5 Essential Elements of a Purchase Offer Contract

A purchase offer contract is an important part of just about every type of real estate transaction. When making an offer on a home, business, or other type of property, this contract lays out the details of what you are offering, and if accepted, can secure the property as yours while the final arrangements are completed. When making an offer like this, it is important to ensure all the essential elements of a proper purchase offer contract are included.

Details of the Purchase

Much of the purchase offer contract is going to be similar to any contract. It needs to include details like your name, current address, information about the land and/or property, and the information of the people who you’re hoping to purchase a property from. Making sure that all this information is accurate can help to avoid any delays or other problems while working through the purchase process.

Your Offer Price

One of the most important parts of a purchase offer contract is the purchase amount. While the seller is going to list their property at a set amount, that is typically not going to be what the buyer will actually pay. You can choose to offer either more than the seller is asking, or less, depending on a variety of factors.

Where You’re Getting the Money

Sellers will typically need to be confident that you actually have the money that you’re offering because they don’t want to accept an offer only to have it fall through later because you didn’t really have the money you needed. Including a pre-approval letter from your financial institution, for example, can show that you are a serious buyer and that your offer is good.

Timeline of the Offer

When purchasing real estate, you are likely looking at a number of different properties. When you make an offer on one, you typically won’t want to (or even be able to) make an offer on another. With this in mind, you need to get an answer from the seller as quickly as possible. Including a set deadline by which the seller has to either accept or reject your offer is extremely important.

Contingencies

While you never want to make an offer on a property if you’re not sure that you want to make the purchase, there are times when things change. You can include contingencies that allow you to back out of the offer without penalties. If your financing falls through, for example, your proposed loan doesn’t have a good interest rate, or you find something wrong with the house, you may want to be able to pull your offer off the table.

Don’t Act On Your Own

As with any contract, you don’t want to risk mistakes by trying to write it yourself, or using a ‘self-help’ option. Instead, having an attorney write up your contract will ensure everything necessary to make it legally enforceable is in line. If you need to have a purchase contract offer written up or looked over, please contact Reyes Law Group so you can have the best chance possible at getting the property you desire.

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Written by Reyes Law Group