When you are considering buying a property, making an offer is a crucial step in the process. In this article, discover the key steps to making a completely secure offer to purchase.
The basics of making an offer
As a buyer, you have the option of making an offer, either verbally or in writing, for example by email or text message. However, for traceability purposes, it is recommended that you opt for a written offer.
To what extent is an offer binding on the parties concerned?
An offer becomes binding once it specifically identifies the property and the price offered. If the seller accepts this offer without reservation, the buyer is then bound by this agreement. The sale thus becomes irrevocable, unless both parties agree to cancel the offer.
It is important to note that the prices quoted in property advertisements do not constitute offers on the part of the seller. These advertisements are simply intended to inform potential buyers of the property’s availability.
The importance of finding out in advance
Before making an offer, it is crucial to do your research thoroughly. You must ensure that you are fully aware of the condition of the property you are interested in, paying close attention to the information provided in the property adverts and, if necessary, asking for further clarification.
How do you make a secure offer?
When you make an offer on a property, it is crucial to follow certain rules to avoid complications.
First of all, make sure you include the essential details in your offer to purchase, such as:
- buyer’s name; ;
- the address of the property or other specific details identifying the property; ;
- the price offered; ;
- the validity period of the offer;
- any reservations, comments and conditions precedent; ;
- the signature and the date.
What condition precedent should be included?
A condition precedent means that the sale only becomes final once certain conditions have been met. If there are no conditions precedent in your offer, you will lose the right to withdraw. The most common condition precedent is that relating to obtaining a mortgage. If your mortgage application is refused, the sale is deemed to be cancelled, which provides you with additional protection.
How long is the offer valid for?
You have the option to set a time limit on your offer by including a time limit or an expiry date, which means you are not bound to the seller indefinitely. Otherwise, your offer will remain valid even if the buyer only accepts it several weeks or even months after receiving it.
The ‘when in doubt’ option
If you are unsure about your decision, consider taking an option. This ensures that the owner will not sell the property to anyone else for a specified period, usually one to two weeks, giving you time to think it over.
If you decide to buy during this period, you must inform the seller in writing, usually by registered post. This «lifts» the option and the sale can then go ahead. However, if the deadline expires without you having notified the seller of your intention to buy, the owner may then sell the property to other interested parties. The seller may claim compensation for having reserved the property for your benefit. If the sale goes ahead, this sum may be treated as an initial deposit.
The various possible scenarios following an offer
Once a purchase offer has been submitted for a property, there are a number of possible scenarios:
- The seller may accept your offer as it stands.
- The seller may make a counter-offer with different terms.
- Another buyer might offer a higher price.
- The seller may increase the price if several competing bids are submitted.
- You also have the option to withdraw your offer, unless the seller has already accepted it.
Acceptance of the offer and drafting of the preliminary agreement
Once the seller has accepted your offer, the sale is confirmed. The next step is to draw up the preliminary sales agreement, also known as the "avant-contrat de vente". This official document binds both parties to proceed with the sale. Within four months at the latest, the deed of sale will be signed, marking the handover of the keys. Congratulations, you’re a homeowner!
In conclusion, an informed and well-considered approach will ensure an effective and secure offer to purchase when acquiring your property.
