Purchase contracts developed by the industry set out terms and conditions of a real estate transaction. Buyers and sellers can modify the standard form agreement to reflect transaction requirements.
When presented with a purchase contract (offer to purchase) from a buyer, you may accept, reject or counter the offer. If you counter the offer, the negotiations continue until both parties agree to the terms, or the offer expires.
Your real estate professional must communicate the progress of the negotiation with you, but can’t accept or make offers on your behalf unless you give them written authorization to do so.
You should also be aware that, in general:
- Offers or counter offers may be withdrawn at any time before acceptance.
- Withdrawal or acceptance of an offer or counter offer is only effective when the situation is communicated to the other party, or to the other party’s real estate professional.
- When an offer or counter offer has been accepted there is a binding contract between buyer and seller, even if it may be subject to certain conditions having to be satisfied.
Be familiar with the clauses you’re including in any counter offer. Ensure you ask your real estate professional and/or legal representative appropriate and applicable questions.