Buying and selling a house is exciting. It can also be stressful especially if you are coordinating the buying and selling of a property simultaneously. Many individuals do not realize that an offer is a binding contract to buy a piece of property. Legal obligations are created when you sign an offer. While your deposit on the offer may seem small, you should be aware of the legal implications of the offer. You may be “stuck” with the terms of the offer when it comes time to enter into a Purchase & Sale Agreement.
The Purchase & Sales may appear to be a “form” document, but it is by no means a “standard form.” The terms of the Purchase & Sale Agreement are critical and should be reviewed and revised by an attorney who represents your interest. You will be asked to deposit a more substantial sum of money, often up to 5% to 20% of the purchase price and obligate yourself to proceed with the purchase or risk losing the deposit. Buying or selling a house is one of the biggest financial transactions you may have in your lifetime. It is important that you understand every term of the Purchase & Sale Agreement as well as your obligations with regard to financing. Leaving this matter to chance is not a good option. Having an attorney involved in all aspects of your real estate transaction who will guide you through the process will ensure that your rights are protected.