| An Offer to purchase real estate is a legally | | | | quitclaim deed. |
| binding contract between two or more parties for | | | | In case the type of deed is unspecified then it |
| the purchase/sale, exchange or otherwise | | | | may be assumed to be a "marketable deed" |
| conveying title of property from one party to the | | | | which implies that it is a warranty deed. All liens or |
| other. Most often, the agreement is bilateral in | | | | other encumbrances on the real estate should be |
| nature and it should conform to contract law in | | | | spelt out at the beginning to avoid the contract |
| general and in addition, should be set down in | | | | being voided either at the time of closing or |
| writing to be considered as enforceable by law. | | | | before closure of the offer. |
| In the United States, a contract has to be set in | | | | Furthermore, there may be present certain |
| writing to become enforceable, according to the | | | | contingencies that must be complied with for the |
| Statue of Frauds. Typically, an Offer shall have | | | | offer to be accepted and the contract be |
| the following contents: | | | | performed. These are: |
| • Identity of the parties to the contract | | | | • Contingency regarding mortgage |
| • Identity of the real estate • | | | | • Contingency regarding inspection |
| Purchase price of the real estate • | | | | • Contingency regarding another sale |
| Signatures of the parties • Should be for | | | | • Contingency regarding appraisal |
| a legal purpose and not for any unlawful activity | | | | In addition, the Offer to purchase real estate shall |
| • Parties to the contract should be legally | | | | include the date of closing the contract and taking |
| competent to enact the contract • | | | | possession of the property. The condition of the |
| There should not be any conflict in the minds of | | | | property should have been ascertained at the |
| the parties to the contract • The | | | | time the real estate ownership passes to the |
| contract should be enacted for a consideration | | | | buyer. Their may or may not be separate riders |
| Though it may not always be required, | | | | to the contract and their may be some amount |
| notarization of the contract may be necessary in | | | | of money to be deposited as earnest money |
| some cases. In any case, the Offer requires that | | | | along with the Offer. |
| one party make an offer and the other party | | | | Since this document is exhaustive, care should be |
| accepts the offer. To make the contract | | | | taken in drafting it and most buyers/sellers of real |
| enforceable by law both the offer and acceptance | | | | estate would be well-advised to purchase |
| should be in writing and be signed by all the | | | | pre-drafted offer documents to obviate the |
| parties concerned. | | | | necessity of having to draft one for themselves. |
| All alterations to the contract should be initialed by | | | | Since these documents have already been |
| all the parties concerned. The type of deed that is | | | | drafted, they form the ideal platform for |
| used to convey title of the property should be | | | | prospective buyers and sellers to launch their |
| specified. It may either be a warranty deed or a | | | | Offers to purchase real estate. |