Recent Answers to Purchase and Sale Agreement Law Questions

Bobby H.

Answered Oct 20, 2023

Your options should be set forth in your purchase and sale agreement. Most agreements provide for amendment and/or cancellation if issues are discovered and not corrected during the due diligence period or short period of time thereafter PROVIDED the seller has been placed on notice in accordance with the terms of the agreement. Regardless whether the sales agreement is amended, verifying and ensuring that the legal descriptions in the final closing documents contain a references to the survey should suffice.

Michael A.

Answered Oct 17, 2023

An appraisal is merely a professional opinion of value. In regards to a purchase and sale agreement, lenders usually require a 3rd party professional opinion of value of the property being purchased.

N'kia N.

Answered Oct 17, 2023

A typical purchase and sale agreement for real property (commonly called an "Offer to Purchase and Contract" in North Carolina) includes due diligence. Due diligence is the buyer's opportunity to investigate the property. During the due diligence period, the buyer will usually have the property inspected. However, the buyer may also conduct a title search on the property. Additionally, a purchase and sale agreement might specify that the deal is contingent upon the seller being able to deliver clear title to the property. Anyone who is considering entering into a purchase and sale agreement for real property should also consider at least having an attorney review the agreement. It probably would not hurt to have attorney representation throughout the transaction.

Moss S.

Answered Oct 17, 2023

You are best to have an attorney amend the agreement. Real estate agents are not allowed to draft language, only fill in forms.

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.

N'kia N.

Answered Sep 24, 2023

A Purchase and Sale Agreement for real property will often require two types of "deposits." The first is a due diligence fee; the second is an earnest money deposit. A due diligence fee is paid to reserve time for the buyer to conduct due diligence - an opportunity to evaluate whether or how to move forward with the deal. The seller earns this fee immediately by agreeing not to sell the property to another buyer, potentially one offering a higher price, during the due diligence period. Therefore, a due diligence fee is nonrefundable unless the parties specifically agree that it will be and under what circumstances. An earnest money deposit is more akin to deposits in other types of deals, in that it may or may not be refundable. This type of deposit is refundable if the deal is terminated before the due diligence period ends but nonrefundable if the due diligence period ends before the deal is terminated.