The Offer To Purchase
When a buyer decides they are interested in your home, they will ask their Realtor to prepare a written offer to purchase the property. This is usually done on a standard form called the Contract of Purchase and Sale. Your Realtor has an obligation to present you with any and all written offers and, if you receive several at one time, you are under no obligation to accept one over the other.
When you do receive an offer you have three choices as to how you can deal with it. You can accept it as is, refuse it, or make a counter-offer to the buyer's offer with any changes you might want. Your Realtor will explain all of the pros and cons of the offer and assist you in making the right decision.
An offer usually contains subject clauses, or conditions, that the buyer needs to remove by a specific date. A subject clause is a special condition that must be met before the sale can take place. For example, a buyer may want to have a certified home inspection done before they commit to the sale. Once all of the subject clauses are removed, and you have signed the offer, it is a legally binding contract.
Completion
The Contract of Purchase and Sale will specify a completion date for the sale. On this day, legal ownership of the home will transfer from you to the buyer.
Well before the competion date you will need to hire a lawyer or a notary public to handle the completion proceedures. Your Realtor will be able to recommend a choice of lawyers and notary publics who will ensure the following are handled:
- Ensure that your mortgage has been properly discharged.
- Arrange for you to sign all of the paperwork which transfers title to the new owner.
- Confirm that all payments you are responsible for have been made.
- Give you a cheque for the balance.
Although you will receive a payment upon the sale of your home, there are some costs that you should be prepared to pay. They include:
- The Realtor's commission.
- Legal fees.
- Any penalties your lender may asssess you for paying off your mortgage early.