How to Submit an Offer: Contract & Escrow
by stazhkova on 29.09.2025
Hello. Today we will go over one of the key moments of the transaction—the submission of an offer to purchase real estate. This is a stage where you need to act quickly, competently, and with consideration for the interests of both parties. I will explain how to properly draft the offer, which terms to include in it, and how the negotiation process proceeds.
Preparing a standard contract
In most cases, the offer is prepared on the basis of a standard purchase and sale agreement. This document was developed by lawyers and takes into account all the main aspects of the transaction. It contains typical terms that apply in most situations. Your realtor will guide you through each section of the agreement, explain the meaning of the clauses, and help fill in the necessary fields.
If a nonstandard contract is used
If the seller or their agent proposes making changes to the standard agreement or using a nonstandard form, be sure to consult a real estate attorney. A realtor does not have the right to change legal wording unless they are an attorney. This is important to avoid terms that may be unfavorable to you.
Main terms to specify in the offer
When submitting an offer, you must clearly specify:
• The purchase price and the exact address of the property;
• The amount of the deposit—usually about 10% of the price—which is placed in an escrow account;
• The form of payment—cash or mortgage—with the lending details;
• The timelines of the transaction—the closing date and the timeframes for fulfilling all conditions;
• Special conditions—for example, conducting an inspection or repairs at the seller’s expense.
Transmitting the offer and working with a counteroffer
After the documents are prepared, the realtor transmits them to the seller’s representative. The seller may:
• accept the offer;
• reject it;
• send a counteroffer with modified terms.
A counteroffer cancels the original, so if the terms suit you, you must sign the counteroffer. If there are too many edits, it is better to draw up a new clean contract to avoid confusion.
Placing the deposit in an escrow account
After the offer is accepted, the deposit is transferred to an escrow account. This is a special protected account with a broker, attorney, or title company. The funds are kept there until the transaction is completed and serve as a guarantee of your readiness to fulfill the terms of the agreement.
Conclusion and transition to the inspection
When the seller accepts the offer and the deposit is made, the agreement is considered concluded, and the inspection period begins. This is the time when you check the property for conformity with your expectations and identify possible issues. In the next material, we will examine in detail how the inspection proceeds and what to pay attention to.
