In business as in real estate, negotiation is at the heart of any buyer's approach. Submitting an offer to purchase at a lower price than the one requested is a fair game. The promisor-buyer can thus send an offer to the seller indicating the proposed purchase price (less than the asking price) as well as suspensory conditions. When the owner-seller receives it, he may, within the time limit set in the offer, accept it as presented or refuse it. In case of refusal or indifference, it will therefore be considered null and void.
Counter-offer
The seller may enter into negotiations by drawing up a counter-offer, the price and conditions of which seem more acceptable. It is then a question of presenting a new offer that modifies certain terms or conditions specified in the offer of the promisor-buyer. For example, they may want to readjust the sale price upwards, change the occupancy date or exclude certain guarantees relating to the immovable.
This document is an essential step in any real estate negotiation. It makes it possible to respond to the buyer's arguments and to maintain discussions with a view to a sale. Just like an offer to purchase, a counter-proposal must include mandatory information concerning the identity of the seller but also the designation of the property offered for sale, its address and its area. This new offer must include the price requested by the seller, higher than the first offer of the promisor-buyer but generally lower than the original amount. It may include suspensory clauses, identical to those requested by the promisor-buyer or modified. A deadline is then fixed
Counter-offer – counter counter-offer
The counter-offer marks the beginning of the negotiation phase between the two parties. In turn, the promisor will have the opportunity to accept or refuse this counter-offer, or to negotiate other conditions by responding to them, which the seller will also have the opportunity to do afterwards. This exchange of counter-offers will last as long as both parties want. To save time, it is also possible to negotiate orally between the parties, then to record in writing the concessions obtained in a writing that will crystallize the will of the parties.
Real contract binding the parties
It is important to note that this modified offer is binding on both the seller and the buyer when accepted by both parties. It is therefore essential to be very careful when drafting this act. The suspensory clauses accepted by the seller are all possibilities to see the sale fail if the conditions are not met within the indicated deadlines. If this counter-offer is accepted, it will consist of the offer to purchase as amended by the last counter-offer, without taking into account the previous counter-offers. The parties will then have to comply with the conditions, otherwise a judicial debate could arise.
WHAT YOU SHOULD KNOW! The answer to an offer which contains additions, limitations or changes, even if they deal with minor points, constitutes a counter-offer on the part of the vendor. You will then be free to refuse it or not to answer, without worrying about possible legal consequences.
WHAT TO KEEP IN MIND: The counter-offer renders the offer to purchase null and void if you so decide. It is always a valid reason to back-out of your commitment, as the offer to purchase becomes null and void at the expiration of its deadline.
WARNING! Any counter-offer renders null and void the one you have presented earlier. When the parties reach an agreement, all the terms and conditions agreed upon during the negotiations must be included in the transaction.
Return to the super file Offer to Purchase
