The Offer vs Purchase and Sale Agreement

The Offer to Purchase - This is the initial document that when signed by both parties is a legally binding contract.  Many brokers, sellers and buyers have a mistaken impression that an accepted offer to purchase is merely a binder.  Even the clause "subject to a mutually agreeable purchase and sale agreement" doesn't avoid obligations under the accepted offer.  Beware of numerous seller biased offer forms in our state.  Each Realtor Board has their own. Recently the Mass Association of Realtors produced a set of Mass Forms but many local boards, including the Boston Board, use their own forms.

The Purchase and Sale Agreement - This multi page document is usually prepared by the Listing Broker and is typically signed by both parties within ten days of the offer.  This usually allows for the home inspection to be completed prior to signing.  For listed properties the Listing Broker typically generates the P&S and often present it at the Home Inspection.

This document supersedes the Offer to Purchase and usually incorporates its content.  The P&S typically goes in to more detail than the offer contract and should have an attorney's involvement.