You thought this day would never come. You've found the perfect home. Now you're ready to make your offer.
Once accepted, an Offer to Purchase is a legally binding agreement between you and the vendor. Along with your mortgage agreement, this is one of the most important documents you'll sign.
It locks you into the conditions of the purchase, so make sure your interests are protected by discussing your Offer to Purchase with your lawyer or notary prior to signing.
Checklist: What to include in your home offer
- Your proposed purchase price.
- A list of items in the house (called chattels) to be included in the purchase price. For example, appliances, window coverings, and certain furniture items might be negotiated into the purchase price.
- Amount of your deposit.
- Financial details. For example, how the balance of the purchase price will be paid.
- Closing date. This is the date you will take possession of the house (usually 30 or 60 days from the date of the agreement).
- Time period for which the offer is valid.
- Conditions of the offer. You might want to make your offer conditional on arranging for financing, a building inspection, or the results of a survey. Make sure the offer can be cancelled if any of your conditions are not met and always put a time limit on the conditions. Keep in mind that a firm offer - one with no conditions - is usually more attractive to the vendor. But remember that you need to feel comfortable with the offer yourself.
Your home offer is accepted
Congratulations, once your Offer to Purchase is accepted, it's time to contact a CIBC advisor.
Reminder: You will need a cheque, bank draft, or money order to accompany your Offer to Purchase as a deposit.