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 The reason for that is because the offer had been revoked.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
The right of a landowner to have lateral land support from adjacent properties. The right of lateral and subjacent support means that an adjacent land owner may not, for example, lower or ...
group of at least two people or businesses combining to engage in a real estate project that would exceed their individual financial abilities. A syndication allows earning to be ...
Alias is a different name by which a person is known.In the real estate world, there are times when an agent goes by a different name than the one he/she was originally named by his/her ...
Insurance coverage for any risk that can cause physical damage to the insured item. ...
Funds put up by venture capitalists to finance a new business. Often, involves a loan or investment in preferred stock or convertible bonds. A major purpose of seed money is to form a basis ...
Mortgagor's signed statement that the stated remaining balance of a mortgage is correct and it is a property lien. This prevents a mortgagor from later stating the facts were ...
Gentrification is an urban development phenomenon wherein a specific area changes its population profile by way of an economic appreciation of its real estate. The best way to understand ...
fee for the cost of a loan including interest and points. Points (1 point= 1% of the total loan) are advance charges for a mortgage, whereas interest in charge over the life of the ...
Investment made rationally and intelligently as would be expected by a professional person. A reasonable degree of safety and return are expected. A example is an office building with 99% ...
Have a question or comment?
We're here to help.