Purchase And Sale Agreement

Clients Rate Lawyers on our Platform 4.9/5 Stars
based on 3,979 reviews

Jump to Section

Need help with a legal contract?

CREATE A FREE PROJECT POSTING
Post Project Now

What Is a Purchase and Sale Agreement?

A purchase and sale agreement, also known as a purchase and sale contract, P&S agreement, or PSA, is a legally-binding document that establishes the terms and conditions related to a real estate transaction. It defines what requirements the buyer must meet as well as purchase price, limitations, and contingencies. Real estate lawyers generally write them for the buyer and seller to sign.

How A Purchase And Sale Agreement Works

A purchase and sale agreement is different from a purchase agreement in one particular way. Rather than complete the transaction, a purchase and sale agreement will facilitate it while providing clear guidance regarding party responsibility. By signing the contract, you do not agree to buy or sell the house.

Instead, you are determining how to handle:

  • Title searches and transferability
  • Inspections and negotiations
  • Financing and loan documents
  • Transfer of money
  • Closing and associated costs

There may even be a negotiation period when it comes to finalizing the terms and conditions of the purchase and sale agreement. This document is critical since it serves as the basis for the property’s sale and can also demonstrate the seriousness and willingness of both parties by signing it since there are typically cancellation penalties.

After The P&S Agreement Is Signed

Since real estate purchases are more complicated than other purchases, it can take several weeks to finalize. During that period, the buyer, seller, and other third-parties will engage in a series of activities that complete the sale.

Here is what may occur after the purchase and sale agreement is signed:

  1. Title search : Your property lawyers can file for transfer of ownership while under contract. A title search ensures that the owner has the legal right to sell the residence.
  2. Inspections : After signing the contract, the purchaser will inspect the property’s condition. The buyer may also renegotiate the purchase and sale agreement if repairs need to be made to reach a satisfactory level.
  3. Loan agreement : Although most buyers are pre-approved for financing, the process continues to move forward by formally signing a final loan agreement . This process may include an appraiser inspection, underwriting inspection, and more before completion.
  4. Money transfer : Before closing, the buyer must have the money ready for transfer by agreeing to a down payment, cash payment in full, or an escrow deposit. The seller will not release a deed until receiving the buyer’s payment.
  5. Closing : Finally, closing involves the signing of documents that are necessary to transfer property ownership. Other activities may be applied as required to satisfy the needs of the purchase and sale agreement.

Once completing these five steps, the buyer will receive the keys to take ownership of the property. This purchase or sale is likely the biggest one you will make in your lifetime, which means that you should have a solid purchase and sale agreement in place to ensure that everything goes as expected and you have a serious commitment from the buyer or seller.

Meet some lawyers on our platform

Wendy C.

2 projects on CC
View Profile

Justin K.

3 projects on CC
View Profile

Kelvin R.

10 projects on CC
View Profile

Todd H.

2 projects on CC
View Profile

What’s Included In A Purchase And Sale Agreement

Since the purchase and sale agreement is the master document that establishes your purchase or sale terms , it should contain the necessary sections, provisions, and elements.

Below, check out some of the elements included in a purchase and sale agreement:

  • Amount of the deposit and handling of cancellations
  • Personal property included in the transaction
  • Escrow and occupancy dates and handling of cancellations
  • Contract default provisions if one or both parties do not meet the agreement
  • Property inspection terms and conditions
  • Financing arrangements and stipulations for payment of closing costs
  • Contingencies for the sale or purchase of a new or old residence and insurance, including a rental lease agreement or forbearance agreement
  • Other covenants, limitations, and conditions as necessary

As you can see, there are numerous facts and considerations that both parties must make when buying and selling a home. Depending upon where you live and other particulars, you may need to add local or state-specific provisions for the contract to oversee a lawful transaction. Ensure that you draft a contract that is right for the type of purchase and sale agreements related to real estate.

ContractsCounsel Purchase and Sale Agreement Image

Image via Pexels by Binyamin Mellish

Types Of Purchase And Sale Agreements

Since the types of purchase and sale agreements vary widely, make sure that you understand the difference between the purchase and sale agreement for a house versus a purchase and sale agreement for a car. While the primary components of a contract largely remain the same across all documents, there are always vital differences that you will notice.

Purchase And Sale Agreement For House

A purchase and sale agreement for a house addresses the specific needs and provisions surrounding the transaction. It will consider escrow, closing, expectations, and use real estate terminology that you will not find in another other type of purchase and sale agreement.

Purchase And Sale Agreement For Car

When buying or selling a car, a purchase and sale agreement will describe all matters related to ownership transfer. They tend to be shorter and with fewer terms and conditions. However, they do contain some shared components, including payment, inspection, and transferability.


Get Free Bids to Compare

Leverage our network of lawyers, request free bids, and find the right lawyer for the job.

Get Bids Now

Samples Of Purchase And Sale Agreements

There are samples of purchase and sale agreements available online. Reviewing them will give you a good sense of what is expected during the process and the type of agreement you are making. Find a purchase and sale agreement used for your exact situation to make the picture even more transparent.

Here are a few samples of purchase and sale agreements:

If you are considering using an online template to create your contract, determine if the transaction you are facilitating is right for the document you need. Due to both parties’ expectations of the sale, consider working with a lawyer to draft a purchase and sale agreement for you.

Working With A Lawyer To Draft A Purchase And Sale Agreement

Problems during a real estate transaction cost both the buyer and seller time, resources, and money. As such, it is imperative that you have a purchase and sale agreement in place that fosters and facilitates the transfer of a home from a seller to a buyer. Contracts carry specific legal implications, which means that you should hire property lawyers to write them instead of using contract templates .

A lawyer will take the time to understand your specific situation and needs to ensure that the agreement is personalized for your objectives. He or she will also guarantee that it complies with all applicable laws in your jurisdiction.

You will have additional peace-of-mind and reassurance knowing that a legal professional created your agreement versus making guesses with templates online. Do not leave the most significant sale or purchase of your lifetime to chances. Protect yourself by working with a lawyer to draft a purchase and sale agreement.

Purchase and Sale Agreements from ContractsCounsel

Do you need property lawyers in your state to write a purchase and sale agreement? Look no further. Post your project to ContractsCounsel for free and receive proposals from attorneys today.

How ContractsCounsel Works
Hiring a lawyer on ContractsCounsel is easy, transparent and affordable.
1. Post a Free Project
Complete our 4-step process to provide info on what you need done.
2. Get Bids to Review
Receive flat-fee bids from lawyers in our marketplace to compare.
3. Start Your Project
Securely pay to start working with the lawyer you select.

Meet some of our Purchase And Sale Agreement Lawyers

Daniel R. on ContractsCounsel
View Daniel
5.0 (8)
Member Since:
January 1, 2023

Daniel R.

Business and Real Estate Atttorney
Free Consultation
Get Free Proposal
New York
27 Yrs Experience
Licensed in NY
New York Law School

NY Admitted Lawyer 20+ years of experience. Focused on Startups , Entrepreneurs, Entertainers, Producers, Athletes and SMB Companies. I have been a part of numerous startups as Founder, CEO, General Counsel and Deal Executive. I have been through the full life cycle from boot strap to seed investors to large funds-public companies to successful exit. Let me use my experiences help you as you grow your business through these various stages. We saw a market for an on-line platform dedicated to Virtual General Counsel Services to Start Ups and Private Companies.

Wendy C. on ContractsCounsel
View Wendy
5.0 (2)
Member Since:
January 17, 2023

Wendy C.

Attorney
Free Consultation
Get Free Proposal
Arizona
5 Yrs Experience
Licensed in AZ, TX
Arizona Summit Law School

Business transactions attorney who is well-verse in general corporate matters, fundraising, and negotiation in technology, blockchain, and consumer product industry

Adjckwc B. on ContractsCounsel
View Adjckwc
Member Since:
December 27, 2022

Adjckwc B.

Founder
Free Consultation
Get Free Proposal
New York
6 Yrs Experience
Licensed in NY
Florida A&M College of Law

A. Browne Esq. is an entertainment, intellectual property, and business lawyer. Her goal is always to provide the best legal representation for your creative endeavors, both tangible and intangible. Always know that the best way to deal with legal issues is to take measures to avoid them. Learn how to protect your creative work at a law firm that’s passionate about ensuring that creatives own their stuff.

James M. on ContractsCounsel
View James
Member Since:
January 4, 2023

James M.

Owner/Founder
Free Consultation
Get Free Proposal
Boise, Idaho
5 Yrs Experience
Licensed in CA, ID, OR
Stanford Law School

Reproductive law attorney focused on reviewing surrogacy contracts and sperm/egg/embryo donation contracts.

Christopher N. on ContractsCounsel
View Christopher
Member Since:
January 10, 2023

Christopher N.

Managing Partner
Free Consultation
Get Free Proposal
Philadelphia
25 Yrs Experience
Licensed in PA
Widener University Commonwealth School of Law

Christopher Nuneviller has practiced in the securities, venture capital, corporate and emerging business sectors, and as a contract-advisor to the federal government, a federal government senior level executive, and as Army Judge Advocate. Like you, he also he is a partner in other business ventures and faces the same pressure to succeed, be profitable, and stay sane, all while making his clients, employees, family and business partners happy. As the managing partner for Philadelphia's MNB Meridian Law, Ltd., his focus is on assisting small and mid-sized businesses grow and thrive. As a business generalist, Christopher provides advice and counsel to businesses, their owners, investors and shareholders on matters ranging from formation, organization, governance, routine and special operations, and growth toward IPO. Christopher is also a former U.S. Army Judge Advocate having served seven years in Washington, D.C. where he gained significant experience with "above the fold" matters of great import and an unhealthy insight into the internal workings of the "beltway" underbelly. Mr. Nuneviller is admitted to practice in the Commonwealth of Pennsylvania, and before the Supreme Court of the United States, the Court of Federal Claims, and the Court of Appeals for the Armed Forces.

Patrick N. on ContractsCounsel
View Patrick
Member Since:
January 18, 2023

Patrick N.

Attorney at Law
Free Consultation
Get Free Proposal
Massachusetts
6 Yrs Experience
Licensed in MA
Suffolk University Law School

Before attending law school, I had a prior career in business performance reporting. This experience differentiates me from other attorneys. I can readily read, interpret, and synthesize financial reporting. I also have a passion for legal research and writing.

Find the best lawyer for your project

Browse Lawyers Now

Want to speak to someone?

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

Request a call