Purchase and Sale Agreement: A Basic Guide
Jump to Section
Quick Facts — Purchase and Sale Agreement Lawyers
- Avg cost to draft a Purchase And Sale Agreement: $630.00
- Avg cost to review a Purchase And Sale Agreement: $430.00
- Lawyers available: 148 real estate lawyers
- Clients helped: 230 recent purchase and sale agreement projects
- Avg lawyer rating: 4.9 (19 reviews)
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. In some jurisdictions, purchase and sale agreements can also be prepared by a real estate agent or broker.
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, as a purchase agreement would, a purchase and sale agreement will instead 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.
See Purchase And Sale Agreement Pricing by State
- Alabama
- Alaska
- Arizona
- Arkansas
- California
- Colorado
- Connecticut
- Delaware
- District of Columbia
- Florida
- Georgia
- Hawaii
- Idaho
- Illinois
- Indiana
- Iowa
- Kansas
- Kentucky
- Louisiana
- Maine
- Maryland
- Massachusetts
- Michigan
- Minnesota
- Mississippi
- Missouri
- Montana
- Nebraska
- Nevada
- New Hampshire
- New Jersey
- New Mexico
- New York
- North Carolina
- North Dakota
- Ohio
- Oklahoma
- Oregon
- Pennsylvania
- Rhode Island
- South Carolina
- South Dakota
- Tennessee
- Texas
- Utah
- Vermont
- Virginia
- Washington
- West Virginia
- Wisconsin
- Wyoming
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:
- 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.
- 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.
- 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.
- 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.
- 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 typically 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.
CC verified
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.
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.
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:
- Law Depot purchase and sale agreement sample
- SEC purchase and sale agreement sample
- Eforms purchase and sale agreement sample
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.
See Real Purchase And Sale Agreement Projects
Washington Purchase And Sale Agreement Review Review
- Washington
- 3 lawyer bids
- $350 - $2,499
Utah Tenant-In-Common Purchase and Sale Contract Review Review
- Utah
- 3 lawyer bids
- $700 - $1,300
Ohio Review of Purchase and Sale Agreement for CRE in Ohio Review
- Ohio
- 4 lawyer bids
- $425 - $750
Oklahoma PSA Review for new mobile home park acquisition Review
- Oklahoma
- 5 lawyer bids
- $395 - $999
Georgia Review New Construction Purchase and Sale Agreement Review
- Georgia
- 5 lawyer bids
- $450 - $1,500
See all Purchase And Sale Agreement projects
ContractsCounsel is not a law firm, and this post should not be considered and does not contain legal advice. To ensure the information and advice in this post are correct, sufficient, and appropriate for your situation, please consult a licensed attorney. Also, using or accessing ContractsCounsel's site does not create an attorney-client relationship between you and ContractsCounsel.
Need help with a Purchase and Sale Agreement?
Meet some of our Purchase and Sale Agreement Lawyers
Michael M.
www.linkedin/in/michaelbmiller I am an experienced contracts professional having practiced nearly 3 decades in the areas of corporate, mergers and acquisitions, technology, start-up, intellectual property, real estate, employment law as well as informal dispute resolution. I enjoy providing a cost effective, high quality, timely solution with patience and empathy regarding client needs. I graduated from NYU Law School and attended Rutgers College and the London School of Economics as an undergraduate. I have worked at top Wall Street firms, top regional firms and have long term experience in my own practice. I would welcome the opportunity to be of service to you as a trusted fiduciary. In 2022 and 2023, I was the top ranked attorney on the Contract Counsel site based upon number of clients, quality of work and number of 5 Star reviews.
"Michael's expertise and judgment impressed me. I brought him in for contract advisory work, and he quickly asked the questions I hadn't considered, identified the risks that mattered, and set aside the ones I had wrongly prioritized. He changed how I understood the contract. He is an excellent advisor - highly recommended."
Ryenne S.
My name is Ryenne Shaw and I help business owners build businesses that operate as assets instead of liabilities, increase in value over time and build wealth. My areas of expertise include corporate formation and business structure, contract law, employment/labor law, business risk and compliance and intellectual property. I also serve as outside general counsel to several businesses across various industries nationally. I spent most of my early legal career assisting C.E.O.s, General Counsel, and in-house legal counsel of both large and smaller corporations in minimizing liability, protecting business assets and maximizing profits. While working with many of these entities, I realized that smaller entities are often underserved. I saw that smaller business owners weren’t receiving the same level of legal support larger corporations relied upon to grow and sustain. I knew this was a major contributor to the ceiling that most small businesses hit before they’ve even scratched the surface of their potential. And I knew at that moment that all of this lack of knowledge and support was creating a huge wealth gap. After over ten years of legal experience, I started my law firm to provide the legal support small to mid-sized business owners and entrepreneurs need to grow and protect their brands, businesses, and assets. I have a passion for helping small to mid-sized businesses and startups grow into wealth-building assets by leveraging the same legal strategies large corporations have used for years to create real wealth. I enjoy connecting with my clients, learning about their visions and identifying ways to protect and maximize the reach, value and impact of their businesses. I am a strong legal writer with extensive litigation experience, including both federal and state (and administratively), which brings another element to every contract I prepare and the overall counsel and value I provide. Some of my recent projects include: - Negotiating & Drafting Commercial Lease Agreements - Drafting Trademark Licensing Agreements - Drafting Ambassador and Influencer Agreements - Drafting Collaboration Agreements - Drafting Service Agreements for service-providers, coaches and consultants - Drafting Master Service Agreements and SOWs - Drafting Terms of Service and Privacy Policies - Preparing policies and procedures for businesses in highly regulated industries - Drafting Employee Handbooks, Standard Operations and Procedures (SOPs) manuals, employment agreements - Creating Employer-employee infrastructure to ensure business compliance with employment and labor laws - Drafting Independent Contractor Agreements and Non-Disclosure/Non-Competition/Non-Solicitation Agreements - Conducting Federal Trademark Searches and filing trademark applications - Preparing Trademark Opinion Letters after conducting appropriate legal research - Drafting Letters of Opinion for Small Business Loans - Drafting and Responding to Cease and Desist Letters I service clients throughout the United States across a broad range of industries.
"She gave clear and thorough information about my document and gave sound recommendations for the path forward."
Dolan W.
You need a lawyer who's more than just knowledgeable – you need someone who's on your side. That's where I come in. I'll be there every step of the way, offering clear communication and proactive solutions. Whether you're starting a business or navigating a complex legal matter, I'll help you make informed decisions and achieve your goals. I also have drafted many templates to save you money. Just use this link - https://www.contractscounsel.com/client/lawyer-profile/3764#Templates Why Choose Me? I put you first I'm proactive I'm efficient I'm accessible
"Dolan was very responsive, personable, and quick. The contract he wrote precisely fit the requirements. I would highly recommend him to anyone looking for similar services."
Edward B.
When the pressure mounts and the outcome matters most, Edward L. Blair IV doesn’t just step up—he dominates. As a formidable Florida-based attorney, Mr. Blair commands every case with the unshakable focus of a warrior and the calculated precision of a master strategist. His expertise in drafting pleadings, motions, and contracts transforms legal writing into a sharp-edged instrument—an arsenal of language wielded with power and purpose. Edward L. Blair IV is not just an attorney—he’s a lionhearted force of advocacy. Every case is a mission, and every client is a cause worth fighting for. His strategic legal insight doesn’t just navigate complexity—it crushes confusion, eliminates doubt, and clears the path to victory. Respected by clients and relentless in pursuit of justice, he approaches each legal battle as a personal crusade. When you choose Blair Legal Solutions LLC, you gain more than representation—you gain a relentless ally. Your battle becomes his, and he won’t rest until the job is done.
"Edward was both responsive and highly competent in crafting our Settlement Agreement notification and demand letter. Though I hope I never again need this type of legal support in the future, I would seek his services without reservation and hesitation."
Scott S.
I specialize in business law and contracts, with an emphasis on commercial transactions and negotiations, document drafting and review, employment, business formation, e-commerce, technology, healthcare, privacy, commercial real estate, data security and compliance. Specifically, I've drafted, reviewed and/or negotiated thousands of MSA's, NDA's, TOS', SAAS, sales, service, managed services, referral, reseller, royalty, finder’s fee, employment, contractor, consulting, advertising, marketing, manufacturing, distribution, management, artist, author, agency, photography, rental, lease, vendor, partnership, website, platform, application, privacy, non-compete, non-circumvent, confidentiality, IP ownership and licensing agreements so I'm very familiar with these types of documents. Practicing law since 2006, I worked in-house before starting my own solo practitioner law firm in 2011. I've worked with individuals and start-ups, Fortune 500 companies, and every type of entity in between, always providing quality legal work that fits the exact needs of the person and/or business. I’m a graduate of the Benjamin Cardozo Law School and also have an English degree from Penn.
"Scott helped me reviewed the contracts and saved me from getting into a trap of an outsourced sales services provider from Philippines and Australia"
David L.
Experienced real estate, business, and tax practitioner, representing start up and established businesses with formation, contracts, and operational issues.
"David was professional, knowledgeable, and incredibly helpful, he made the entire process smooth and stress free."
Jennifer W.
Jennifer W.
I am an Immigration attorney specializing in business, corporate, and family immigration. I have served the immigrant (EB1A/B/C, NIWs, and PERM) and non immigrant (H, L, O, TN, E) needs for individuals, families, start-up companies, and some of the largest financial and commercial companies. I have experience with adjustment of status and consular processing. Please let me know how I can serve your immigration needs.
"Jennifer has been an exceptional lawyer throughout my EB1-A application process. Her kindness and dedication have been evident every step of the way. She has provided invaluable guidance and support, alleviating many of my concerns and uncertainties. Now, as we await the result from USCIS, I am filled with excitement and confidence, knowing that Jennifer has done everything possible to ensure the success of my application. I highly recommend her services to anyone seeking expert legal assistance"
Find the best lawyer for your project
Browse Lawyers NowLawyer Reviews for Purchase and Sale Agreement Projects
Review Purchase and Sale Agreement
"Very communicative and fast response!"
ContractsCounsel User
Review a house purchase agreement for a new build inventory home from a builder
"Very quick turnaround with thorough analysis!"
ContractsCounsel User
Draft a contract to purchase a small California LLC
"Dolan was very responsive, personable, and quick. The contract he wrote precisely fit the requirements. I would highly recommend him to anyone looking for similar services."
ContractsCounsel User
Tenant-In-Common Purchase and Sale Contract Review
"Exceptional professionalism and insight! From start to finish, Tom was incredibly knowledgeable, thorough, and proactive in guiding me through a 1031 exchange and TIC contract. He explained every detail clearly, ensuring I understood the implications of each decision. His ability to communicate effectively and provide strategic guidance gave me confidence throughout the process. I highly recommend Tom to anyone navigating intricate real estate deals."
ContractsCounsel User
Representations and Warranties
Purchase and Sale Agreement
California
Property condition in a purchase and sale agreement?
I am in the process of buying a house and am in the process of signing a Purchase and Sale Agreement. I have a question regarding the property condition stated in the agreement and would like to understand what my rights and responsibilities are in regards to the property condition. I am primarily concerned with any potential liabilities I may have if the property is not in the condition specified in the agreement.
Myrna L.
First, have a professional contractor inspect the property and provide you a report on the condition, i.e. roof, plumbing, electrical, sewer, etc. Contractor should look for defects, both latent and visible defects. Second, compare contractor’s report with the stated condition of the property in the proposed Purchase Sale Agreement. Third, if contractor finds defects, negotiate with seller on the costs of repairs of defects , either through a reduction in purchase price of property or hold money to repair defects in escrow.
Real Estate
Purchase and Sale Agreement
North Carolina
Title issues in a purchase and sale agreement?
I am in the process of buying a piece of property, and I am currently in the middle of negotiating the purchase and sale agreement. I am concerned about potential title issues that may arise due to the history of the property, as I am not sure if the seller has clear title to the property. I would like to know what I should look out for in the agreement to ensure that I am protected from any potential title issues.
N'kia N.
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.
Real Estate
Purchase and Sale Agreement
Texas
Purchase and sale agreement and appraisals?
I recently entered into a Purchase and Sale Agreement for a property I am interested in buying. I understand that appraisals are generally required for a Purchase and Sale Agreement, but I am unsure of how they are conducted and what the process for obtaining an appraisal is. I am looking to better understand the appraisal process in respect to a Purchase and Sale Agreement.
Michael A.
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.
Real Estate
Purchase and Sale Agreement
Florida
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.
Linda W.
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.
Real Property
Purchase and Sale Agreement
Massachusetts
Breaches of a purchase and sale agreement?
I am in the process of purchasing a property and have recently signed a Purchase and Sale Agreement. However, I am concerned that the Seller may be in breach of the Agreement, and I am seeking legal advice regarding my rights in this situation. Specifically, I would like to know what remedies are available to me if the Seller does breach the Agreement.
Moss S.
The usual remedy for a Seller breach of a Purchase and Sale Agreement is known as specific performance. That means that you could sue the Seller to force him to complete the sale of the property. To see if there are any other remedies, I would have to review the agreement.
Quick, user friendly and one of the better ways I've come across to get ahold of lawyers willing to take new clients.
View Trustpilot ReviewNeed help with a Purchase and Sale Agreement?
Real Estate lawyers by top cities
- Austin Real Estate Lawyers
- Boston Real Estate Lawyers
- Chicago Real Estate Lawyers
- Dallas Real Estate Lawyers
- Denver Real Estate Lawyers
- Houston Real Estate Lawyers
- Los Angeles Real Estate Lawyers
- New York Real Estate Lawyers
- Phoenix Real Estate Lawyers
- San Diego Real Estate Lawyers
- Tampa Real Estate Lawyers
Purchase and Sale Agreement lawyers by city
- Austin Purchase and Sale Agreement Lawyers
- Boston Purchase and Sale Agreement Lawyers
- Chicago Purchase and Sale Agreement Lawyers
- Dallas Purchase and Sale Agreement Lawyers
- Denver Purchase and Sale Agreement Lawyers
- Houston Purchase and Sale Agreement Lawyers
- Los Angeles Purchase and Sale Agreement Lawyers
- New York Purchase and Sale Agreement Lawyers
- Phoenix Purchase and Sale Agreement Lawyers
- San Diego Purchase and Sale Agreement Lawyers
- Tampa Purchase and Sale Agreement Lawyers
ContractsCounsel User
Review PSA for Kid City USA, 4521 Independence Square - Indianapolis, IN 46203
Location: Indiana
Turnaround: Less than a week
Service: Contract Review
Doc Type: Purchase And Sale Agreement
Page Count: 15
Number of Bids: 4
Bid Range: $225 - $2,450
ContractsCounsel User