Contracts
In Massachusetts, the standard Offer to Purchase Real Estate is typically:
AA binding contract with all terms finalized
BA non-binding letter of intent
CA binding contract for the deposit only, subject to a Purchase and Sale Agreement✓ Correct
DOnly valid if prepared by an attorney
Explanation
In Massachusetts, the Offer to Purchase is typically a binding contract regarding the earnest money deposit, but the parties then negotiate and sign a more detailed Purchase and Sale Agreement. The P&S is the controlling contract.
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Key Terms to Know
Earnest Money
A deposit made by the buyer when submitting a purchase offer, demonstrating serious intent and serving as consideration for the contract.
Purchase AgreementA legally binding contract between a buyer and seller that outlines the terms and conditions of a real estate sale.
ContingencyA condition in a purchase contract that must be satisfied before the sale can proceed to closing.
Option ContractA contract giving the buyer the right, but not the obligation, to purchase a property at a specified price within a specified time period.
Math Concepts
State-Specific Concepts
Escrow Disputes
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