Understanding a Home Purchase Offer
Price is one part of an offer. The deposit, dates, included items and conditions also affect the purchase you are agreeing to make.
What should you review before signing?
- Price and deposit: confirm the amount, delivery instructions and timing, including when your funds must be available.
- Dates: understand the offer’s acceptance deadline, condition deadlines and proposed completion date.
- Inclusions and exclusions: specify the appliances, fixtures and other items involved, plus any repairs or work the seller has agreed to complete.
- Conditions: discuss the checks you need and the wording and time allowed to complete them.
Ask your agent and lawyer to explain any clause you do not understand before you sign. RECO’s buyer’s checklist recommends being specific about included items and considering protections such as financing and inspection conditions.
Does preapproval remove the financing risk?
No. The lender still needs to approve the mortgage, including the property. Ask your lender what is outstanding before deciding whether to make an offer without a financing condition. A preapproved amount is not a guarantee that you will receive that loan. Source: FCAC.
Which property checks matter?
A home inspection can help you understand the condition of major systems and possible repair needs. Discuss its scope with the inspector; a showing is not a substitute for that assessment. See RECO’s inspection guidance.
For a resale condo, have your lawyer review the status certificate and supporting documents. These address the unit and corporation, including financial information, fees, rules and relevant legal matters. Source: Condominium Authority of Ontario.
Prepare your offer questions
Bring the property address, your budget and preferred closing date. We can help you compare the terms and identify questions for your lawyer, lender and inspector before you decide.