When it comes to buying or selling a home, the negotiation stage often moves quickly—and it can feel overwhelming if you’re not familiar with the paperwork involved. That’s why I always recommend reviewing the most common forms before we’re in the heat of negotiations. Having a clear understanding ahead of time helps you feel confident, avoids last-minute stress, and gives you the opportunity to ask questions in advance.
Here’s a breakdown of the forms you’ll typically see during an offer, along with their purpose:
The Key Forms in an Offer
Contract of Purchase and Sale (CPS)
This is the main contract that sets out the agreement between the buyer and seller. It includes the property details, purchase price, deposit, dates, and space for additional terms or conditions.
Addendum I
A form that adds more detail to the offer, outlining terms, responsibilities, and obligations of both the buyer and seller.
Addendum II
A common add-on that includes standard clauses such as financing, inspection, or other conditions often required to protect either party.
Property Disclosure Statement (PDS)
Completed by the seller, this form discloses known issues with the property (e.g., leaks, defects, unpermitted work). It becomes part of the contract once included in the offer.
Amendment to Remove Subjects
Once the buyer has satisfied their conditions (such as financing or inspection), this form removes them and confirms that the buyer is proceeding unconditionally with the purchase.
What These Forms Are Designed to Do
The intent behind these documents is to:
Clearly outline the terms of the contract.
Protect the buyer.
Protect the seller.
Protect the REALTOR® by making all details explicit.
Provide clear instructions to lawyers or conveyancers handling the transaction.
Common Conditions You Might See
Conditions (often called “subjects”) are written into an offer to protect the buyer—or sometimes the seller. A few of the most common include:
Title Search: Ensures the seller is the rightful owner and the property is free of liens or other issues.
Financing: Gives the buyer time to confirm mortgage approval.
Inspection: Allows the buyer to review the property’s condition. If major issues arise, this can trigger further negotiation.
Review of the Property Disclosure Statement: Ensures the buyer has had the chance to review the seller’s disclosures.
Strata Documents (for condos/townhomes): Provides details about the strata corporation, finances, and bylaws.
Additional clauses may also be included, such as:
Subject to lawyer or accountant review.
Subject to receiving probate (in the case of an estate sale).
Subject to sale or purchase of another property.
Requiring professional cleaning or junk removal before completion.
One Key Reminder
All real estate contracts and agreements must be in writing to be legally enforceable. While some details may be discussed verbally, nothing is binding until it’s signed and included in the contract. As I often say: “If it isn’t in the contract, it doesn’t exist!”
Final Thoughts
The forms involved in a real estate offer might seem like a lot at first glance, but each one serves an important role in protecting everyone involved and keeping the process clear. If you’d like a deeper dive, I also have a video walkthrough that explains much of the contract in detail.
And of course—if you have questions, I’m always happy to connect by phone, email, or in person to review any of this with you.
