What is a purchase proposal?

After a long search for the property to buy, you have found the one that reflects your needs in all respects.
Now what?
How do you physically go about buying a house? The first step is to submit a purchase proposal.

But what is a purchase proposal?

A purchase proposal is a statement in which the buyer formally declares his or her interest in purchasing a property under certain conditions and at a certain price.
This statement is usually prepared by the real estate agency.
A sum of money is attached to the purchase proposal as a deposit, which can be calculated proportionally to the value of the property.
If the proposal is accepted by the selling party, the purchase proposal will become to all intents and purposes a preliminary purchase and sale, and the sum of money will become the deposit (usually confirmatory) of the preliminary sale or compromesso di vendita.
If, on the other hand, the proposal is rejected, the sum will be returned to the proposing party, who at this point can decide whether to abandon the purchase or proceed with a new offer.

What is the difference between a Proposal to Purchase and a Preliminary Purchase and Sale

The major difference between the two “contracts” is that in the proposed purchase, until acceptance, only one of the two parties is committed, namely the proposing party, which in most cases is the buying party.
In the preliminary of purchase and sale, on the other hand, the commitment is of both the buying party and the selling party.
To guarantee the commitment made by both parties there is a deposit.
Today, real estate agencies in order to facilitate negotiations, tend to use purchase proposals that once countersigned by both parties directly take on the value of preliminary of purchase and sale.

What is the deposit?

A deposit is a sum of money put up as security for the transaction; it is handed over to the selling party and serves to protect both parties in the event of default by either party.
In essence, it is the (financial) commitment that both parties to the contract put “on the plate” to ensure that the sale and purchase transaction goes through.

What happens if there is an afterthought by either contracting party?

As mentioned above, the deposit serves to guarantee the parties on the performance of the contract.
But what happens if either party defaults?
Usually in real estate sales and purchases, a deposit of the confirmatory type is used precisely to protect the performing party.
In the event that the defaulting party is the purchasing party, the seller is entitled to keep the amount paid as a down payment.
If, on the other hand, it is the selling party who is in default, the buying party will be entitled to the return of the security deposit plus any damages which, unless otherwise claimed, is quantified in the same amount as the security deposit (vulgarly speaking, the buyer is entitled to double the security deposit).
The security deposit also gives the fulfilling party the option, either to claim further damages (clearly demonstrated and quantified in the appropriate venues) or theforced execution of the contract precisely by virtue of the presence of the security deposit.
In case the down payment is of the penitential type, on the other hand, the sum that is paid by the buyer to the seller does not represent a sum to guard against non-performance, but constitutes consideration for the granting to either party of the right to withdraw from the relationship even unilaterally.