A Purchase and Sale Agreement in Washington State From A to Z

How To Make a Purchase and Sale Agreement in Washington State

Purchasing a property in Washington State can be an intimidating process. The legal system is confusing enough to make you worry that a mistake will land you in court. What is the purchase and sale agreement, and how does it work? How can you write a contract effortlessly? What terms and conditions should you include in your legal document?

DoNotPay has the answer to all these questions! We can provide all the information you need to create a purchase and sale agreement in Washington State.

What Is a Purchase and Sale Agreement, and How Does It Work?

The purchase and sale agreement is a legally binding document laying out the terms and conditions of a property sale. It includes the details of the property and the conditions that need to be met before the sale. 

This document is drawn up after the offer to purchase and overrules it once both parties have signed the contract. 

Although most states allow you a certain freedom, some mandate a specific structure when drawing up the contract. 

What Elements Should You Include in the Washington State Purchase and Sale Agreement?

To draft a valid contract, you must understand its crucial sections. Here are the key elements to include in the agreement:

Key Element

Brief Explanation

Title and other property detailsThe title confirms that the seller is the actual owner of the property and that they can transfer the property to another individual. 

Other details can include the property size, price, location, and any defects the property might have

Duties of the sellerThis section states the duties of the seller, including property insurance, repair and maintenance, and regular tax payments until the property is officially sold. Some states also require an inclusion for smoke and carbon monoxide detectors. 

It is the seller’s responsibility to pay the broker’s fee

ConsiderationThe buyer and seller negotiate the actual price of the property. This can be cash, the forgiveness of debt, shares, or a combination of all three
Earnest MoneyEarnest money is a small percentage of the property price, deposited in escrow by the buyer to confirm they are interested in the deal. The section includes information on the negotiated amount and the instructions on making the deposit
ContingencyThis part includes the following contingencies:

  • Inspection—The buyer must have the home inspected before buying it 
  • Financing—It is necessary to have an approved mortgage before purchasing the house
  • Title—The title information and details must be correct
  • Appraisal—A real estate agent should appraise the property to ensure the property value is the same as the asking price
Closing dateThe date when the purchase is officially communicated to the state government. This is also the date when the seller receives the money
Parties in the agreementThe name and contact information of both parties must be stated. There can be more than two parties if a business is involved
PenaltiesIf any party violates the deal, the Penalties section should determine the remedies

Buyers must inspect the property with due diligence before closing the deal. Although Washington State requires property owners to disclose any defects the property might have, it is up to the buyer to investigate thoroughly before closing. If there is a dispute, the burden of proof is on the buyer, not the seller.

What Happens if a Party Fails To Honor the Contract in Washington State?

A sale and purchase agreement is a legally binding document. If a signer fails to honor the contract, it is considered a breach, and the guilty party must face legal consequences. In Washington State, the non-guilty party should receive the following compensation:

For the BuyerFor the Seller
Termination of the contractLiquidated damages
Specific performanceSpecific performance
Return of deposit, plus additional compensationIndemnity obligations

Draft Legal Documents Using DoNotPay

Are you interested in purchasing a property but can’t figure out how to draft an adequate agreement? DoNotPay can generate a contract in a matter of minutes! Stop paying unnecessary attorney fees and put an end to your online search for contract templates

Here is what we offer:

  1. in your browser
  2. Type the name of the document you want to create
  3. Answer a few questions about the document

And you’re done! We generate a document that you can print, sign, and get notarized

creates various contracts and agreements, such as:

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