Purchase and Sale Agreement
Buying Boston Area Real Estate
It’s now time to provide the second deposit and sign a P&S. Your Buyer’s Agent will deliver it to the proper parties. Everything in the signed offer will be going into your purchase and sale agreement, plus any repairs or items negotiated after the home inspection. Now is the time to get in touch with a good real estate attorney. Your Buyer Agent can help you find a good one but do make sure you get a real estate attorney.
The purchase and sale agreement is usually drafted by the listing office or by the seller's attorney. Therefore, there is very little in it to protect your interests. You should have a copy of the agreement to be able to review and discuss it with your attorney.
Your contact with your attorney can be done through telephone and fax, or you can meet in person. Aside from making any changes to the body of the agreement, your attorney will likely add a rider that is often several pages long. This will usually be a standard rider that the attorney uses for all home buyer clients. In addition to the rider, he/she will include wording that is specific to your home purchase.
If the seller is using an attorney, both attorneys will work out the details of the agreement through faxing and telephone conversations. When the final document is agreed upon and ready to sign, four copies are made. All four copies need original signatures. It is customary for the buyers to sign the documents first and then the sellers will sign all four.
At the time of the signing, you will be putting down your second deposit which, with the initial binder, will usually be equal five percent of the total purchase price of the house. Sometimes the listing office will demand a bank check and other times you are able to write a personal check for this deposit and in the bottom left corner simply write, "Deposit on (address of the property)." Also, make a copy of the check for your records. Your lender will want a copy of both deposit checks. This money will be put into an escrow account through the listing agent's or attorney's office and stay there until your closing.
When the deposit is held in an interest bearing account, the interest is often split between buyer and seller at closing. You might include a clause that requests the deposits to be held in an interest bearing account with interest to the buyer at closing. next topic »
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