Free Offer to Purchase Real Estate

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Offer to Purchase Real Estate

Where is the property located?


Where is the property located?

England

EnglandBuilt for England
Different countries have different rules and regulations. Your Offer to Purchase Real Estate will be customised for England.





Your Offer to Purchase Real Estate

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Offer to Purchase Real Estate Page of
Seller(s) initials: ______________ Date: __________________________<br/><br/>Buyer(s) initials: ______________ Date: __________________________ Page of

Offer to Purchase Real Estate

THIS OFFER TO PURCHASE REAL ESTATE (the "Offer")

IS MADE BY:


_________________________ of _________________________
(the "Buyer")

OF THE FIRST PART

- TO -

_________________________ of _________________________
(the "Seller")

OF THE SECOND PART

SUBJECT TO CONTRACT

Background

The Buyer wishes to submit an offer to purchase a certain completed home from the Seller under the terms stated below.

This Offer is meant to establish the basic terms to be used in a future contract for the sale of the Property between the Seller and the Buyer (collectively the "Parties"). The terms contained in this Offer are not comprehensive and it is expected that additional terms may be added and existing terms may be changed or deleted. The terms are as follows:

  1. Real Property
  2. The legal description of the Property is as follows: ______________________________________________________________
    ______________________________________________________________ located at ________________________________, which includes the fixtures and improvements located on the Property except as provided for in this Offer. All property included within this Offer is referred to as the "Property".

  3. Sales Price
  4. The total purchase price for the Property is £__________ (the "Purchase Price"), payable as follows:
    1. The Buyer will pay a deposit of £______________ (the "Deposit") in cash to __________________________, to be held in escrow, on or before 14 June 2024. On the Closing Date, __________________________ will credit the Deposit to the Seller.
    2. The Buyer will pay the balance of the Purchase Price in cash or equivalent in financing at closing unless otherwise provided in this Offer. The balance will be subject to adjustments.
  5. Return of Deposit
  6. __________________________ will return the Deposit to the Buyer if the Offer is rejected or expires prior to acceptance.
  7. Offer Subject to Contract
  8. This Offer represents a preliminary agreement only and does not create a legally binding sales contract. The sale of the Property will be contingent upon the exchange of a legally binding sales contract.
  9. Closing & Possession
  10. The closing date will be on or be prior to 15 June 2024 (the "Closing Date") or at such other time agreed by the Parties, at which point the Buyer will take possession of the Property.
  11. Energy Performance Certificate
  12. The Seller must provide to the Buyer, free of charge, a valid energy performance certificate on or before 14 June 2024.
  13. Addenda
  14. In addition to any aforementioned required documents, the following documents are also attached and form part of this Offer:
    1. Mortgage offer.
  15. Notices
  16. All notices pursuant to this Offer must be written and signed by the respective party or its agent and all such correspondence will be effective upon it being mailed with return receipt requested, hand-delivered, or transmitted by facsimile as follows:

    Buyer
    Name: _________________________
    Address: _________________________
    Phone: _________________________
    Facsimile: _________________________
    E-mail: _________________________

    Seller
    Name: _________________________
    Address: _________________________
    Phone: _________________________
    Facsimile: _________________________
    E-mail: _________________________

  17. Severability
  18. If any term or provision of this Offer will, to any extent, be determined to be invalid or unenforceable by a court of competent jurisdiction, the remainder of this Offer will not be affected and each unaffected term and provision of this Offer will remain valid and be enforceable to the fullest extent permitted by law.
  19. Interpretation
  20. Headings are inserted for the convenience of the Parties only and are not to be considered when interpreting this Offer. Words in the singular mean and include the plural and vice versa. Words in the masculine gender mean and include the feminine gender and vice versa. Words importing persons include firms and companies and vice versa.
  21. Time of Essence
  22. Time is of the essence in this Offer. Every calendar day except Saturday, Sunday or a bank holiday will be deemed a business day and all relevant time periods in this Offer will be calculated in business days. Performance will be due the next business day if any deadline falls on a Saturday, Sunday or a bank holiday. A business day ends at 5:00 p.m. local time where the Property is situated.

Buyer's Offer

This is an offer to purchase the Property on the above terms and conditions. The Seller has the right to continue to offer the Property for sale and to accept any other offer at any time prior to acceptance by the Seller, subject to the terms of this agreement. If the Seller does not accept this Offer from the Buyer by 14 June 2024, this Offer will lapse and become of no force or effect.

Signature: ____________________________
Buyer's Name: _________________________
Address: _________________________

Date: ____________________________
Phone: _________________________

Marital status: ___Single ___Married ___Separated ___Divorced



Seller's Acceptance/ Counter-Offer/ Rejection

_____Acceptance of offer to purchase: The Seller accepts the foregoing Offer on the terms and conditions specified above, and agrees to convey the Property to the Buyer.

_________________________
Seller's Signature

_________________________
Date

_________________________
Time

_____Counteroffer: The Seller presents for the Buyer's Acceptance the terms of the Buyer's Offer subject to the exceptions or modifications as specified in the attached addendum.

_________________________
Seller's Signature

_________________________
Date

_________________________
Time

_____Rejection: The Seller rejects the foregoing Offer.

_________________________
Seller's Signature

_________________________
Date

_________________________
Time





Seller's Name: _________________________
Address: _________________________

Date: ____________________________
Phone: _________________________

Marital status: ___Single ___Married ___Separated ___Divorced


Last Updated December 21, 2023

Written by


Reviewed by


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Fact checked by



What is an Offer to Purchase Real Estate? 

An Offer to Purchase Real Estate is a legal document that outlines the terms and conditions under which a buyer is willing to purchase a property from a seller. It serves as a formal proposal and initiates the process of a real estate transaction.

An Offer to Purchase Real Estate is also known as a:

  • Real estate offer form
  • Home purchase offer letter
  • Real estate offer letter
  • Offer letter to purchase property

Our template is suitable for both private sales, also known as “for sale by owner,” and when a real estate agent is involved. It works for both residential and commercial sales.

How does an Offer to Purchase Real Estate work?

An Offer to Purchase Real Estate works as follows:

1. Preparation and submission

The buyer prepares and signs the Offer to Purchase.

Once the Offer to Purchase is completed, the buyer’s solicitor submits it to the seller or the seller's representative.

2. Review and negotiation

Upon receiving the offer, the seller reviews its terms and conditions. The seller may:

  • Accept the offer
  • Issue a counteroffer
  • Reject the offer

Counteroffers may involve modifications to the purchase price, deposit amount, closing date, or other terms. Negotiating and issuing counteroffers may continue until both parties reach a mutually acceptable agreement.

In Scotland, counteroffers are called "missives," and, together with the offer, will form the Sales Contract.

3. Acceptance

When the seller agrees to the offer terms, they accept it by signing the Offer to Purchase. Their acceptance creates a binding contract between the buyer and the seller.

4. Fulfilment of conditions

If the offer includes conditions, such as a home inspection or appraisal, the responsible party must satisfy these conditions within the specified timeframe.

Failure to satisfy the conditions may allow either party to withdraw from the contract without any penalties.

5. Closing

Once all the conditions are met, the buyer and seller can complete the closing process. During closing, they sign the necessary legal and financial documents to transfer the property from the seller to the buyer.

Generally, a Sales Contract needs to be signed, except in the case of Scotland, where the offer, along with the negotiations and counteroffers (i.e., missives) will form the Sales Contract.

Conditions on an Offer to Purchase Real Estate

A condition makes a buyer’s offer contingent on the fulfilment or completion of a certain task. The following are some examples of common conditions:

  • Satisfactory home inspection: The buyer must obtain a satisfactory survey on the condition of the property, allowing them to renegotiate if a problem comes up.
  • Proof of marketable title: The seller will provide evidence to the buyer that the title to the property is not subject to any encumbrances by other parties.
  • Market value appraisal: The sale is contingent upon an appraisal of the property, ensuring that the buyer doesn't pay more for the property than it is actually worth.
  • Disclosure statement: The seller completes a disclosure form, informing the buyer of any property problems of which the seller is aware.
  • Loan approval: The buyer must obtain a loan to cover the non-deposit portion of the purchase price (e.g., a mortgage).
  • Local byelaw documents: The seller must obtain all documents relating to relevant local byelaws (i.e., laws enacted by local government).
  • Specific property repairs: The seller must complete certain repairs to complete the sale.
  • Property is properly zoned: The property must be properly zoned for the buyer’s intended purposes (e.g., the seller must obtain proof that the zoning allows business use).
  • Buyer selling their property: The purchase of the seller's property is contingent on the buyer being able to sell their property and close the deal.

If a party is unable to meet a contract condition, you can cancel the Offer to Purchase the seller's property.

How to write an Offer to Purchase Real Estate

Use LawDepot’s Offer to Purchase Real Estate template to draft a quick and comprehensive letter. 

1. Provide buyer and seller details

Include full names, addresses, phone numbers, and emails for both the buyer and the seller.

2. Describe the property

Include the legal land description of the property. You should be able to obtain the description from HM Land Registry. It may also be found on the title deeds, in tax assessments, and in the mortgage agreement.

Also include descriptions of any fittings (i.e., fixtures) that are included in the sale. Fittings are personal property items that are moveable, such as appliances.

3. Outline offer and deposit details

Specify the purchase price and when the offer will be made. Then, provide the following deposit details:

  • Amount
  • Payment method (i.e., cash, cheque, bank draft, etc.)
  • Due date
  • Escrow agent

An escrow agent is a neutral third party who holds the deposit until you finalise the transaction.

4. Pick a closing and possession date

In your Offer to Purchase, specify a closing date. Also, state when the buyer gains possession, which is generally upon closing and funding.

Real estate transactions typically allow some time between the offer and closing dates. This gives you and the seller the opportunity to address conditions, such as securing financing or conducting house inspections.

5. Outline conditions

If your offer is subject to any conditions, outline them and the date on which they must be completed. Refer to the above section for examples of conditions.

For example, buyers can make their offer conditional on the property being taken off the market. Asking the seller to take the house off the market and not conduct any more viewings reduces the chances of the buyer being gazumped.

6. Set an acceptance deadline

Specify the deadline for the seller to accept the offer. The acceptance deadline date must be set prior to the proposed closing date. There should be enough time for the seller to view the offer, respond to it, and organise the sale logistics.

Do you need a mortgage before making an Offer to Purchase?

No, in most cases, a buyer obtains a mortgage after making an offer on a piece of real estate. For instance, the buyer might want to negotiate the property's sale price or ensure certain repairs are made before they proceed with financing.

The Offer to Purchase provides a timeline for the buyer to obtain a mortgage or otherwise secure financing before the offer is binding and the sale is closed.

However, a buyer may seek pre-approval for a mortgage so that they don’t make an offer that they cannot afford. In this case, mortgage lenders can identify the maximum amount that you qualify for.

Is a signed Offer to Purchase legally binding?

Yes. When the seller agrees to and signs an Offer to Purchase Real Estate, their acceptance creates a binding contract with the buyer. This means that, after accepting, sellers can't back out just because they received a better offer.

However, if the Offer to Purchase includes conditions that aren’t satisfied, then the parties may be able to break the contract without issue. Similarly, the parties may be able to terminate the Offer to Purchase if it includes provisions that allow either party to terminate the sale.

Related documents:

Offer to Purchase Real Estate Template Sample thumbnail

Sample

Offer to Purchase Real Estate

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