject to GST, and will provide a GST exemption certificate to the Buyer on or before the Closing Date.
  9. Offer Expiration
  10. If the Offer is not accepted by the Seller by end of business day on July 24, 2024 (the "Offer Expiration"), the Deposit shall be immediately returned to the Buyer. The Buyer may not revoke the Offer prior to the Offer Expiration.
  11. Offer is Binding Once Signed
  12. Upon being signed by all Parties to this Offer, this Offer and all terms within will be binding, unless modified by agreement of all Parties in a subsequent real estate purchase agreement.
  13. If the Offer is accepted prior to the Offer Expiration and the Buyer fails to comply with the terms of the Offer, the Seller may treat the Offer as void and the Deposit will be forfeited to the Seller.
  14. Closing & Possession
  15. The Closing Date will be on or be prior to July 25, 2024 or at such other time agreed by the Parties, at which point the Buyer will take possession of the Property.
  16. Conditions
  17. The Buyer's obligation to purchase the Property is contingent upon the following condition: The Seller must provide the Buyer with a real property report prepared by a licensed Alberta land surveyor on or before July 25, 2024. The Buyer can always waive this condition on or before July 25, 2024.
  18. Residency
  19. ___________________________ represents and warrants that he or she is not and on the Closing Date will not be a non-resident under the non-residency provisions of the Income Tax Act, R.S.C. 1985 which representation and warranty shall survive and not merge upon the completion of this transaction. ___________________________ shall deliver to the Buyer a statutory declaration that he or she is not then a non-resident of Canada.
  20. Notices
  21. All notices pursuant to this Offer must be written and signed by the respective party or its agent and all such correspondence will be effective upon it being mailed with return receipt requested, hand-delivered, or emailed as follows:

    Name: ___________________________
    Address: _________________________
    Phone: ___________________________
    Email: ___________________________

    Name: ___________________________
    Address: _________________________
    Phone: ___________________________
    Email: ___________________________

  22. Severability
  23. If any term or provision of this Offer will, to any extent, be determined to be invalid or unenforceable by a court of competent jurisdiction, the remainder of this Offer will not be affected and each unaffected term and provision of this Offer will remain valid and be enforceable to the fullest extent permitted by law.
  24. Interpretation
  25. Headings are inserted for the convenience of the Parties only and are not to be considered when interpreting this Offer. Words in the singular mean and include the plural and vice versa. Words in the masculine gender mean and include the feminine gender and vice versa. Words importing persons include firms and corporations and vice versa.
  26. Time of Essence
  27. Time is of the essence in this Offer. Every calendar day except Saturday, Sunday, or a public holiday will be deemed a business day and all relevant time periods in this Offer will be calculated in business days. Performance will be due the next business day if any deadline falls on a Saturday, Sunday, or a public holiday. A business day ends at 5:00 p.m. local time in the time zone in which the Property is situated.

Buyer's Offer

This is an offer to purchase the Property on the above terms and conditions. The Seller has the right to continue to offer the Property for sale and to accept any other offer at any time prior to acceptance by the Seller. If the Seller does not accept this offer from the Buyer by July 24, 2024, this offer will lapse and become of no force or effect.

Buyer's Signature: __________________________
Buyer's Name: ___________________________
Address: _________________________

Date: ____________________________
Phone: ___________________________
Email: ___________________________

Social Security #: ____________________

Seller's Acceptance/ Counteroffer/ Rejection

_____Acceptance of offer to purchase: The Seller accepts the foregoing offer on the terms and conditions specified above, and agrees to convey the Property to the Buyer.

Seller's Signature



_____Counteroffer: The Seller presents for the Buyer's Acceptance the terms of the Buyer's offer subject to the exceptions or modifications as specified in the attached addendum.

Seller's Signature



_____Rejection: The Seller rejects the foregoing offer.

Seller's Signature



Seller's Name: ___________________________
Address: _________________________

Date: ____________________________
Phone: ___________________________


Last Updated December 21, 2023

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What is an Offer to Purchase Real Estate? 

An Offer to Purchase Real Estate is a legal document that outlines the terms and conditions under which a buyer is willing to purchase a property from a seller. It serves as a formal proposal and initiates the process of a real estate transaction.

An Offer to Purchase Real Estate is also known as a:

  • Real estate offer form
  • Home purchase offer letter
  • Real estate offer letter
  • Offer letter to purchase property

Our template is suitable for both private sales, also known as “for sale by owner,” and when a real estate agent is involved. It works for both residential and commercial sales.

How does an Offer to Purchase Real Estate work?

An Offer to Purchase Real Estate works as follows:

1. Preparation and submission

The buyer prepares and signs the Offer to Purchase.

Once the Offer to Purchase is completed, the buyer submits it to the seller or the seller's representative.

2. Review and negotiation

Upon receiving the offer, the seller reviews its terms and conditions. The seller may:

  • Accept the offer
  • Issue a counteroffer
  • Reject the offer

Counteroffers may involve modifications to the purchase price, deposit amount, closing date, or other terms. Negotiating and issuing counteroffers may continue until both parties reach a mutually acceptable agreement.

3. Acceptance

When the seller agrees to the offer terms, they accept it by signing the Offer to Purchase. Their acceptance creates a binding contract between the buyer and the seller.

4. Fulfillment of conditions

If the offer includes conditions, such as a home inspection or appraisal, the responsible party must satisfy these conditions within the specified timeframe.

Failure to satisfy the conditions may allow either party to withdraw from the contract without any penalties.

5. Closing

Once all the conditions are met, the buyer and seller can complete the closing process. During closing, they sign the necessary legal and financial documents, such as a Real Estate Purchase Agreement, and the property ownership officially transfers from the seller to the buyer.

What is a condition in an Offer to Purchase Real Estate?

A condition, or conditional offer, makes a buyer’s offer contingent on the fulfillment or completion of a certain task. The following are some examples of common conditions:

  • Satisfactory home inspection: The buyer must obtain a satisfactory survey on the condition of the property, allowing them to renegotiate if a problem comes up.
  • Local bylaw documents: The seller must obtain all documents relating to relevant local bylaws (i.e., laws enacted by local government).
  • Proof of marketable title: The seller will provide evidence to the buyer that the title to the property is not subject to any encumbrances by other parties.
  • Loan approval: The buyer must obtain a loan to cover the non-deposit portion of the purchase price (e.g., a mortgage).
  • Market value appraisal: An appraisal of the property ensures that the buyer doesn't pay more for the property than it’s actually worth.
  • Disclosure statement: The seller completes a disclosure form, informing the buyer of any property problems of which the seller is aware.
  • Buyer selling their property: The purchase of the seller's property is contingent on the buyer being able to sell their property and close the deal.
  • Property is properly zoned: The property must be properly zoned for the buyer’s intended purposes (e.g., the seller must obtain proof that the zoning allows business use).
  • Specific property repairs: The seller must complete certain repairs to complete the sale.
  • Information certificate: Regarding condos or townhouses, the seller must provide the buyer with this certificate.

If a party doesn't meet a contract condition, you can cancel the Offer to Purchase the seller's property.

How to write an Offer to Purchase Real Estate

Use LawDepot’s Offer to Purchase Real Estate template to draft a quick and comprehensive document. With our template, we’ll prompt you to complete the following steps:

1. Specify the property type and location

Indicate the property type, such as a house, apartment, condo, duplex, townhouse, mobile home, or commercial building. Then, specify the province or territory where the property is located as well as the exact address.

You can obtain the legal land description from the Land Registry office or Land Titles office. It may also be found on the land title or in tax assessments.

You may provide the legal land description directly in the Offer to Purchase or attach it separately.

3. Describe the included property features

List and describe any chattels (i.e., moveable personal property like furniture), fixtures (e.g., ceiling lights, ceiling fans, window treatments, etc.), or improvements included in the purchase.

You can describe these features directly in the Offer to Purchase or attach a separate document.

Also, if the buyer is taking over any rental contracts from the seller, list the rental items (e.g., air conditioner, alarm system, etc.).

4. Provide buyer and seller details

Include the full names and addresses of both the buyer and the seller.

5. Outline offer details

Specify the purchase price and whether tax is included. If the property is a new home, the buyer may need to pay GST on the purchase price. If the property is resale residential, it’s likely not subject to GST.

Also, state when the offer will be made.

6. Outline deposit details

Provide the following deposit details:

  • Amount
  • Payment method (i.e., cash, cheque, bank draft, etc.)
  • Due date
  • Escrow agent

An escrow agent is a neutral third party who holds the deposit until you finalize the transaction.

7. Pick a closing and possession date

In your Offer to Purchase, specify a closing date. Also, state when the buyer gains possession, which is generally upon closing and funding.

Real estate transactions typically allow some time between the offer and closing dates. This gives you and the seller the opportunity to address conditions, such as securing financing or conducting house inspections.

8. Outline conditions

If your offer is subject to any conditions, outline them and the date on which they must be completed. Refer to the above section for examples of conditions.

9. Set an acceptance deadline

Specify the deadline for the seller to accept the offer. The acceptance deadline date must be set prior to the proposed closing date. Between the acceptance and closing dates, there should be enough time for the seller to view the offer, respond to it, and organize the sale logistics.

Do you need a mortgage before making an Offer to Purchase?

No, in most cases, a buyer obtains a mortgage after making an offer on a piece of real estate. For instance, the buyer might want to negotiate the property's sale price or ensure certain repairs are made before they proceed with financing.

The Offer to Purchase provides a timeline for the buyer to obtain a mortgage or otherwise secure financing before the offer is binding and the sale is closed.

However, a buyer may seek pre-approval for a mortgage so that they don’t make an offer that they cannot afford. In this case, mortgage lenders can identify the maximum amount that you qualify for.

Is a signed Offer to Purchase legally binding?

Yes. When the seller agrees to and signs an Offer to Purchase Real Estate, their acceptance creates a binding contract with the buyer. This means that, after accepting, sellers can't back out just because they received a better offer.

However, if the Offer to Purchase includes conditions that aren’t satisfied, then the parties may be able to break the contract without issue. Similarly, the parties may be able to terminate the Offer to Purchase if it includes provisions that allow either party to terminate the sale.

Generally, a Real Estate Purchase Agreement must also be signed between the seller and buyer.

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