SELLER’S OPTIONS AFTER RECEIVING YOUR OFFER
Once your offer to purchase has been presented to the seller, they have four seller’s options:
- Accept your offer outright: If the seller accepts your offer exactly as it was written it becomes a legally binding contract.
- Reject your offer: The seller can just say no; they’re under no obligation to accept your offer or to even propose a counter offer.
- Ignore your offer: The listing agent must present your offer, but the seller doesn’t have to acknowledge it or respond.
- Make a counteroffer: The seller could return your offer to you with some proposed revisions. This is considered a counteroffer and returns the ball to your court to make another acceptable offer to the seller.
CONGRATULATIONS, YOUR OFFER HAS BEEN ACCEPTED!
Wondering what’s next? Here are the steps from accepted offer to subject removal:
- Financing. Obtain financing approval from your lender. Send the Contract of Purchase and Sale, Property Disclosure Statement (PDS), and property feature sheet to your mortgage specialist. For Strata properties they may request strata documents and a Form B.
- Review all documents. You will need to review the Property Disclosure Statement, which informs you of any known issues with the property and the Title Search for items attached to the title to the property. For Detached houses (non-strata) review the permit history, and oil tank scan certificate (if any), confirm zoning and whether there are any unauthorized/authorized suites. For Condos & Townhouses (strata) review all strata documents, and if there are any renovations confirm that they were done with strata approval.
- Deposit. Ensure that funds are available, and provide a bank draft made out to your Realtor’s Brokerage in trust.
- Insurance. We recommend obtaining an insurance quote for the property. For detached homes, lenders insist on property insurance because your property is their security for your mortgage. Property insurance covers the replacement cost of your home, so premiums may vary depending on its value. An insurance broker can help you with your insurance needs.
- Utility bills. We recommend requesting utility bills (electric, gas, water & sewer). This will give you an idea of what it will cost to run your new home.
- Home inspection. The home inspector’s role is to inform you of the property’s condition. He/she will tell you if something is not functioning properly, needs to be changed or is unsafe. You will also be informed of repairs that need to be done and he/she may even be able to tell you where there may have been problems in the past. If work is required, we will help with recommendations.
- Contract changes. If you are requesting changes to the contract, prepare and sign an addendum. *Note that this could open up the contract and provide an out for the seller.
- Remove subjects. Once you have fulfilled the conditions, written notification should be given to the seller that you are removing the subject clauses.
YOU’VE BOUGHT A HOME!
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