Does The Sale/Purchase Become Final When We Signed The Purchase And Sale Agreement?
Not yet. First, the terms of the purchase and sale agreement have to be performed by each of the seller and the buyer. The offer to purchase and/or the purchase and sale agreement define those obligations and, in great measure, determine the rights and obligations of the parties up to the date of the closing and, in many cases, beyond that date. As an example, the title search is typically done by the buyer together with a home inspection and survey of the property. The title to the property determines whether or not the seller has the ability to convey a good, clear, and marketable title. The home inspection determines the condition of the property, and the survey of the property gives a rough idea of whether or not the building encroaches on other property or if other property encroaches on the property someone is buying. The issue really comes down to whether or not the buyer, or the seller, who are typically untrained professional in the real estate business or even a lawyer with training in the business, should be represented by counsel to protect their interests. The saying "He who represents himself has a fool for a client" is especially appropriate in real estate transactions. The sale of a property is straight forward until you have a problem. If the documents fail to deal with your problem then your ability to protect your interests, whether you're the seller or the buyer can be seriously compromised. The bottom line is that the deal isn't a deal until the deed is recorded and, even then, there can be lasting reminders of a bad deal in the form of a law suit. Once the purchase and sale agreement is executed, except very specific circumstances, it is very difficult to avoid your promise to sell/buy without potentially significant consequences.
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