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 The reason for that is because the offer had been revoked.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.

image of a real estate dictionary page

Have a question or comment?

We're here to help.

*** Your email address will remain confidential.
 

 

Popular Real Estate Terms

Person or business that benefits from the work of another person or business. The recipient has not compensated the other party for this gain. In law, the one being enriched at the ...

Not attached to any parcel of land but merely a personal right to use the land of another. ...

External top of a structure such as for an office building or house. ...

Body o law relating directly to condominiums and cooperative developments. Most property law provides vertical ownership of property in the sense that property owners own mineral rights as ...

Any gain or loss from selling of capital assets. The gain or loss is the difference between the net selling price and cost basis. The two types of capital gains or losses for tax purposes ...

Projecting structure or part of a building. For example, a home was built with balconies jutting out from the sides of the building or a large rock formation constructed out into the ocean ...

Fan with an opening to the outside air that lets stale or hot air exit the structure; usually used in a kitchen when cooking or in a bathroom that does not have a window. It is used for ...

Implied assurance from a landlord to a prospective tenant that an apartment is safe and void of health problems. ...

Money set aside for a possible loss, such as from a fire. ...

Popular Real Estate Questions