The purchase of a property, in most cases, involves a long and complex process, which sees the buyer and seller trying to reach an agreement regarding the price, methods and times of payment, and many other aspects.
If you are about to sell or buy a house, we recommend that you read the WeAgentz guide: below, you will find all the information you need to better understand what the purchase proposal consists of and how it should be addressed.
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Real estate purchase proposal: the whole process illustrated step by step
What are the notions and the necessary steps so that you can have a clear idea of the complete process that will lead to the purchase of a property?
Here’s what we’re going to talk about:
- What is a real estate purchase proposal?
- Difference between real estate purchase proposal and preliminary contract
- The sections of the purchase proposal
- The information to be provided to the real estate agent
- The value of the purchase proposal
- Duration of the proposal and deposit
- What happens when the proposal is accepted
- When and why to contact a notary
- What happens if you change your mind
Let’s proceed by analyzing each point.
What is a real estate purchase proposal?
The term “proposed purchase of a property” means a formal agreement through which the potential buyer of a property shows his concrete will to want to buy it.
In the event that you contact a real estate agency, the purchase proposal is presented in the form of a pre-filled form to be filled in every single section, with the help of the qualified real estate agent who is following you.
To do this, it will be necessary to have a valid identity document, the tax code and a check indicating the amount that you intend to offer as a guarantee.
Difference between real estate purchase proposal and preliminary contract
A distinction must be made between the proposed purchase of a house and the preliminary sales contract, otherwise known as a “compromise”.
Precisely, through the compromise, the seller and the buyer undertake to conclude the deed of sale by taking care of establishing the terms and conditions.
The sections of the purchase proposal
The real estate purchase proposal must be drawn up correctly and, therefore, must contain a series of significant information that confirms its validity.
Specifically, it must be present in black and white:
- The personal data of the owner, the buyer and the real estate agency who will act as an intermediary during the sale process
- The specific details of the property subject to sale
- The last effective date of the stipulation of the definitive contract for the sale of the property
- The irrevocability of the purchase proposal and the timing in which it can be considered valid
- The brokerage fee is due to the real estate agency in charge
Finally, the buyer and the real estate agent must put their signature at the bottom of the document. The agent’s signature is useful in order to testify that he has received and taken into custody the guarantee check provided to him by the buyer.
Once completed, the proposal will be sent to the owner of the property who, in turn, will decide whether to accept or reject the amount offered for the purchase of the house.
The information to be provided to the real estate agent
Since the proposal is a real declaration of the seller, it is essential that the real estate agent is aware of some information relating to the property, provided during the acquisition of the assignment.
- Certificate of compliance of the property with building and town planning regulations and current regulations
- Confirmation of possession of the certificate of the viability of the property
- Confirmation of the presence or absence of registrations, prejudicial transcriptions, active and passive easements or other constraints
- The outcome of the number of ordinary condominium expenses, if any, of the last year relating to the property in question
- Confirmation of the possible existence of legal disputes regarding the property
The value of the purchase proposal
The real estate purchase proposal is a formal commitment in all respects and, once accepted, it becomes a real contract, so it is necessary to establish the value of the offer in a precise and conscious way.
Therefore, it would be advisable to try to include the best possible offer in the contract, as the figure shown on the proposal will be the actual price of the property in case of acceptance of the proposal.
Becoming in this way to all effects a preliminary sales contract, three fundamental elements will be made explicit:
- The price offered for the property in question
- The methods and terms established with which the full amount will be paid. In order to prove the seriousness of the proposal, it is necessary to attach a non-transferable bank check or cashier’s check made out to the seller and issued in fiduciary deposit with the real estate agent. In particular, he will be authorized to deliver it to the property only after the knowledge of the acceptance of the purchase proposal by the potential buyer.
- The time frame within which the purchase offer will remain valid
Once these three parameters have been established, the central aspects that make up the proposal will be outlined and, therefore, the next step will be the examination of the owners of the property, aimed at accepting or rejecting the conditions set out in the contract.
Duration of the proposal and deposit
If you decide to apply for a mortgage to support the purchase costs of the property, this will affect the timing of acceptance of the proposal, as it will take a few weeks to fulfil all the bureaucratic obligations.
Therefore, the timing may be approximately the following:
- 7-15 days of duration of the proposal
- 30-40 days to obtain the loan (variable depending on the credit institution)
- The date for the drafting of the deed will be established between the parties
In addition to this, we remind you that the purchase proposal is accompanied by the payment of a deposit. Generally, this is a fixed sum in proportion to the value of the property.
The aforementioned sum, to be paid preferably by check, bank or rather circular, will remain blocked for the entire duration of validity of the purchase proposal and, in case of refusal, will be returned to the potential buyer who can decide whether to reformulate it in different terms.
What happens when the proposal is accepted
From the moment the proposal is accepted and the proposer acknowledges acceptance, the guarantee check will become a confirmatory deposit.
Therefore, once acceptance has been made, the proposal must be registered with the Revenue Agency.
The real estate agent employed in the deed of sale will take care of the registration once he has delivered two copies of the contract with original handwritten signatures and the relative financial provision, essential to proceed with the payment of the charges.
In fact, when the seller affixes his signature which establishes the contractual agreement of the parties, both will be bound to respect the conditions established in the accepted purchase proposal.
When and why contact a notary
Contacting a notary may be useful if you want to carry out a more detailed analysis of the clauses in the contract or even to clarify the payment methods and timing.
By consulting a notary it will also be possible to:
- Apply for a mortgage from a credit institution
- Check the consistency of the property according to the regularity of the urban planning and of the systems
- Understanding the delivery times of the property itself
What happens if you change your mind
In the event that the proposer should have second thoughts regarding the purchase of the property, it is possible to insert a clause in the contract that allows the potential buyer to take a step back if the seller has already accepted the purchase proposal.
Only in this way will it be possible to circumvent the contractual obligation by losing only the deposit paid. On the contrary, in order to exempt himself from the purchase commitment, the buyer must seek the consent of the seller, thus exposing himself to the risk of any claims for compensation.
This is what a real estate purchase proposal consists of
In this article, we have shown you all the possible steps following the successful acceptance of a real estate purchase proposal.
It is a long bureaucratic process, but it could ultimately end with the purchase of the house you have always dreamed of. Read our short guide to learn all the details and proceed with awareness throughout the entire process.