What is a Purchase and Sale Agreement?
A purchase and sale agreement (PSA) is
A Real Estate Purchase and Sale Agreement (P&S) is:
- An agreement between a seller and a buyer and of real estate property
- It is the document received after there is a mutual acceptance of an offer
- The Purchase and Sale agreement outlines the agreed-upon final sales price and all terms of the purchase.
If you are about to enter into any type of legal contract, including a purchase and sale agreement for real estate or some other transaction, it is very important that you have the help of a qualified attorney before, during, and after the signing of the papers. Many people believe that a “simple” agreement does not require an attorney’s help, but this can be a costly mistake. Laws regarding contracts are complex and constantly changing, so you need the help of a professional who understands the intricacies of a purchase and sale agreement before you “sign on the dotted line.”
Why Hire an Attorney for the Purchase and Sale (P&S)?
Here are some reasons you might want to consider hiring an attorney before you sign a purchase and sales agreement contract:
- You may not understand the specialized language used in purchase and sale agreement contracts. Contractual language has evolved from hundreds of years of legal practice, and it is not the same language used in everyday business correspondence. In order to understand this language, you may need the help of an attorney. This is no reflection on your intelligence or business sense; rather, it is an acknowledgment that attorneys, like all other highly-trained professionals, have spent years studying their particular craft, and have more working knowledge of it than the average person
- Laws may differ from state to state. In today’s global economy, sales and purchase agreement contracts are made between people from different cities, states, and even countries, and laws in other locations may differ from those of Massachusetts. To ensure that you do not miss important legal ramifications caused by intercity or interstate agreements, it is wise to have the assistance of a knowledgeable professional to advise you
- An attorney can point out problems with a contract and work out solutions. Many people feel a bit intimidated when confronted with a legal contract–especially if the other party has a lawyer handling the affair. It is easy to sign a contract, believing that you are being treated fairly, only to find out that your purchase and sales agreement benefits the other party far more than you. Having your own attorney means you have an advocate, and someone will be watching out for your interests. If there are problems with the contract, your attorney can suggest workarounds, which will keep the playing field level for everyone concerned, and voice these opinions to the other party
- An attorney can save you money. While it is easy to complain about spending money for legal representation, the cost of a good lawyer is minimal when compared to the money you will spend trying to fight an unfair or incomplete contractual obligation in court. By spending money for professional representation at the start of your contractual negotiations, you can save thousands in future legal costs