Are electronic signatures legally binding?

Yes. Electronic signatures are legally equivalent to handwritten signatures for most transactions under the federal ESIGN Act (15 U.S.C. ch. 96) and state UETA laws adopted across the U.S., provided intent, consent, attribution, and record retention requirements are met.

When is notarization required?

Notarization is required for many conveyance documents such as deeds in all states; witness requirements vary by state. Confirm county recorder rules before closing to ensure the executed document meets recording requirements.

Can I use remote online notarization?

Many states permit permanent RON with identity proofing and recording retention; requirements differ. Check your state’s notary commission and follow audio-video and recordkeeping rules for RON sessions.

What happens if a name is entered incorrectly?

A mismatched name can cloud title or delay recording. Correct errors before closing; if recorded, execute corrective deeds or affidavits and consult title counsel to clear any defects.

Do consumer disclosures apply to e-signing?

Yes — consumer-facing financial or healthcare records may require ESIGN consumer disclosure, consent demonstration, and an opt-out procedure in compliance with 15 U.S.C. §7001(c).

Which signNow plan fits high-volume closings?

High-volume workflows commonly use usage-based Site License pricing at $1.50 per signature invite for large document volumes; Business Premium and Enterprise tiers add bulk send and advanced fields for transactional efficiency.

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Purchase and Sale Agreement

Purchase and Sale Agreement

This template is fully customizable. Edit the text, fill out the fields, and send it for signature. Give it a try!

What a Purchase and Sale Agreement Is and When It Applies

A Purchase and Sale Agreement (PSA) is a written contract that records the terms under which a seller transfers ownership of real property or defined goods to a buyer. The PSA sets the purchase price, deposit, contingencies, closing date, permitted adjustments, and any required disclosures. It allocates risk between parties and creates enforceable obligations that survive signing until closing, amendment, or termination. Parties typically attach exhibits — surveys, title commitments, financing addenda, and inspection reports — to make the contract complete and operational for closing and recording.

Why a Clear Purchase and Sale Agreement Matters

A well-drafted PSA reduces misunderstanding by documenting price, contingencies, timelines, and remedies. It protects buyer and seller expectations, provides clear conditions for deposit release, and establishes the legal framework for closing and dispute resolution under the chosen governing law.

Who Typically Prepares and Signs a Purchase and Sale Agreement

Multiple parties use PSAs: buyers, sellers, brokers, lenders, and closing agents all rely on the document to finalize transactions.

Typical Signatories and Their Roles

Buyer — Individual or Entity

The buyer must sign using the legal name that will appear on title. If the buyer is an entity, include the authorized signer's printed name and title and confirm corporate authority or operating agreement authorization.

Seller — Owner or Agent

The seller signs to transfer rights. If an agent signs, attach executed agency authorization. For entities, include corporate resolution or power of attorney proving authority to convey the property.

Core Sections Every Professional Purchase and Sale Agreement Should Include

A professional PSA groups obligations and risk into clear sections: parties, property definition, price and adjustments, contingencies, closing mechanics, and remedies for default.

Parties

Identify full legal names and entity types for buyer and seller, including contact information and mailing addresses for notices.

Property Description

Provide a precise legal description for real property or a detailed inventory for goods; attach plats, exhibits, and parcel identifiers as needed.

Purchase Price

State total price, deposit amount, payment schedule, escrow instructions, and conditions for adjustments or prorations at closing.

Contingencies

List financing, inspection, title, appraisal, and other conditions precedent with deadlines and cure rights clearly defined.

Closing Details

Specify closing date, delivery method for documents and funds, escrow instructions, and the party responsible for recording and associated fees.

Remedies & Risk

Describe default remedies, indemnities, representations, warranties, and any liquidated damages or dispute resolution procedures.

Essential Data and Compliance Elements to Include

Legal Names: Full legal party names

Property ID: Parcel or serial number

Price & Deposit: Dollar amounts

Key Dates: Effective and closing dates

Title Conditions: Title exceptions

Signature Details: Signer name, date

Common Legal and Financial Risks of an Incorrect PSA

1099 and tax risk: $60–$330 per form; $660+ intentional

I-9 and employment: $281–$2,789 per violation

Recording errors: Title defects, lien exposure

Missing signatures: Agreement unenforceable

Incorrect party: Clouds title, may void deed

Unclear contingencies: Exposure to dispute and damages

Stepwise Process to Complete a Purchase and Sale Agreement

Follow these sequential steps to prepare, negotiate, execute, and move the PSA to closing while protecting all parties.

01

Drafting: Assemble terms, exhibits, and title preliminaries.
02

Negotiation: Exchange revisions and agree on contingencies and dates.
03

Execution: Obtain signatures, initials on all pages, and dates.
04

Closing: Satisfy contingencies and record transfer documents.

Where to Send or File the Executed Agreement and Related Documents

After execution, route documents to title, escrow, lender, and county recorder as required; follow each party’s delivery instructions for original and copies.

Title Company: Send original signed PSA plus exhibits for escrow opening.
Lender: Provide executed agreement if financing is involved.
County Recorder: Record deed and any mortgage after closing.
Closing Agent: Deliver final signed closing statement and funds instructions.

Digital Signing and File Formats to Consider

Choose a platform that supports common formats (PDF, DOCX) and the authentication level you need for signer verification and audit trails.

File Formats: PDF and DOCX supported
Integrations: Works with CRM and cloud storage
Authentication: Email, SMS, or advanced options

Verify platform compliance needs (ESIGN/UETA, HIPAA where applicable) and confirm the service provides tamper-evident signed PDFs and an auditable certificate of completion.

Typical Online Workflow Settings for Completing a PSA

Configure fields and routing to match signing order, authentication level, and delivery preferences for closing participants.

Field	Configuration
Signature	Required; date auto-filled
Initials	Required on each page if specified
Conditional Fields	Show financing clauses if buyer selects financing
Routing Order	Set buyer, seller, then closing agent

eSignature Vendor Pricing Snapshot for Purchase and Sale Workflows

Representative starting prices and feature availability for common eSignature vendors. Confirm plan specifics with each provider before purchasing.

	signNow	DocuSign	Adobe Sign	PandaDoc	HelloSign
Starting Price	$8/user/mo	$15/user/mo	$14/user/mo	$19/user/mo	$15/user/mo
Free Trial	7-day free trial	Varies by vendor	Varies by vendor	Varies by vendor	Varies by vendor
Bulk Send	Yes	Yes	Yes	Yes	Varies by plan
Audit Trail	Yes	Yes	Yes	Yes	Yes
HIPAA Compliant	Yes	Yes	Yes	No	No

Frequently Asked Questions About Purchase and Sale Agreements

Answers to common execution, enforceability, and eSignature questions for PSAs executed in the United States.

Need help? Contact support

Are electronic signatures legally binding?
Yes. Electronic signatures are legally equivalent to handwritten signatures for most transactions under the federal ESIGN Act (15 U.S.C. ch. 96) and state UETA laws adopted across the U.S., provided intent, consent, attribution, and record retention requirements are met.
When is notarization required?
Notarization is required for many conveyance documents such as deeds in all states; witness requirements vary by state. Confirm county recorder rules before closing to ensure the executed document meets recording requirements.
Can I use remote online notarization?
Many states permit permanent RON with identity proofing and recording retention; requirements differ. Check your state’s notary commission and follow audio-video and recordkeeping rules for RON sessions.
What happens if a name is entered incorrectly?
A mismatched name can cloud title or delay recording. Correct errors before closing; if recorded, execute corrective deeds or affidavits and consult title counsel to clear any defects.
Do consumer disclosures apply to e-signing?
Yes — consumer-facing financial or healthcare records may require ESIGN consumer disclosure, consent demonstration, and an opt-out procedure in compliance with 15 U.S.C. §7001(c).
Which signNow plan fits high-volume closings?
High-volume workflows commonly use usage-based Site License pricing at $1.50 per signature invite for large document volumes; Business Premium and Enterprise tiers add bulk send and advanced fields for transactional efficiency.

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