A Massachusetts transaction often includes an offer to purchase followed by a more detailed purchase and sale agreement. Both deserve attention. An accepted offer can be binding; the later P&S is not a reason to sign the first document without understanding it.
Before the offer
Discuss the proposed price, deposit, financing, inspection process, included items and dates. Ask your attorney which obligations the offer creates and what must be resolved before signing the P&S. Standard forms do not eliminate the need to check the actual wording.
Before signing the P&S
Confirm that the legal property description and parties are correct. Reconcile negotiated changes with the accepted offer. Identify fixtures and personal property that stay or go, any agreed work, possession arrangements and title requirements. Ask which earlier obligations continue and which are replaced.
Deposits are negotiated
The amount, holder, due date and release terms should be written down. There is no universal five-percent deposit requirement. A deposit is generally part of the purchase funds, but a dispute about release may require more than one party’s instruction. Have counsel explain the consequences of a default.
Build a deadline and notice calendar
For each contingency, record the due date, required action, acceptable delivery method and recipient. A lender delay does not automatically extend a financing deadline. If a problem develops, contact your attorney before the deadline; do not assume an informal conversation preserves a right to terminate.
Confirm inspections, title and financing
Use current Massachusetts inspection requirements. Ask counsel about liens, easements, restrictions and any title exceptions rather than assuming a title search guarantees a property has no limitations. Discuss the purpose and scope of any lender’s or owner’s title insurance policy.
If circumstances change
Whether you can terminate, recover a deposit, extend closing or seek another remedy depends on the contract and facts. Get advice before sending a notice or refusing to close. This article provides an organizational framework, not contract language or a determination of anyone’s legal rights.
Sources and further reading
Contact Brian McFarland at HFM Realty to discuss your next move.