Form 107, Counter Offer

Understanding Form 107: Comprehensive Guide to the Counter Offer Process

In the world of real estate, negotiations can often become complex, requiring proper documentation to establish concrete terms and conditions. One such influential document is the Form 107 or the Counter Offer form. 

This form is essential as it allows property sellers to convey their interest in the buyer's offer while simultaneously suggesting certain alterations in terms and conditions before they can finalize the deal. Extensively used in the real estate sector, 107 form holds immense significance and is an essential tool to streamline negotiations efficiently.

Why counter offer form is crucial in real estate deals

Counter offers are a common part of real estate transactions. When a seller is not satisfied with a buyer's offer, a counter offer form becomes instrumental in offering a revised proposal. This response might include elements such as a higher purchase price, altered closing or possession dates, or changes to any conditions initially placed by the buyer.

Form 107 allows sellers to deliver this counter offer in a structured and legally recognized manner, ensuring both parties have a transparent understanding of the revised terms. Using a counter offer form can prevent misunderstandings and create a smoother, more clear-cut negotiating process.

How to Fill Out Form 107

Here is a detailed guide on completing the form 107 PDF on the PDFLiner:

1. Start by identifying the Agreement of Purchase and Sale to which this counter offer is attached. Fill in the names of the Buyer and the Seller in the respective fields provided at the top of the form.
2. Enter the description of the property involved in the transaction, including any pertinent details such as the address or legal description that identifies the property uniquely.
3. Record the date of the original Agreement of Purchase and Sale next to the property description.
4. In the section designated for amendments, exceptions, or additions, specify any changes or conditions the Seller wishes to make to the original agreement. This may include alterations to the price, closing dates, or other terms outlined in the initial agreement.
5. Set the expiration date and time for the irrevocability of the counter offer. This is the deadline by which the Buyer must accept the counter offer to prevent it from becoming null and void.
6. If applicable, provide instructions for paying commissions to the brokerage(s) involved. This includes any details about the payment amounts and handling taxes, such as the Harmonized Sales Tax.
7. For the signatures section, ensure that all parties involved—the Seller and, if applicable, the Seller’s spouse—sign and date the form in the presence of witnesses. Also, you may use send to sign feature. Capture the names and signatures of the witnesses alongside those of the Seller and the spouse.
8. Include the approved fax numbers for delivering notices to both the Seller and the Buyer. These are crucial for official communications regarding the counteroffer.
9. Lastly, if the Buyer accepts this counter offer, ensure that a section is filled out by the Buyer, including their signature, the date, and witness information similar to the Seller’s section. This confirms the Buyer’s acceptance of all terms as modified by the counter offer.

Remember, specific local or jurisdictional requirements may influence how certain sections are to be filled out, so it's important to consult with a legal expert if you're unsure about any of the details or implications of the terms listed in the counter offer.