Buying or selling a property is one of the biggest transactions most people have to deal with.  It is important to fully understand the process to ensure your best interest is protected.  There are different stages in the buying and/or selling process and we will go over these in detail over time.  Today, we'll look at the "offer" contract which is called Agreement of Purchase and Sale (APS).  This is the critical document that you need to deal with before a property is bought/sold. 

Here are SOME notes regarding dealing with an APS:

• The APS is normally initially prepared by the buyer/buyer's agent and is presented to the seller/seller's agent. 
• As the receiving party, initially, it's the seller receiving the offer, you can do one of three things:
  
  • You can accept the offer as is.  Sign the paperwork and you have an accepted offer.
  • You can modify different aspects of the offer and present it back to the other party.  This is called a counter offer.
  • You can do nothing and let the offer expire.  It is important to note that you do not have to accept any offer! This is an acceptable response. 
• The information about the property, owners' name and buyers name are filled in.
• The initial offer price will be included in the APS.  A deposit (due in 24 hours after the offer has been accepted) is also specified.  The deposit is a sign of good faith and is typically around 5 to 10% of the offer price.  The 24 hour requirement is critical as you need to make sure your deposit is accessible and a certified cheque needs to be delivered to the seller/seller's agent once the offer has been accepted.
• It's important to pay attention to the Time and date in the Irrevocability clause.  An APS is irrevocable by the party that presents the offer.  This means the initial offer prepared by the buyer is irrevocable by the buyer. An irrevocable offer means that the offer cannot be changed/updated by the buyer once the buyer presents the contract to a seller until the irrevocable period has expired. 
• Another important information that's included is the time you'd like to close.  This is when the lawyers of the buyer(s) and seller(s) will change ownership on the title.  This is tyipcally the date you pick up the keys to the property from the lawyer's office.  
• The APS comes with a set of pre-printed clause.  The Toronto Real Estate Board is kind enough to provide a plain English explaination of these pre-printed clauses.  These pre-printed clause can be over written as long as it's not a matter of law. 
• A Schedule can be included in the offer to handle other information regarding the offer.  Typical residential property sale includes Conditions for inspection of the property and conditions to secure appropriate financing.  The schedule information will vary based on what both parties are intersted to include in the transaction.
• Signatures are very important!  If the number of signatures, matching dates, initials and the order they have been signed are not correct, then you do not have an accepted offer.

Part of the services I provide is to go over this APS in detail before any offer is presented to make sure you understand what you are signing and what you are commiting to.  Of course, I will be there during the negotiation process and make sure that your interest is reflected in the APS before it gets finalized.  If you are in the market to sell or buy a property and would like professional help, you can reach us at (416) 669-9057 or email us at richie@richieyurealestate.com