Selling A Home in Vancouver BC

The Decision to Purchase

Working with a Real Estate Licensee

Listing Contracts

Responsibilities of the Listing
and Selling Agents

Responsibilities of the Seller

Offers to Purchase

More about Subject Clauses

Financing...from a Seller's Perspective

Completing the Sale

Complaints about a Licensee

Offers to Purchase

Once an interested buyer has been found, a written offer to purchase your property will be prepared. This offer is usually recorded on a standard form entitled:

CONTRACT OF PURCHASE AND SALE

Your listing agent will explain to you the process of receiving and reviewing offers. Do not be surprised if you are presented with offers which differ dramatically from your listed asking price; the listing agent is under an obligation to bring all written offers to you for your consideration. If several offers are brought to you at once, you are under no obligation to accept any one offer over another.

What should the offer contain?

All offers to purchase your property will contain a number of important details which you must consider.

The offer should include:

• date of the offer.
• full legal names and addresses of both the buyer and the seller.
• full legal description of the property.
• amount of the deposit.
• sale price.
• amount of cash downpayment and how the remainder of the purchased price will be financed.
• date for completion of the sale.
• date for possession of the property.
• a list of the conditions which must be fulfilled before the sale can take place (normally called subject clauses or conditions precedent).
• a list of items which are not attached to the building (normally called chattels) but which are not to be included in the sale price; for example, drapes, refrigerator, stove, etc.
• date and time at which the offer expires.
• the signature of the buyer and his or her occupation.

What are your options?

When you receive one or more offers to purchase your home, it is in your own best interest to give considerable time and attention to reviewing each offer carefully. Your listing agent will assist you to understand the terms and conditions contained in the offer, and will provide you with any advice you request, but ultimately the decision is yours.

Before you decide, you may wish to have your agent prepare a revised estimate of the net cash proceeds you will receive on completion of the sale, based on the sale price and financing arrangements stated in the offer.

You have three options:

1. Accept an offer EXACTLY as it stands.

If you decide that you would like to accept an offer, be sure you know the precise meaning of each term in the written offer BEFORE you sign the document.

Once you, the seller, sign a Contract of Purchase and Sale agreeing to its terms, and your acceptance has been conveyed to the buyer, it becomes a legally binding contract.

Legally binding means both you and the buyer 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.

If you are uncertain about any of the clauses contained in the offer, you may wish to consult a lawyer before signing the contract; however, keep the expiry date of the offer in mind if you decide to postpone acceptance!

2. Make a counter offer.

If you change anything at all in the original offer, you are considered to have rejected that offer and to be making a new offer from you to the buyer. This new offer is usually referred to as a "counter offer".

The risk in making a counter-offer is that if the buyer has changed his or her mind and rejects the counter-offer, you do not have the option to return to the original offer and accept it.

But, the buyer may decide to make another counter-offer back to you and the process of counter-offers could continue until an agreement is reached.

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

3. Reject the offer.

You are under no obligation to accept any offer or to make a counter-offer. If, however, you reject an offer which exactly meets all the terms you agreed to in the Listing Contract which you signed with you listing agent, you could be/are legally obligated to pay the commission.