Buying A Home in Vancouver BC

The Decision to Purchase

What are my choices?

What can I afford?

What are my needs?

What is a real estate agent?

Where do I start?

How do I make an offer?

How do I close the deal?

Making an Offer

Once you have found the property you would like, a written offer to purchase must be prepared. Considering the substantial nature of this investment, you should work with a real estate licensee when preparing an offer to purchase.

An offer is usually recorded on on a standard form entitled:

CONTRACT OF PURCHASE AND SALE

What should the offer contain?

When you prepare an offer it should contain a number of standard details, plus any conditions which are important to you.

Be fully aware that once you sign this document, and the seller also signs it, a legally binding contract has been formed.

Legally binding means both you and the seller will be bound by the terms of the contract and must each perform your respective obligations as stated within that contract. Either of you can go to court to compel the other to perform his or her part of the contract.

Your offer should include:

• Date of offer.



• Date and time your offer expires.



• Full legal names and addresses of both the buyer and seller.



• Full legal description of the property.



• Amount of the deposit you are giving (which will be held in a trust account).



• Sale price.



• Amount of your cash down payment and details as to how you will finance the remainder of the purchase price.



• Your desired closing and possession dates.



• A list of the conditions which must be satisfied before the sale can occur. These are called "subject clauses" or "conditions precedent".



• A list of items which are not attached to the building (chattels), but which you state are to be included in the sale price; for example drapes, refrigerator, stove, etc.



• Your signature.

What are the seller's options?

When the seller receives your "offer to purchase", he or she has three options.

1. Accept the offer exactly as written

If the seller signs your offer without making any changes, a legally binding contract has been formed.

Legally binding means both you and the seller will be bound by the terms of the contract and must perform your respective obligations as stated. Your performance can be enforced in a court of law.

2. Reject the offer

3. Make a counteroffer

If the seller changes anything at all on your original offer, the seller is considered to have rejected your offer and to be making a new offer back to you. This new offer is usually referred to as a "counteroffer".

When you receive a counteroffer, you then have the same three options as the seller had: accept, reject or make a further counteroffer. The process of counteroffers may continue until an agreement is reached.

If the counteroffer is unacceptable to you or if you have changed your mind about the purchase, the seller does not have the option of returning to your original offer and accepting it.

What are the buyer's options?

If after making a written offer you decide you don't want to purchase the property, it may be possible to revoke the offer. Many legal problems can result from the revocation of an offer, so you should seek professional advice about the correct procedure to follow.