Have you ever wondered what happens between your accepted offer and the closing table in Massachusetts? If you are buying in Newton, Cambridge, or nearby Middlesex County, the steps can feel fast and technical. You want to protect your deposit, keep your timeline on track, and avoid surprises. This guide explains the Purchase and Sale agreement, or P&S, in plain English so you can move forward with confidence. Let’s dive in.
What a P&S Agreement Is
A Purchase and Sale agreement is the written contract that sets all the terms of your home purchase. It spells out the price, deposit, contingencies, deadlines, closing date, and what happens if either side defaults. In Massachusetts, a P&S becomes a binding contract once both parties sign, subject to any contingencies in the agreement.
Most buyers and sellers begin with a standard Massachusetts Association of REALTORS form and then negotiate custom language. In Massachusetts, attorneys commonly draft or revise the final P&S for each party. Think of the P&S as the roadmap for the rest of the transaction.
What the P&S Covers in Massachusetts
Price and deposit
The P&S states your purchase price and deposit, sometimes called earnest money. The deposit is usually delivered at or shortly after P&S signing and is held in escrow by a licensed real estate broker or an attorney’s client trust account. Deposit size is negotiable and depends on the property and market conditions. In our area, you may see deposits from a few percent of the purchase price to as much as 5 to 10 percent in more competitive situations.
The P&S specifies when the deposit can be released and under what circumstances it may be forfeited. Some forms allow a seller to keep the deposit as liquidated damages if a buyer defaults. Your actual remedies and risks depend on the contract language, so be sure you understand these terms before you sign.
Common contingencies
Contingencies give you a window to verify key items and, if needed, to end the contract with your deposit returned according to the P&S. Typical contingencies include:
- Financing or mortgage contingency. You have until a set deadline to obtain a mortgage commitment. If you cannot secure financing by that date and you follow the notice terms in the contract, the P&S often allows you to terminate and receive your deposit back.
- Home inspection contingency. Buyers usually negotiate a period to conduct a general inspection and, if desired, radon, pest, or additional specialty inspections. In many Massachusetts deals, this runs 7 to 14 days, though it can be shorter in competitive Newton and Cambridge markets.
- Condo or co-op document review. If you are buying a condominium, you typically get time to review the master deed, bylaws, financial statements, and recent meeting minutes. These timelines are often 5 to 15 days.
- Title contingency. The seller must deliver marketable title at closing. Your attorney will conduct a title search and work through any issues with the seller’s side.
- Septic system or Title 5. Title 5 inspections apply when a property has a septic system. Much of Newton and Cambridge is on municipal sewer, so this may not apply there, but it is more common in outer suburbs like parts of Framingham. The P&S should clearly state if Title 5 applies and who is responsible for inspection and any remedies.
Deadlines and timing
The P&S uses calendar or business days for each deadline. Typical dates include the inspection period, mortgage commitment deadline, condo document review period, and the closing date. In many Massachusetts transactions, the closing occurs 30 to 60 days after P&S signing. In hotter submarkets, sellers may prefer shorter inspection and financing windows, so plan ahead with your lender and attorney.
Property condition and repairs
Some sellers list a home as sold “as is.” This does not stop you from inspecting the home. It means the seller is not agreeing to make repairs unless specifically negotiated in the P&S. If issues arise, the P&S can also outline repairs, credits, or price adjustments that both sides agree to.
Closing costs, prorations, and certificates
The P&S outlines who pays which costs. Buyers typically pay lender fees and title insurance. Sellers usually cover the deed preparation, broker commissions, and transfer taxes according to Massachusetts rules. The agreement also addresses prorations for property taxes and water or sewer usage, plus compliance with smoke and carbon monoxide requirements.
Your Massachusetts P&S Timeline
Below is a common flow for Newton, Cambridge, and the surrounding Middlesex County area. Your dates may vary based on negotiations and your lender.
- Offer accepted
- You and the seller agree on basic terms. Attorneys prepare or review the P&S document before signatures.
- P&S signing and deposit delivery, Day 0 to 3
- You sign the P&S and deliver the deposit to the designated escrow holder. In competitive situations, quick deposit delivery is often expected.
- Inspection and due diligence, commonly Day 0 to 10
- Schedule your home inspection and any specific tests you want, such as radon or pest. If a property uses septic, confirm the Title 5 path early.
- Condo or HOA document review, commonly Day 5 to 15
- For condos, review governing documents, financials, and recent meeting minutes. If you find unacceptable items, follow the contract instructions to notify the seller.
- Mortgage commitment deadline, commonly Day 21 to 45
- Work closely with your lender. If you are relocating or using a complex loan, build in enough time.
- Title search and clearing, ongoing
- Your attorney reviews title and coordinates any curative steps with the seller’s side.
- Final walkthrough and clear to close, a few days before closing
- Confirm the condition of the home and that agreed repairs or credits are in place. Your lender issues the final approval to close.
- Closing, commonly 30 to 60 days from P&S
- You sign documents, funds are disbursed, the deed records, and you receive the keys.
Example for a relocating Newton buyer: If you are moving in from out of state, consider a 45-day mortgage commitment deadline, add buffer time for remote inspections, and be ready to wire your deposit to an attorney trust account quickly.
Who Does What in a Massachusetts Sale
Buyer
You submit offers, sign the P&S, deliver the deposit, book inspections, pursue financing, review condo or title documents, and complete your final walkthrough and closing.
Seller
The seller signs the P&S, provides required disclosures and access for inspections, addresses title issues, and delivers a deed and keys at closing.
Real estate agents
Your agent helps coordinate showings, inspections, deposit logistics, timelines, and negotiations. Agents do not practice law, so attorneys handle contract drafting and legal advice.
Attorneys
In Massachusetts, attorney involvement is common and highly advisable. Attorneys draft or negotiate the P&S, advise on contingencies and remedies, manage title work, prepare closing documents, and represent you at closing.
Lenders and inspectors
Your lender underwrites and issues the mortgage commitment that you need to satisfy your financing contingency. Inspectors and specialists provide the due diligence you rely on to make final decisions.
Local Notes for Newton and Cambridge
- Sewer versus septic. Much of Newton and Cambridge is on municipal sewer, so Title 5 is often not applicable. In some nearby communities, septic is still common. Make sure your P&S reflects the correct system and responsibilities.
- Competitive dynamics. Cambridge and parts of central Newton can be competitive. Sellers in these areas sometimes expect shorter inspection and financing windows or larger deposits. Balance a strong offer with the protections you need.
- Condominium prevalence. Condos are common in Cambridge and select Newton neighborhoods. Give yourself a clear timeframe for condo document review and make sure you understand monthly fees, reserves, and rules before waiving any contingencies.
- Municipal details. Water and sewer final readings, local transfer tax rules, and smoke and carbon monoxide inspections can vary by town. Confirm who pays for each item in your P&S.
What to Watch For: A Quick Checklist
- Identify the escrow holder for your deposit and get written escrow instructions in the P&S.
- Confirm every deadline. Know whether days are counted as calendar days or business days.
- Set a realistic mortgage commitment date with your lender’s input.
- If buying a condo, set clear timelines for document delivery and review.
- Clarify if Title 5 applies and, if so, who orders and pays for the inspection.
- Understand the remedies section, especially what happens to your deposit if either party defaults.
- In competitive submarkets, weigh shorter timelines or a larger deposit against your risk tolerance.
- Retain a Massachusetts real estate attorney for P&S drafting and closing.
Plain-Language Glossary
- Purchase and Sale agreement, or P&S. The contract that sets price, deposit, contingencies, deadlines, and the closing date.
- Deposit or earnest money. Your good-faith money held in escrow until closing or released according to the P&S.
- Contingency. A condition that must be met for the deal to proceed, such as financing or inspection.
- Mortgage commitment. Your lender’s formal approval to fund your loan by a specific date.
- Title search and title insurance. An examination of property records and insurance that helps protect against certain title defects.
- Title 5. Massachusetts rules for septic systems. A Title 5 inspection confirms a system meets state standards when a property is on septic.
- Condo docs. The master deed, bylaws, financials, and meeting minutes for a condominium.
- As is. A sale where the seller is not agreeing to repairs unless negotiated, but you still can and should inspect.
- Closing. The day documents are signed, funds are transferred, and the deed is recorded.
- Escrow or trust account. Where deposit funds are held by a broker or attorney until closing or release.
Ready to move with confidence?
When you understand the Massachusetts P&S, you can set smart timelines, protect your deposit, and keep your closing on schedule. Whether you are buying a single-family home in Newton or a condo in Cambridge, we can help you plan the right strategy and stay ahead of each deadline. Start your Newton or Brookline market plan with Allison Blank & Company.
FAQs
Is a Massachusetts P&S binding once signed?
- Yes. Once both parties, or their authorized attorneys, sign the P&S, it is a binding contract subject to any contingencies written into the agreement.
Who holds my deposit in a Massachusetts home purchase?
- The P&S should name the escrow holder. It is typically a licensed broker’s escrow account or an attorney’s client trust account.
What if my inspection finds serious issues after signing the P&S?
- If your P&S includes an inspection contingency and you follow the notice rules on time, you may negotiate repairs or credits, or terminate if the contract allows.
Can I cancel if my mortgage is denied before the commitment deadline?
- If you have a financing contingency and you cannot obtain a mortgage commitment by the deadline, you can usually terminate and receive your deposit back according to the contract.
What happens to the deposit if a buyer defaults under the P&S?
- Remedies depend on the P&S. Many forms let the seller keep the deposit as liquidated damages, though details and defenses depend on the contract and law.
Do I need an attorney for a P&S in Massachusetts?
- Attorney involvement is common and strongly advisable. Attorneys draft or negotiate the P&S, address title matters, and guide you through closing.
