Purchase & Sale Agreement
The legally binding contract that governs your purchase
The Purchase and Sale Agreement (P&S) is the comprehensive contract between you and the seller. It contains all the detailed terms and conditions. With 5% of the purchase price at stake, attorney review is essential.
P&S vs. Offer
Both are binding in Massachusetts, but the P&S has comprehensive terms.
Offer to Purchase
- • Legally binding once signed
- • Basic terms and price
- • Smaller deposit at risk
P&S Agreement
- • Detailed legal contract
- • Comprehensive terms and conditions
- • Full deposit at risk (typically 5%)
Key Provisions to Understand
Mortgage Contingency Deadline
CriticalThe date by which you must secure mortgage commitment. Typically 21-30 days from P&S signing. If you can't get approved, you can back out with your deposit.
Deposit Amount
CriticalTotal earnest money, usually 5% of purchase price. The P&S deposit (minus your initial deposit) is due at signing.
Smoke & Carbon Monoxide Compliance
Seller must provide certificate of compliance from fire department at or before closing. Non-negotiable in Massachusetts.
Property Condition
Defines the condition the property must be in at closing. Usually 'broom clean' and same condition as inspection, normal wear excepted.
Extension Provisions
CriticalWhat happens if closing is delayed? How much does it cost to extend? Who pays for extensions?
Default and Remedies
CriticalWhat happens if either party breaches? Typically, buyer loses deposit; seller must return deposit and may owe damages.
Personal Property
List of items staying with the house (appliances, fixtures, window treatments). Be specific to avoid disputes.
What Your Attorney Should Negotiate
- • Adequate time for mortgage contingency (don't let the seller rush you)
- • Clear language on what's included vs. excluded from sale
- • Protection if seller doesn't vacate on time (per diem penalties)
- • Right to conduct final walkthrough within 24 hours of closing
- • Clear remedies if issues arise between P&S and closing
Typical Timeline
The Mortgage Contingency Deadline is Critical
If your mortgage isn't approved by the contingency deadline and you don't have an extension, you may be legally required to close anyway—or forfeit your deposit.
Protect yourself: Get pre-approved before making offers. Respond to lender requests immediately. If you're approaching the deadline and aren't approved, have your attorney request an extension in writing before the deadline passes.