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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

Rent Control

Rent control refers to government regulations that limit how much landlords can increase rent for residential tenants each year.. more

Receivership

Receivership is a legal process where a court or secured creditor appoints a receiver to take control of a borrower’s assets, such as property or. more

REALTOR

A REALTOR is a licensed real estate professional who is a member of the Canadian Real Estate Association (CREA) and adheres to its Code of Ethics and. more

Property Use History

Property use history refers to the documented past uses, functions, and occupancy of a property, which may affect environmental risk, zoning, or. more

Property Management

Property management is the oversight and administration of real estate assets on behalf of the owner, covering leasing, maintenance, financial. more

Property Maintenance

Property maintenance refers to the ongoing upkeep, repair, and management of a building or land to preserve its safety, functionality, and appearance.. more

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