Sept. 6, 2011

Purchase and Sale Agreement Explained

You've gone out and looked at 15 homes, you've found the one you want to buy.
You've contacted your lender You've gotten pre-approved for a loan and you're ready to write an offer on your dream home. The offer is going to be on the purchase and sale agreement. It spells out all the particulars of the agreement including the price you want to offer, the closing date the escrow company, all the appliances that stay, the amount of earnest you are willing to put down and a few other things. I created a short video to show you what that looks like.

http://www.youtube.com/watch?v=4ahaGY-hD5M

The purchase and sale agreement is a five-page document, the first page is the one that's filled out all the pertinent information, followed by four pages of boilerplate language explaining what it all means, spelling out things like what happens to the earnest money, computation of time for example any period of time less than five days does not count weekends, while periods over five days do count weekends, and a lot of other explanations of what's in the agreement.

The agreement usually end up being from 12 to 20 pages long depending on the number of addendum's that are added to the agreement. Addendum's that spell out things like the terms of financing, inspections, title search, maybe well and septic inspections and variety of other possibilities.

If you’d like anymore information or want to see any Bellingham Real Estate feel free to email me at or give me a call at 360-739-6981

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