THE OFFER TO PURCHASE IS A BINDING CONTRACT

One of the most important things to know about an Offer to Purchase is that it can be a binding contract even if a Purchase and Sale Agreement is never signed. In McCarthy v. Tobin, 429 Mass. 84 (1999), the Massachusetts Supreme Judicial Court held that if an Offer to Purchase real estate is in writing, contains all of the material terms, and appears that the parties intended to be bound, they are required to close the deal even if a Purchase and Sale Agreement was never signed. Failure to do so can result in long-term litigation.