In other words, if the party accepts the offer, a contract has been created... if they don't accept there is no contract. Although the Statute of Frauds requires that an offer or counteroffer be in writing, a written offer or counteroffer can be verbally withdrawn.

It is good practice to always provide the other party with a written withdrawal even if you have already done it verbally.
Acceptance of an offer must be on the exact terms as the offer.

If you don't accept the deal in the offer you may present a counter offer. Your counter offer voids the original offer.
Acceptance of an offer must be conveyed to be effective, silence does not ordinarily establish acceptance.

That makes sense, doesn't it? If you don't let the other party know you accept the offer... how will they know they have a contract. Every offer you make should indicate that acceptance must be received before a certain date and time. If the other party allows that deadline to pass without notifying you of acceptance you have no contract.

However... it is your choice. If you want to accept the offer, even though it is late, you may. Under such circumstances you should prepare and both sign the Purchase Agreement as soon as possible.In dealing with motivated sellers it's a good idea to
set a very limited time period for their acceptance of your offer... maybe eight hours. Don't give them time to shop your offer around for something better.

The parties to be bound to a contract should be carefully identified in the contract. If either party is a corporation, limited liability
company, or partnership, all pertinent information about the entity should be included. That means exact name, address, and the state in which the entity was formed.... "XYC Corp. a Nevada Corporation".

Does the person who will sign for the entity have the authority to do so. You may want to ask for a copy of the company's resolution granting the authority. If someone who does not have the authority to sign a contract signs it... the contract is not effective.

When ever you sign on behalf of your company you should always include your title with the company or under your signature write... "for XYZ Corp." By doing that you protect yourself from personal liability concerning the contract. Your company may be sued... but usually not you personally.

In community property states both husband and wife must sign all real estate contracts. Either husband or wife may authorize the other by power of attorney to sign the contract on his or her behalf.

If a husband and wife buy a home and later divorce, you must be careful if you buy the home. Even though the wife (or husband) has been granted the home in the divorce it is a good idea to get a quit claim deed signed by the other half of the marriage... just to be sure you will have no title problems... especially if the home was considered community property.

When ever there seems to be a question about ownership of a property it is always a safe bet to get signed quit claim deeds from all concerned.

The close of escrow date is an important date that should be specified in the purchase contract.

Both buyer and seller will make plans based on that date and might have simultaneous closings planned on other properties.

Your contract should include "time is of the essence". That protects both parties from the other party causing an unjustified delay in closing the transaction.

Recall the four requirements of a contract that we remember with this code "O" double "A" and "C"? The "C" was for compensation. Something of value must be offered and accepted to make a contract valid. In most cases the compensation is cash, but it could be...

- A lease
- Personal service
- Merchandise
- Promissory note
- Livestock
- Automobile

...Or anything of value that is acceptable to the other party.

We are going to end our little adventure into the world of contracts. Contract law is vast and complicated, but it can be very simple for the real estate investor. Stick with a collection of forms and contracts that you have read and understand and can explain to others.

Here's a source of contracts in Word format ready for customizing for each deal you do...

The Big Collection - 90 Real Estate Forms

Over 90 forms ready to customize in Microsoft Word format.
This is set up for you to use over and over again.

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