Offer to Purchase (OTP)
The Offer to Purchase (OTP) is the first step in the Buying process, and may be the most important set of documents to insure a smooth process to a successful transaction.
In my practice of Real Estate ( www.peterhawley.com) I have learned that if the OTP is complete, all disclosures addressed, all expectations are in writing, then there is a smooth transition to the Purchase and Sales (P&S) which is the final set of documents, that define the complete transaction. Failure to address all issues in writing at the time an OTP is presented or accepted, will unnecessarily complicate, delay, and create much stress as one moves to closing.
All facts regarding a property that is listed needs to be verified, starting with knowing who has the right to sell the property, dimensions of the structure and lot, septic systems, what utilities are available, what restrictions of use may be noted in the Deed, any outstanding betterments that will encumber a property, liens that may have to be addressed, zoning restriction, taxes, and present disclosures regarding the actual condition of the structure.
Once this information is verified, and there is an agreement of a Purchase Price, the next important information to be noted are the specific dates for performance, such as Home Inspections, Mortgage Contingencies, execution of a P&S, accounting of monies to be placed in Escrow, the date and place for closing.
The OTP is a legal and binding contract, if done correctly and completely all parties will be most thankful that I as a REALTOR did my job.
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