My New Blog

Do's and Don't on Purchase and Sale Agreement

September 21st, 2022 1:03 PM by Sam Kader

 What we are looking for on a Purchase and Sale Agreement:

  • Do sign and date the contract. The contract must be fully signed by buyers and sellers. I cannot move forward until I have received the signed around Purchase and Sale Agreement (PSA). 
  • Do provide buyer's legal name (not AKA or nick name) on the PSA.  The spelling must be 100% correct and it must match 100% with vesting on property title policy with escrow.  Any variation at the last minute will require a signed around PSA addendum and will cause delay in closing. 
  • Do provide  borrower's vesting/status  on Page 1 of Purchase and Sale Agreement (PSA).  Please DO NOT leave it blank.  Washington is  a Homestead State, Non-Borrowing Spousal information is required before a Final Closing Package is released as the spouse is required to sign the security instrument and any applicable riders (if Spousal is already on the loan and title, then we are O.K.). 
  • Borrower's vesting must agree to the same vesting as provided to Title/Escrow company.  Any vesting alteration mid-way during the loan process must be approved by the lender follow up with a new title supplement from escrow - both could cause delay.  Therefore, please obtain correct and final vesting from the start of home buying process when signing the PSA.  
  • A person on Purchase and Sale Agreement (PSA) must take title. We cannot have a person on PSA but not on title. 
  • A person can be on PSA but NOT  be on the loan.  A person on PSA MUST be on property title.  A person can be on the loan but NOT  on PSA. 

  • Do provide accurate, complete and legible contact information, email addresses that our clients will use throughout the entire transaction, phone numbers, mailing addresses for buyers and sellers on the PSA (please use a separate document if additional space is needed).
  • Do provide  buyer's current address that matches address on Tax Returns, pay stubs, Driver's License and Bank Statements.  We must have 2-year most current addresses.  Any mismatch will require  a letter of explanation. 
  • Do not attach "Non Realty Items Addendum" with the contract. A bill of sale can be included but it should be separate from the contract.
  • Do not add seller concessions in lieu of repairs. All repairs mentioned during property inspection must be fixed prior to the appraisal being done. 
  • Do not include copies of inspection report.
  • Do provide name, phone number and email address for title and escrow company. 
  • Do provide Home Owner Association's (HOA) contact information on a condo/townhouse.  
  • Do include all addendums and changes to the contract. We need to see all pages.
  • We can do shorter closing. However, do allow at least 30 days starting from the date of mutually accepted contract.
  • Do include an amendment on Form 34 signed by all parties if you are giving any type of "credit" at closing even if selling broker is giving credit to the buyer's closing costs. 
  • Effective October 3rd 2015 - information provided on the Purchase and Sale Agreement with all addendums must be 100% correct up-front to avoid delay in closing.
  • Do not include Form 17, 22E, 22F, 35R and the Wire Fraud Alert on Page 1 of PSA  since they are not technically addenda.
  • If you happen to be representing both sides of a transaction, don’t forget that you are required to turn in a copy of the Law of Real Estate Agency pamphlet.  Page 5, section 6 of the pamphlet, Duties of a Dual Broker, needs to be initialed by both parties.

Posted by Sam Kader on September 21st, 2022 1:03 PM



My Favorite Blogs:

Sites That Link to This Blog:

Online Quote

FREE Rate Quote in seconds.

Online quote questionares.

Pacific Coast Financial, LLC

MLO#130505 Lic# MB 78982

2150 N. 107th Street Suite 170
Seattle, WA 98133