Is an offer to purchase legally binding in Massachusetts?
Many buyers and sellers consider the Offer to Purchase as a rough draft for the Purchase and Sale Agreement. Massachusetts Law however, considers a signed offer a binding contract. Since a signed offer is a binding contract a Purchase and Sale Agreement is not required to purchase a home.
What paperwork is needed to make an offer on a house?
A legal address and sometimes the legal property description. Details regarding the purchase price and terms. The amount and terms regarding earnest money. A mandate that the seller will provide clear title to the property .
Who prepares the purchase and sale agreement in Massachusetts?
1. The seller’s agent or attorney will draft the Purchase and Sale Agreement (P&S). This is the more binding legal document that is the official contract to purchase the home.
Is an offer to purchase real estate binding?
An Offer to Purchase Real Estate (the ” Offer “) is a document that sets out the basic proposed terms and conditions between the Buyer and the Seller in a real estate transaction. Once the Offer is signed by the Buyer and the Seller, and the contained contingencies are met, it then becomes a legally binding agreement.
Does the buyer or seller prepare the purchase agreement?
Who Prepares The Real Estate Purchase Agreement ? Typically, the buyer’s agent writes up the purchase agreement . However, unless they are legally licensed to practice law, real estate agents generally can’t create their own legal contracts .
What happens when you sign a purchase and sale agreement?
Once the purchase agreement is signed and the earnest money is deposited, the buyer has the legal right to purchase the property should all agreed upon conditions be satisfied.
Can seller back out of a purchase agreement?
Just like buyers, sellers can get cold feet. But unlike buyers, sellers can ‘t back out and forfeit their earnest deposit money (usually 1-3 percent of the offer price). If you decide to cancel a deal when the home is already under contract , you can be either legally forced to close anyway or sued for financial damages.
Should you offer less than the asking price?
In a sellers’ market, you would be foolish to offer less than the asking price (if that price reflects the current market value of the home). While in a buyers’ market, you have less to lose by offering below asking price . Even if the seller rejects your initial offer , they will likely come back with a counteroffer.
What is considered a lowball offer?
By strict definition, a lowball offer is one that is significantly below market value. In practice, an offer is considered ” lowball ” if it is significantly below a seller’s asking price. Understanding this distinction between market value and asking price is critical to your success.
Can I write my own offer on a house?
You can write your own offer and submit it to the seller (if it’s for sale by owner) or to the seller’s agent. However, going it alone without the help of a savvy agent (especially if this is your first time buying a home) may not be the best idea.
Does a seller need an attorney at closing in MA?
In Massachusetts , the practice of closing transactions for buyers and sellers when there is a home loan is considered the practice of law; therefore, the settlement agent for any real estate closing involving a lender must be conducted by a licensed attorney .
Do I need a lawyer for a purchase agreement?
A “for sale by owner” deal can save you money on real estate commissions, but you still need someone to prepare the purchase agreement , deed, and other documents. A lawyer can get your paperwork in order, ensure the title is good, and help you with the fine points of negotiating the transaction.
How are closing costs calculated in Massachusetts?
Closing cost including your pre-paids and escrows will typically run 1.5 to 4% of the amount of money borrowed. In Massachusetts , if you purchased a home for $350,000 you could expect to pay about $6-8500 in closing costs , pre-paids and escrows.