How Should a Tenant or Buyer Present an Offer?

Making an offer on a property may seem as simple as putting forward a price, but a proper offer involves more than just the amount of money being offered. Whether you are a Tenant looking to rent or a Buyer looking to purchase, an offer should always be presented with two essential things: the Terms and the Money.

Understanding both parts is important, particularly because the timing of the payment can be crucial.

What Should Every Offer Include?

Every offer should come with the Terms and the Money.

The Terms explain what the Tenant or Buyer is offering and the conditions attached to the offer. The Money represents the financial consideration that accompanies the offer.

Both are important. One sets out the agreement, while the other provides the consideration. Together, they form the Whole offer.

What Are the Terms of an Offer?

The Terms refer to the Agreement as well as any specific Requests made by the Tenant or Buyer.

Depending on the transaction, the Agreement may be a Tenancy Agreement (TA) for a rental, or an Option and Sale & Purchase Agreement (S&P) for a purchase.

The Tenant or Buyer may also have specific Requests that form part of the offer. For example, a Tenant may request a particular commencement date, or there may be other requirements relating to the tenancy or purchase.

In simple terms, the Terms set out what is being agreed and what the Tenant or Buyer is requesting.

The Money: When Is Consideration Paid?

This is perhaps the most crucial and time-sensitive part of presenting an offer.

When does the Buyer or Tenant pay the Money to the Seller or Landlord?

The Money is paid at the same time the offer is presented. In legal terminology, this is referred to as “consideration.”

The consideration has to be paid at the point the Agreement has been signed by the Buyer or Tenant. Without the payment, it means that there is no consideration given or provided.

This is important because an offer requires two parts to form a Whole:

Agreement + Consideration = Whole

The Agreement is one part. The Consideration is the other.

If the Agreement has been signed but the required consideration has not been paid, one of the two parts is missing. Therefore, the offer has not been presented in its Whole.

This is why the consideration should not be treated as something to be dealt with later. The timing of the payment is crucial and time-sensitive when presenting an offer.

What Is the Salesperson's Role?

A Salesperson, or property agent, acts according to the instructions of their client. Where a Seller or Landlord has given instructions regarding an offer, the Salesperson has to follow those instructions.

This makes it important for Buyers and Tenants to understand that the offer being presented consists of both the agreed Terms and the Money.

Bringing the Offer Together

A properly presented offer is more than just a price. It brings together the Agreement, which sets out the Terms and any Requests, and the Consideration, which represents the Money.

Both parts work together to form the Whole. Therefore, when making an offer, a Tenant or Buyer should ensure that the Terms and the required Consideration are presented together, at the appropriate time, so that the offer is complete.