You've found the home that meets all your dreams and desires -- at least the important ones -- and you're ready to make an offer. So, what's next?

It's at this point that you sit down with the REALTOR who showed you the property and complete a Contract of Purchase and Sale.

A Contract of Purchase and Sale is the formal presentation of your bid to the seller, and contains all the provisions of the sale, from the price to whether or not the bedroom drapes are to be included in the sale of the home.

The REALTOR will probably begin with a Contract of Purchase and Sale that contains certain basic standard provisions, and then tailor it to address your specific situation. Ask to see a blank Contract of Purchase and Sale before you begin viewing properties so you can leisurely familiarize yourself with the points you'll need to consider.

Ask your REALTOR for a copy of the State of Title Certificate so you'll know what is registered on title. There could be restrictive covenants, easements or rights of way that may affect the desirability or usefulness of the property.

You may also wish to view a copy of the Property Condition Disclosure Statement. This document is completed by the vendor and describes the condition of the property. This statement is available for residential properties listed through MLS^®.

When the time comes to complete the Contract of Purchase and Sale, the selling REALTOR will go over each provision with you. Major conditions often covered in a Contract of Purchase and Sale include: an agreed upon sale price, amount of initial deposit and terms for payment of the remainder, amount of down payment, a provision allowing the buyer to withdraw from the contract if specified mortgage terms cannot be arranged, the date of the closing of the sale, and the date when possession of the property is transferred to you. This list is not all-inclusive, but in the very least a Contract of Purchase and Sale should include all aspects of the terms of the sale and the financing.

Once you're satisfied with the Contract, your REALTOR will deliver it to the listing salesperson. Then your REALTOR, the listing salesperson and the vendor will likely meet to review the Contract. The vendor will then have the right to negotiate each point you've outlined. This process -- known as counter-offering -- continues until both parties are in full agreement. All counter-offers should be in writing to safeguard the interests of all parties.

Remember, until an agreement on every point is reached between the buyer and the vendor, nothing irreversible has happened.

Upon agreement and signature of the Contract of Purchase and Sale, both parties are legally obligated to the terms of the Contract.

Once the Contract of Purchase and Sale is accepted, it's a done deal and nothing in the agreement can be changed without the consent of both parties.

So before you sign on the dotted line, make sure that you are thoroughly familiar with the contents of your Contract of Purchase and Sale. In so doing, you'll take possession of a home that best reflects your dreams and expectations.

The above article was prepared by the Vancouver Island Real Estate Board - "An Association of REALTORS" for the information and benefit of consumers.

September, 1992
rev Feb/95
rev. Jan/98