Purchase and Sale Agreement in Massachusetts: What to Expect
Once your offer has been accepted and the inspection process has been addressed, the next major milestone is usually the Purchase and Sale Agreement. This is where the details of the transaction are reviewed more fully, your attorney helps you understand the contract, and you prepare for the next stages of financing and closing. Understanding what happens here can make the process feel much more manageable.
In Part 7 of our Home Buyer Onboarding Series, Tom Matthews and Joanne Taranto explain the Massachusetts offer and Purchase and Sale process, the role of your attorney, how deposits work, and what buyers should focus on as the transaction moves toward financing and closing.
Massachusetts Typically Uses Two Contract Stages
In a typical Massachusetts home purchase, buyers first sign an Offer to Purchase and later sign a more detailed Purchase and Sale Agreement, often called the P&S.
The offer establishes important terms such as price, dates, deposits and contingencies. An accepted offer can already create binding obligations, so it deserves careful attention before you sign.
The Purchase and Sale Agreement develops the transaction’s terms in greater detail. Your attorney can explain how it relates to the accepted offer and which provisions will govern once it is signed.
If you are new to the process, start with our Home Buying Process in Massachusetts: A Buyer’s Roadmap.
How the Inspection Fits Into This Stage
By this point, buyers have typically completed their inspection and addressed any findings that require a decision or further discussion.
That may mean moving forward with the original terms or documenting changes that the buyer and seller have agreed upon.
Our guide to what to expect at a home inspection in Massachusetts explains how we help buyers understand the findings and identify appropriate next steps.
Any agreed repairs, credits or other changes should be communicated to your attorney so they can be reflected appropriately in the transaction documents.
Your Attorney Reviews the Details
Your attorney plays an important role in preparing, reviewing and negotiating the Purchase and Sale Agreement.
We can introduce you to attorneys familiar with local residential transactions, or you may choose your own. It is helpful to identify your attorney early so they are available when questions or deadlines arise.
The agreement may include a standard form together with additional provisions, often called riders. Your attorney reviews the documents with your interests and the specific property in mind.
Before signing, make sure you understand the obligations you are accepting and have had an opportunity to ask questions.
What the Agreement Addresses
The details vary by transaction, but the Purchase and Sale Agreement may address:
Purchase price and deposit amounts
Closing date and possession
Financing contingencies and deadlines
Items included or excluded from the sale
Agreed repairs or credits
Title and other closing requirements
What happens if the property is damaged before closing
Each party’s obligations and potential consequences of default
These provisions matter because the transaction continues for a period of time after signing. The contract needs to address what happens during that period as well as at closing.
Understand Your Deposit Before Signing
Buyers commonly provide an initial deposit with the offer and an additional deposit when signing the Purchase and Sale Agreement.
In our video, we discuss a common arrangement in which the total deposit equals 5% of the purchase price. That is an example, rather than a fixed requirement for every purchase. Your agreed contract determines the amount and timing.
For example, if an $800,000 purchase calls for a total deposit of 5%, the total would be $40,000. If you already paid $1,000 with the offer, the additional deposit would be $39,000.
The deposit is generally held in escrow and credited toward the purchase price at closing. It is part of the funds you contribute to the purchase, rather than an extra charge on top of the price.
Ask your attorney to explain who holds the funds, when they are due, and the circumstances under which they could be returned or placed at risk.
Your Offer Preparation Still Matters
The Purchase and Sale stage builds on the decisions made earlier in the process.
The price analysis discussed in How to Decide What to Offer on a Home in Massachusetts and the terms discussed in How to Write a Winning Offer on a Home in Massachusetts provide the foundation.
We help communicate the agreed business terms and coordinate with the professionals involved. Your attorney handles legal interpretation and contract advice.
Signing and Delivering the Deposit
Electronic signatures and approved electronic payment methods can make this stage easier, including for buyers purchasing from out of state.
Follow the instructions provided by your attorney and the escrow holder. Confirm payment instructions directly through a trusted, independently verified phone number before transferring funds.
Plan ahead so signatures and deposits arrive by the required deadlines.
Keep Your Financing Moving
If you are financing the purchase, stay in close contact with your lender throughout the transaction. Do not assume you should wait until the Purchase and Sale Agreement is signed to begin the mortgage application.
Your lender will guide the timing and explain which documents are needed. A signed P&S is an important transaction document, and underwriting and appraisal coordination may continue during this stage.
Respond promptly to requests, even when the lender needs updated versions of documents you supplied earlier.
We also keep track of transaction deadlines with you. If a financing issue develops, tell your lender, attorney and our team promptly so it can be addressed before a deadline passes.
Buying in Concord and MetroWest
Concord and the surrounding communities include homes with varied ages, renovations, lot characteristics and property systems. Those differences can create questions that deserve attention before closing.
We help coordinate communication among the buyer, seller’s agent, attorney and lender so property-specific concerns and agreed terms reach the appropriate professionals.
For more local context, explore Buying a Home in Concord, Massachusetts.
What Happens Next?
Once the Purchase and Sale Agreement is signed, attention turns toward the remaining financing requirements and preparations for closing.
Our next video covers the practical steps between signing the agreement and closing day.
For the complete series and an overview of how we work with buyers, visit our Buyer’s Guide.
Ready to Start Your Home Search?
If you are considering buying a home in Concord or the surrounding MetroWest communities, we would be happy to talk about your search and explain what to expect along the way.
Call 781.795.0502, email info@tomandjoanneteam.com, or contact the Tom and Joanne Team.