Once all the issues and items are addressed involving the inspection, testing and evaluations, it will be time to turn your attention to the Purchase and Sales agreement. This multiple page document contains very detailed, but standard language with respect to the transaction. It will minimally contain all of the information in the signed offer and all subsequent agreements made as a result of the home inspection, testing and evaluations performed. It will also contain language relative to escrow funds, title insurance, extensions of time of performance, broker fees, buyer financing, warranties, etc.
If you decide to hire an attorney or if the lender provides one to represent you in your transaction, the attorney will typically include an addendum that provides language to further protect you in the transaction. It is for this reason and more that I would HIGHLY recommend that you obtain legal representation. The seller may or may not secure legal counsel. In the event that the seller does, both attorneys will collaborate when drawing up of the P & S. Once all parties are in agreement, the P & S should be signed or executed. Please note this document, just like the executed offer, is a binding agreement and should be taken seriously.
With the signing of the P & S, additional monies are provided to the seller by the buyer unless the P & S indicates otherwise. Typically, the remaining down payment amount is provided at that time. In instances where the down payment exceeds 5%, I would HIGHLY recommend that you plan to bring the additional monies to the closing. You’ll want to limit the amount of monies being held in escrow that could potentially come into play should the transaction take an unexpected turn for the worse. The decision to do so should be in the offer and the subsequent P & S.