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 The reason for that is because the offer had been revoked.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
Secondary written agreement to purchase real property in the event the initial contract is not signed. ...
Drain facility usually underground for waste and water disposal consisting on connected pipes. ...
Local group of real estate brokers who are members of the State and National Board of REALTORS®. Meets regularly with their membership and helps determine licensing requirements as well as ...
Penalty charge in order to cure a previous wrong. ...
Choosing alternative real estate investment instruments having different risk-return features. Diversification can be done by regions and types of real estate. Diversification provides a ...
An administrator appointed by the government or the courts to administer the laws relating to a government agency or court. A commissioner is a part of a government or court commission. ...
Most people seem to be baffled by the fundamental terminology in real estate: brokers vs. agents vs. employing brokers vs. mortgage brokers, etc. Let us provide some clarity! The primary ...
Linkage in real estate means the proximity of a particular piece of land to its originally intended function. In addition, linkage can refer to the time and distance between a ...
Looking to understand what is Ginnie Mae? You’ve been hearing about it and knows not what it means. Let us help with the most succinct Ginnie Mae definition possible: Ginnie Mae is ...
Have a question or comment?
We're here to help.