SEPTIC SYSTEM CONTINGENCIES IN THE P&S
Finally, it is critical that appropriate language be included in the P&S which specifies the responsibilities of each party with regard to any septic system issues. The Massachusetts Department of Environmental Protection requires that septic system inspections be disclosed by the home Seller to the Buyer. The inspection must be within two years prior to the closing or up to six months after the closing if weather conditions do not permit (e.g. during winter when the ground is frozen) and the inspection must demonstrate that the system does not pose a threat to the public health or...
Read MoreINSPECTION CONTINGENCY ISSUES IN THE P&S
There is also typically a contingency to allow the Buyer to cancel upon receiving an unacceptable inspection report. It is always a good idea for a potential Buyer to attend the inspection so that he or she can better understand this report. If the Offer to Purchase or P&S are contingent upon an acceptable inspection, any defects in the home must either be repaired by the Seller prior to the closing or the parties will need to re-negotiate the terms of the agreement to keep the deal together. If the Buyer has included the appropriate contingencies, and he or she is not satisfied with...
Read MoreMORTGAGE COMMITMENT AND FINANCING CONTINGENCIES
The P&S typically includes several contingencies including a mortgage contingency clause, which states that the Buyer’s ability to purchase the house or condominium is contingent upon his or her ability to obtain mortgage financing (through a “commitment letter” from the Buyer’s lender) by an agreed upon date (usually a few weeks after the signing of the P&S). If financing cannot be obtained by the appropriate date, then the Buyer must notify the Seller (usually in writing) to either cancel the transaction or extend the contingency deadline. If the Buyer fails to do so, then he or...
Read MorePURCHASE AND SALE AGREEMENT DEPOSIT TERMS
Typically, on the day the P&S is signed, the Buyer will be required to place a deposit with the Seller’s realtor (or attorney) usually equal to 5% of the purchase price. This deposit is to help ensure that the Buyer does all that is necessary to obtain financing and close on the property under the terms of the P&S (these requirements are commonly referred to as the Buyer’s “due diligence”). If the Buyer fails to strictly adhere to these requirements, the Seller will likely sue for this deposit as his or her damages (i.e. the losses incurred for taking this house or condominium off...
Read MoreCRITICAL ASPECTS OF THE P&S AND WHY YOU NEED AN ATTORNEY
Once the Buyer’s Offer to Purchase has been accepted by the Seller of a home or condominium, a Purchase and Sale Agreement (“P&S”) is negotiated and drafted by the attorneys for the Buyer and Seller. The P&S is an incredibly technical, detailed and complex document that must be tailored for each real estate transaction. It spells out the final agreement between the parties and generally supersedes the Offer to Purchase and any prior agreements between the parties. Like all real estate contracts, the P&S must be in writing and adhere to specific statutory requirements to be...
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