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Any offers pertained to your property will be sent to your agent who will then present and review all details including the benefits and risks. You will have the opportunity to either accepts, counter or reject an offer based on its merits. Sellers should note offers are only open for a specific amount of time, generally no longer then 24 hours but buyers might only give a small time window for the sellers to respond. It is crucial that we review and respond to the offer within the irrevocable period. Once the irrevocably time has passed, the buyer is no longer legally bound by the offer they submitted. Sellers should note multiple offers can occur even without a set date despite the current market. A bid date is when a specific 'offer date' and 'time' has been noted in the property listing as per the sellers directives. Here are three types of offers your listing could receive:
If the seller agrees to the terms laid out in the offer presented, they will have the option to accept the offer in its entirely. The seller will sign the offer acceptance within the Agreement of Purchase and Sale making both parties officially under contract. This period of time is called the contingency period.
If the seller disagrees to the terms laid out in the offer presented but would like to entertain the offer, they will have the option to counter-offer with changes pertaining to the price and or terms to ignite the negotiation process.
The buyers can then either accept the counter-offer, decline the counter-offer or counter the offer
You can negotiate back and forth as many times as needed until you can reach an agreement or someone chooses to walk away.
If the seller disagrees to the terms laid out in the offer presented, they will have the option to reject the offer in its entirely. The seller will not touch the offer and let the irrevocable time laps
Negotiations can take days to complete depending on how complex the offer is. If both parties have agreed to all of the terms of the offer and have signed the acceptance of the agreement, we are on the road to sold. The Agreement of Purchase and Sale is the document used to state the Buyer’s desire to purchase the property, and to negotiate the terms of the sale. It is often referred to as an “Offer”. This document also allows the Buyer an opportunity to set out in detail all of the terms and conditions they wish to be part of their Offer when buying the Seller’s property. With many components that effect an offer, here are the main components both parties will be paying close attention too in satisfying themselves.
The party submitting an offer will have a time limit imposed for the seller to respond. Example: In your listing, we can request a 24-hour irrevocable period which would allow us to communication the offer received to all interested party's that have seen the property, an opportunity to submit their own offer. In addition any other party interested in viewing the property can do so within this time frame before responding to the offer.
The price a buyer is willing to pay can be higher or lower than the listing price or may just offer full asking. Buyers don’t want to overpay, while sellers want to make sure the deal makes sense for their financial plan. Price can be one of the most important aspects of a deal, but a lower price with better terms could be just as appealing if not more.
As per the discretion of the buyer, the buyer will have a deposit amount offered within the APS to demonstrated sincerity and good faith in the purchase transaction and will be applied against the purchase price of the home when the sale closes to be held in the listing brokerage trust account. Agreement of Purchase and Sale Contract stats you have 24-hours upon acceptance for the buyer to provide the deposit or could be added within the offer, unless stated elsewhere within the offer. Take note: In the event the buyer decides not to remove all of their conditions and therefor not proceed with the offer, they would provide a mutual release form to receive their deposit back in full.
Inclusions & Exclusions
Any items the seller wishes to leave or take are to be clearly identified in the listing. The rule to follow is 'when in doubt, spell it out.' These might include appliances, light fixtures, window coverings and anything else you agree to leave behind or take with you after you vacate. The offer will have two of the following sections where items will be identified by the buyer requesting to be included within the offer.
Fixtures Items that are affixed to the home, being, screwed-in, glued-in, nailed-in, bolted-in or plumbed-in. Example: Chandelier and Furnace.
Chattels Items that are freestanding and or movableI. Example: Fridge, and Stove.
Rental & Leases
This has become an important issue in recent times. There are a number of items that potentially are not owned by the Seller but rather rented or leased. We will have to ensure that anything that is rented or leased is clearly indicated under the rental section in the agreement. An important issue these days is the “hot water tank”. These may be rented or more frequently now, on a contract for “lease to own”.
Terms & Conditions
We will review all terms and conditions in the APS and ensure you are fully protected. Once all conditions, if applicable are fulfilled or waived, the buyer is legally bound to complete the purchase/close on the property. Take note: Numerous conditions exist, the ones listed herein are just a few examples.
Financing Buyers seeking a mortgage loan will need their financial institution to review the APS and put their final approval on the financing to be completed during their financing conditional period. Most lenders will request an appraisal which in common practice, usually ordered a few days before closing.
Home Insurance Buyers seeking a mortgage loan will be required to obtain home insurance on the closing of the property.
Home Inspection Will provide a clear understanding of the visually accessible components of the home to help satisfy the buyer usually at the buyers expense. Home inspection usually takes 2-4 hours to complete, only the buyers and buyers agent will be present during this appointment. Minor and or major deficiencies could possibly be identified, making the buyer unsatisfied to not proceed with the sale or to propose to re-negotiate. There are other forms of inspections that may also be necessary:
OFFERS AND NEGOTIATIONS
AGREEMENT OF PURCHASE AND SALE
Due Diligence/Miscellaneous Broad condition that can cover several aspects such as the buyer seeking township approval to build a house on vacate land.
Sale Of Purchasers Property A buyer selling their home may insert a condition requiring that they sell their home prior to purchasing your home.
Condo Declaration Buyers will want their lawyer and mortgage lender to review the condo declaration to evaluate the risks, the rules and management style, usually at the buyers expense. Sellers should note the document usually takes 10 business days to receive then another 3-4 business days for the appropriate professionals to review.
This is the dates that stipulates when the buyer will have all conditions fulfilled / waived. Sellers should note during a contingency period the buyer could still get out of the deal by deciding to walk away based on not be satisfied - requesting to receive their deposit back in full.
If the property is subject to Harmonized Sales Tax this section will indicate how the HST will impact the sale price. Included in with the sale price or in addition to. Its important to seek legal council in determining if your home is subject to such tax as you don't want to be hit with an unexpected cost come close.
There are a number of searches that a lawyer may undertake when working on a real estate purchase. This section of the APS sets out the times for those searches to be done. These searches may include the title search or work orders among others.
Closing date is when the transaction is scheduled to be completed. Refers to the day on which the title of the property is legally transferred to the buyer and the transfer of funds finalized to the seller, process conducted by the buyers and sellers notary or lawyer. A typical closing date is 30 to 90 days from acceptance of the offer. Take note: This date is not to be on a weekend or a statutory holiday.
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