What is the offer at real estate price?
Summary
- What is an offer to purchase?
- How do I respond to an offer to purchase?
- When to make a purchase proposal at the price?
- What should an offer to purchase at price contain?
- What does the buyer commit to in the event of an offer to purchase at the price?
- What to do if an offer to purchase is refused at the price?
- In case of simultaneous purchase offers, does the owner have a choice?
An offer to purchase at the price corresponds to the proposal of a buyer to acquire a property at the price asked by the seller, without any negotiation.
What is an offer to purchase ?
The content of the offer to purchase
Its writing is not governed by any law or specific rule, however you must show certain elements that remain mandatory :
- Your identity and that of the seller
- The validity period of your offer
- The price you offer
In common use, the validity period of the offer is one week. In addition, you can formulate on your offer if there are conditions precedent, such as obtaining your loan. This mention will be notified in all cases during the sales agreement.
The commitment of an offer to purchase:
An accepted offer to purchase commits you to the seller. It is not recommended to make one only to block a property and retract afterwards. At the risk of incurring on the one hand the risk of prosecution, and on the other hand of damaging one's credibility as a buyer with the real estate agent with whom one may be led to visit other properties.
In case of doubt about your intentions to buy a property, you can make an oral offer to purchase, it only binds you little and can thus retract by not making a written offer to purchase. In return, the seller is not related to you either and he can offer the property to another buyer.
Offer to purchase and real estate counter-proposal:
An offer to purchase at a price lower than the displayed selling price allows the seller to refuse your offer or to make you a counter-proposal. This refusal or counter-proposal automatically nullifies the offer and releases you from any commitment.
No payment is allowed when an offer to purchase is made. The only payment that occurs before the signature of the authentic deed is that of the receiver that accompanies the signing of the sales agreement.
You will have to pay a percentage of the sale price under receivership, and you will have 10 days to withdraw from the sale without losing the money paid.
[Last Name First Name]
[Address]
[Postal Code and City]
[Date] Registered letter with acknowledgment of receipt [or by email]
Subject: Acceptance of an offer to purchase
Dear Madam, Sir,
Following receipt of your offer to purchase received on [date], I accept the offer under the following conditions:
Type of property:
The characteristics of the property (surface in m², floor and number of rooms, etc.):
Conditions and commitments of each:
Price:
Acceptance valid until: [date]
Conditions precedent of the property
Offer amount of [amount accepted], agency fees included and excluding notary fees, which will be paid in full on the day of signing the authentic deed of sale.
Financing conditions
- This offer is not subject to financing.
- This offer is valid subject to obtaining a loan in the amount of [maximum loan amount], euros at the maximum rate of [in %], from a lending institution present in the country of sale of the property.
I immediately notify my notary Maître [name] so that he establishes a sales agreement and begins the necessary steps for the establishment of the deed of sale.
I will contact you again to tell you the date and time of signature of this sales agreement.
While waiting to meet you, Madam, Sir, I send you my distinguished greetings.
Signature
What should an offer to purchase at price contain?
- The identity of the buyer and that of the seller
- The period of validity of the offer and the date of the offer to purchase
- The purchase price
- An accurate and complete description of the building
Other optional elements may also be included with the offer to purchase:
- A certificate of funding
- A mortgage simulation
- A letter that shows the motivation of the buyer
Useful link : What do you need to know before making a mortgage?
What does the buyer commit to in the event of an offer to purchase at the price?
The proposal for an offer to purchase at the price commits the buyer to purchase the property in case of acceptance by the seller.
The future purchaser has the possibility to set a period during which he maintains his proposal without retraction. If the seller does not give any sign of life, until the expiry of the period, the offer lapses.
Unlike the offer to sell, the buyer cannot withdraw until the offer to purchase is accepted. However, in case of a favorable response, the buyer has a period of 10 days from the signing of the sales agreement to retract.
From the moment the offer at the price is accepted, the signing of the deed of sale without compromise follows. It should be noted that the private buyer has a reflection period of 10 days during which no act can and must not be signed.
Useful links:
> What is the difference between the offer to purchase, the promise to sell and the sales agreement?
> What is the time limit between a sales agreement and the authentic deed?
> What are the steps to sell a property?
> What steps should be taken when buying real estate?
What to do if an offer to purchase is refused at the price?
Except in the presence of an intermediary mandate, the seller may not refuse an offer to purchase at the price or outbid (reserved for sales entrusted to real estate professionals) with the various potential buyers.
The mandate of intermediary limits the powers of the real estate agent who is not empowered to bind his client in the absence of an express clause to this effect. The mission of the real estate agent is limited to presenting to the seller the offers made by the buyers, who is free to select the proposal of his choice, regardless of the price.
The contract is drafted and constituted upon receipt of the first offer to purchase at the price, so the seller can no longer enter into negotiations with other potential buyers.
Useful link : Real estate mandates
An offer to purchase at price takes precedence only if it precedes other offers to purchase by one day or more. In this situation, the seller must necessarily favor this offer to purchase.
The real estate agent has every right to continue to visit the property until the acceptance of the offer to purchase and the signing of the sales agreement. Nevertheless, he is obliged to inform the other buyers that an offer at the price has already been issued.
The Court of Cassation considers that as soon as two or more offers of purchase are transmitted to the seller on the same day, they are said to be concomitant and the seller can choose the offer he wants.
As an owner, it is possible to:
- Choose and accept a promise to purchase as is,
- Make a counter-proposal to a selected offer,
- Decline all offers if none are suitable
When to make a purchase proposal at the price?
Making an offer at the real estate price is not an act to be taken lightly. This must be done when the future buyer thinks that the housing is correctly positioned on the market price and that it is located in a tense area.
The offer at the price can also be proposed when several buyers make an offer, it is a way to put all the chances on his side.
- An offer to purchase at the price corresponds to the proposal of a buyer to acquire a property at the price asked by the seller, without any negotiation.
- Making an offer at the real estate price is not an act to be taken lightly. This must be done when the future buyer thinks that the housing is correctly positioned on the market price and that it is located in a tense area.
- The proposal for an offer to purchase at the price commits the buyer to purchase the property in case of acceptance by the seller.
- Except in the presence of an intermediary mandate, the seller may not refuse an offer to purchase at the price or outbid (reserved for sales entrusted to real estate professionals) with the various potential buyers.
You want to
to sell in Paris or its surroundings ?
Posted on 28/04/2023 by
Andy LECUYER
