An explanation of theExpiration of the Offer (Section 23) within the Contract of Purchase and Sale
Inclusions and exclusions to the Contract of Purchase and Sale were discuss in Episode 11 of the First Time Home Buyer Guide to Purchasing Real Estate in Vancouver.
In Episode 12, we’re going to have a look at the expiration time and date of a Contract of Purchase and Sale for Real Estate in BC.
Expiration of an Offer (Section 23 of the Contract of Purchase and Sale:
In practically all situations, a Real Estate Offer in BC will have an expiration date and time. You'll find it noted in on Page 4 Section 23 of the Contract of Purchase and Sale. An Offer is "open" for a Counter Offer or Acceptance until the date and time noted in Page 4 Section 23. Have a look at the sample below - this Offer expires on June 31, 2010. If the Offer is not Accepted or a Counter Offer is not received before the date and time specificed, then the Offer is considered Expired, and it is no longer open for acceptance or for a counter offer.
Why Do Real Estate Offers Expire?
An Expiration deadline on an Offer provides incentive to move things along. Without a deadline, an Offer would lie in limbo for an undetermined length of time. This can be very nerve racking to either party.
Offers also expire so that a Buyer (Or Seller when they send a counter offer) knows when to expect a response from the Seller (or Buyer receiving a Counter Offer) and if they don’t get a response the Buyer (Or Seller) can move forward on other properties (or the Seller who’s counter offer expires can entertain other offers) in an unencumbered manner.
3 Things that Can Happen Before The Expiry Date
- The Seller Does Not Respond – A Seller (or a Buyer if they receive a Counter Offer from the Seller) can choose to not respond to the offer and let the offer expire. The Buyer can either re-submit another offer that may be more attractive to the Seller or the Buyer can move on and keep searching for properties. (Sellers are also allowed to re-submit more attractive counter offers if the Buyer does not respond to a Counter Offer)
- The Seller Accepts the Offer – The Seller signs the offer and gets it back to the Buyer before the Expiry Date/Time and the offer is accepted. The Buyers Agent needs to receive the accepted offer from the Sellers Agent before the expiry date to ensure there is no uncertainty about when the offer was accepted.
- The Seller Sends a Counter Offer – This is when a Seller (Or a Buyer after receiving a counter offer from the Seller) changes something in the Contract of Purchase and Sale and intials the change (ie price, Completion Date, Included/Excluded Items, etc) and sends it back. The party sending the counter offer will very often change the expiry date/time on the offer to give the receiver of the counter offer sufficient time to respond.
BC Real Estate Offer (Courtesy of Mike Stewart Realtor) Page 4 of 7BC Real Estate Offer Courtesy of Mike Stewart Realtor Page 4 of 7
What Happens if My Real Estate Offer (Or Counter) Expires?
Try again or walk away. It is always possible re-submit an offer in the Vancouver Real Estate market. A Buyer or Seller can always try another offer or counter-offer after the offer or counter offer has expired. The group receiving the offer or counter offer has the option to either accept, send a counter offer, or accept an offer.
Stayed tuned for Episode 13 of the First Time Home Buyers Guide for Vancouver where we discuss Subject Clauses in the Contract of Purchase and Sale.
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