The offer lays out all material terms and conditions, including contingencies (such as investigations, loan approval, or appraisal), requested reports or disclosures, the proposed closing date, and who is responsible for paying certain costs like escrow fees, title insurance, and taxes. Required state disclosures are also incorporated into the agreement. Once prepared, the offer must be signed by the buyer and submitted to the seller. It is important to understand that an offer is not a binding contract until all parties have agreed to all terms in writing. The seller may accept the offer as written, reject it, or issue a counteroffer. Negotiations often involve one or more counteroffers until both sides reach an agreement. An offer will also include an expiration date, meaning the seller must respond within a specified time frame or the offer becomes void.
CONTINGENCIES
Contingencies are conditions that must be met for the sale to proceed. In CA, the most common contingencies include: • Financing Contingency: Your offer is contingent upon obtaining a mortgage or securing funds. • Appraisal Contingency: The sale is contingent on the home appraising at or above the purchase price. If the appraisal comes in lower than the offer, you can renegotiate the price, make up the difference in cash, or cancel the contract. • Investigation Contingency: The sale is contingent upon a satisfactory home inspection. This ensures you can back out, renegotiate, or request repairs if significant issues are discovered. • Seller's Disclosures: The seller’s disclosures contingency
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