Real Estate Talk:
Promise to purchase first!

Insist on price and terms prior to due diligence

By Joseph Marovitch

Updated April 23. 2026

How often, in the process of selling a property, do potential buyers ask for documents such as electrical or oil invoices, receipts for the roof, and several other items before making a conditional promise to purchase? This is extremely annoying for the seller if there is no agreement on price and terms in advance.

The word conditional means the offer will not succeed unless the conditions in the offer are satisfied. Therefore, there is no risk of being committed to purchase. If the conditions are not satisfied, there is the option to renegotiate, purchase “as is,” or cancel the offer.

Most issues, the seller is aware of, are declared in the seller’s declaration, which saves time and reduces renegotiation; however, sometimes, in the inspection or examination of documents, issues are found that may reduce the value of the property, which then provides the opportunity to renegotiate, purchase “as is”, or cancel the offer

Still, making an offer with conditions is better than raising the seller’s hopes only to let them down or cause animosity between the buyer and seller before negotiations even begin. More experienced sellers will ask for the offer before providing confidential information. Experienced brokers will also request an offer before providing documents. This saves the broker from disappointing the seller and risking losing a client.

It is far better to know if buyer and seller are in the same ballpark before the seller exerts effort, only to find out they are not even on the same playing field.

Sellers are anxious to sell; otherwise, they would not place the property on the market. Therefore, when a prospective buyer asks questions about the house during a visit, sellers get excited. After the visit, when a buyer asks for invoices, the seller gets more excited. As prospective buyers ask for more and more due diligence before an offer, sellers get so excited that they can hardly wait for the amazing offer.

Then the offer comes in well below the asking price, or the prospective buyer makes no offer at all.

These are among the most discouraging moments in real estate for both the seller and the broker, as the seller may lose faith in the process. Therefore, when a prospective buyer asks for items, it is better to tell that buyer to place the requests in a written promise to purchase as conditions.

It is far better to know whether the buyer and seller are in the same ballpark on price before the seller expends effort, only to find out they are not even on the same playing field.

The information in these articles is a summary. Should you have any questions or comments, or wish to discuss further, please use the comments section at the bottom of the page or contact me directly. As well, to view past articles, click here.

STATE OF THE MARKET

According to Fergal McAlindon of the Canadian Mortgage Professionals (CMP) publication dated April 20, 2026, decisions made by the U.S. president over the past 16 months have had negative effects on the Canadian housing market, and there appears to be no end in sight. Some of these decisions may have lasting effects and take time to repair, even after the current U.S. administration has departed. The U.S. war on Iran has affected economies worldwide, causing inflation and higher interest rates. Tariffs have also caused inflation and worldwide uncertainty of U.S. intentions. The unpredictability of these issues has caused buyers to hesitate, some sellers to downsize to sell, and others to wait in anticipation of rising carrying costs.

‘The already soft market in March may remain cool during one of the usually most active market times in spring, due to increasing mortgage rates.’

According to the Canadian Real Estate Association (CREA), the already soft market in March may remain cool during one of the most active market periods of spring, due to rising mortgage rates. The fear among banks is that the oil shortage and constant, erratic U.S. policy changes, which affect the stock market, real estate market, and the overall economy, will push up the prices of goods and services. The other effect is a lower supply, which drives prices higher. To combat inflation, the bank must raise interest rates to offset the shortfall.

There are ways to combat these issues, including incorporation and insurance, which will be discussed in the next issue.

Have a wonderful weekend!

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