Accept an Offer

After you and the buyer have agreed on a price and want to finalize the Purchase Offer, you will then move on to the next phase of the sales process. Consequently, you’ll be reviewing and signing the following additional forms (this actually can take place even before the Purchase Offer is officially signed and agreed to by you and the buyer):

• Disclosure Regarding Real Estate Agency Relationship (also known as form AD)
• Buyer’s Inspection Advisory
• Wood Destroying Pest Inspection and Allocation of Cost Addendum (when applicable)
• Statewide Buyer and Seller Advisory
• Lender pre-approval written notification
• Bank statement (or other proof of funds)
• Copy of funds deposited in Escrow

Those buyers whose purchase depends on qualifying for mortgage lending will often include lending contingencies. This means their offer is contingent upon their loan approval. Additional expected contingencies are:

• Approved home inspection
• Home inspection for possible pests (i.e. termites and rodents)
• An appraisal of the home value
• The buyer’s original home to be sold before they purchase your home

Can Buyers back out of Purchase Offer once signed? Yes. If a contingency is in place they can receive their full deposit back.

Can Sellers back out of Purchase Offer once signed? Maybe, a Seller may only cancel an agreement after giving notice to the Buyer to perform an obligation and they do not perform.

Whether or not they can legally do so is largely determined by the contractual details. If you don’t satisfactorily—or reasonably—meet one of their contingencies, then they can cancel the contract. Another common no-fault contingency is when the buyer is waiting for loan approval. Again, if they make good faith effort in obtaining a mortgage loan but fail to secure one, then the contract is canceled (if this is explicitly stated as a contingency).