An offer to purchase is prepared before the purchase of an already built property contrary to new or to be built condos, in which cases, you will be shown a preliminary contract. Even though it is not compulsory under the Law, the offer to purchase is a necessary step on the path leading to a transaction for the majority of buyers. Generally in writing, it is the first step which leads to a deed of purchase. Prepared generally on a standard form by the real-estate broker, the offer to purchase is in reality a preliminary contract.
Its purpose is to disclose your intent to purchase the said immovable for the price stated, and also to specify the terms and conditions of the transaction. The person signing the offer to purchase as well as the promising-vendor must honor the contract for which he has made a commitment.
WHAT YOU SHOULD KNOW! By reason of its enforceability, the accepted offer to purchase should not be treated as a mere formality. It creates serious obligations between the parties. It is therefore of the utmost importance to take into consideration all its legal consequences.
WHAT TO KEEP IN MIND: The offer to purchase is a document by which the potential purchaser makes the commitment to purchase a property for a given price.
WARNING! Not to abide to an offer to purchase can be an expensive mistake, either for the promising vendor or the promising purchaser. Damages can be claimed, if one or the other party defaults. The plaintiff can also ask the Court for a judgment equivalent to a deed of sale.