Wednesday, February 17, 2010

Five steps to buy your home: Step 4 -Making Offer(s) to Purchase

We’ll discuss the Offer to Purchase form before we’re going out to hunt and again when ready to make an offer. There is no reason that we cannot make offers on more than one property. But suppose two offers are accepted simultaneously then you would have to buy both. So, we don’t mind making more than one offer but never simultaneously.

Negotiations around an offer to purchase can be exiting and tense. We want to stay cool and ensure we don’t overextend. I will advise you as best as I can, but the ultimate decision is yours. Upon acceptance of the offer by both buyer and seller (in writing) it becomes a binding contract. Often the buyer makes a deposit in a trust account administered by the seller’s brokerage. This is to show the buyer’s good faith and commitment to the deal. If you break the purchase contract, the deposit money will be forfeited and the seller may still claim additional damages.

The purchase contract is forwarded to your real estate lawyer who will ensure it is properly executed. Also, your Mortgage Broker will work on securing the mortgage on the terms promised in step 2. I advise you to have a home inspection done by a professional. When buying a condominium, have a professional review the condominium documents. The purchase contact should be made conditional to such matters. Also, have a condition ensuring that you get proper financing. Conditions may be entered in the purchase contract regarding any other issue that is important to you regarding your new property.

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