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.
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)
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
Average and median describe different aspects of the same month’s transactions. Both are affected by the mix of homes sold.
Category averages compare different homes and locations; the gaps are not estimates of the cost to upgrade an otherwise identical property.
The five categories shown account for 5,000 of the board’s 5,057 sales. The remaining 57 transactions were in other housing categories.
Monthly observations are not seasonally adjusted. Active listings count properties available at month-end; they are not construction inventory.
Average and median prices share one dollar axis. These unadjusted transaction measures do not control for changes in the homes sold.
TRREB’s 416/905 categories compare the apartments sold in each area. The difference does not isolate a location premium for equivalent units.
5680 Oak Street in Vancouver and its surrounding context. (MCMP Architects)
Ground-level renderings of the tower proposed for 5680 Oak Street in Vancouver. (MCMP Architects)
