What is the Standard Agreement for the Sale of Real Estate?

The real estate market is a popular topic of conversation these days. Everyone is talking about how hot the real estate market is in and around Philadelphia. Homes are selling in record time! That means that buyers and sellers are agreeing to a price and terms and then settling the deal, often with a bank lending a large chunk of money to the homebuyer.

In case you’ve ever wondered how a real estate transaction gets inked on paper, we have you covered with this basic primer on the Standard Agreement for the Sale of Real Estate in Philadelphia (and Pennsylvania in general).

What is the Standard Agreement for the Sale of Real Estate?

The Standard Agreement for the Sale of Real Estate, also known as the "purchase and sale agreement" or just "the contract," is a boilerplate contract that the Pennsylvania Association of Realtors legal team put together to standardize, simplify and streamline the legal process of buying and selling a home.

The contract is just that - a legal document - and while it is not necessarily the only one of its type, the contract has become the de facto standard that most Pennsylvania Realtors use for their clients when they buy and sell homes.

When do buyers fill out a purchase and sale agreement in Philadelphia?

The contract is filled out and signed by the buyer in order to submit an offer. In consultation with your buyer’s agent, you will discuss the key terms and contingencies of the transaction.

If you are buying a home for the first time, you should review a blank template of the agreement together with your agent early in your search in order to become familiar with the key terms of the contract. In order not to feel rushed when you are ready to submit an offer, ask lots of questions early in your home buying process.

Sections of the Standard Agreement for the Sale of Real Estate

• Buyer(s) Names
• Seller(s) Names
• Brokerage(s) and Agent(s) Names
• Purchase price 
• Seller’s assist (if applicable)
• Closing date
• Inspection contingency (if applicable)
• Mortgage financing contingency (if applicable)
• Condo or PUD section
• Tenant Occupied Addendum (if applicable)
• List of inclusions or exclusions (piano, chandelier, etc.)
• Any special addenda (if applicable)

Of course there are more sections to the contract plus disclosure forms -- after all, it’s 14 pages! To learn more about these sections, check out our latest step by step guide about the offer process: Steps to Make an Offer in Philadelphia.

Is the purchase agreement a binding contract in Philadelphia?

When you submit "an offer" you are actually submitting a signed contract that would be binding if the sellers countersign it. So make sure your offer terms are the ones you are willing to live with. Once the sellers countersign the agreement, you are locked and loaded!

Do I need a real estate attorney to review the agreement?

This is not necessary in Philadelphia as your real estate agent is trained to know the contract inside and out and should have lots of deals under their belt with years of experience in the industry. Of course you are welcome to bring an attorney to the transaction at your own cost if you feel more comfortable. 

Note that attorneys might charge a lot for their expertise and may add very little to the transaction or even make the deal less likely to occur as they tend to be risk-averse and don’t generally like boilerplate contracts. Of course we will never advise someone not to seek counsel if they so desire but we don’t think it’s necessary.