Contract of Purchase and Sale Guide
When you are prepared to make an offer on a property, you will use a Contract of Purchase and Sale. Your real estate agent will assist you in completing this document. Here is a breakdown of the key elements:
- Identification: You will need to provide your Driver’s License as a form of legal identification.
Date: The specific date on which the contract is signed by the parties involved.
Legal Name: Your full legal name as it appears on official identification documents.
Purchase Price: The amount you are offering to pay for the property.
Home Buyer Rescission Period (HBRP): This is a statutory period during which you may cancel the contract under certain conditions. The amount related to this period will be adjusted based on the purchase price.
Property Details: The Legal Property Identification Number (PID) and a detailed legal description of the property.
Deposit: A deposit of typically 5% of the purchase price is required. This deposit demonstrates your commitment to the purchase.
Conditions (Subjects): These are conditions that must be satisfied for the sale to proceed, such as securing financing, completing a home inspection, obtaining insurance, and reviewing strata documents if applicable.
Subject Removal Date: The deadline by which all conditions (subjects) must be fulfilled and removed from the contract.
Included Items: A detailed list of items that will remain with the property upon sale, such as appliances or fixtures.
Completion Date & Possession Date: The Completion Date is when the transaction is finalized, and the Possession Date is when you will be able to move into the property.
Contract Expiration: The date and time by which the offer must be accepted; otherwise, the offer will expire.
Signing and Submission: After signing the contract, your agent will email it to the listing agent. They will then await a response to proceed further.
Your agent will guide you through each step, ensuring that you understand all aspects of the contract before you sign. Best of luck with your offer!