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In this last instance, which is actually quite common during this process, an offer turns into a counteroffer, which can turn into another counteroffer, and on it goes back and forth until both parties are satisfied, or until the buyer moves on and/or the seller refuses to accept the buyer’s deal. The offer doesn’t actually become a contract until all parties agree to all terms, conditions, and changes in writing. So, now, what all should be included in the drawn-up purchase offer? Here is a list of the most common items: • Physical address of the property • Legal description of the property • Price and terms and conditions of the purchase • Seller’s promise to give clear title to buyer • Target closing date • Earnest deposit associated with the offer, as well as method of deposit • Disposition of earnest deposit if deal falls through or fails • Plans for adjusting taxes, fuel, and water bills between buyer/seller • Who will pay for title insurance, land survey, home inspections, etc.? • The deed to be granted • State-mandated legal requirements • Attorney review of contract • Any disclosures • The time after which the offer will expire Something else to consider is contingencies. Many offers are made contingent upon a factor or event that must be resolved before the offer moves forward. The two most common contingencies are financing and home inspections. For financing, the offer is made contingent on the buyer receiving a sufficient mortgage loan from 193
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