What is Purchase and Sale Agreement Drafting?
A purchase and sale agreement is a legal contract between a seller and a buyer. It specifies the terms that govern their arrangement, such as the purchase price and conditions for the property or asset transfer to go through.
If you need to draft a purchase and sale agreement, you should read the rest of this article for key terms to include, how to draft it professionally, and why it’s in your best interests to hire a qualified lawyer to draft it for you.
What Key Terms Should Be in a Purchase and Sale Agreement?
A purchase and sale agreement usually contains core information such as the following:
- Asset description. There should be details about the property or asset, such as physical addresses or title deed details.
- Payments. The agreement should specify the agreed-on purchase price and payment deadlines.
- Contingency. Specify any conditions that need to be met, such as securing financing.
- Closing. This must be stated clearly as it defines the exact date when the asset or property transfer goes through.
- Warranties and disclosures. The agreement should clarify property or asset conditions and defects to provide transparency and an authentic agreement.
What are Tips for Drafting a Purchase and Sale Agreement?
When drafting a purchase and sale agreement, there are some essential things to consider so that it’s clear and minimizes the risk of lengthy legal disputes in future.
Clarify all Payments
You want to state the purchase price and deposit rules, such as due dates and amounts. Clarify the financing method, such as installments or mortgage bonds. Be as detailed as possible so that there are no misinterpretations.
Set Clear Deadlines
There are various elements of the transaction that must include timelines and deadlines. For example, you’ll want to have an inspection clause that details deadlines for checking the property and the deadline by when the property is handed over for occupancy.
Provide a Description
The agreement must clarify the property, such as its physical address and its legal description, which you can get from the deed. You also want to list features or items that are included with the property, such as appliances and fixtures.
Specify Contingencies
Outline if the buyer’s obligation depends on certain conditions or events, such as financing, inspections, or the sale of another property. You should also include information about what happens if conditions aren’t met.
Navigate Defaults
Establish specific remedies if parties don’t fulfill their obligations. Examples of remedies could be recovering an earnest money deposit or seeking damages. By clarifying this in the agreement, you’ll avoid future confusion or disputes.
Should You Hire a Lawyer to Draft a Purchase Sale Agreement?
Hiring a qualified lawyer to draft your purchase sale agreement is a good move to avoid potential pitfalls. A lawyer has the experience and expertise to help you.
For example, they’ll conduct the following activities to assist you during the contract drafting process:
- Aligning the agreement with all relevant laws. A lawyer will ensure that all the terms in your agreement match state laws and requirements to prevent non-compliance.
- Verifying the property description. They’ll consider issues such as easements and access rights.
- Reviewing ownership. Your lawyer will identify any liens or other title issues that could interfere with the transaction.
- Considering what could go wrong. A lawyer is skilled at considering future situations, such as what happens if the loan isn’t approved, to provide provisions in the agreement that protect your interests.
- Drafting default remedies. They’ll explain what happens if either party breaches the contract, such as termination, damages, or retaining the deposit.
- Checking other documents. A lawyer will refer to other required documents, such as the lease and closing documents, to ensure consistency and prevent ambiguity.
- Explaining the consequences. Before you sign the agreement, a lawyer will explain what you’re agreeing to and provide clear provisions to the agreement so that there are no hidden risks.
- Negotiating with the other party. Should this be required, a lawyer can negotiate agreement terms with the other party to reach a mutually-beneficial final agreement.
- Reviewing your agreement. If you’ve drafted a purchase sale agreement, you should hire a lawyer to review the contract so that you feel confident about all it contains.
Where to Hire a Lawyer for Purchase Sale Agreement Drafting
If you’re looking for a lawyer to write your purchase sale agreement, you should use an online legal platform that gives you access to qualified and experienced lawyers and prevents you from having to call traditional law firms in your area.
ContractsCounsel is one of the largest online legal marketplaces that connects you to a curated network of lawyers who have been vetted on the platform. To request that a lawyer drafts your purchase sale agreement, follow these easy steps online:
- Visit the ContractsCounsel marketplace, where it’s free to post your request or project.
- Select ‘One-time project’ and ‘Create or update contract.’ If you want a lawyer to review your contract instead, you’ll select ‘Contract review’ in this step.
- Post your project. Try to mention a few details to help you match with the most suitable lawyers on the platform, such as if you need assistance with specific terms or concerns you have.
- Wait to receive bids. Without having to search for a lawyer, you’ll receive multiple bids from lawyers directly on the platform.
- Review the lawyer information. The platform provides extensive data about lawyers, such as their location, expertise, years of experience, credentials, and client ratings for previously completed projects on the platform.
- Select a lawyer to hire. They’ll draft your purchase sale agreement for a flat fee.
