Information that your agent needs to draft an offer

Below is a list of things your agent needs to write an offer for you.  Email them, and the process will be much smoother.

1. The name or entity of the party that is purchasing the property.  It might be

-Bob Sheddy (a person)
-Bob Sheddy or Nominee (An entity that is buying for another entity)
-Sheddy Commercial Investments Ltd. (an incorporated company)
-1122334 Alberta Ltd.  (a numbered company)

It is best to discuss the ownership with your accountant before you make the offer.  If you haven't, then it might be prudent to put the offer in one person's name "or Nominee" and then discuss with your accountant at a further date.  

2. For commercial property, you'll want to have the GST number of the entity that is purchasing the property on hand.  If you don't currently have a GST number, your accountant can help you get one.  You can still make the offer, with the goal of getting the GST number before the deal closes.

3. Then you must come up with an appropriate down payment amount.  Most standard offers allow for the downpayment to be refundable during the condition period.  Because the deposit is refundable it doesn't really matter how much you put up during the due diligence period.  Once conditions are waived, most sellers would like to see 5-10% of the purchase price held in trust.  

4. The amount you want to offer.  Keep in mind that most accepted offers are within 5-10 percent of the asking price.  A good agent won't list property if it is extremely overpriced.  They should also be able to justify the price for you with appraisals and/or comparable solds.

5. Your agent will need your mailing address that you want on title, your cell phone and your email address.  This will be put on the offer, and this is how your REALTOR and your lawyer will contact you.

6. You then need to look at a Calendar and decide how much time you need for your due diligence and financing conditions, and what day you would like to take possession.  My Lawyer, Colin Kloot, of Herman, Kloot & Company recommends the best days to have for the condition and possession days are Tuesdays, Wednesdays or Thursdays.  These days allow the lawyers and legal assistants the most flexibility, and the deals seem to be completed with fewer hiccups if they are planned for these days.  

7. Your agent then needs to know your lawyer's name, Law Firm, Mailing and email addresses, phone and fax numbers.  You can usually google the lawyer's name for this information.

Once the offer is drafted, you can go through the offer, line by line, and add any additional items in pen on the offer.  By going through the 7 steps above, you are simplifying the process, and making a nice clean canvas to start the offer on.

Congratulations, you are well on your way to purchasing your next investment!

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