Purchase options and purchase offers
Discover the essential differences between a purchase option and a purchase offer to secure your real estate transactions.
The purchase option: a commitment from the seller to the buyer
The purchase option is a contract by which the seller commits to sell their property at a fixed price. It reserves the property for a determined period, offering the buyer a reflection period before committing.
During this period, the seller cannot accept other offers. A financial counterpart may be requested and will be deducted from the price if the sale goes through.
The purchase offer: the buyer's commitment to the seller
Unlike an option to purchase, a purchase offer binds the buyer. It proposes a price to the seller, who can accept or refuse it.
Once accepted, the sale becomes final, unless conditions precedent are provided. The purchase offer must specify the price, the duration of validity, the conditions precedent, and the signature of the buyer.
Option or purchase offer: how to choose the right formula?
The option to purchase and the purchase offer differ by the party involved: the seller in the first case, the buyer in the second.
To avoid any confusion, it is advisable to consult a professional before signing. These tools govern transactions and secure the interests of both parties.
