Purchase & Sale Agreement

Photo 2013-02-11 05.08.45 PMOnce the parties are successfully past the inspection, the next step is the drafting, negotiating and signing of a Purchase and Sale Agreement or “P&S.”  The P&S a substantially more detailed document than the Offer to Purchase and includes not only the purchase price and closing date, but details any agreed upon terms or contingencies associated with the purchase/sale, repairs agreed upon following the inspection, and a series of other terms to protect the interests of each party.  A buyer should retain the services of an experience real estate lawyer to facilitate the negotiation and review of the Purchase and Sale Agreement.  Even though there is a standard form P&S, there are provision which can be added, deleted and modified to benefit either the buyer or seller, and additional provisions which real estate lawyers typically seek to add in order to best protect the interests of their respective clients.  You will be expected to provide a significant deposit of funds at the time the P&S is signed.  The deposit is usually at least $10,000, and commonly is up to 5% of the purchase price.  The deposit amount is generally negotiated during the Offer to Purchase process.