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What does a California purchase and sale agreement cost? If you are preparing to purchase real estate in California, this is a question you may ask. Let’s explore this question and review some general information about purchase and sale agreements and what they are important.

Based on ContractsCounsel’s marketplace data, the average cost of a project involving a purchase and sale agreement in California is $623.00.

How Much Does a California Purchase and Sale Agreement Cost?

A California purchase and sale agreement, sometimes called a real estate purchase agreement, is a legally binding contract between a seller and a buyer that establishes terms and conditions relating to purchasing and selling real estate.

The sale of the property is not finalized by a purchase and sale agreement. Instead, this contract is used to lay out each party’s obligations for the sale to move forward. This includes fulfilling important requirements like:

  • Title searches
  • Home inspections
  • Obtaining financing
  • Money transfers
  • Closing costs

It is important that a purchase and sale agreement is drafted correctly because this contract facilitates a smooth real estate transaction and transfer of property from the seller to the buyer. For this reason, many people hire a real estate attorney to draft the purchase and sale agreement.

See Purchase And Sale Agreement Pricing by State

What’s Included in a California Purchase and Sale Agreement

A California purchase and sale agreement should cover basic information about the property in addition to necessary tasks and requirements needed to complete the sale.

Some examples of provisions you will find in a purchase and sale agreement include:

  1. Party information. The names and addresses of the seller and the buyer
  2. Property Description. The description of the property usually includes the address, county it is located in, and parcel number.
  3. Title search. A title search ensures there are no liens on the property and the owner has the legal right to sell the property.
  4. Home inspection. The buyer will have the opportunity to have the home inspected to assess the property’s condition, look out for significant defects, and note any necessary repairs.
  5. Financing. The buyer must secure financing (usually a mortgage through a lender) to pay for the property.
  6. Property included or excluded in the sale. The buyer and seller can negotiate which fixtures or personal property will be sold with the property.
  7. Closing date. At closing, the property will be transferred from the seller to the buyer.

Most contracts will contain additional clauses relating to taxes, brokers, and attorneys’ fees. The buyer and seller can add additional terms or negotiate terms to fit the needs of their transaction.

Required Disclosures in a California Purchase and Sale Agreement

In addition to these provisions, the seller needs to include disclosures about the property. Disclosures inform the buyer about conditions that could affect the value of the property. California law requires several unique disclosures that must be added to a purchase sale agreement including:

  • Death on premises disclosure
  • Megan’s law
  • Homeowner’s guide to earthquake safety
  • Natural hazard disclosure statement
  • Water heater and smoke detector compliance
  • Water-conserving fixtures and detector compliance

If you are unsure what unique requirements you may need to include in your California purchase and sale agreement, it is highly recommended that you consult with an experienced California real estate lawyer.

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California Purchase and Sale Agreement Drafting

In California, purchase and sales agreements are a required document to facilitate the sale of real estate. Without a well drafted purchase and sale agreement, both parties are at risk of issues and disputes throughout the home buying process.

It is common for parties who are selling or purchasing real estate to hire an attorney to draft a valid purchase and sale agreement. An experienced attorney will be familiar with California real estate laws and can create a document customized to your transaction that protects both parties.

California Purchase and Sale Agreement Review

Typically, the seller’s attorney will draft the purchase and sale agreement. If you are the party buying the property and have been asked to sign a purchase and sale agreement, you should fully understand the contents of the contract and what obligations you must fulfill. Before signing any contracts, it is recommended that you have it reviewed by your own attorney.

A real estate lawyer can review the terms of the purchase and sale agreement and make sure that it is fair and protects your rights as the buyer. Your lawyer will be able to explain the contract to you, so you are fully aware of all your obligations in the deal.

California Purchase and Sale Agreement Drafting Cost

If you hire a real estate lawyer to draft a purchase and sale agreement, you will incur legal fees. A lawyer will charge for the time it takes to draft the contract in may include additional fees for consultations and attending closing.

ContractsCounsel’s marketplace data shows purchase and sale agreement drafting costs in California are $500.00.

California Purchase and Sale Agreement Review Cost

If you hire a lawyer to review a purchase and sale agreement, you will also incur costs. A lawyer will charge for their time reviewing the agreement, client meetings, and attending closing.

ContractsCounsel’s marketplace data shows the average purchase and sale agreement review costs in California are $708.40.

How Do Lawyers in California Charge for Purchase and Sale Agreements?

Hourly Rates for Purchase and Sale Agreements in California

The majority of California real estate lawyers bill clients using an hourly rate fee agreement. Under this rate structure, the attorney will keep track of their time working on a case and after closing, bill their client for the total number of hours.

Real estate transactions can be unpredictable, and delays are common. Negotiations and contract revisions may require more legal work than the lawyer anticipated so an hourly rate billing structure is the only way a lawyer can ensure that they are compensated for all of their work.

ContractsCounsel’s marketplace data shows the average hourly rate for a real estate lawyer in California ranges from $250 - $400 per hour.

Flat Fee Rates for Purchase and Sale Agreements in California

When a lawyer is hired for a shorter more specific task, like reviewing a purchase and sale agreement, they may choose to bill their client using a flat fee rate. The lawyer will estimate the length the project will take to complete then quote a fair price for all legal services. If the client agrees, they will pay the fee upfront and the lawyer will complete the project.

It is important that a client asks the attorney what is covered in the flat rate. Sometimes extra meetings, communications, or revisions are not included and could cost more.

ContractsCounsel’s marketplace data shows the average flat fee rate for a purchase and sale agreement in California is $623.00.

Get Help with a California Purchase and Sale Agreement

Do you need help with a California purchase and sale agreement project? If so, post a project in ContractsCounsel's marketplace to receive flat fee bids from real estate lawyers who are licensed to practice law in California and can handle your project. All lawyers on the ContractsCounsel's platform are vetted by our team to make sure you are provided with top-tier service.

ContractsCounsel is not a law firm, and this post should not be considered and does not contain legal advice. To ensure the information and advice in this post are correct, sufficient, and appropriate for your situation, please consult a licensed attorney. Also, using or accessing ContractsCounsel's site does not create an attorney-client relationship between you and ContractsCounsel.

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