Of Prime Interest: Real estate sale contracts

Of prime importance is ensuring any changes made to an offer are initialed by both parties involved in the process.

  • Oct. 21, 2015 11:00 a.m.

When purchasing a home, it’s important to ensure that the contract is written in such a manner as to protect both the vendor and purchaser.

Quite often in a real estate transaction, before an agreement on the sale is reached there will be back and forth offers and counter-offers.

When using a realtor, their profession has set rules and protocols that are followed throughout that process.

But in a private sale, it is paramount to have a contract written up by a lawyer or a notary both of who know the legalities when acting on behalf of the purchaser and vendor.

Of prime importance is ensuring any changes made to an offer are initialed by both parties involved in the process.  For example, the initial offer is a starting point of the negotiation for the final agreement in the price of the property. The contract will set out the completion and possession dates.

The completion date is the day funds will be transferred to the vendor and the possession date is just that—when the property actually changes hands and you can move in.

There will be various subject clauses attached to the contract. Subjects are placed in the contract to protect the purchaser’s initial deposit and allow time to arrange financing, have a home inspection and various other components that form part of the offer to purchase.

There will also be additions to the contract to protect the vendors of the property.

A property disclosure statement is a necessary part of the contract. This statement will be initialed and signed by the vendor and will provide information with regards to the property.  It will state some of the following:

• if the property has been or is a former grow operation

• is there a problem with the septic tank and field if the property is not on a municipal system

• are the furnace and hot water tank in good running order and when was the last time they were replaced.

Just Posted

Reel Reviews: Fear or love

We say, “Once again, one worth seeing, one not.”

Two people safe after falling through ice

Kelowna Fire Department urges caution around icy waters during warm weather

Missing Kelowna woman sought

RCMP are asking for assistance in locating Christine Olsen-Meissnitzer

Plane lands safely after takeoff issue

An airplane departing Kelowna International Airport had an issue with a landing gear, landed safely

KSS rocks and rolls for 37th straight year

Kelowna secondary students let loose with annual Air Bank competition

REPLAY: B.C. this week in video

In case you missed it, here’s a look at replay-worthy highlights from across the province this week

Anti-pipeline protestors block Kinder Morgan tanker near Seattle

Protest was spurred on by the 28 anti-Kinder Morgan activists arrested in Burnaby

Captain Cal Foote is Rockets’ MVP

The Rockets hand out their annual team awards Sunday at Kelowna Community Theatre

Some surprises in new book about B.C. labour movement

“On the Line” charts history of the union movement back to the 1800s

Cancer fundraiser takes to Okanagan Lake

Penticton and Naramata joining growing fundraising event

Elke’s Garden Tips: Good time to prepare

Lake Country garden columnist talks about what to do at this time of the year

Letter: Crying fowl over goose cull witness

Kelowna letter-writer says Canada geese come with many issues

Letter: I was born in Kelowna in 1930…

Kelowna letter-writer has some ideas on how things should run nowadays

How to keep local news visible in your Facebook feed

Facebook has changed the news feed to emphasize personal connections. You might see less news.

Most Read