How to Write the Right Real Estate Offer
The hardest part of buying a home is house-hunting to find the right property. Once you have found a property you like, the next step in to write an offer. Purchase agreements in Edmonton are standard Alberta real estate contracts and consist of the same clauses. What makes the difference is what you add to the agreement and negotiations skills.
First, we need to add the most important criteria which include:
- Seller Names
- Buyer Names
- Property Address
- Legal Description
- General Terms of the Agreement
- A Representation & Warranty Clause
- Conditions & Terms
- Closing Procedure Process
- Additional Attachments id required
- A Remedy Clause
- Notice & Document Clause
- Offer Price
- Signatures & Dates
Sellers Names: Ensure the property title matches the names exactly as set out on the title. If there is only one person on tile who is married, have a dower consent form validated by a notary or real estate lawyer.
Buyer Names: Offers must be written with the legal name of a buyer and persons obtaining the mortgage or if in the name of a company, additional documentation will be required.
Legal Description: This is the legal address of the property. For Single-family homes, it contains a Lot, Block and Plan number. If it is a condominium, there may be an additional legal address for a storage unit or parking stall.
General Terms of the Agreement: usually include a surplus of items and how they factor into the sale of the property from who is responsible for providing a real property report, determining non-resident status for income tax purposes, who will be holding the deposits, any known defects in the property and other terms.
Representation & Warranty Clause: To ensure the person signing has a legal right to sell the property along with any chattels and the physical property is not situated on a utility right-of-way or encroaching on the neighbours.
Conditions: Are items that say " When I receive _________, I will proceed with the sale of the property." These items are satisfactory financing, satisfactory property inspection and satisfactory review of condominium documents. The Seller may also add conditions such as review of contract from lawyer, final probate or finding another property.
Terms: Are items that either the buyer, seller or both have to agree upon to complete the sale. These items can range from picking up dog faeces in the backyard, to having the property professional clean prior to moving into repairing items found in your inspection.
Closing Procedure Process: Sets out the terms in how the title will be cleared of the existing mortgage caveats or liens against the property as well as who will be responsible for any closing delays. Read more on possible closing delays
Additional Attachments can include a huge list of items, but the most common attachments will be either an addendum, amendment to the original offer, a subject to sale form or disclosure statements
Offer Price: This Will be determined on a set of factors from the current market value, supply and demand, absorption rate, economic factors, property condition and location, how much the buyer & seller are willing to agree upon and the negotiation skills of your Realtor. Ask your Edmonton Realtor for a Buyers Comparative Market Analysis to determine fair market value prior to making an offer.