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