Offer to Purchase - Terms Conditions - am I asking too much?

[Nir]

Hi All,

Is it recommended NOT to add the following conditions (to buy a duplex) so the buyer does not look as "being too difficult":

Subject to purchaser confirming insurability of property suitable to the purchaser

Subject to confirmation the property meets all applicable fire & safety codes (again, it`s just a duplex)

The seller to remove the out of order dryers and washers from property basement on or before closing (how important is it, no one is using the basement anyway)

Other more standard conditions related to lawyer`s approval, home inspection, financing etc., will be included anyway.

Thanks & Regards,
Neil

 

[Thomas Beyer]

QUOTE (investmart @ May 14 2008, 12:07 AM) Hi All,

Is it recommended NOT to add the following conditions (to buy a duplex) so the buyer does not look as "being too difficult":

Subject to purchaser confirming insurability of property suitable to the purchaser

Subject to confirmation the property meets all applicable fire & safety codes (again, it`s just a duplex)

The seller to remove the out of order dryers and washers from property basement on or before closing (how important is it, no one is using the basement anyway)

Other more standard conditions related to lawyer`s approval, home inspection, financing etc., will be included anyway.

Thanks & Regards,
Neil

keep the # of conditions VERY VERY low, ideally ONE only, such as:

home inspection satisfactory to purchaser, on or before X days after contract acceptance (or XYZ date).

or

financing satisfactory to purchaser. on or before X days after contract acceptance (or XYZ date).

THAT`S IT.

It gives you an out if you have to ..

insurability is a pretty "useless" clause as anything is insurable .. you just may not like the premium.

 

[Nir]

Thank You Thomas,

As usual highly valuable and interesting comments!

I guess you`re right about insurability Good point.

Regards,
Neil

 

[RedlineBrett]

QUOTE (investmart @ May 14 2008, 12:07 AM) Hi All,

Is it recommended NOT to add the following conditions (to buy a duplex) so the buyer does not look as "being too difficult":

Subject to purchaser confirming insurability of property suitable to the purchaser

Subject to confirmation the property meets all applicable fire & safety codes (again, it`s just a duplex)

The seller to remove the out of order dryers and washers from property basement on or before closing (how important is it, no one is using the basement anyway)

Other more standard conditions related to lawyer`s approval, home inspection, financing etc., will be included anyway.

Thanks & Regards,
Neil

You need to have the conditions in there that you need to feel comfortable with the deal... but you don`t need to risk coming off as a worry-wart or as an inexperienced buyer by doubling-up on conditions. For example:

1. Insurability can be related to financing - your mortgage lender will require you to have insurance on the property for them to register a loan - so you can kill two birds with one stone here. Uninsurable property = no financing suitable to buyer = no deal.

2. conformity to fire and safety codes should be something your inspector looks for. So you don`t need to have that in there, just `property inspection`.

The extra ones - washer and dryer removal, window coverings, fix this fix that etc - will usually come down to how you and your seller value time and money. You might be better off dealing with all of the little problems and just ask for a lower price or vice versa. If you sense a seller balking at their price ask them to do all the little things for you and bring the property to your standards. Figure out what you are willing to do for what $ and put the choices to the seller.

 

[ToddStokowski]

I agree with Thomas, one "catch all" condition that will allow you to satisfy yourself with all your concerns.

The more general the condition, the better.

For example:

"Conditional upon the Buyer performing its diligence regarding various matters to the sole satisfaction of the Buyer"

If the Buyer wants more specifics, they will let you know.

Each offer is different and you need to know about the Vendor and what makes them tick, and what will causes them concerns.

You need to decide to go with a general condition or very detailed - whichever suits your situation better.

Good luck.

Todd

 

[Nir]

 

[Nir]

Thanks guys for the help!

It`s interesting how in a recent EXCELLENT quickstart event I participated they actually presented a page with many conditions. (they did not recommend using them all of course but if i recall correctly did not mention focusing on 1 or very few as well).

I like your approach - 1 or 2 conditions that will make you "feel comfortable with the deal" as Brett mentioned.

Regards,
Neil

 

[ccameron]

Thank you Neil for the great tip. Putting conditions in your offer is something I myself have become quite comfortable doing! However, from a sellers point of view a nice `clean` offer will seem far more enticing therefore promoting a sense of ease while selling the property----translating to a better price for the buyer!! I will use this tip today when I hopefully present an offer on a sweet property. Regards Chris Cameron