The first step after the inspection is negotiating and signing the Purchase & Sale Agreement. This “P&S” Agreement is a binding contract in Massachusetts and typically guarantees the transaction will close once it is signed. The only thing which usually could stop the sale is if financing falls apart.
If you have specific conditions to be put into the P&S, communicate these to your attorney immediately.
What should you expect to see (and confirm) in this contract?
Some of the key points in this multi page 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 the buyer takes possession.
- 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 buyer.
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?
Watch out for:
- Unrealistic deadlines: the buyer needs time to arrange an appraisal and receive the report, as well as get financing underwritten.
- Items not conveyed with the property clearly outlined in the agreement.
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!