Episode 7 - First Time Home Buyer's Advice - The Contract of Puchase and Sale
So you’re ready to write an offer and your Realtor has had you read and sign several disclosures as we discussed in
Episode 6 First Time Home Buyers Advice.
A Real Estate Offer is a Contract of Purchase and Sale in BC?
Contract of Purchase for Vancouver BC Courtesy of Mike Stewart Realtor
Yes! In British Columbia, a Real Estate Offer is officially referred to as a Contract of Purchase and Sale. The sample offer or Contract of Purchase and Sale
is a generally a 4 to 7 page document and has three main uses: BELOW
Communication – The Contract of Purchase and Sale is a written proposal that allows a Buyer to communicate clearly to the Seller how much the Buyer is willing to pay for the property and when, the size of the Buyers deposit, what is included with the property, what kind of checks on the property the Buyer wants to make, and anything else the Buyer wants to offer the Seller. (More detailed discussion of this to come!) When the Seller receives the Offer or Contract of Purchase, they can clearly communicate to the Buyer what they want in the offer by making changes or accepting the offer and sending it
Property Ownership Transfer Document – When Buyer and Seller eventually come to an agreement and both sides accept the offer in writing, this same document is used to transfer ownership of the property from Seller to Buyer.
Reference for Disputes – The Contract of Purchase and Sale will also be used as a reference should there be any disputes, disagreements, or confusion about the sale of the property or the condition after the sale. So remember to keep a copy of everything!
Please Note – The Contract of Purchase and Sale or Offer document is quite detailed, so for ease of understanding, I have broken down the sections over the next few video posts to explain each section in detail. I have also included a very general version of the contract, you should see different clauses and subjects in the Addendum of the offer depending on the type of property you are buying.
Let me know if you have any questions!
Stay tuned for First Time Home Buyers Advice 8: Purchase Price (Coming Soon!)
on March 23, 2011