Once you've found the house of your dreams and you figure you can afford it, you will want to make an offer. The form on which your offer will usually be made is the one provided by the Ontario Real Estate Association (OREA).

There are several key issues to keep in mind as you finalize the deal:

Purchase price: This is obviously the key issue and the main focus of any negotiation that takes place. When you are figuring out how much you can afford, don't forget to factor in the cost of Land Transfer Tax, legal fees, adjustments to the purchase price for realty taxes, fuel oil and other miscellaneous items.

Deposit: Keep the deposit as low as possible. A typical deposit is in the range of 2 to 5 percent of the purchase price, though market dynamics will often dictate whether a larger deposit will be required.

Conditions: You may also want to make your offer subject to certain conditions. Unless you have cash in the bank, you will probably want make the offer subject to financing. This condition should be worded carefully and can go as far as stipulating the interest rate, the principal amount and the monthly payments of the mortgage that you require. You may also want to make the offer subject to home inspection by a qualified home inspector retained by you. This clause should clearly state that in the event that such inspection reveals deficiencies in the property which you are unwilling to accept, you can terminate the agreement and recover your deposit.

Survey: Prior to finalizing the offer you should ask to see a copy of the survey of the property. If the survey is up-to date, it will indicate the dimensions of the property, the location of the buildings and fences and other man-made objects on the lot and whether the property is subject to any easements or rights-of-way in favour of neighbours or others (such as Bell Canada or suppliers).

The offer is an important document and you will be bound by what you agree to. Since every deal is different, we encourage you to have us review the offer before you sign it to make sure that your rights and interests are adequately protected. This important piece of "preventative medicine" can often be the difference between a home purchase deal that proceeds smoothly and one that doesn't.