Humber Real Estate - Course 2, Module 14 The Offer Process and Regulatory Obligations Already Graded A

Humber Real Estate - Course 2, Module 14 The Offer Process and Regulatory Obligations Already Graded A Is there a standard form used for the Agreement of Purchase and Sale? No, but there is certain information relating to the rights and obligations of the parties that must be included. What information relating to the rights and obligations of the parties must be included in an Agreement of Purchase and Sale? - The buyer is required to search the title at their own expense and make any objections within 30 days of when the agreement is made. - The seller has 30 days to remove any objection. If the seller is not able or is unwilling to remove any objection that the buyer does not agree to accept, the agreement can be terminated and the buyer's deposit is returned. - All adjustments made to the purchase price (e.g. property taxes, rents & interest) are adjusted as of the date of closing with the day of closing apportioned to the buyer. - The deed is prepared by the seller and registered at the expense of the buyer. During negotiations, the agreement of purchase and sale form is referred to as what? An offer When the offer accepted, but is conditional upon an event (such as the buyer obtaining financing), the offer is referred to as what? An accepted, conditional offer When the offer is a legal, binding contract, it's called what? An agreement What information about the seller, buyer and property are included in the agreement of purchase and sale? - Full legal names of the sellers and buyers - Municipal address and complete legal description - Purchase price (in words and numbers) - Deposit amount (in words and numbers) - Who the deposit holder it (typically the seller's brokerage) - When the deposit will be provided (typically with the offer, upon acceptance of the offer, or otherwise described) Is a deposit required to have a binding agreement of purchase and sale? No, but it's considered a show of good faith to the seller that the buyer is committed to completing the transaction. What are the key components of an Agreement of Purchase and Sale? - The offer price, deposit and amount due upon completion - Terms, conditions or other clauses required to address the needs or concerns of the buyer - Irrevocable date - Completion date (aka Closing) - Title search date (aka Requisition Date) - Chattels and fixtures - Conditions & applicable dates In most instances, the seller agrees to provide _________ _________ on the date of closing. Vacant possession Note: In instances where the buyer has agreed to assume an existing tenancy, vacant possession would not be given. The completion date must be a __________ day. Business *Excludes Saturdays, Sundays, & stat holidays as the Land Registry Offices are closed. What is the Requisition Date as included in an Agreement of Purchase and Sale? The time period in which the buyer's lawyer completes a search at the Land Registry Office. What is the purpose of a lawyer's search at the Land Registry Office? To review the information registered on the title and provide an opinion on these matters, such as confirmation of ownership, any mortgage or lien registered, or any easement affecting the property. What are the steps in preparing an offer from the buyer's perspective? 1. Initiate the offer 2. Draft the offer 3. Register the offer with the seller's brokerage 4. Present the offer to the seller 5. Await the seller's response to the offer What are steps required in preparation of drafting an offer? - Review the listing (confirm all info via GeoWarehouse, etc.) - Contact the salesperson (enquire if there are any other offers registered on the property) - Complete a comparative market analysis (CMA) - Obtain details from the buyer - Organize the required information What is the definition of a 'Registered Offer'? There is an offer signed by a buyer which may or may not have already been presented to the seller. If more than one registered offer occurs it is referred to as what? Competing offers Why is it important for a buyer to know if there are other offers, and the number of competing offers? It could impact the buyer's decisions regarding the terms of the offer, including whether to continue with making an offer. At what point can an offer not be withdrawn? Once presented to the seller, the offer becomes binding. Describe