Home buyer's checklist: Making an offer

It’s your choice whether or not to use a real estate agent. In BC, the purchase contract is often prepared by the buyer’s agent. A good agent will be familiar with the terms of the standard contract and guide you through the process.

In most BC home sales the seller pays the buyer’s agent’s commission, which is usually a percentage of the sale price. You may want to confirm this with your agent, if you choose to use one.

Especially if the seller is proposing changes to the standard contract, you should ask a notary or lawyer to review it before you sign it. Or you can make your offer subject to your notary or lawyer approving its terms. (Fees vary, so you can always ask for a quote for their services.)

As the buyer, you set the price you’re willing to pay for the home. Consider what you can comfortably afford. And be aware there are other costs when buying and owning a home. A good real estate agent can help you put in an offer that’s competitive but not overpriced.

A “chattel” is anything that isn’t part of the home — that is, it can be removed without damage. Specifically list in the offer anything you want the seller to include in the sale, such as appliances, curtains, mirrors, or light fixtures. Add a sentence that the purchase price includes these items.

The deposit is a “good faith” payment made up front. It becomes part of your down payment if the sale goes through.

You may not be able to get it back after you sign a contract. If you successfully cancel the contract during the cooling-off period, you should be able to get your deposit back. (You will have to pay a fee to the seller for cancelling.)

If you added conditions to your offer, you generally aren’t required to pay the deposit until you are able to satisfy the conditions.

Find out whether you have to pay GST and ask whether the purchase price includes it. If GST applies, you may have to pay GST on the deposit as well, even if the deal falls through.

The completion date is when the home legally becomes yours. Your name is registered as owner with the land title office. The possession date is when you can move in. If you’re in no rush to move, you can try to use these dates as negotiating points.

Under this clause, there’s space to add any conditions (known as subject clauses) of sale. These are issues you want to look into before committing to the deal. You must also write in the date by which you’ll aim to satisfy each condition (the subject removal date). If you cannot satisfy the conditions by this date, you can walk away from the contract.

You need to give the seller a time limit to accept your offer — normally a day or two. After that, your offer expires. If the seller doesn’t accept your offer in time, it allows you to make an offer on another home.

The deal could fall through if you can’t borrow the funds you need, at an interest rate you can afford. Consider stating that your offer is subject to your obtaining satisfactory financing. Note that a lender will want to do a property appraisal before committing to lend you money.

A closer look at the home may reveal problems that may make you rethink your offer. Consider stating that your offer is subject to arranging and approving a home inspection.

Make sure you can use the property as you intend. Consider stating that your offer is subject to your checking for any charges or features which may affect the property’s use or value. This is usually done by obtaining a title search. You may also want to check how the property is zoned.

If you’re purchasing a condo, duplex, townhouse, or other strata housing, consider stating that your offer is subject to your reviewing and approving the strata documents and meeting minutes. These documents can reveal a lot about what it’s like to live in a strata. Check the strata bylaws for rules on pets, rentals, age restrictions and whether you’re allowed to make needed changes to your unit, such as accessibility renovations.

Consider stating that your offer is subject to a notary or lawyer approving the contract. Signing a contract to purchase a home is a huge commitment. This can give you peace of mind that you’re not entering into a problematic deal.

Every property is different. Is there anything else you want to look into before you commit to buying? It may be something as simple as checking light or noise levels at a particular time of day.

Once the seller accepts your offer, the purchase contract is legally binding on both the seller and the buyer.

As the buyer, you have up to three business days during which you can cancel the contract for any reason. This is called the cooling-off period. Once this period has passed, you continue to be legally bound by the offer. If you attached conditions (subject clauses) to your offer, you can walk away from the deal if you can’t satisfy any of those conditions.

Many buyers assume they’re purchasing the property with no restrictions attached. But the seller is promising to deliver clear title to the property subject to some exceptions. It’s your responsibility to check for any charges against the property that may restrict how it can be used.

You can’t rely on anything the seller simply says (that is, orally) to you about the property. They’re generally only bound by what’s written in the contract. Unless they’re deliberately misleading you, the seller can’t be held to any oral comments they make.

As long as a seller is honest, the law doesn’t require that what they’re telling you in the property disclosure statement is factually correct. If there are aspects about the property that you need to know about, it’s a good idea to check into them yourself.

When you sign the standard contract, you agree to meet the strict deadlines it sets out. For example, if you don’t pay the seller by the completion date, they could cancel the contract and keep your deposit.

Set yourself up to meet the deadlines. If there’s anyone you’re relying on (such as a bank, insurance company or a family member helping you with your down payment), check in with them well before the deadline.

The standard purchase contract is typically used when you’re buying a previously owned home. It may also apply to a home that’s newly built and ready for you to move into. A different contract will be used if you buy a home before it’s built.