24. Agreeing a purchase price

An agreed purchase price refers to the mutually accepted price at which a buyer agrees to purchase a property from a seller. It is the result of negotiation between the buyer and seller, where both parties reach a consensus on the value of the property being sold. Once an agreed purchase price is established, it forms the basis for the purchase agreement and subsequent transaction process. 

Here is how the process of agreeing on a purchase price typically works: 

• Negotiation: The buyer and seller engage in negotiations to determine the purchase price of the property. This process may involve multiple rounds of offers and counteroffers until both parties reach a price that is acceptable to both. 
• Offer and acceptance: Once the buyer and seller agree on a purchase price, the buyer submits a formal offer to the seller, outlining the terms and conditions of the purchase. If the seller accepts the offer, either verbally or in writing, an agreement is reached, and the purchase price becomes the agreed purchase price. 
• Deposit: In many property transactions, the buyer is required to provide a deposit, also known as earnest money, as a sign of good faith and commitment to the purchase. The deposit is typically held in escrow until the closing of the sale and is applied towards the purchase price. 
• Completion of the Transaction: Once all the necessary steps and conditions outlined in the purchase agreement are satisfied, the transaction is completed. This typically involves the transfer of ownership from the seller to the buyer, payment of the remaining balance of the purchase price, and the exchange of legal documents to finalise the sale.