Real Estate Proposal Template
RE: Property address
Add property address
Add property description
This proposal letter constitutes my (the “Buyer”) offer to purchase the real estate property specified above (the “Property”) from you (the “Seller”) on the following terms.
TOTAL PURCHASE PRICE: Enter total price
REFUNDABLE DEPOSIT: $ Enter deposit value
CLOSING DATE: Prior to MM / DD / YYYY
List the things that must be done in order for this real estate proposal to stand and remain valid
Examples of contingencies include:
The Buyer’s agreement to purchase property from the Seller is contingent on the Property appraising at or above the pricing listed in this proposal. If the property appraises for less, the Buyer and the Seller may choose to negotiate the terms of the contract and come to another agreement. Otherwise, the Buyer is freed from the responsibility of purchasing the Property.
The Buyer’s agreement to purchase property from the Seller is contingent on the sale of their current property located at ___________________. If the Buyer fails to sell their current property due to circumstances beyond their control, it effectively voids this contract. The Seller may relist their property for sale or move forward with other offers. The Seller is not required to wait any length of time for the Buyer to sell their current property if it extends past the agreed upon closing date.
Terms and Conditions
By signing this proposal, The Seller acknowledges that they have read the document in its entirety and agrees to the Purchase Price as well as the terms and conditions. The Seller’s signature also confirms that they agree to comply with all provisions outlined in this proposal, including working with the Buyer and the Broker to finalize the sale of the Seller’s property by the estimated date listed above. Terms of this agreement include:
1. Deposit. The deposit amount will be applied to the agreed sale price of the property at closing. If for any reason the Buyer decides not to move forward with the sale of the property, they forfeit the deposit amount of $_______. Any deposit over and above this amount is refundable.
2. Commission. As part of this agreement, the Broker takes the previously agreed upon commission of __% or a total of $________ out of the closing settlement of the property upon completion of the sale. The Seller understands that commission fees are decided by each individual broker and not governed or controlled by the Association of Realtors or any other real estate services.
3. Extension. If, for any reason, the closing settlement date extends beyond the date listed above, the terms of this proposal shall also be extended for the period of time needed to complete the transaction and finalize the agreement.
4. Failure to Comply. If either the Seller or the Buyer breaks the terms of the contract or fails to follow through on necessary steps to finalize the Agreement, the other party has the right to recoup attorneys’ fees, broker commission, and other costs incurred by breaking the Agreement.
5. Discrimination. The Seller agrees that they are accepting this offer for the purchase of their property without discriminating based on race, color, religion, national origin, sex, disability, or familial status of the Buyer. This list is not comprehensive, and the Seller may have state or local laws that protect additional classes from discrimination.
6. Damages or Alterations. Any changes or damages made to the property in question may result in this Agreement being voided at the cost of the Seller. Prior to signing final closing documents, the Buyer is entitled to complete a final walk-thru of the property to assess for changes or damages.
7. Closing. The Broker will work with all necessary parties to determine an appropriate closing date, time, and location. The Broker will notify the Seller with at least five (5) business days’ advance notice.
8. Force majeure. The Seller and Buyer have the right to push back the closing date if a delay is necessary due to forces beyond either party’s control. This extension will be granted and the closing date rescheduled within ten (10) business days, or else the party requesting the extension will be held in default and may face legal and financial repercussions.
8. Prorating fees. All expenses, including but not limited to taxes, assessments, homeowner’s association dues, and property assessments, will be prorated according to the date of the closing. The local tax assessor or collector’s office will provide the correct amount for taxes to the Broker prior to closing. Proration of any other fees will be calculated by dividing the total cost by 365 days and then multiplying by the number of days left in the year.
9. Occupancy. The Seller agrees to completely vacate the Property prior to closing, including removal of any personal items. Occupancy is granted to the Buyer at the time of closing with no exceptions.
10. Insurance. The Buyer will provide proof of insurance at closing, if required, dated effective as of the closing date. The Seller agrees to maintain insurance on the property until the date of closing.
11. Conveyance. The Seller will transfer the title for the property to the Seller at the time of closing. This is done in good faith that the title is clean and there all taxes and fees associated with the property are up-to-date. Other information included with the title may include:
- Any recorded zoning restrictions, conditions, or limitations
- Presence of any oil, gas, or mineral reservations
- Easements or other matters that appear on the Seller’s property
- Any known facts that a professional survey or inspection would unveil
12. Utilities. If the property has any active utilities, the Seller has no responsibility to leave the utilities turned on in their name following the date of closing. If they do choose to leave the utilities on, the Buyer agrees to transfer the services into their name within three (3) business days of the closing.
None of the terms contained herein shall be binding on the parties until execution of a Purchase and Sale Agreement for the Property. Once all parties sign the agreement, it is legally binding. If it becomes necessary to settle any disputes between the Buyer and the Seller, the state of _________ shall oversee the arbitration process.
At closing, Buyer shall pay the cost of the following:
- Costs of recording the Deed(s)
- Any reimbursement on the current year prorated taxes of Seller calculated from the closing date to the end of the current year
- Buyer’s reasonable attorney’s fees
- Escrow and closing fees, if any
- All costs other than those listed above shall be borne by the Seller
Both the Buyer and the Seller must approve any changes made to this agreement once the signing is complete. Any agreements made verbally or otherwise do not apply to this contract unless added as an addendum. It is explicitly understood that addendums affecting the closing date or any costs outlined in this contract may lead to additional changes to the contract as warranted.
Buyer extends this real estate proposal to purchase the Property with the understanding that it may rescind or otherwise terminate this offer and any negotiations at any time.
Buyer accepts Seller’s terms as communicated in [PurchaseTerms.Source] unless otherwise modified by this offer.
MM / DD / YYYY
MM / DD / YYYY