Definition
A purchase agreement (also called 'promesse d'achat' or 'offre d'achat' in Quebec) is a legally binding contract by which a buyer proposes to acquire a property at a defined price and under defined conditions. Once accepted by the seller, it binds both parties subject to included suspensive conditions.
In Quebec, the purchase agreement is governed by the Civil Code, and OACIQ real estate brokers use standardized forms. It specifies: offered price, desired possession date, deposit amount, inclusions/exclusions (appliances, light fixtures, etc.), and suspensive conditions (financing, inspection, sale of current property).
Once conditions are lifted (or expired without being raised), the purchase agreement becomes a firm sale contract. A buyer who withdraws after conditions are lifted may lose their deposit and face legal action. This is why the financing condition is essential protection — it allows withdrawal if the loan is not granted.