Purchase and Sale Agreement

There’s a lot of information that goes into a buyer’s offer, also called a purchase and sale agreement. Although there can be many more particulars included, here’s a list of the most common components of a purchase agreement.

Buyer and Seller

These are the full legal names of all buyers and sellers involved.

Address

This is the postal address of the property being sold. There is also a description of which way the home faces and the legal description of the address, which includes the plan and lot numbers.

Purchase Price

This is the amount proposed to purchase the property.

Deposit

The deposit is an amount held in trust by the seller’s brokerage to secure the offer. It can be given with the offer, called “herewith,” or within a set period of time after the offer has been accepted, called “upon acceptance.” Your deposit is held in trust until closing, at which time it counts toward your down payment.

For more, read our page on deposits.

Irrevocability

The irrevocability period gives the seller a certain amount of time to consider the offer—typically up to 24 hours. During this time, the buyer is legally bound to the terms of the offer if the seller accepts it as-is. The seller should respond during this period by accepting the offer, sending a counter-offer, or declining the offer given.

Completion date

More commonly called “closing date,” the completion date is when the transaction is completed and the buyer takes possession of the home.

Chattels included

These include all of the items that could be moved, but are included in the sale, such as the refrigerator, washer and dryer, and light fixtures. If not stated in the agreement, the seller agrees to remove all chattels before closing.

Fixtures excluded

While chattels are removable objects, fixtures are typically “nailed down,” like built-in shelves and window treatments. If not stated in the agreement, it’s assumed that the seller is leaving that fixture.

Rental items

Some equipment is rented and not included in the purchase price, so the buyer is agreeing to assume the rental contracts; these commonly include water heaters and furnace contracts.

Conditions

There are an unlimited number of conditions that can be included in an offer. Check out our page on common conditions for full details.

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