In this comprehensive guide, we will explain in detail what a purchase offer at the price is and how it works in a real estate transaction. You will learn about the conditions necessary for an offer to purchase to be valid, the rights and obligations of the buyer and seller, as well as the legal consequences of refusing an offer to purchase at the price. Whether you're a buyer or a seller, this guide will help you understand the process and make informed decisions when making your real estate transactions.
What is an offer to purchase?
An offer to purchase, also known as an offer, is a legal act by which a buyer expresses his intention to acquire a property at a specific price and under specific conditions. In accordance with the common law of contracts defined in Articles 1113 to 1122 of the Civil Code, the contract of sale is formed as soon as the offer to purchase is accepted by the seller. This means that the buyer undertakes to buy the property if the seller accepts the offer.
For an offer to purchase to be valid, it must meet several conditions:
- It must be in writing.
- It must mention the essential elements of the contract.
- It must express the buyer's willingness to be committed in the event of the seller's acceptance.
If these conditions are not met, it is not an offer to purchase, but rather an invitation to negotiate.
Buyer's commitments when making an offer to purchase at the price
When a buyer makes an offer to purchase at the asking price, he or she undertakes to buy the property if the seller accepts it. This offer is considered a binding legal act and the buyer cannot withdraw until the offer has been accepted.
It is important to note that the buyer can set a period within which his offer remains valid, without the possibility of withdrawal. If the seller does not respond before the expiry of this period, the offer is considered null and void. If the seller accepts the offer, the non-professional buyer generally has a withdrawal period of 10 days from the signing of the sales agreement to withdraw without giving a reason.
Refusal of an offer to purchase at the price
In principle, when the seller publishes a real estate advertisement containing only the price and description of the property, he must accept the first offer to purchase at the price. He cannot dismiss this offer in favour of a buyer offering a higher price later. The receipt of an offer to purchase at the price is equivalent to an acceptance of that offer, because the parties have agreed on the thing and the price.
However If the seller has signed a mandate with a real estate professional, the situation is different. Depending on the type of mandate (intermediary mandate or representation mandate), the seller will have more or less freedom to choose among the offers made.
With a proxy mandate, the real estate agent is not entitled to bind his client in the absence of an express clause in the mandate conferring this power. His role is generally limited to presenting the different offers to the seller, who is free to choose the one that suits him regardless of the price offered.
With a representation mandate, the agent is vested with the power to execute the sale in the name and on behalf of the seller. However, for this warrant to be valid, it must expressly provide for this possibility. Only real estate agents with a Transaction card, notaries and lawyers are authorised to sell property by means of a representation mandate.
Consequences of refusing an offer to purchase at the price
Except in the case of an intermediary mandate, the seller may not refuse an offer to purchase at the price or outbid other potential buyers. Outbidding is a practice reserved for real estate professionals and prohibited for individuals. Once an offer at the price has been accepted, the sales contract is formed and the seller can no longer negotiate with other buyers.
In the event of an unjustified refusal of a price offer, the seller may be forced to pay damages to the buyer. However, it is important to note that the seller cannot be forced to sell the property.
Content of an offer to purchase at the price
An offer to purchase at the price must be sent to the seller as soon as possible to guarantee its validity. It is possible to use an offer to purchase template to facilitate the drafting of the document.
To be valid, an offer to purchase must contain the following information:
- The precise designation of the building.
- The date of the offer.
- The purchase price expressed in numbers and letters.
- The period during which the offer remains valid.
- The identity of the seller.
Although not mandatory, the buyer may attach additional documents to their bid to strengthen their proposal in highly competitive markets. These documents can include a cover letter, a financing certificate or a mortgage simulation.
In conclusion, the offer to purchase at the price is an important legal act in a real estate transaction. It is essential for buyers and sellers to understand the rights and obligations that come with it in order to complete their real estate transactions successfully. By following the tips and information presented in this guide, you will be able to make informed decisions in your next real estate transactions.
