Free Offer to Purchase Real Estate

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Offer to Purchase Real Estate

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Buyer
Seller




Your 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 June 28, 2022

IS MADE BY:


___________________________ of _________________________
(the "Buyer")

OF THE FIRST PART

- TO -

___________________________ of _________________________
(the "Seller")

OF THE SECOND PART

Background

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 legal description of the Property is as follows: ______________________________________________________________
    ______________________________________________________________, as further described in the attached exhibit, which includes the fixtures and improvements located on the Property that are listed within this Offer. All property included within this Offer is referred to as the "Property".

  3. Chattels, Fixtures & Improvements
  4. The following chattels, fixtures, and improvements are to be included as part of the sale of the Property: __________________________________________________________________________________________________________________________________________________________________________________________________________
  5. Sales Price
  6. 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 June 28, 2022. 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.
  7. Return of Deposit
  8. ______________________________ will return the Deposit to the Buyer if the Offer is rejected or expires pior to acceptance.
  9. Sales Tax
  10. 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.
  11. Offer Expiration
  12. If the Offer is not accepted by the Seller by end of business day on June 28, 2022 (the "Offer Expiration"), the Deposit shall be immediately returned to the Buyer. The Buyer may not revoke the Offer prior to the Offer Expiration.
  13. Offer is Binding Once Signed
  14. 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 agreement of purchase and sale.
  15. 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.
  16. Closing & Possession
  17. The Closing Date will be on or be prior to June 29, 2022 or at such other time agreed by the Parties, at which point the Buyer will take possession of the Property.
  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:

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

    Seller
    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 June 28, 2022, 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

_________________________
Date

_________________________
Time

_____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

_________________________
Date

_________________________
Time

_____Rejection: The Seller rejects the foregoing offer.

_________________________
Seller's Signature

_________________________
Date

_________________________
Time





Seller's Name: ___________________________
Address: _________________________

Date: ____________________________
Phone: ___________________________

 

What is an Offer to Purchase Real Estate? 

An Offer to Purchase Real Estate form outlines a potential transaction between a buyer and seller. Typically, a buyer (or their real estate agent) uses this offer letter to establish a purchase price, deposit amount, and conditions on the sale of private or commercial property.

If both parties sign the offer, they agree to continue sales negotiations in good faith. Once all the conditions are met, they may proceed with a Contract to Purchase Real Estate.

How do I fill out an Offer to Purchase Real Estate form?

Use LawDepot’s Offer to Purchase Real Estate template to draft a quick and comprehensive letter. 

1. Provide buyer and seller details

Include full names, addresses, and phone numbers for both the buyer and the seller.

2. Describe the property

Include the legal land description of the property. The legal property description can be obtained from your local Land Titles or Registry Office.  Also include descriptions of any furniture or fixtures inside the building. 

3. Suggest a purchase price

Include the total purchase price, the initial deposit, when the deposit is due, and who will hold the deposit until the end of the deal.

You should also state how the deposit will be paid (i.e., cash, personal cheque, or bank draft).

4. Pick a date for closing and possession

Real estate transactions typically allow some time between the offer and closing dates. This gives the buyer and seller the opportunity to address conditions, such as securing financing or conducting house inspections. Talk with your real estate agent and lawyer to decide on the best date for closing and possession. 

5. Outline the conditions the offer is subject to

Typical conditions include requiring the buyer to secure financing and the completion of a professional home inspection. If conditions are not met by the closing date, the buyer or seller may cancel the offer.

6. Pick a date for the seller to accept or reject the offer

This date should precede the closing date and give enough time in between for organizing the logistics of the sale.

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

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 sale price of the property or ensure certain repairs are made before they proceed with financing.

The Offer to Purchase letter 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 an Offer to Purchase legally binding?

When executed correctly, an Offer to Purchase is a legally binding contract. The parties are legally obligated to fulfil the contract if it contains the following elements:

  • Offer and Acceptance: The buyer puts forth an offer that the seller accepts. They both sign the letter to prove they agree to the terms.
  • Mutuality: The parties in the contract have a “meeting of the minds” in which they intend to enter into an enforceable agreement.
  • Consideration: Both parties stand to gain something from the agreement. In this case, the buyer’s consideration is possession of a property, while the seller’s consideration is a sum of money.
  • Capacity: The parties in the contract have the legal ability to sign, meaning they’re of legal age and sound mind. 
  • Legality: The terms of the contract do not break any laws (e.g., a seller cannot list a property for sale that they don’t own).

How do I cancel an Offer to Purchase?

You cannot withdraw an offer once the seller accepts. However, you can specify conditions that must be met for the property sale to go through. For example, the buyer might need to sell their property before they purchase another. If the buyer is unable to sell their property, they may legally cancel the Offer to Purchase. 

Similarly, a seller might cancel a sale following a condition outlined in the Offer to Purchase. For example, the buyer’s offer might be contingent on a home appraisal. If the appraisal amount is low and the seller doesn’t want to reduce their listed price to match the appraisal, they may cancel the offer. 

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