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: 150 real estate lawyers
- Clients helped: 235 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
Texas Residential Purchase and Sales Agreement Drafting
- Texas
- 4 lawyer bids
- $498 - $1,750
Washington Purchase And Sale Agreement Review Review
- Washington
- 3 lawyer bids
- $350 - $2,499
Oklahoma PSA Review for new mobile home park acquisition Review
- Oklahoma
- 5 lawyer bids
- $395 - $999
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 K.
A business-oriented, proactive, and problem-solving corporate lawyer with in-house counsel experience, ensuring the legality of commercial transactions and contracts. Michael is adept in reviewing, drafting, negotiating, and generally overseeing policies, procedures, handbooks, corporate documents, and more importantly, contracts. He has a proven track record of helping lead domestic and international companies by ensuring they are functioning in complete compliance with local and international rules and regulations.
"Pretty much finished up with the project, aside from some finishing touches. I have to say, Michael did a great job. He worked patiently with me through any irregularities or confusion. What I appreciated most was that his vision was to get me the best results, ensuring a secure structure and a solid investment. I really appreciate his work and help."
Tim E.
I am a business attorney focused on providing practical, targeted legal services for small businesses, startups, contractors, consultants, and service providers. I help clients efficiently review, draft, and improve everyday business contracts, including service agreements, NDAs, independent contractor agreements, vendor contracts, commercial leases, and purchase documents. My approach is straightforward: identify the terms that matter, explain risks in plain English, and deliver clear, usable edits or drafts without unnecessary complexity. I regularly handle fixed-fee, quick-turnaround projects such as contract reviews, agreement drafting, and demand or termination letters. While I offer streamlined, project-based services for routine matters, I can also assist with broader business legal needs as they arise.
"Tim was excellent! I gave him project details (liability waiver and rental agreement) and what I needed and he produced the day he said he would with ZERO revisions needed. Highly recommend."
Keidi C.
Keidi S. Carrington brings a wealth of legal knowledge and business experience in the financial services area with a particular focus on investment management. She is a former securities examiner at the United States Securities & Exchange Commission (SEC) and Associate Counsel at State Street Bank & Trust and has consulted for various investment houses and private investment entities. Her work has included developing a mutual fund that invested in equity securities of listed real estate investment trusts (REITs) and other listed real estate companies; establishing private equity and hedge funds that help clients raise capital by preparing offering materials, negotiating with prospective investors, preparing partnership and LLC operating agreements and advising on and documenting management arrangements; advising on the establishment of Initial Coin Offerings (ICOs/Token Offerings) and counseling SEC registered and state investment advisers regarding organizational structure and compliance. Ms. Carrington is a graduate of Johns Hopkins University with a B.A. in International Relations. She earned her Juris Doctorate from New England Law | Boston and her LL.M. in Banking and Financial Law from Boston University School of Law. She is admitted to practice in Massachusetts and New York. Currently, her practice focuses on assisting investors, start-ups, small and mid-size businesses with their legal needs in the areas of corporate and securities law.
"Received very meaningful advice and I hope to work with you in the future."
William B.
Attorney based in Southern California (for in-person matters), taking clients globally/remotely for CA-specific and Federal legals needs. Owner and operator of Alchemist Attorney, Inc. (www.alchemistattorney.com).
"Attorney William is very responsive, on time, knowledgeable for his field, and very friendly. I have a great time working with him as he is very reliable and attentive. I would highly recommend attorney William for your consideration. Thank you, Amina"
David U.
For the last 25 years I've focused on representing businesses and entrepreneurs in transactional law deals, including LLC creation, operation and sale of businesses; real estate sales and leasing; and general contract negotiation and drafting. While I've helped all manner of businesses work out a variety of contract and business matters, I am an expert at helping clients with buying and selling commercial properties including multi-family and office projects and buildings, subdivisions, and retail shopping centers. I am also a recognized expert negotiating leases for retail and office tenants and landlords. Over 25 years I've honed my skills a lawyer at one of the largest law firms in the world, an elite real estate boutique in Aspen, Colorado and a highly regarded firm based in Denver, Colorado, before starting my own practice in 2016. Since 2016 I've been helping my clients with real estate and business deals. I'm a commercial real estate and business expert with a passion for helping clients forge successful ventures in an efficient and understandable manner.
"David was very informative during our initial call, and helped me understand the scope of work that my project needed depending on how many legal avenues I wanted addressed and covered. The work he provided was detailed and completed by the deadline that he provided."
November 11, 2025
Alyssa R.
Alyssa M. Reid is a New York–based transactional attorney advising founders, creatives, and companies on commercial agreements, intellectual property, and strategic business matters. Her practice focuses on drafting, reviewing, and negotiating a wide range of contracts, including service agreements, licensing and IP deals, publishing agreements, and talent/influencer contracts. Alyssa is known for combining strong legal analysis with a practical, business-minded approach. She helps clients understand what they’re signing, identify risks, and negotiate terms that protect their long-term interests, particularly around ownership, revenue, and control. She represents clients across media, entertainment, technology, sports, and consumer industries, serving as a trusted advisor from early-stage growth through more complex transactions. Prior to founding AMR Law, PLLC, Alyssa practiced at Sidley Austin LLP and later served as outside general counsel to startups and entrepreneurs. She is licensed to practice in New York and holds a J.D. from New York Law School and a B.A. from New York University.
October 3, 2023
Nicole Y.
Nicole Yñigo is an accomplished attorney with over nine years of experience in the legal field. Raised in Miami, she obtained her education from the School for Advanced Studies, Florida International University, and St. Thomas University School of Law. Nicole is dedicated to helping her clients achieve their legal goals and has built a strong reputation for providing personalized and effective legal representation. She has worked with various law firms and insurance companies on both Plaintiff and Defense matters. Nicole is the founder of The Ynigo Legal Group, where she offers compassionate and competent legal counsel in a direct and practical approach.
Find the best lawyer for your project
Browse Lawyers NowLawyer Reviews for Purchase and Sale Agreement Projects
Selling Software Rights of Pirate Cat Cove
"Did the work on time with thoughtful review of a contract"
ContractsCounsel User
Absolving sales contract
"Great and timely review of the sales contract. Thank you."
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
Contract Review Real Estate Purchase/Sale
"Communicative and responsive."
ContractsCounsel User
Sale of appraisal business
"Great legal work; on budget; on time; would use services again."
ContractsCounsel User
Real Estate
Purchase and Sale Agreement
Pennsylvania
Where do I get a purchase and sale agreement paperwork, as well as an assignment agreement document .
I'm fairly new to real estate and wanna change my families financial situation. But just need a few pointers .
Samuel R.
I can draft each of those agreements for you. I have drafted numerous property acquisition agreements as well as assignments.
Real Estate
Purchase and Sale Agreement
North Carolina
Deposit in a purchase and sale agreement?
I am in the process of purchasing a property and have recently been presented with a Purchase and Sale Agreement. I am unclear on the deposit requirements for this agreement, and would like to know what is typically expected in this situation. I am also interested in understanding what happens to the deposit if the deal does not go through.
N'kia N.
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.
Real Estate
Purchase and Sale Agreement
Texas
Are title company's law firms?
Going through real estate transaction and trying to understand.
George O.
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.
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.
Loans
Purchase and Sale Agreement
California
Purchase and sale agreement and default?
I am in the process of purchasing a commercial property from an individual seller. We have already agreed on the terms of the purchase and signed a Purchase and Sale Agreement. Recently, I have been informed that the seller is in default of their loan agreement with their lender, which could potentially put our agreement in jeopardy. I am seeking legal counsel to understand my rights and the potential implications of the default.
Myrna L.
Potential loan default on the property may or may not impact your Purchase Agreement depending on when you plan to close escrow. First, isn’t the loan being paid off with the sales price? If so, Second, escrow company should have contacted lender requesting pay off amount. Third, lender would stop any pending default action when they know they will be paid off with the sale.
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
Season Ticket Sales Contract Review
Location: Maryland
Turnaround: A week
Service: Contract Review
Doc Type: Purchase And Sale Agreement
Page Count: 3
Number of Bids: 3
Bid Range: $185 - $499
ContractsCounsel User