Your real estate representative helps you prepare an Offer to Purchase.This offer should include all the details of the sale.
You may want your lawyer to look at the offer before you show it to the vendor, because it is a legally binding document.
Your real estate representative will then present theoffer to the vendor, who will accept (1), make a counteroffer (2) or reject (3).
Vendor
Situation 1 The vendoraccepts your offer. The deal is concluded.
Situation 2 The vendor may make a counteroffer, asking for a higher price or different terms.
You sign the offerback to the vendor with a higher price than your original offer, but lower than the vendor's counteroffer.
The vendor accepts this counteroffer. The deal is concluded.
Situation 3 The vendor may make a counteroffer, asking for a higher price or different terms.
You reject the counteroffer and decide not to make a subsequent counteroffer.
The sale doesn't go through and your deposit is returned.
When you make an Offer to Purchase, your real estate agent will most likely add certain conditions to it, making it a conditional offer. This means that the contract will only become final when the conditions are met. The following three conditions are generally standard in an Offer to Purchase, especially for first-time buyers:
A satisfactory home inspection report
A property appraisal
Lender approval of mortgage financing to finance the purchase
Once these requirements are met, the conditions are removed and the Offer to Purchase becomes final.
