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How to Write a Purchase and Sale Agreement

Writer: Ronda SharpRonda Sharp

Updated: Oct 24, 2024

A purchase and sale agreement (PSA) is key to sealing the deal. It has also been interchangeably called a buy and sell agreement and is crucial for any real estate transaction.



Here are the main key items to include to protect both parties legally.


Key Item #1: List Key Details

  • Include the buyer’s and seller’s names, property address, and sale price.


Key Item #2: Add Contingencies

  • Common contingencies: financing approval, inspections, or appraisal information.


Key Item #3: Specify Deadlines and Terms

  • Outline closing date and any penalties for missed deadlines.


Key Item #4:

Any other information pertinent to the sale of the property.


Conclusion:

A well-drafted PSA protects everyone involved. Consult with a real estate attorney if needed to ensure compliance with state laws.


The information in this article are the opinion and experience of the author. Due diligence should always be practiced before venturing into real estate.

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