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What is an offer?
When buying a home, an offer is a legal agreement between two parties for the purchase of a home. This offer is made by you, the buyer, and if accepted by the seller becomes a legally binding contract.
What’s included in an offer?
As you may have guessed, a price to be agreed upon for the purchase of the home is included in your offer to the seller. But there are other aspects of an offer as well. These include:
Conditions – These are clauses in the offer contract that must be completed before a set date or the agreement becomes void. Common conditions include financing, home inspection and review of status certificate. Since the beginning of COVID, there are a number of other conditions to protect both buyer and seller from any complications arising due to COVID-19.
Inclusions/Exclusions – Will you inherit those ugly curtains? Will those beautiful light fixtures come with the home? Inclusions and exclusions are clauses in the offer contract pertaining to any goods that may or may not come with the home. These are often negotiable and Jesse can help you secure those beautiful light fixtures while ensuring those ugly drapes have seen their last days!
Closing date – This is the date on which the funds and keys will be exchanged. The property title will be registered in your name by your lawyer and the mortgage will be registered onto the title. The offer must be completed by this date.
Deposit – These are funds that are given to the seller’s real estate brokerage to be held as a deposit on the offer. Once the offer is firm and there are no more conditions, the deposit becomes non-refundable if you are unable to complete the purchase agreement terms.