You have fallen in love with an apartment (or house) and you don’t want to let the home of your dreams slip away. But, for good reason, you would still like to negotiate its price. How to do this? Submitting a written offer to the owner is certainly the right solution. Yes, but what does it consist of and how do you write it? Here are some useful tips. And if you are looking for a property for sale, check www.for-sale.com/ for further more information.
What is an offer to purchase?
An offer to purchase or “offer to purchase” is a document by which a potential buyer proposes to the owner of a property to purchase it at a given price, until a specific date and under certain clearly defined conditions. This written proposal is made after the visit of the property concerned, and must be transmitted to the owner either directly (in this case by mail in RAR), or through the intermediary of the real estate agency with which the visit took place.
Why make an offer to purchase?
The submission of an offer to purchase is not systematic, although it is often recommended by real estate agents… There are mainly 3 reasons to use it:
Your willingness to acquire the property for a lower price than that offered by the seller
Symbolically give more weight to your proposal and show your commitment
Speed up other potential buyers by speeding up negotiations and setting a deadline for signing a sales agreement.
What should be included in an offer to purchase?
A true contractual document, the offer to purchase must clearly define the terms of the proposal, as well as the obligations and clauses intended to protect both parties, namely:
- The civilities of the parties (seller and buyer)
- The address and description of the property concerned
- The price proposed for its acquisition
- The detailed financing plan
- The period of validity of the offer, beyond which it will lapse
- The reminder that the sale will only be legally constituted at the end of the sales agreement, and once the conditions precedent have been lifted (obtaining a loan, exercising the pre-emption right, etc.).
How does an offer to purchase end?
There are two possible outcomes to an offer to purchase:
In the first case, the seller accepts and countersigns it. In this case, the buyer and the seller are mutually committed to sign a sales agreement.
Second possible scenario, the owner of the property concerned refuses the offer, responds beyond its validity period or makes a counter-proposal at a higher price. In this case, the offer to purchase lapses and the buyer can regain his freedom.
In this article we study the legal scope of the offer to purchase, the possible consequences for the buyer and the seller in the event of non-compliance with its clauses, and the precautions to be taken…