A graduate of Boston University Law School, Henrietta Feldman oversees a private legal practice in Palm Beach, Florida. Focused on real estate law, Henrietta Feldman assists individual and commercial clients with various matters, including purchase and sale agreements.
Also known simply as a purchase agreement, a purchase and sale agreement is a legal document that is drafted after the buyers and sellers in a real estate transaction mutually agree to a purchase offer. The agreement is one of the final steps in the home-buying process, and it outlines the terms and conditions of the purchase.
The information in a purchase agreement can vary, but it typically includes the final sale price, approximate closing date, commission details, and any contingencies stipulated by the potential buyer. Conditions and contingencies of sale may cover details related to financing, home inspections, and/or needed repairs.
In addition to terms and conditions of sale, the agreement will include details about the earnest money deposit, which is submitted by the buyer. The deposit is typically around $1,000, and it is usually nonrefundable if the buyer walks out on the purchase and sale agreement without legal cause.