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ricomadistributor.com - 24 July 2023

Purchase and Sale Agreement without Realtor

Purchasing or selling a property is a huge financial decision, and hiring a real estate agent to facilitate the process is the usual way of doing things. However, there are times when both parties involved in a property transaction agree to handle the process without the use of a realtor. In these cases, it’s important to have a legally binding purchase and sale agreement (PSA) to ensure a smooth and legal transaction.

What is a Purchase and Sale Agreement?

A purchase and sale agreement is a legally binding contract between a purchaser and a seller. It specifies the terms and conditions of the transaction, including the price, closing date, and contingencies. In a real estate transaction, a PSA outlines the rights and responsibilities of both the buyer and the seller and helps to avoid any confusion or misunderstandings throughout the process.

Why Conduct a Property Transaction Without a Realtor?

There are a few reasons why both the buyer and seller may agree to conduct a property transaction without the assistance of a realtor. The most common reason is to save on commission fees. Realtors typically receive a commission of 5-6% of the sale price, which can add up to a significant amount of money. By conducting the transaction without a realtor, both parties can potentially save thousands of dollars.

Another reason to forgo the use of a realtor is when the transaction involves friends or family members. In these cases, both parties may feel more comfortable handling the transaction themselves, without the presence of a third-party realtor.

How to Create a Purchase and Sale Agreement without a Realtor:

1. Gather all necessary information: Before creating a PSA, both parties should gather all the necessary information including the property address, sale price, and closing date.

2. Create a PSA template: While it’s possible to find templates online, it’s important to ensure that the PSA is legally binding in your state. It’s recommended to consult with a real estate attorney to ensure that the PSA meets all legal requirements.

3. Include the terms and conditions of the transaction: The PSA should include all terms and conditions of the transaction, including the purchase price, closing date, and any contingencies such as financing or a home inspection.

4. Sign the PSA: Once both parties have agreed to the terms and conditions outlined in the PSA, it should be signed and dated by both the buyer and seller.

Conclusion:

Conducting a property transaction without a realtor is not for everyone, as the process can be complex and time-consuming. However, for those who feel confident in handling the transaction themselves, it’s important to have a legally binding purchase and sale agreement in place. By following the steps outlined above, both the buyer and seller can ensure a smooth and legal transaction.

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