This article was co-authored by Clinton M. Sandvick, JD, PhD. Clinton M. Sandvick worked as a civil litigator in California for over 7 years. He received his JD from the University of Wisconsin-Madison in 1998 and his PhD in American History from the University of Oregon in 2013.
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Purchase and sale agreements are used most commonly when selling real estate. It is drafted after the buyer makes an offer and the seller accepts the offer. The agreement lays out important terms, such as the closing date, the amount of the deposit, and any special situations that would warrant canceling the agreement. The document is usually prepared either by the attorney or the Escrow Agent who handles the closing process. If you are selling your own home, then you may end up drafting a purchase and sale agreement. Be sure to show your draft to a qualified attorney.