ContractsCounsel Logo

Purchase and Sale Agreement Cost

Clients Rate Lawyers on our Platform 4.9/5 Stars
based on 7,608 reviews
Home Blog Purchase and Sale Agreement Cost

Jump to Section

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

How Much Does a Purchase and Sale Agreement Cost?

A purchase and sale agreement, called a P&S agreement, is a legally binding contract establishing terms and conditions for purchasing and selling real estate.

A purchase and sale agreement is not an agreement to buy the property. Instead, the main purpose is to lay out each party’s obligations for sale to be finalized. This includes fulfilling important requirements like:

  • Title searches
  • Inspections
  • Financing
  • Money transfers
  • Closing costs

A purchase and sale agreement must be drafted correctly because this contract facilitates a smooth real estate transaction and property transfer from the seller to the buyer.

Many people hire a real estate attorney to draft the purchase and sale agreement to ensure the contract is complete and free from mistakes. An experienced real estate lawyer will know what terms and conditions to include in your purchase and sale agreement to ensure a smooth buying process.

Based on ContractsCounsel’s marketplace data, the average cost of a project involving a purchase and sale agreement is $440.00.

What’s Included in a Purchase and Sale Agreement

A purchase and sale agreement should cover all necessary tasks and requirements to complete the sale of the house or property.

While purchase and sale agreements will differ based on the parties and property, how the following five steps will be handled should always be addressed in this contract:

  • Title search. A title search ensures there is no lien on the property, and the owner has the right to sell the property.
  • Inspections. When buying a home, the purchaser will have an inspection completed to assess the property’s condition and note any necessary repairs.
  • Loan agreement. A loan agreement ensures that the buyer has secured financing to purchase the property.
  • Money transfer. Money transfers are used for the down payment. The buyer should have the money ready for transfer before the closing date.
  • Closing. The property will be transferred from the seller to the buyer at closing.

Additional information that can be found in a purchase and sale agreement includes:

  • Deposit amount
  • How can the contract be canceled
  • Personal property and fixtures included in the agreement
  • Important dates like escrow and occupancy
  • Property inspection terms and conditions
  • Closing costs and who is responsible for costs
  • Default provisions if one party breaks the contract

Additional covenants, limitations, and conditions can be added as necessary.

Why Do I Need a Purchase and Sale Agreement?

Purchase and sale agreements are important legal contracts and a necessary part of the home-buying process.

The agreement provides each party with clear guidance throughout the real estate transaction. Each party will know its roles and responsibilities to facilitate a smooth ownership transition.

Without a well-drafted purchase and sale agreement, problems could arise during the transaction that can cost both the seller and the valuable buyer time, resources, and money. This contract ensures that both parties are protected throughout the buying process and that the transaction is fair and legal.

Purchase and Sale Agreement Projects

Purchase and Sale Agreement and Sale Drafting

Purchase and sales agreements are important documents because they lay out the terms and conditions surrounding a sale of real estate. Without a well-drafted purchase and sale agreement, both parties risk issues and disputes throughout the home-buying process.

For these reasons, it is common for parties selling or purchasing real estate to hire an attorney to draft a valid purchase and sale agreement. An experienced attorney will know the real estate laws in your state and be able to create a document customized to your transaction that protects both the buyer and the seller of the property.

Purchase and Sale Agreement Review

For a transaction, the seller should provide the purchase and sale agreement. If you are the buyer, you should fully understand what you agree on and what obligations you must fulfill. Before signing a contract, it is recommended that you have your attorney review it.

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

Meet some lawyers on our platform

Zachary J.

191 projects on CC
View Profile

Gregory B.

138 projects on CC
View Profile

Melissa L.

4 projects on CC
View Profile

Sara S.

44 projects on CC
View Profile

Purchase and Sale Agreement Drafting Cost

You will incur legal fees if you hire a real estate lawyer to draft a purchase and sale agreement. In addition, a lawyer will charge for the time it takes to prepare the contract in may include additional fees for consultations and communication.

ContractsCounsel’s marketplace data shows that the average purchase and sale agreement drafting costs $350.00 across all states.

Purchase and Sale Agreement Review Cost

You can hire a lawyer to review the contract if you choose to draft your own purchase and sale agreement. A lawyer will charge for their time reviewing the agreement, but the fees are typically less than drafting fees.

ContractsCounsel’s marketplace data shows the average purchase and sale agreement review costs to be $330.00 across all states and industries.

How Do Lawyers Charge for Purchase and Sale Agreements?

Hourly Rates for Purchase and Sale Agreements

Real estate lawyers often bill clients using an hourly rate fee agreement. The attorney will keep track of their time working on the contract and any other tasks that they complete related to the real estate transaction. After closing, the lawyer will bill their client for the total hours spent working on their case.

Real estate transactions can be unpredictable. Delays and negotiations may require more legal work than the lawyer anticipated. An hourly rate billing structure is the only way a lawyer can ensure they are compensated for all their work.

ContractsCounsel’s marketplace data shows that the average hourly rate for a real estate lawyer ranges from $200 - $350 per hour.

Flat Fee Rates for Purchase and Sale Agreements

When a lawyer is hired for a 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 project's length to complete and then quote a reasonable price. If the client agrees, they will pay the fee upfront, and the lawyer will complete the project.

A client must ask the attorney what is covered in the flat rate. For example, extra meetings, communications, or revisions are sometimes not included and could cost more.

ContractsCounsel’s marketplace data shows that the average flat fee rate for a purchase and sale agreement is $440.00.

Get Help with a Purchase and Sale Agreements

Do you need help with a purchase and sale agreement project? If so, post a project in ContractsCounsel’s marketplace to receive flat fee bids from real estate lawyers to 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.

Meet some of our Lawyers

Rebecca L. on ContractsCounsel
View Rebecca
5.0 (2)
Member Since:
April 6, 2021

Rebecca L.

Free Consultation
San Diego, CA
12 Yrs Experience
Licensed in CA, DC, VA
New England School of Law

I absolutely love helping my clients buy their first home, sell their starters, upgrade to their next big adventure, or transition to their next phase of life. The confidence my clients have going into a transaction and through the whole process is one of the most rewarding aspects of practicing this type of law. My very first class in law school was property law, and let me tell you, this was like nothing I’d ever experienced. I remember vividly cracking open that big red book and staring at the pages not having the faintest idea what I was actually reading. Despite those initial scary moments, I grew to love property law. My obsession with real estate law was solidified when I was working in Virginia at a law firm outside DC. I ran the settlement (escrow) department and learned the ins and outs of transactions and the unique needs of the parties. My husband and I bought our first home in Virginia in 2012 and despite being an attorney, there was so much we didn’t know, especially when it came to our HOA and our mortgage. Our real estate agent was a wonderful resource for finding our home and negotiating some of the key terms, but there was something missing in the process. I’ve spent the last 10 years helping those who were in the same situation we were in better understand the process.

Samuel R. on ContractsCounsel
View Samuel
5.0 (29)
Member Since:
October 2, 2021

Samuel R.

Free Consultation
Phoenix - Arizona
4 Yrs Experience
Licensed in AZ, PA, UT
Widener University Delaware Law School

My career interests are to practice Transactional Corporate Law, including Business Start Up, and Mergers and Acquisitions, as well as Real Estate Law, Estate Planning Law, Tax, and Intellectual Property Law. I am currently licensed in Arizona, Pennsylvania and Utah, after having moved to Phoenix from Philadelphia in September 2019. I am currently General Counsel for a bioengineering company. I handle everything from their Mergers & Acquisitions, Private Placement Memorandums, and Corporate Structures to Intellectual Property Assignments, to Employment Law and Beach of Contract settlements. Responsibilities include writing and executing agreements, drafting court pleadings, court appearances, mergers and acquisitions, transactional documents, managing outside expert legal counsel, legal research and anticipating unique legal issues that could impact the Company. Conducted an acquisition of an entire line of intellectual property from a competitor. In regards to other clients, I am primarily focused on transactional law for clients in a variety of industries including, but not limited to, real estate investment, property management, and e-commerce. Work is primarily centered around entity formation and corporate structure, corporate governance agreements, PPMs, opportunity zone tax incentives, employee retention credits, and all kinds of business to business agreements. I have also recently gained experience with Estate Planning law, drafting numerous Estate Planning documents for people such as Wills, Powers of Attorney, Healthcare Directives, and Trusts. I am looking to further gain legal experience in these fields of law as well as expand my legal experience assisting business start ups, mergers and acquisitions and also trademark registration and licensing.

Keidi C. on ContractsCounsel
View Keidi
5.0 (11)
Member Since:
August 25, 2021

Keidi C.

Principal Attorney
Free Consultation
Boston, MA
25 Yrs Experience
Licensed in MA, NY
New England Law | Boston

Keidi S. Carrington brings a wealth of legal knowledge and business experience in the financial services area with a particular focus on investment management. She is a former securities examiner at the United States Securities & Exchange Commission (SEC) and Associate Counsel at State Street Bank & Trust and has consulted for various investment houses and private investment entities. Her work has included developing a mutual fund that invested in equity securities of listed real estate investment trusts (REITs) and other listed real estate companies; establishing private equity and hedge funds that help clients raise capital by preparing offering materials, negotiating with prospective investors, preparing partnership and LLC operating agreements and advising on and documenting management arrangements; advising on the establishment of Initial Coin Offerings (ICOs/Token Offerings) and counseling SEC registered and state investment advisers regarding organizational structure and compliance. Ms. Carrington is a graduate of Johns Hopkins University with a B.A. in International Relations. She earned her Juris Doctorate from New England Law | Boston and her LL.M. in Banking and Financial Law from Boston University School of Law. She is admitted to practice in Massachusetts and New York. Currently, her practice focuses on assisting investors, start-ups, small and mid-size businesses with their legal needs in the areas of corporate and securities law.

T. Phillip B. on ContractsCounsel
View T. Phillip
4.8 (5)
Member Since:
August 10, 2021

T. Phillip B.

Free Consultation
27 Yrs Experience
Licensed in IL
Drake University Law School

Attorney creating plans and strategies to help individuals create, build, protect and pass on wealth.

Linda M. on ContractsCounsel
View Linda
Member Since:
August 5, 2021

Linda M.

Corporate Attorney
Free Consultation
Los Angeles, CA
27 Yrs Experience
Licensed in CA
Marquette University Law School

I am a seasoned corporate transactional attorney with over 20 years of combined outside and inside General Counsel experience. My experience includes helping companies of all sizes, including start-ups with general corporate matters and commercial transactions.

Jim S. on ContractsCounsel
View Jim
Member Since:
August 13, 2021

Jim S.

Free Consultation
37 Yrs Experience
Licensed in NY
Notre Dame

Jim Slattery most recently served as General Counsel at Regional News Network, a large owner of broadcast television stations. Jim is an experienced attorney with broad-based expertise. He is a seasoned negotiator who has been involved in negotiations as complex as the Olympic Games. Jim spent 18 years as Vice President for Business and Legal Affairs at NBCUniversal. Previously, Jim worked in the media industry in various roles at All American Television. Jim’s success can be attributed to his ability to properly analyze data, manage projects, lead teams, develop creative solutions for complex problems, focus on strategically optimizing assets, manage/allocate risk and collaborate with divergent constituent groups to achieve objectives. Jim received a J.D. and a B.B.A. from the University of Notre Dame.

Find the best lawyer for your project

Browse Lawyers Now
Learn About Contracts
See More Contracts
other helpful articles

Need help with a Purchase And Sale Agreement?

Create a free project posting

Want to speak to someone?

Get in touch below and we will schedule a time to connect!

Request a call

Find lawyers and attorneys by city