It’s critical we stay in close touch during the time between your offer being accepted and final closing, so you’re equipped with all the information and updates you need to make smart decisions and not be overly stressed about the process. Being in Massachusetts which closes transactions using attorneys, there are quite a few pieces to the puzzle of finalizing the purchase and sale of a home. Don’t worry! We’ll drive the process for you and let you know what you need to do and when.
The first step after the inspection is negotiating and signing the Purchase & Sale Agreement. This Agreement is a binding contract in Massachusetts and typically guarantees your home purchase once it is signed. The only thing which could stop your taking ownership is if financing falls apart.
You will need to hire an attorney to represent you during the Purchase & Sale process and closing. If you need recommendations, again we have a list for you to contact; otherwise you can use any real estate attorney you know that is licensed in Massachusetts. Your attorney and the seller’s attorney will negotiate and draw up the Purchase & Sale Agreement on your behalf.
What should you expect to see (and confirm) in this contract?
Some of the key points in your multipage contract include:
- Accuracy of information, including the correct spelling of your name and the property address.
- The effective date of the contract as well as other deadlines related to any contingencies in the offer.
- A complete list of what conveys/stays with the property.
- The agreed on purchase price outlined with offer deposit amount, deposit due on the day the Purchase & Sale Agreement is signed, and amount due at closing (either from lender financing or cash).
- Information about when you can move in.
- Information related to any other items which need to be outlined. Much of this is “boilerplate” (aka standard legalese), but your attorney can adjust anything we bring to his or her attention regarding agreements made with the seller.
We can review the contract together if needed, but we highly recommend you have a good conversation with your attorney to make sure all of your questions are answered.
What are common contract pitfalls to avoid?
We’ll watch out for:
- Unrealistic deadlines: you’ll need time to arrange an appraisal and receive the report, as well as get financing underwritten.
- Missing deadlines: critical dates which may cause you to lose your chance to end the contract and keep your deposit.
- Items not conveyed with the property: if you’re not sure, we can discuss it.
- Communications from your lender: you must respond promptly to any requests as any delay can cause a missed deadline.
According to the National Association of REALTORS®, the most common reasons for contracts to fail or be delayed are home inspection problems, financing problems, or an appraisal issue.
Put The Creative Living Team’s years of experience to work for you. We are proud to say we have a 98% closure rate over the past two decades!
**Remember you will need to pay the Purchase & Sale Agreement deposit amount listed on your Offer on the day of signing.**