A purchase and sale agreement, otherwise known as PSA, is a legal document that details the terms and conditions of a real estate transaction, such as prices, limitations, and contingencies. Real estate lawyers draft them, and they need to cover everything about a purchase, keeping in mind the location of the property and the specific laws of the state and county.
Purchasing property is a serious issue, especially in the South Florida city of Fort Lauderdale, where real estate is an excellent investment. Are you planning to purchase or sell a property? It would be best if you had experienced Fort Lauderdale real estate attorney that will protect all your interest from making an offer up to the close of a deal. Mark. T. Stern Law Offices will;
Offer you the best legal counsel to negotiate terms in your contract that are favorable to you.
- Ensure that you are well conversant with your rights and responsibilities under a PSA contract.
- The goal is to make everything clear for you and the other party you are in a transaction with. This clarity will make the process smooth and minimize the chances of legal redress or suits pertaining to property sales in the future.
How Purchase and Sale Agreement works
A purchase and sale agreement do not complete a transaction, but rather it provides clear guidance to each party’s responsibility leading to the transaction. Real estate transactions in Florida can be cumbersome, and the agreement sheds some burden from the entire process.
After the agreement is signed, parties involved will conduct the following as agreed in the contract;
Title searches and transferability
Mark T. Stern attorney will conduct due diligence through title searches to ascertain the ownership of the property and the legal rights to sell. You can ask for a transfer of property to satisfy purchase requirements while under the contract.
Inspections and negotiations
The prospective buyer will inspect the condition of the property. The parties involved can negotiate the property’s price based on the repairs and renovations needed before the sale.
Financing and loan agreement
The buyer must sign a formal loan agreement that may include an underwriting and appraiser inspection. This secures financing for the property by guaranteeing payment in case of damage or loss.
The transfer of money
The buyer of the property will have money ready for transfer before the closing of the deal. They will agree to and effect a down payment, an escrow deposit or make a cash payment in full, and the seller will only release a title deed after the money transfer is completed.
Closing
The deal’s close is marked by signing all documents and performing all activities necessary to transfer property ownership. After these steps are complete, the buyer can take formal ownership of the property. Your attorney will keep all the documents for future reference and provide you with copies.
Other essential elements included in the Purchase and Sale agreement include;
- How to handle cancellations and default of purchase provisions
- The process of property inspection
- Occupancy and vacation dates
- Stipulation of payment fees
- Any other limitations and conditions necessary
Contingencies for the buyer
If you are a buyer, a South Florida real estate attorney will guide you through the contingencies to protect your interests during and after property purchase. There are three significant factors by which you can condition the purchase of property, specifically;
1. Financing options
You may include a third party such as a bank or a trust fund that you rely on for funding to purchase the property. This commits them to finance the purchase and reduces the chances of default on your part.
2. Inspection results
Upon thorough inspection, the results should determine the actions and the cost of the property. For instance, if there are problems with the property, the seller can agree to make repairs before the sale is concluded; they can also offer discounts.
3. Sale of another property
You can condition the transaction on your ability to sell another existing property. Most people buy the property after relocation. They may not have ready cash to complete the transaction until after their former property is sold. Suppose your seller understands that you are waiting for the sale of another property to complete your purchase. In that case, they will probably give you a generous grace period between price negotiations and the close of the sale.
Disclosures
It is incumbent upon the seller to notify the buyer of any issues with the property. These could include past repairs and renovations, past accidents, and environmental hazards that affect the property’s value.
This list of disclosures provides before the deal’s close, and the buyer must acknowledge them all before the sale is complete. If any problem arises outside the disclosures after the sale of the property, the seller may not be liable.
Fixtures
The property comes with certain appliances, equipment, and additions that will cost an arm and a leg to remove. Therefore, the owner has no option but to sell the property with all these fixtures included.
As the owner looking to sell, you must include all the fixtures in the PSA contract. They will be a great bargaining chip for a good sale. Mark T. Stern, an attorney in Fort Lauderdale, Florida, will help you with property valuation while factoring in all fixtures.
Why seek a Purchase and Sale Agreement attorney?
The sale of the property is very sensitive. For example, a seller posing as a property owner may try to sell property not legally under their name. In addition, there could be severe structural issues with a property on sale, or the buyer may be trying to evade tax or buy the property with proceeds of money laundering.
When a sale is conducted under such conditions, fraudulent claims and lawsuits may arise, and a property’s full value may not be realized until after such issues are resolved.
Why hire Mark T. Stern?
Mark T. Stern’s job is to ensure a straightforward and informed process leading to a property sale. To provide a lawful purchase, we will factor in local and state-specific provisions in Fort Lauderdale, Florida. Additionally, we will assist you with all aspects of real estate transactions.
We are proud to have worked with families, individuals, and businesses in Fort Lauderdale and the surrounding areas for over ten years! Contact us to learn how to make your real estate transactions as smooth as possible.