To property purchase offer is the document through which a prospective buyer formally offers to buy a particular property on specified terms. It generally states the price, payment arrangements, deadlines for the preliminary contract and notarial deed, and any conditions precedent or special agreements.
A common question is whether it is binding. It can become binding, but the relevant moment depends on the seller’s acceptance.
Until acceptance, it expresses the buyer’s intention. The seller may accept, refuse or make a counteroffer. Once the seller signs acceptance and that acceptance is communicated to the buyer within the specified period, agreement is reached and the offer becomes binding.
Legally, acceptance turns the offer into a contract. Offers often contain all essential elements of the future sale—the property, price, parties and payment terms—and once accepted can have effects similar to a preliminary sale agreement. The seller undertakes to sell and the buyer to purchase on the agreed terms.
An offer is often accompanied by a sum described as a caparra confirmatoria, a deposit securing the parties’ commitments. If the buyer subsequently withdraws without justification, they risk losing the deposit. If the seller fails to honour the agreement, the buyer may seek double the deposit or pursue damages or performance of the contract where the law permits.
A purchase offer is therefore much more than an expression of interest. Once accepted, it may bind both parties to complete the transaction. Every clause and obligation should be carefully considered before signing. Signing an offer should never be treated as a mere formality: it can have significant legal consequences before a further preliminary agreement or the final notarial deed.