One of the most important documents signed is the Agreement of Purchase and Sale or Offer. When you make the offer, there are certain things you need to look at. Here is a list of some of them:
- Dimensions: The Offer lists frontage and depth: walk the boundaries, see where they are, get a survey and measure. Make sure you are getting what you are supposed to be getting, especially in the City, in older areas.
- Price, deposit and then any special conditions: Some agents use a Schedule for this and frankly it’s not a bad idea, as it keeps the offer neat.
- Chattels and Fixtures: A Fixture is something attached to the house that ordinarily cannot be moved without doing damage. Things like the air-conditioners, furnace, pot lights and the like. Generally you get everything except what is specifically excluded. Chattels are things like the drapes, fridge, stove, washer, dryer, chandeliers, etc. normally you need to list all of things you are getting. Not listed, not yours!
- Time to search title: Allow your lawyer up to 5 days, before Closing to send in requisitions or questions regarding the title and the like.
- Extra clauses: a) make sure you have a current survey (last 5 years) showing all structures, including pools and decks on the property; b) if you do not have your financing finalised make the offer is conditional on financing approved in your absolute discretion; c) make sure it is conditional on building inspection meeting your discretionary approval; d) ensure that Vendor is responsible for compliance with all City requirements at his or her cost prior to closing; e) Make the transaction conditional for a given period of time on your lawyers review and approval. This gives you an opportunity to see your lawyer, get suggestions, changes, and explanations and then return and negotiate.
For resale Condos
- Status Certificate: Make the Offer conditional on the Vendor supplying you with a new Status Certificate conditional for 3 banking days minimum after receipt to review and approve same in your absolute discretion;
- Reserve Fund Study: Ask for this in the Offer because if there is one it may reflect an increase in your common expenses and reserve fund contributions;
- Parking and Storage: Make sure that you know ahead of time and it is in the Agreement as to whether you are purchasing ownership of the parking and/or the bicycle storage unit or merely getting exclusive use.
Jayson Schwarz is a Toronto Real Estate Lawyer.