Amending or Extending the Purchase and Sale Agreement
The first step in the purchase or sale of a piece of residential real estate is the buyer's acceptance of an offer to purchase. Often, this is prepared on a standard form. It is wise for both parties to have an attorney look over the offer. Once the purchase and sale agreement is executed, and both parties accept the terms, it is binding. If it is necessary to change a term, it may be necessary to draft and incorporate an amendment or extension. If you want to amend or extend a purchase and sale agreement, the Boston real estate attorneys at Pulgini & Norton may be able to help.Amending or Extending the Purchase and Sale Agreement
The signed form offer to purchase is a binding and enforceable contract to sell real estate, even if the parties plan to prepare a comprehensive purchase and sale agreement. The seller is not permitted to accept and sign an offer, and then try to walk away upon receiving a better offer. However, a purchase and sale agreement can be amended or extended in writing.
For example, the loan commitment date is set forth in a purchase and sale agreement. This is the day by which a lender must provide a commitment in writing to the home buyer that it will provide the necessary financing. Home buyers usually make an earnest money deposit when the seller accepts an offer to purchase, and they make another earnest money deposit at the time of the purchase and sale agreement. However, a home buyer who fails to understand the consequences of failing to meet the loan commitment deadline may lose both deposits.
If a home buyer does not receive a loan commitment letter by the deadline specified in the contract, he or she will need to either terminate the contract or obtain an extension from the seller before the deadline in order to avoid losing the deposits. When it appears a lender needs more time to provide the loan commitment letter, a buyer should obtain an extension as soon as possible. An attorney can draft a request for an extension such that the letter also specifies that the buyer is terminating the contract under the purchase and sale agreement in case the seller does not agree to the extension.
Other dates specified in the purchase and sale agreement may be amended or extended by agreement, including agreements to extend the date of the closing, extend the contract signing date, extend the date of the home inspection, and alter any other deadlines. Any amendment or extension to your purchase and sale agreement must be in writing and meet other requirements to be binding and enforceable on the other party.Retain an Experienced Real Estate Attorney in Boston
Our knowledgeable Boston real estate lawyers can assist with all aspects of a property transaction and prepare documents amending or extending a purchase and sale agreement. Our firm advises and represents buyers, sellers, associations, and lenders in many Massachusetts cities, including Somerville, Brookline, and New Bedford. Contact us at 781-843-2200 or through our online form for a free consultation with a property transaction attorney.