An offer to purchase real estate is a document that details the conditions in a contract between a buyer and a seller. Once the contract has been executed, this is a legally binding contract between all parties.
An offer to purchase is sometimes called a purchase agreement or a purchase and sale agreement depending on where you live and the type of property you are buying.
An offer to purchase a home is usually a much simpler document than a contract to purchase. this is because the contractor’s purchase much is more detailed about the property description fixtures exclusions and all the necessary legal language that you will find for a property transfer.
The process will vary based on the state that you’re living in. Every state will have its own real estate or realtor member of the National Association of Realtors association that provides standard form contracts for the purchase and sale of real estate.
If you’re trying to sell, you’re home by yourself you can visit their website to get the necessary contacts you need.
Items You Will Find in an Offer to Purchase Contract
- The parties involved: The names of both the buyer making the offer and the home seller.
- Description: The description will have details about the property. For example, the address, title reference.
- Buildings, improvements, structures, and fixtures: This will be a general list of building structures and improvements that are included with the sale of the property when selling the property, you should also list items that the seller could take with them what should be part of the contract or deal, for example, the dishwasher clothes dryer sofa television refrigerator. Some home sellers leave these items in the property without including them in the contract for purchase. In that case, the buyer can either keep the items or dispose of them. Oftentimes homes are sold, and the previous owners leave a lot of their things especially if it’s a distressed property.
- Deed: This document shows evidence of a specific event of transferring the title of the property from one person to another.
- Title: Is the legal right to use and modify the property how you see fit or transfer interest or any portion that you own to others via a deed.
- Purchase price: The amount being paid for the property upon the execution of the agreement.
- Time for performance delivery of deed: The time, date, and place of closing.
- Possession and conditions of premises: A statement that says the buyer will receive full possession of the property and does not violate any building or zoning laws.
- Extension to perfect title: A 30-day period where the buyer has the chance to correct any issues with the property’s title.
- Buyers’ election to accept title: If there is an issue with the title, the buyer can elect to take the property as-is, subject to a lien.
- Acceptance of deed: This means that the seller has done their duties and obligations under the contract.
- Use of money to clear title: The seller may leave money at closing in escrow to pay any liens against the property.
- Insurance: The seller promises to maintain a certain amount of insurance on the property.
- Broker fees: Details the fees and who they will be allocated to.
- Deposit: The escrow agreement and a statement of who will receive the money from the account.
- Additional provisions: This area will be filled out if there are any additional provisions to the contact.
Offer to Purchase vs Purchase Agreement
An offer to purchase and a purchase agreement are the same types of contracts. They are interchangeable names used for contracts between a buyer and a seller in a real estate transaction.