A Purchase and Sale Agreement (PSA) is the cornerstone of most real estate transactions—it sets the terms, timelines, and obligations for buyers and sellers and governs how the deal proceeds. Yet, not all PSAs are created equal.
In Washington, especially in Snohomish County, many real estate agents use standardized NWMLS forms to streamline the process. While convenient, these templates are not one-size-fits-all. They may omit critical protections, introduce ambiguity, or favor one party over the other.
At North City Law, our Washington real estate attorneys help clients draft, review, and negotiate customized purchase and sale agreements that safeguard their interests.
Whether you’re buying, selling, or investing, we ensure your contract aligns with your goals and complies with state law. Contact our real estate law firm today to schedule a consultation and ensure your deal is structured for clarity, fairness, and legal protection.
What Is a Purchase and Sale Agreement (PSA)?
The Purchase and Sale Agreement (PSA) is the central document in most real estate transactions which memorializes the terms of deal and governs how the transaction will proceed. However, not all PSAs are created equally. And common practice can vary significantly from one region to another. Here in Snohomish County, real estate agents often use standardized NWMLS forms for agreements. While convenient, these forms may not be responsive to your specific needs and can sometimes favor one party. In this article, we discuss some commonly overlooked clauses.
How Can Rights Be Unintentionally Waived in a Real Estate Contract?
Form PSAs are designed to meet the common, general needs of most buyers and sellers, ensuring a smooth transaction experience. To achieve this, it is essential to use clear language, avoiding overly strict timelines, complex notice requirements, or confusing terminology. Forms should be accurately completed to prevent misunderstandings or disputes, and transparency is key in clearly documenting agreed-upon terms to avoid ambiguity.
Using standardized forms, such as the NWMLS form suite, helps minimize errors and ensures consistency. Caution should be taken when sharing inspection reports, as doing so may inadvertently waive contingency protections. Rather than relying on overly complex or strategic drafting, the focus should be on negotiating mutually beneficial terms to facilitate a fair and efficient transaction.
At North City Law, our purchase and service agreement attorneys review these clauses to protect against accidental waiver of key contractual protections.
What’s the Difference Between “Time of Essence” and “On or About” in a Contract?
Time of Essence or “TOE” means a deadline should be strictly enforced. By contrast, an “On or About” date is more of a goal, or suggestion–The parties agree to target that date and to refrain from unreasonable delay. In practice, a delay of a few days or even weeks is generally acceptable, and legal extensions before earnest money is forfeited can sometimes last for months.
Here, in Snohomish County, TOE is the norm. Not so in other states. This can be especially surprising for those unfamiliar with the process. Regardless of the norm, though, there is nothing stopping parties from negotiating the terms that work for their particular transaction. If a PSA does not specify, however, then local customs can end up being dispositive.
What Are Contingencies and Why Do They Matter?
Contingencies are clauses that allow a party—usually the buyer—to withdraw from a transaction under certain conditions without forfeiting earnest money.
Common contingencies include:
- Financing Contingency – The sale depends on securing financing.
- Inspection Contingency – The buyer can terminate if issues are found.
- Title Contingency – The buyer can cancel if title issues arise.
- Insurance or Appraisal Contingencies – Protect against unforeseen risks or valuation problems.
Buyers may also negotiate custom contingencies or paid options for added flexibility. Without proper drafting, however, contingencies can be ambiguous or unenforceable, making legal review essential. If you need assistance reviewing a purchase and sale agreement, we invite you to call our office to schedule a consultation with an experienced Washington real estate agreement attorney.
Can a Purchase and Sale Agreement Be Assigned to Another Buyer?
A PSA should clearly specify the terms and conditions for assignment. In the context of a real estate transaction, assignability usually refers to whether the buyer is allowed to substitute another party as the buyer. Sometimes this could be as simple as a husband and wife changing their minds about who should be on title, other times a buyer may want to use an LLC, and in some cases, buyers may re-sell their contract to investors/developers.
Standard form PSAs often restrict assignability, typically requiring seller approval. Buyers unsure about how they will take title at closing should carefully review this term. If a buyer asks for assignability, sellers may wish to formalize an assignment option with a fee and other terms. Our Washington real estate lawyers draft clear assignment terms that protect your rights and prevent disputes at closing.
What’s the Difference Between Credits and Repairs During Negotiations?
Contingency terms can influence decisions regarding defects uncovered during due diligence. A seller’s obligation, if any, is usually either a credit or repair. A credit reduces the buyer’s closing costs, while a repair requires the seller to fix the issue before closing. Each option has pros and cons, but buyers typically prefer credits for financial flexibility, while sellers often favor repairs to maintain control over the process.
Form PSAs are often broad and may not cover specific legal nuances. Agents cannot legally draft custom, substantive language or provide legal advice about how specific contract terms will work under specific circumstances. However, agents can guide clients through the process with minimal additional expense outside their commission.
By contrast, a real estate attorney can do just about anything from a drafting perspective and provide legal advice about what everything means. Attorneys also usually charge a flat rate, or hourly, which can sometimes be more affordable than paying a commission. However, an attorney will not be able to market the property and will not be able to run market comps to determine things like sale prices. Both attorneys and agents provide different services with different cost structures. Which to hire will vary from transaction to transaction and is ultimately a decision for the seller based on their needs and preferences.
Why Work with a Washington Real Estate Attorney for Your Purchase or Sale?
Real estate transactions are among the largest financial commitments most people make. Even small contract errors can have costly consequences.
At North City Law, our Washington purchase and sale agreement attorneys:
- Review contracts for hidden risks or unfavorable terms
- Draft addenda and contingencies to protect your position
- Negotiate timelines, disclosures, and assignment clauses
- Ensure compliance with Washington real estate law and NWMLS standards
Protect Your Real Estate Investment with North City Law
A well-drafted purchase and sale agreement provides more than legal protection—it provides peace of mind. Whether you’re a first-time buyer, experienced investor, or commercial property owner, our firm helps ensure your transaction is clear, compliant, and enforceable.
Contact North City Law today to speak with an experienced Washington real estate attorney about your purchase or sale agreement. Our team will guide you through every step—from negotiation to closing—so you can proceed confidently and securely.