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Offer To Purchase

Understand what an Offer to Purchase is in Canadian real estate, how it works, and why it’s a critical step in securing a property.

Offer To Purchase

May 22, 2025


What is an Offer To Purchase?

An Offer to Purchase is a formal, written agreement submitted by a buyer to a seller, stating the buyer’s intent to purchase a property under specific terms and conditions.

Why Offers To Purchase Matter in Real Estate

In Canadian real estate, the Offer to Purchase — also called an Agreement of Purchase and Sale (APS) in many provinces — is a legally binding document once accepted. It outlines all the essential details of a transaction, including:
  • Purchase price
  • Closing date
  • Deposit amount
  • Conditions (e.g., financing, home inspection)
  • Inclusions and exclusions (e.g., appliances, fixtures)
Buyers can include conditions to protect themselves, while sellers may counter with changes to terms. Once both parties agree and sign, the offer becomes a contract that legally obligates them to complete the sale.

Submitting a strong, well-structured offer is crucial in competitive markets, especially where bidding wars are common. Legal and real estate professionals typically help draft, review, and negotiate Offers to Purchase to ensure clarity and enforceability.
Understanding the offer process helps buyers avoid legal pitfalls, negotiate strategically, and secure their desired property with confidence.

Example of an Offer To Purchase

A buyer submits an Offer to Purchase on a townhouse in Ottawa with a purchase price of $620,000 and conditions for financing and a home inspection.

Key Takeaways

  • A formal document that initiates a property transaction.
  • Becomes legally binding once accepted.
  • Can include conditions, price, and closing terms.
  • Essential in all real estate transactions.
  • Must be reviewed carefully to avoid legal risk.

Related Terms

  • Agreement of Purchase and Sale
  • Conditional Offer
  • Firm Offer
  • Deposit
  • Closing Date

Additional Terms

Recourse Loan

A recourse loan is a type of loan where the lender can pursue the borrower’s personal assets, beyond the collateral, in the event of default.. more

Pari Passu

A pari passu clause is a contractual provision ensuring that multiple creditors share equally in repayment priority from the borrower’s assets.. more

Non-Recourse Loan

A non-recourse loan is a type of loan where the lender’s only remedy in case of default is to seize the collateral property; the borrower is not. more

Net Operating Income

Net operating income (NOI) is the total income generated by a property after operating expenses are deducted but before taxes and financing costs.. more

Mechanic's Lien

A mechanic’s lien is a legal claim by a contractor, subcontractor, or supplier for unpaid work or materials provided for a property.. more

Lis Pendens

Lis pendens is a legal notice filed in the land registry indicating that a property is subject to ongoing litigation that may affect its title.. more

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