The agreement that will bind you to the seller consists in the Promise to purchase as amended by the last Counter-proposal, without regard to any previous Counter-proposals.
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Interested in a property?
You have found a property you would like to buy?
You are now ready for your broker to draft a Promise to purchase. By so doing, you undertake to purchase the seller’s property at the price and under the conditions indicated in your offer. By accepting your promise to purchase, the seller undertakes to sell it to you, probably subject to certain conditions on both parts (financing, inspection, etc.).
4 articles to read in this section
2 The Counter-proposal
Once your broker presents your Promise to purchase to the seller’s broker, the latter will discuss it with his client, who may accept it, refuse it or make a Counter-proposal using the form Counter-proposal to a promise to purchase.
On this form the seller can indicate that he is refusing your offer, but that he may accept it under certain conditions, for example:
- By including or excluding certain items (or making a minor clarification);
- By changing the selling price or timelines such as the date of occupancy;
- By making any other change to the offer.
Once your broker has explained the clauses contained in the Counter-proposal, if you wish to make a new offer, he will again use the mandatory Counter-proposal form.
Good to know
A Counter-proposal has the effect of cancelling all previous Counter-proposals made by either the buyer or the seller. The last Counter-proposal must include all inclusions and exclusions that are not mentioned in the initial Promise to purchase (regardless of any previous counter-proposals).
Deadlines
Like in the Promise to purchase, each Counter-proposal contains a clause specifying the deadline (date and time) by which the other party must accept. During this period, the counter-proposer cannot withdraw his counter-proposal. This deadline is important, because if it is not respected, the Counter-proposal becomes null and void.
As for the Promise to purchase, you may withdraw your Counter-proposal between the time when you sign it and the time when it reaches the seller. A cancellation that reaches the seller before the Counter-proposal is presented renders the Counter-proposal null and void.