Offer to Purchase Contract
This simple “Offer to Purchase Real Estate” Form is referred to by different terms in different areas of the United States. Some areas refer to this form as a “Binder” or “Earnest Money Agreement.” The most common term used is “Offer and Acceptance Agreement.” The term “Offer and Acceptance” is probably the most precise and accurate description.
This “Offer and Acceptance” is a preliminary agreement setting down the terms of the Buyer for the purchase of the property and the Seller’s subsequent acceptance of the terms. Usually this offer is accompanied by a sum of money described as “Earnest Money.” When the Buyer presents this “Offer to Purchase”, including the earnest money to the Seller and the Seller subsequently accepts the offer, the Buyer has secured the right to purchase the real estate upon agreed terms for a limited period. If the offer to purchase the property is not accepted by the seller, the earnest money is totally refundable.
This particular Form is simple and straightforward, designed to merely present an “Offer To Purchase”, containing the basic terms of the offer and final acceptance of the offer from the Seller. There are NO provisions for Real Estate Agent involvement, Disclosure Statements or Counter Offers. The purpose of this Form is to get the Seller to accept the basic concept of the “Offer.”
A formal “Purchase Agreement” can be used to follow up, but is usually not required