Promise to Purchase
The promise to purchase form is mandatory. It includes the following:
- Name and address of the buyer and seller.
- Address of the property in question, its cadastral designation (lot number), and size of the property.
- Price offered for the property.
- Deposit on the purchase, if any. This should not exceed 10% of the purchase price.
- Goods to be included in the purchase price (appliances, fixtures, curtains, etc.)
- Exclusions.
- Buyer’s obligations: if necessary, obtaining a mortgage; selling your house within a reasonable delay; promising to pay the transfer (welcome) tax and notary’s fees...
- Seller’s obligations: providing the property deeds and titles, a recent certificate of location...
- Seller’s declaration: the seller guarantees that his or her property has no pyrite or other hidden vices; that, for example, it isn’t insulated with urea formaldehyde foam; that no notice has been received indicating the property fails to meet legal and regulatory standards, etc.
- Buyer’s declaration: the buyer accepts, for example, not to sell his or her rights granted by the promise to purchase, unless authorized in writing by the seller.
- The date for signing the act of sale with a notary.
- The date the buyer takes possession of the property.
- The date and hour the offer to purchase expires.
- Division of school and property taxes, co-ownership expenses, if applicable.
- Etc.
A promise to purchase may be conditional on financing and/or sale of the buyer’s current home, and/or acceptable results from the building inspection.