Home Q&A Forum When to sign a purchase and sale agreement?

Real Estate

Purchase and Sale Agreement

California

Asked on Sep 5, 2023

When to sign a purchase and sale agreement?

I am in the process of purchasing a property and need to know when I should sign the purchase and sale agreement. I have been given an offer from the seller and have been told that I need to sign the agreement in order to move forward with the purchase. I am concerned about signing the agreement too soon and have questions about the timing and what risks I may be taking if I sign before I am sure I am ready.

Answers from 1 Lawyer

Answer

Real Estate

California

Answered 951 days ago

If you are not ready to buy a property, it is only fair not to waste sellers’ time who are trying to sell their property. If, however, you are ready to buy a property but is concerned about unforeseeable risks, you can mitigate or eliminate your risks by spelling out contingencies in your Purchase and Sales Agreement. If the conditions or contingencies are not met, you do not have to go through with the deal.

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Purchase and sale agreement contingencies?

I am in the process of purchasing a home and have received a Purchase and Sale Agreement from the seller. I understand that there are contingencies that must be met in order for the agreement to be valid, but I am unclear on what these contingencies are and how they will affect the agreement. I am hoping to get some insight from a lawyer on what contingencies I should be aware of and how they could affect the agreement.

View Myrna L.

3.8 (3)

Myrna L.

Answered Sep 24, 2023

Contingencies are conditions provided in the contract that need to be met prior to performance or close of escrow. In Purchase and Sale Agreements, it is usually the buyer who negotiates for contingencies to reduce or eliminate their risks prior to close of escrow. Normally, buyer’s contingencies would include appraisal reports, property inspections, mortgages, title reports or sale of another property. More often than not, sellers do not have contingencies in Purchase and Sale Agreements because they want to sell the property in a timely manner; if seller cannot deliver the property, it may deem the property not available for sale in the first place.

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Real Estate

Purchase and Sale Agreement

Washington

Asked on Sep 9, 2023

Earnest money in a purchase and sale agreement?

I am in the process of buying a house and have been presented with a purchase and sale agreement. I am confused about the earnest money portion of the agreement and would like to understand what it means and how it will affect the transaction. I am particularly interested in knowing what happens to the earnest money if either party decides to back out of the agreement.

5.0 (18)

Merry K.

Answered Sep 12, 2023

Good morning. I am a WA State attorney, and I have reviewed numerous purchase and sale agreements (PSA), and have bought and sold numerous pieces of property in WA and CO. You are wise to ask this question. Since you are the buyer, normally your buyer's real estate agent would prepare the PSA for you to use, after discussing with you. Since you said a PSA "was presented to you" I"m wondering whether you are buying a new home from a building contractor. In any event, the purpose to an earnest money payment is to hold the home for you and let the seller know you are interested. In most cases, however, the seller can keep your whole earnest money payment if you back out of a purchase for reasons that are not protected in the PSA. For example, if you write your offer contingent on your subjective approval of an inspection report, or write your offer contingent on obtaining financing at terms you approve of, either one of these terms can get you out of the contract and also have your earnest money returned to you. There should be language in the PSA that clearly states what happens to the earnest money and how much earnest money you are providing. I hope that that is helpful. If you continue to have questions, I urge you to have an attorney review any and all documents, including those for loans, prior to signing anything.

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Real Estate

Purchase and Sale Agreement

Florida

Asked on Sep 5, 2023

Who drafts the purchase and sale agreement?

I am in the process of purchasing a property and am in need of a Purchase and Sale Agreement. I am unclear on who typically drafts the agreement and am looking for advice from a lawyer. I understand that the agreement should be tailored to my specific needs and am looking for guidance on how to best proceed.

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5.0 (34)

Linda W.

Answered Oct 10, 2023

Either the seller or the buyer can prepare a purchase agreement. Like any contract, it can be a standard document that one party uses in the normal course of business or it can be the end result of back-and-forth negotiations. Most often, the buyer's real estate agent will write up and prepare the purchase agreement for a house. Note that agents (not being practicing attorneys themselves) can't create their own contracts. In Florida commonly the parties utilize the Florida Realtors/FloridaBar-ASIS-6 Rev. 10/21/2021. That is an example of a approved form.

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Real Estate

Purchase and Sale Agreement

Florida

Asked on Sep 6, 2023

Purchase and sale agreement and inspections?

I am in the process of buying a home, and I recently received a Purchase and Sale Agreement from the seller. I'm concerned about the inspection contingency in the agreement, because I'm not sure if it protects me as a buyer if there are any issues with the home. I want to make sure my interests are fully protected in the agreement, so I'm looking for legal advice on how to properly interpret and negotiate the inspection contingency.

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5.0 (34)

Linda W.

Answered Sep 19, 2023

It is recommended that you seek the assistance of an attorney before signing any contract. In addition, it is recommended that you sign an as-is contract, because the inspection period provides you the opportunity to terminate the contract for any reason, if you are not satisfied with the results of the inspection. But you must terminate within a timely period as set forth in the contract.

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Real Estate

Purchase and Sale Agreement

Texas

Asked on May 12, 2021

Are title company's law firms?

Going through real estate transaction and trying to understand.

View George O.

4.9 (5)

George O.

Answered May 12, 2021

No, but they can be fee offices, which means the law firm has entered into a contract with a title company to handle closings on behalf of the title company.

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When to sign a purchase and sale agreement?

Answers from 1 Lawyer

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