According to real estate principles, an offer must meet certain legal requirements to become

For an offer to develop into a valid and binding contract in real estate, it must satisfy specific legal requirements. These requirements typically include an offer made by one party, acceptance by the other party, consideration (something of value exchanged), legal capacity to enter into a contract, and a lawful purpose.

When all these elements are met, the offer transitions from merely being a proposal or negotiation to a legally enforceable agreement, signifying that both parties are committed to the terms outlined in the contract. This legal enforceability protects the interests of both buyers and sellers and ensures that they can rely on the contract in case of disputes or when enforcing obligations.

In contrast, terms like a proposal, verbal agreement, or preliminary negotiation do not carry the same binding implications as a valid contract. These terms may represent initial discussions or intentions but do not possess the legal authority to compel performance from either party without meeting the outlined criteria for a binding contract.