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 The reason for that is because the offer had been revoked.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
Factor employed by real estate agents or appraisers to determine the change needed in operating income to obtain a desired rate of return. It is used to evaluate income-producing property. ...
Premiums in insurance and real estate define as a bonus or surplus money. A dividend means a periodic fee you have to pay for your insurance protection. While in real estate, a premium ...
Fibrous, fire-proofing material that was used in buildings and homes for insulation. ...
The external covering finish of a structure which protects it from the elements. Exterior finish materials, including shingles, siding, and paints, are design to resist severe weathering ...
The two terms used to describe professionals in the real estate industry are “realtor” and “real estate agent”. These two terms are used interchangeably or as ...
Gift of real property as stipulated in a will. ...
Tax deduction permitted upon the transfer of property from one spouse to another. The deduction is allowed under the federal gift tax for lifetime transfers or under the federal estate tax ...
Before getting a loan to buy a property, you must know the definition of foreclosure. A foreclosure is the process of making a loan due immediately. Technically, a loan becomes due way ...
Approach to determining a capitalization rate for use in valuating property so as to arrive at a suitable purchase price. To the risk free interest rate is added a risk premium to cover the ...
Have a question or comment?
We're here to help.