What is in the offer?
The Purchase Offer is the legal document that indicates that an individual in interested in purchasing your condominium. Whether the agent uses an offer to purchase or a contract to purchase, the following items will be included within it:
Address Description: This simply includes the address and property description, and the title reference.
Consideration: This is the price the buyer is prepared to pay for the property. This price is often based upon comparable properties in the area that have sold in the past six months. This price is where the negotiations start.
Contingencies: Contingencies are future events that must be satisfied in order for the sale to go through. The most common contingencies are financing and property inspections. Some contingencies prove to be deal breakers, so work closely with your broker when reviewing them.
Date Of Closing: This is the date the closing will take place if the offer to purchase is accepted.
Date of Possession: This is the day that control of the property is turned over to the buyer and keys are handed over. In most real estate deals possession takes place at the closing.
Earnest Money: This is the amount of cash the buyer puts up to prove he or she is serious about purchasing your property. The more the buyer puts down the better – if the buyer breaks the contact you will usually keep this money for damages.
Fees and Costs: This outlines the fees which the buyer and seller will be responsible for, such as broker commissions, title insurance and transfer fees and taxes.
Fixtures, Personal Property, and Improvements: Once an item is attached to your property, it becomes a part of the property, such as light fixtures or kitchen appliances. Review this section carefully, and make sure your agree with what is outlined in this section.
Date the contract expires: This is set time when the contract becomes void if not accepted