The Contract of Purchase and Sale (CPS) form in BC is the document that outlines the terms of the offer from a buyer to a seller in a real estate transaction.
This blog post goes through the main components of the contract of purchase and sale BC.
Read for everything you need to know about the CPS in real estate!
This is the amount that you are willing to offer for the property. This amount may be countered numerous times until the buyer and the seller can come to an agreement.
This is the amount of money put down as “good faith” that the buyer will complete their purchase. The deposit is typically 5% of the purchase price, and is normally due upon or within 24 hours of subject removal. This term must be added in to the contract, otherwise it is due within 24 hours of acceptance.
For more information on deposits, check out: Deposits in Real Estate 101
The terms and conditions section of the contract of purchase and sale is where a buyer would add the subjects (also known as conditions) that need to be fulfilled in order for them to proceed with handing in the deposit.
Typical subjects are: subject to financing, inspection, property disclosure statement, title, or strata documents.
This area is also where you would add in any warrants, or additional terms.
The completion date is the day that the buyer assumes title at Land Title Office. This is the day that closing costs and monies are due.
The possession date is the day that the buyer will have possession of the property.
In the contract you will also have to specify a time that you will take possession, and whether you will have vacant possession or if existing tenancies will remain.
The adjustment date is the day that the buyer assumes and is responsible for all taxes, utilities, rates, and assessments. This date is typically the same day as the possession day.
It is important to stipulate what items will be included in the purchase price.
Standard included items are: Dishwasher, washer, dryer, fridge, stove, microwave, all drapes and window coverings, all keys associated with the unit
This is the section where you acknowledge who your chosen representation is. In this section, both the seller’s and buyer’s agents will be listed.
If you are choosing to be unrepresented or have an agent perform dual agency, you will have to initial off on it and also refer to the updated Real Estate Council form acknowledging the risks of this.
You must set a time that your offer will expire. All negotiations must be completed by the offer expiry date and time, otherwise the offer is no longer applicable.
If you’re just starting out in your home purchasing journey, then give us a call at 604-765-0376 . Prefer text? 604-319-0200 or email [email protected] to start a conversation. We’re here to help.
