Key Takeaways
- Massachusetts uses standard form purchase and sale agreements prepared by attorneys
- The offer to purchase (binder) is typically followed by a more detailed P&S agreement
- Attorney review is standard practice in Massachusetts real estate transactions
- The P&S is usually signed within 7-14 days of the accepted offer
- Earnest money deposits are typically held in escrow by the broker or attorney
Last updated: January 2026
Massachusetts Purchase Contracts
Massachusetts has a distinctive two-step contract process involving both an offer to purchase and a formal purchase and sale agreement.
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The Two-Step Process
Step 1: Offer to Purchase
| Feature | Description |
|---|---|
| Also called | Binder, preliminary agreement |
| Purpose | Show serious intent |
| Legally binding | Yes, but limited scope |
| Deposit | Typically $1,000-$5,000 |
| Timeline | Usually 7-14 days to P&S |
Contents of Offer to Purchase
| Element | Description |
|---|---|
| Parties | Buyer and seller names |
| Property | Address and description |
| Purchase price | Agreed amount |
| Deposit | Amount with offer |
| P&S date | When full contract due |
| Contingencies | Basic conditions |
Step 2: Purchase and Sale Agreement (P&S)
| Feature | Description |
|---|---|
| Full contract | Detailed terms |
| Attorney prepared | Usually by seller's attorney |
| Larger deposit | Additional earnest money |
| All contingencies | Detailed conditions |
| Closing date | Target transfer date |
Contract Elements
Essential Terms
| Element | Description |
|---|---|
| Parties | Legal names of buyer/seller |
| Property description | Legal description |
| Purchase price | Total amount |
| Financing terms | Mortgage details |
| Closing date | Transfer date |
| Contingencies | Conditions to close |
| Signatures | All parties |
Common Contingencies
| Contingency | Purpose |
|---|---|
| Financing | Buyer must obtain loan |
| Inspection | Property condition review |
| Appraisal | Value verification |
| Title | Clear title required |
| Sale of current home | Buyer must sell first |
Attorney Role in Massachusetts
Standard Practice
| Function | Description |
|---|---|
| Draft P&S | Seller's attorney usually drafts |
| Review | Both parties have attorneys review |
| Negotiate terms | Attorneys negotiate details |
| Title search | Buyer's attorney handles |
| Closing | Attorney conducts closing |
Note: Massachusetts is an "attorney state" where lawyers play a central role in real estate transactions.
Earnest Money
Deposit Requirements
| Stage | Typical Amount |
|---|---|
| Offer to Purchase | $1,000-$5,000 |
| At P&S signing | 5-10% of price |
| Additional | Per negotiation |
Who Holds Deposits
| Holder | Circumstances |
|---|---|
| Listing broker | Common practice |
| Attorney | At P&S stage |
| Title company | Less common in MA |
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Test Your Knowledge
What is the typical timeline between the Offer to Purchase and the Purchase and Sale Agreement in Massachusetts?
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Test Your Knowledge
Who typically prepares the Purchase and Sale Agreement in Massachusetts?
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