Can a PSA be signed electronically?

Yes. Electronic signatures are generally enforceable under the ESIGN Act (15 U.S.C. ch. 96) and UETA where adopted. Exceptions exist for testamentary documents and certain court filings; verify that the transaction type is not listed among statutory exceptions.

When is notarization required?

Deeds and certain conveyance documents typically require notarization for recording. State rules vary; confirm county recorder and state notary requirements before closing to ensure the deed will be accepted for recordation.

What if a party signs with an incorrect name?

A mismatched or incomplete legal name can prevent recording or funding. Corrective steps include addenda, affidavits, or re-signing with the accurate legal name; consult title counsel to determine required curative documents.

How do I amend a signed PSA?

Amendments require mutual agreement and should be documented in a written amendment or addendum signed by all original parties. Oral modifications risk non-enforceability under the statute of frauds for real property transfers.

Are witness counts and RON rules different by state?

Yes. Witness and Remote Online Notarization rules differ by jurisdiction; some states require two witnesses for deeds (e.g., Florida), others do not. Check state notary and recording statutes before relying on RON or single-witness execution.

How long should I keep signed PSAs?

Retain signed PSAs for the transaction term plus additional years per applicable law: at least 3 years for tax records (IRC §6501(a)), 6 years for HIPAA-related records (45 CFR §164.530(j)), and longer where state rules or title concerns apply.

Electronic Signature
Templates
Legal
Purchase and Sale Agreement

Purchase and Sale Agreement

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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 buyer agrees to purchase real property from a seller and the seller agrees to transfer title. It typically covers parties’ identities, the full legal description of the property, purchase price, deposit or earnest money, contingencies (inspection, financing, title), closing date, possession, and allocation of costs. In the United States the PSA is the core transactional document that sets closing conditions, remedies for breach, and instructions for escrow or title companies to prepare closing and recording documents.

Why a Clear Purchase and Sale Agreement Matters

A precise PSA reduces ambiguity, protects contractual rights, defines contingencies and deadlines, and creates the record necessary for escrow, title work, and closing. It assigns risk and remedies so parties and counsel can resolve disputes and proceed to recording and funding with confidence.

Who Typically Prepares and Signs a Purchase and Sale Agreement

Each signer should have authority to bind the named party; verify capacity and representation before signing.

Buyers and buyers’ agents — prepare offer terms, attach contingencies, and deliver earnest money per contract deadlines.
Sellers and listing agents — accept, counter, and provide required property disclosures and clear title conditions.
Title/escrow and lenders — review PSA instructions, order title search, and coordinate closing funds and recording.

Typical Signers and Their Roles

Buyer Attorney

Represents buyer interests, reviews contingencies, confirms financing and title obligations, and often holds closing deliverables in escrow. Ensures the buyer’s name and entity form match loan documents and title commitments to avoid post-closing issues.

Listing Agent

Acts on behalf of the seller to present offers, negotiate price and terms, secure seller disclosures, and coordinate with title and escrow to clear conditions required for closing and deed recording.

Step-by-step: Preparing and Executing a Purchase and Sale Agreement

Follow a standard sequence to reduce errors and streamline closing: draft, attach exhibits, secure funds, obtain signatures, deliver to escrow, and record the deed at closing.

01

Draft Terms: Specify parties, property, price, and contingencies.
02

Attach Exhibits: Include legal description, disclosures, and addenda.
03

Collect Signatures: Obtain all needed signatures and dates.
04

Deliver to Escrow: Provide documents and funds to title/escrow for closing.

Primary Components to Include in a Professional PSA

A complete PSA organizes obligations, timelines, and remedies so title, escrow, and lenders can act without re-negotiation or ambiguity.

Parties

Full legal names and entity types; include representative contact information and, for entities, the state of formation and authorized signer capacity.

Property

Full legal description and parcel ID; reference any excluded personal property or fixtures and attach exhibits for easements or encumbrances.

Price & Payment

Purchase price, allocation of closing costs, earnest money instructions, and conditions for deposit release or forfeiture on default.

Contingencies

Inspection, financing, appraisal, and title objections with clear cure periods and termination mechanics if conditions are unmet.

Closing & Possession

Specify closing date, funding conditions, conveyance instrument (deed type), and possession timing including any holdover arrangements.

Representations

Seller warranties about authority, title status, and absence of undisclosed liabilities; buyer warranties about capacity and funding assurance.

Essential Fields and Data Elements

Party Names: Full legal names

Contact Addresses: Street, city, state, ZIP

Legal Description: Metes and bounds / parcel ID

Purchase Price: Numeric and written

Earnest Deposit: Amount and payee

Closing Date: MM/DD/YYYY format

Where to Send the Agreement and What Happens Next

After signatures, route the PSA to escrow/title and to any lender or agent specified in the contract so closing tasks can begin.

Send to Escrow: Escrow receives documents and funds for closing.
Deliver to Lender: Lender reviews PSA to finalize loan commitment.
Title Order: Title company conducts search and issues commitment.
Record Deed: Escrow records deed at county recorder at closing.

How to Set Up an Online Signing Workflow for the PSA

Configure an online workflow that matches signing order, authentication level, and document routing so each party receives the correct copy and audit trail.

Field	Configuration
Signature Type	Allow remote eSign and in-person signing options
Authentication	Email link plus SMS code or ID verification
Signing Order	Sequential routing: buyer then seller then escrow
Delivery	Automatic copies to title, lender, and parties

Technical Considerations for eSigning and eSubmission

Confirm the platform meets legal and industry compliance needs (ESIGN/UETA, HIPAA if health information involved) and supports export to recordable PDF or paper for county recording.

Authentication: Email, SMS, or KBA options
Integrations: Salesforce, NetSuite, Google Workspace
File Types: PDF, DOCX, and editable templates

Risks and Contract Remedies to Watch For

Title Defects: May delay closing

Missed Deadlines: Contingency termination risk

Incorrect Names: Recording or funding issues

Ambiguous Terms: Litigation or reformation risk

Earnest Disputes: Forfeiture or claim

Uncured Liens: Seller cannot convey clear title

Common Mistakes When Preparing a PSA

Using an informal street address instead of the legal description, which can create recording defects and title exceptions.
Failing to specify clear contingency dates in MM/DD/YYYY format, causing disputes over whether a termination right was timely exercised.
Leaving signature blocks unsigned or signed by unauthorized representatives, which can void obligations or delay funding.
Omitting exhibits (disclosures, seller affidavits, or easement plats) that the PSA references, leading escrow to delay closing.

Practical Tips for Accurate and Efficient Completion

Adopt a checklist-driven approach, confirm exact legal names and descriptions, and coordinate with title and escrow early to avoid last-minute issues.

Confirm Legal Identity

Verify each party’s exact legal name against government ID or formation documents; for LLCs and corporations include state of formation and signer capacity to avoid mismatch with title or lender requirements.

Use Clear Contingency Dates

Set explicit MM/DD/YYYY deadlines for inspection, financing, and title objections; include time-of-day rules where practical and state the remedies for missed deadlines to reduce dispute risk.

Coordinate with Title Early

Order title search and commitment before relying on clear title; identify required endorsements and cure items so the seller can address liens or defects in advance of closing.

Standardize Templates

Use consistent templates with labeled exhibits and conditional fields for contingencies; maintain version control and an audit trail for all edits and signature events.

Real-world Examples from Teams Using Online Execution

Practical implementations show how digital workflows removed friction and preserved compliance without in-person signings or paper mailing delays.

Martin Properties

Tim Martin, founder, used online execution to complete closings remotely and securely

Platform simplified mobile signing during property sales
He reported that processing and executing documents online preserved compliance and allowed timely closings whether parties were remote or in-person, reducing cycles commonly lost to printing and overnight delivery.

BIS

Dan Rotelli, CEO, integrated e-sign workflows with title and escrow teams

Integration enabled faster handoffs between departments
The integration delivered tighter control over signature order and document storage, eliminating manual steps while maintaining audit trails and compliance for corporate recordkeeping.

Key Dates and Typical Deadline Items in a PSA

Track these standard dates in the PSA; missing one can trigger termination rights or extend liability exposure.

Offer Date:

Date the buyer signs and delivers the offer

Earnest Money Due:

When deposit must be delivered to escrow

Inspection Deadline:

Final date to complete inspections and object

Financing Deadline:

Last date to secure loan commitment

Closing Date:

Scheduled date for funding and recording

eSignature Vendor Comparison for Executing Purchase and Sale Agreements

Compare basic cost and feature availability across common eSignature vendors. signNow is listed first per platform comparison standards; feature availability may vary by plan tier.

	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, no credit card required	Varies by vendor; offerings differ across plans	Varies by vendor; offerings differ across plans	Varies by vendor; offerings differ across plans	Varies by vendor; offerings differ across plans
Bulk Send	Yes	Yes	Yes	Yes	No
Audit Trail	Yes	Yes	Yes	Yes	Yes
HIPAA Compliant	Yes	Yes	Yes	No	No

Frequently Asked Questions and Troubleshooting

Answers to common questions about validity, e-signing, amendments, and recordkeeping for Purchase and Sale Agreements.

Need help? Contact support

Can a PSA be signed electronically?
Yes. Electronic signatures are generally enforceable under the ESIGN Act (15 U.S.C. ch. 96) and UETA where adopted. Exceptions exist for testamentary documents and certain court filings; verify that the transaction type is not listed among statutory exceptions.
When is notarization required?
Deeds and certain conveyance documents typically require notarization for recording. State rules vary; confirm county recorder and state notary requirements before closing to ensure the deed will be accepted for recordation.
What if a party signs with an incorrect name?
A mismatched or incomplete legal name can prevent recording or funding. Corrective steps include addenda, affidavits, or re-signing with the accurate legal name; consult title counsel to determine required curative documents.
How do I amend a signed PSA?
Amendments require mutual agreement and should be documented in a written amendment or addendum signed by all original parties. Oral modifications risk non-enforceability under the statute of frauds for real property transfers.
Are witness counts and RON rules different by state?
Yes. Witness and Remote Online Notarization rules differ by jurisdiction; some states require two witnesses for deeds (e.g., Florida), others do not. Check state notary and recording statutes before relying on RON or single-witness execution.
How long should I keep signed PSAs?
Retain signed PSAs for the transaction term plus additional years per applicable law: at least 3 years for tax records (IRC §6501(a)), 6 years for HIPAA-related records (45 CFR §164.530(j)), and longer where state rules or title concerns apply.

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