Under offer or under option: what you need to know as a home buyer

Under offer vs. under option: the differences clearly explained
When searching for a property to buy, you will regularly come across the terms “under offer” and “under option”. But what exactly do these statuses mean? And what do they mean for you as a buyer or seller? In this article, we explain clearly and concisely the difference between “under offer” and “under option”, what your rights are and whether you can still make an offer on a property.

What does it mean when a house is “under offer”?
When a property has the status “under offer”, this means that the buyer and seller have reached a verbal agreement on the sale. The deed of sale has not yet been signed at this point. From a legal perspective, the property has not yet been definitively sold.

In the Netherlands, the so-called written requirement applies. Only when both the buyer and seller have signed the written purchase agreement is the sale legally valid.

In practice, no new viewings are usually scheduled at this stage. However, the property is still formally available.

Can a property that is under offer become available again?
Yes, a property that is under offer can come back on the market. This happens, for example, when:
- The buyer makes use of the statutory cooling-off period
- The financing does not go through
- Serious defects are discovered during a structural survey

In these situations, the seller may decide to actively offer the property again. It is important to note that a property under offer is not yet definitively sold. Other interested parties may still make an offer at this stage. The seller is not obliged to accept the existing offer.

Can you still bid on a house that is under offer?
Yes, that is possible. Because the sale has not yet been officially finalised, other interested parties may still submit an offer. Although it does not happen often, a sale may still fall through.

Are you seriously interested? Always let the selling estate agent know. This will increase your chances of being considered if the first sale does not go through.

How long does a property remain under offer?
How long a property remains under offer varies depending on the situation. The processing time is influenced by factors such as:
- How quickly the deed of sale is signed
- Whether a structural survey is carried out
- Legal or inheritance issues
- The speed of the mortgage application

In practice, this phase can take anywhere from a few days to several weeks. In complex situations, it can even take longer.

What does “under option” mean?
The status “under option” means that a potential buyer temporarily has the first right to purchase the property. During this option period, the buyer can:
- Arrange financing
- Check the contract terms and conditions
- Make a final decision

During this period, the seller may not sell the property to another party. If the buyer decides not to proceed with the purchase within the option period, the property usually becomes available again.

The “under option” status is mainly used for new-build properties. It is a reservation, not a definitive sale.

Difference between under offer and under option
Under offer: there is a verbal agreement, but no signed purchase agreement yet.
Under option: a temporary reservation with first right of purchase for one prospective buyer.

When a property is under offer, there is often already agreement on the price and conditions. When a property is under option, the buyer is still in the orientation and decision-making phase.

Rights and obligations during the offer phase
As long as the deed of sale has not been signed, there is no legally binding sale. This means:
- The buyer can still withdraw or adjust the offer
- The seller has a duty to provide information about the property
- The buyer has a duty to investigate, for example by means of a structural survey
- Both parties are expected to act carefully, transparently and in good faith.

After signing the purchase agreement
Once the deed of sale has been signed, the statutory cooling-off period of three days begins, during which the buyer can withdraw from the sale without giving any reason. After this period, a penalty of 10% of the purchase price is usually payable in the event of termination, while a financing reservation of five to six weeks on average generally applies.

Are you also interested in purchasing a property? Please contact one of our purchasing agents.