On Martha’s Vineyard, there is a two-step contract process when buying real estate.
(1)The first step is the offer to purchase. An offer to purchase is a 2 or 3 page document that outlines the general terms of your offer. In Massachusetts, offers to purchase are binding contracts.
After you have found the property that is right for you, your buyer’s agent can write an offer to purchase on your behalf. This offer is presented to the seller with a deposit fee (typically $1,000). The seller will either accept your offer as is, present a counter offer, or reject your offer. Your buyer’s agent can negotiate this process on your behalf.
Your agreement becomes a binding contract when the seller signs your offer to purchase. At this point you should seek legal representation.
(2)The second step is the Purchase and Sales Agreement (P&S). The seller’s attorney is responsible for drafting this document. Your attorney will review the agreement and negotiate on your behalf. Once the two parties come to a satisfactory agreement, the P&S will be signed. You will make an additional deposit when you sign the document (typically 10% of the purchase price).
Your deposit monies will be held in an interest-bearing escrow account in the seller's name by the seller’s agent.
Please contact us as your Buyer's Agents for a list of recommended attorneys.