When it comes to buying or selling a property, there are multiple steps involved in the process. One of the most critical steps is the signing of the purchase and sale agreement (PSA). This legal document outlines the terms and conditions of the sale or purchase, including the price, contingencies, and closing date. However, there is often confusion about who should sign the PSA first, the buyer or the seller. In this article, we will explore this question and provide some clarity on the matter.
Typically, the party that initiates the sale or purchase signs the PSA first. In most cases, this is the buyer. The buyer`s agent will draft the initial PSA, and the buyer will review and sign it. Once the PSA is signed, the buyer`s agent will send it over to the seller`s agent for review and approval. If the seller agrees to the terms outlined in the PSA, they will sign the document.
However, there are some cases where the seller may sign the PSA first. For instance, if the seller has already accepted an offer, they may send over a PSA to the buyer for review and approval. In this scenario, the buyer would be responsible for reviewing the document and signing it if they agree to the terms.
It`s important to note that there is no strict protocol regarding who signs the PSA first. Instead, it depends on the circumstances surrounding the sale or purchase. In most cases, the buyer takes the lead in drafting the initial PSA, but the seller may take the initiative in some cases.
It`s worth mentioning that signing a PSA is a critical step in the property buying or selling process. Therefore, it`s essential to ensure that both parties carefully review and understand the terms before signing the document. Any mistakes or misunderstandings in the PSA can have significant legal and financial implications.
In conclusion, there is no hard and fast rule regarding who signs the purchase and sale agreement first. It depends on the circumstances surrounding the transaction. In most cases, the buyer takes the lead in drafting the initial PSA, while the seller reviews and approves the document. However, there are instances where the seller may initiate the signing of the PSA. Regardless of who signs first, it`s crucial that both parties review and understand the terms outlined in the agreement before putting pen to paper.
