Spring is the most popular time to buy or sell a home. At the center of these transactions are important contracts: Purchase and Sale Agreements. Purchase and Sale Agreements are often abbreviated as the “P&S.”
What is the P&S? It is a document that memorializes all of the terms of the sale of a home that the Buyer and Seller agree to. The following are the key provisions that you should review with the most scrutiny: the names of the parties, address of the property being purchased or sold, the deposit amount with the P&S, the closing date, and the types of adjustments. If there is any discrepancy, contact your real estate professional immediately.
Sellers should pay particular attention to the provisions that set the commission for the brokers. Additionally, Sellers should verify that the representations and warranties in the P&S are true and accurate to the best of their knowledge.
For Buyers, the most important provision in the P&S for Buyers is often the mortgage contingency clause. This allows a Buyer to terminate the contract with a return of their deposit of they are not approved unconditionally for mortgage financing. Please verify that your loan professional is aware of this date and thinks that he or she will be ready. You want to be on the “same page.”
Finally, repair items should always be included in the P&S to protect both the Buyer and Seller. Any additional terms should be listed in the P&S—handshakes are not sufficient!
If you have any questions about a P&S, contact Stiles Law by calling (781) 319-1900 or by visiting https://stiles-law.com.
Stiles Law, with offices located in Boston and Marshfield, Massachusetts, is a firm concentrating in real estate conveyancing and mortgage lending services, representing buyers, sellers, borrowers, banks, mortgage companies, investors, builders and developers in all of their real estate and mortgage transactions. Stiles Law serves all areas of eastern Massachusetts–the North Shore, Boston, and Cape Cod, in addition to the entire South Shore, including: Plymouth, Kingston, Duxbury, Hanover, Pembroke, Marshfield, Scituate, Norwell, Cohasset, Hull, Hingham, Weymouth, Braintree, and Quincy.
Copyright © 2019 Stiles Law, All rights reserved. Stiles Law is a Massachusetts licensed law firm and all content is based on Massachusetts law. The information presented above is meant to be used for general informational purposes and it should not be construed as legal advice or legal opinion on any specific facts.