The Conditional Promise to Purchase
Selling a property is a complex process that involves many forms that need to be completed and that must be in compliance with the law. By using the services of a real estate broker, you will benefit from the expertise of a specialist in the field.
Your property is in demand
Have you received an offer to purchase on your property that is for sale? This contract, also known as a promise to purchase, is used by every potential buyer who wants to make an offer to acquire your property.
The promise to purchase contains, among other things, the amount of money the buyer is offering you to take possession of your property, as well as the date and time of the expiry of their offer. If there are no conditions and you accept the offer, the contract is concluded. The deed of sale will be signed on the date indicated in the promise to purchase.
Conditions of purchase
If the buyer indicates a condition in the promise to purchase, their obligation to sign the deed of sale is suspended until this condition occurs. As long as the conditions have not been fulfilled, the buyer is not obliged to sign the deed of sale. Note: this does not prevent the buyer from remaining bound to the seller, and as soon as the conditions are met, the buyer must buy the property.
Some of the more common conditions include a pre-purchase inspection of your property and the obtaining of a mortgage loan. The potential buyer may also want to sell their property before acquiring your property, or request an analysis of the backfill material to detect the presence of pyrite for example.
First refusal clause
Accepting a conditional promise to purchase does not prevent you from continuing to offer your property for sale and attempting to sell it without conditions or with fewer conditions.
When a potential buyer indicates the sale of their property as a condition, a period of between 60 and 90 days is then established to fulfill the said condition. During this period, the seller may consider any other promise to purchase.
How much do you know about real estate? Take this quiz!