The buyers have told you that they want to buy your property. The first step in this process is to write a Letter of Intent. This is an initial agreement between buyer and seller.
Here are a few things that must be in your agreement:
Most of these are straightforward. You should use legal names. If your names are Edward and Margaret but you go by Ned and Peggy, use Edward and Margaret.
Check with your lawyer as to whether your municipal address will do or if you need to use the legal description. Your legal description can be found on your Municipal Tax Assessment Notice or at Land Titles. Your lawyer should be able to help you with Land Titles if you have difficulties.
If you are asking for a deposit, you should know that deposits are just indicators of good faith and not legally required. If there is a deposit you need to determine who will hold it and if it is refundable. Again, you might ask your lawyer for help with this.
Which leads us to what are called contingencies or conditions or “subject to” clauses. These are usually used by the buyer to protect their deposit if something unforeseen should happen. These conditions may include the buyer having to get a loan, and or an inspection being done, and in the case of a condo, a review of the financials. The conditions state that if the buyer does not get the loan or the inspection is not favourable, they will not buy your house. Discuss this with your lawyer. Not working this out up front could give cause for a major legal battle.
You should also discuss and determine a possession or completion date. This is the day that you provide vacant possession. A specific date and time that you have both agreed to in writing can avoid some major confusion.
There is a lot of “check with your lawyer” in this section, but really, better safe than sorry.