What is a Purchase and Sale Agreement? – David Reecher

A Purchase and Sale Agreement (PSA) is a written contract to buy and sell real estate which contains all of the agreed-upon terms for the transaction, such as the final sale price. The specific items in this contract vary by transaction and state, but will almost always include the following:

  • Final sale price
  • Earnest money amount, deposit method, and due date
  • Closing date
  • Title company information
  • Title condition
  • Contingencies commonly included for financing, inspection, appraisal, and title
  • Addendums explaining any additional terms of the offer not included in the actual document

In states where escrow agents handle the closing process, the buyer’s agent is likely responsible for preparing this document. In areas where attorneys handle the closing, the attorneys will likely prepare the document. It must be signed by the buyer, seller, and their respective agents. Addendums for inspections, financing, and the title are usually included.

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