Offer to Purchase Real Estate
An Offer to Purchase Real Estate is also referred to as:
- Real Estate Offer Letter
- Real Estate Purchase Agreement
- Building Purchase Contract
- Home Buyer's Offer Letter
What is an Offer to Purchase Real Estate?
An Offer to Purchase Real Estate is a legal document used by someone
who wishes to place a bid on a house or other private residence that is
for sale. The document contains a description of the property for sale,
the price being offered for the property, the proposed closing date and
possession date, and other important details concerning the potential sale.
What types of offers are there?
An Offer to Purchase Real Estate can be a firm offer or a
A firm offer means the buyer is willing to purchase the property
without any specified conditions. If the seller accepts a firm offer,
the transaction can be completed without further negotiation.
A conditional offer requires that one or more prerequisites be
fulfilled before the purchase can be made official.
What conditions can be placed on an offer?
Here are some of the conditions a buyer may include in an Offer to Purchase
- A property appraisal: confirms the buyer isn't paying significantly
more than the property is worth.
- A home inspection performed by a licensed inspector: discovers
any damage or defects in the house and attached buildings.
- A title search: verifies the property has no liens against it
or any other ownership issues that could impact the sale.
- Buyer must sell their existing home before the purchase can be completed.
- Buyer must receive mortgage approval from a bank or other
lending institution before the transfer of property takes place.
- Seller must arrange to have specific things done to the property
before the buyer takes possession: painting, carpet cleaning, repairs, etc.
Why should I use an Offer to Purchase Real Estate?
Using an offer letter lets a potential buyer bid on a property
without fully committing until all of the conditions are met. It also
helps the seller to determine whether or not they are able to meet the
terms of the conditional offer, which can save both parties time and
help to avoid potential issues in the future.
Forms related to an Offer to Purchase Real Estate