By Katie Dobson, REALTOR® | Royal LePage Real Estate Associates

Receiving an offer can be exciting, especially after weeks of preparing your property and accommodating showings.

But the purchase price is only one part of the agreement.Before accepting an offer, Ontario sellers should understand the price, deposit, conditions, closing date, inclusions and other contractual terms.An offer that looks attractive at first glance may include obligations or risks that deserve careful consideration.

What Is an Agreement of Purchase and Sale?

An Agreement of Purchase and Sale, often called an APS, sets out the proposed terms of a real estate transaction.It can include the purchase price, deposit, closing date, conditions, included items and other provisions.Once properly accepted and communicated in accordance with its terms, it can become a binding contract.You should understand what you're signing before accepting.

What Is the Irrevocable Period?

An offer may state a deadline until which it remains open for acceptance.This is commonly called the irrevocable period.The specific wording and timing matter.Your REALTOR® can explain the offer process, and your lawyer can advise on legal concerns.

How Does the Deposit Work?

The agreement specifies the deposit amount, when it must be delivered and how it is to be held.A deposit is generally applied toward the purchase price at closing.It is not automatically forfeited whenever a transaction fails.The consequences of default or termination depend on the contract and applicable law.

What Conditions Should Sellers Look For?

Common conditions may concern financing, home inspection or condominium status certificate review.A condition can give a buyer certain rights under the agreement, depending on its wording.Review the deadline, required notices and consequences if the condition isn't fulfilled or waived.An offer without conditions isn't automatically better in every circumstance.

What Is a Counteroffer?

A seller may respond by proposing different terms.That could involve price, closing date, deposit or other provisions.A counteroffer is not simply an informal conversation.It can have legal consequences and should be handled carefully.

Why Closing Dates Matter

Your preferred closing date may depend on when you're moving, purchasing another home or completing an estate transaction.A buyer's proposed date may or may not work for you.Before accepting, confirm that your financial and practical arrangements are realistic.

Should You Accept the Highest Offer?

Not automatically.Consider the full package.For example, one offer may have a higher price but include conditions or timing that create uncertainty.Another may offer a lower price with terms that better suit your needs.The goal is to evaluate the benefits and risks of each offer.

What Happens After Acceptance?

The next steps depend on the agreement.They may include deposit delivery, satisfying conditions, arranging financing, lawyer coordination and preparing for closing.Keep copies of important documents and maintain communication with your REALTOR® and lawyer.

Frequently Asked Questions

Can a seller reject an offer?

Generally, yes, before becoming contractually bound, subject to applicable legal obligations.

Can I accept two offers?

A seller should not enter conflicting binding sale agreements. Seek legal advice about any unusual circumstances.

Can I change my mind after accepting?

A binding agreement can have significant legal consequences. Consult your lawyer immediately.

Does a large deposit guarantee closing?

No. It may provide information about a buyer's commitment, but it does not guarantee performance.

Who explains the legal clauses?

Your REALTOR® can explain the real estate transaction, while an Ontario real estate lawyer should advise on legal interpretation and risk.

Selling Your Brampton Home?

My MCNE® negotiation training informs how I help sellers evaluate offers and understand the terms being proposed.Request a Complimentary Home Selling Consultation.Katie Dobson, REALTOR®
Royal LePage Real Estate Associates
Brampton | Rosedale Village | Downsizing | Estate Property Sales