Whether you’re buying a commercial or residential property, understanding the paperwork involved will allow you to protect yourself and your assets throughout the process. The purchase and sale contract, also known as a purchase and sale agreement or PSA, is a key legal document that defines the terms of the transaction. These contracts ensure all parties are in agreement and include details such as purchase price, closing dates, earnest money, and any contingencies surrounding the sale. Considering the following steps before signing on the dotted line will make for an efficient and pain-free interaction.
Key Elements
- Do your research: Become an expert on the property before making an offer — researching the property’s history, comparative market values, and the surrounding community will guarantee you’re making a wise investment. When purchasing a rental or commercial property, be sure to also consult with a legal professional and consider local ordinances and zoning regulations.
- Inspect the details: Protect yourself from future burden by getting a comprehensive picture of the property’s condition. Hiring a property inspector and closely reviewing disclosure statements will give you an idea of any work needed and allow you to adjust your offer accordingly.
- Be ready to negotiate: With all these factors in mind, work with your real estate agent and attorney to craft an offer that represents the value of the property. In today’s competitive market, be prepared to receive a counteroffer from the sellers and work with your team to negotiate. Once signed, the contract is legally binding, so ensure that you’re satisfied with all terms before finalizing the paperwork.
For guidance on navigating purchase and sale contacts and other real estate law matters, contact us.
Related practices: Real Estate
