Acceptance In Real Estate
Definition of "Acceptance in Real Estate"
When we talk about acceptance in the real estate world, we have to talk about an offer that is accepted. The definition of acceptance implies the existence of an offer that we can accept or not. In real estate acceptance is applied in real estate transactions in the buying or selling of property when one individual makes an offer to purchase a house and the other decides to accept that offer or not.
Agreeing to an offer with the expectation of possessing it or having rights to it is the meaning of acceptance in real estate. Generally, a binding contract is affected when one party to a business arrangement accepts the offer of the other. This binding contract can not be broken once the act of acceptance has happened. Depending on the nature of the offer, an acceptance may be implied, partial, oral, or written.
What is offer and acceptance in real estate?
Offer and acceptance in the real estate world are the two requirements of a contract forming mutual consent as in any other field where an exchange is made. These factors, combined with valuable consideration, are the significant elements of a deal. For a real estate transaction to take place, we must have an offer from the party interested in making the purchase and an acceptance of that offer from the party that is selling. For example, John puts his home up for sale, asking $175,000. Brian makes an offer of $160,000, and John accepts the offer. They both sign a sales contract and Brian gives $17,500, 10% of the value of the agreement, as valuable consideration.
Now, as we talk about the acceptance of the offer we have to point out what can stop an acceptance and a sale from finalizing. In the situation that an offer is made and the accepting party does not provide a response yet, the offering party can revoke their offer at which point the accepting party can no longer accept the offer. The reason for that is because the offer had been revoked. Revocation is a detrimental element to the real estate transactions and it allows any party that made an offer to withdraw that offer before an acceptance had been forwarded.
Popular Real Estate Terms
Lease payments based on factors other than the passage of time. ...
Deed that states "love and affection" as the consideration for the gifted real estate. ...
Legal property rights that don not include possession. Examples of incorporeal property rights are air and mineral rights, riparian rights, easement and access rights. ...
Measure of the value of all goods and services produced by the economy within its boundaries and is the nation's broadest gauge of economic health. GDA is often a measure of the state of ...
Housing projects specifically designed to meet the community needs of the increasing number of individuals who are largely retired, having no small children. Adult communities are found ...
Individual making the payments in a mortgage or pledging a mortgage or property. ...
Person who will become the beneficiary if the original beneficiary dies before the insured. It is the policyholder's second election as beneficiary, dependent on the status of the primary ...
The definition of the price-to-rent ratio is very important for real estate investors. This ratio is a measurement for the affordability of a particular rental property and tells investors ...
Same as term time sharing: Segregation of ownership in real estate property over a stated time period. An example is a co-owned vacation apartment, used by co-owners for one month each. ...
Have a question or comment?
We're here to help.