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Real Estate: An Offer VS a Contract

June 22, 2011

The words ‘offer’ and ‘contract’ are often interchanged or misused.

An ‘offer’ is a demonstration by the buyer showing intent to purchase. An ‘offer’ is made using a ‘Purchase Agreement’.

A ‘contract’ is a legally enforceable document where both parties have signed and agree to abide by the points in the contract. Once both parties have signed the ‘Purchase Agreement’, it becomes a ‘contract’.

When you make an ‘offer’, the Seller can do 3 things:

•1.      Accept it

•2.      Decline it outright

•3.      Counteroffer

If there is a counteroffer, it means that they agree to everything in the ‘offer’ except for the changes outlined in the counteroffer. The most common counteroffer is price. As a result of a counteroffer, the Buyer may do one of 3 things:

•1.      Accept it

•2.      Decline it outright

•3.      Counteroffer

In some states you have a grace period to change your mind and therefore legally get out of a contract. In New Mexico, once the Purchase Agreement is signed by all parties, it is an enforceable contract. There is NO grace period.

Another detail, New Mexico is a “Community Property” state. That means that if an individual owns property, their spouse automatically owns it too – – unless there is a “Sole and Separate” agreement signed.

Today’s Saying:The best way to cheer yourself is to try to cheer someone else up”. – Twain

 

Linda Ferrara
Coldwell Banker Enchantment Realty
501 Silver Heights Blvd.
Silver City, NM 88061

1-800-456-3132

1-575-538-2931
1-575-519-9249

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