What does offer and acceptance mean?
Buying and selling a house can be very frustrating. Everyone involved in the process takes a break only after the deal is sealed. It takes a lot of process and steps to buy or sell a house. Although all steps are good, there is one step that dominates the rest which is the offer and acceptance.
The offer and acceptance mark the time when a seller of a house accepts the buyer’s offer. The buyer and seller will sign the purchase and sale agreement to finalize this agreement. The purchase and sale agreement will bind a buyer and seller of the property. This agreement will contain vital information such as the final purchase price, closing costs, tile information, contingencies, etc.
Why does the offer and acceptance matters
The offer will market the intention of a buyer to buy an asset or property in question. This is the first step toward a mutual agreement between the two parties. Once the offer is submitted, the seller could accept or deny it. For example, if the offer is lower than what the seller wants on the property, the seller can give the buyer another offer. Counteroffers could be given multiple times until the final price is reached.
The acceptance of the offer will be a milestone reached by both parties. By law, the buyer and seller must sign a legal agreement that binds them together, as noted by UpCounsel. Even if both parties agreed on the final price, a purchase and sale agreement must be completed and signed.
Should one side change their mind about the sale, the purchase and sale agreement can be used in court to protect the other party from major losses.
This agreement will also include all elements agreed up by both parties. For example, if the seller agreed to pay a percentage of the closing costs, it will be included in the contract. Without the legal documents, it could be hard to prove that both parties came to an agreement.
