importance.
Non-binding offers — A non-binding offer, often called an indicative offer, is a term used in the purchase and sales process through which a contractual negotiating platform can be set up between you and a potential buyer. With the help of this document, a buyer can express their interest in buying your property and their desire to enter into negotiations while maintaining the confidentiality of the sales process. A non-binding offer must include certain clauses explaining the purpose of the sale, determining a price range for the transaction, and outlining the terms of payment and the expected sources of loan/mortgage. Other details, like the estimated time frame of the transaction and the expected closing date, can also be mentioned in a non-binding offer. Binding offers — When you receive an indicative offer from a potential buyer, it is legally non-binding for both parties. An indicative offer will only become binding when you agree to the terms mentioned in the offer and unconditionally sign an acceptance. If you like the buyer’s offer with a few exceptions, such as the price or the date of closing, you can send a counteroffer to the buyer stating the desired changes. When you accept an offer, you must carefully review all the terms the buyer has stated. Once you accept an offer, you can’t change your mind, so it’s better to put a lot of thought into it rather than take an offer hastily. If you are in doubt about legal jargon, it’s a good idea to consult an attorney or an agent for guidance.
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