After the home inspection has been done and the buyer has no problems with the outcome of the home inspection, we move on to signing the Purchase and Sales Agreement, or "P&S".
The Purchase and Sale Agreement is a binding contract between buyer and seller. Breaking the contract will result in the forfeit of the initial deposits of the buyer. The Purchase and Sale Agreement formalizes in more detail the original offer. It expands upon what has already been agreed to by both buyer and seller. It does not change the original terms unless both parties agree. It is usually prepared by the seller's attorney or the seller's agent and should be reviewed by your attorney. At the time it is signed, normally only the mortgage remains as the contingency. The date for signing a Purchase and Sale Agreement is customarily about ten business days after the acceptance of the offer. A total of approximately 10% of the purchase price is now placed in an escrow account until closing.
The Purchase and Sales includes, but is not limited to, the following:
- Buyer and Seller's Mailing Address
- Description of the property with Book and Page number from the Registry of Deeds.
- Purchase Price
- Time and Date of Closing
- Smoke Detectors â Seller will Deliver a Certificate from the Fire Dept that the Property has been Equipped with Approved Smoke Detectors.
After the Purchase and Sales has been Signed, the buyer and seller await the closing day.