The Purchase and Sale Agreement: A legal contract between the buyer and the seller that outlines the purchase agreement between them and acts as joint Escrow instructions. The contract includes:

• The property to be acquired
  
• Purchase price
  
• Close of Escrow
  
• Financing terms
  
• Initial Deposit
  
• Closing and Occupancy
  
• Inspection terms
  
• Seller's Disclosure Form
  
• Various addendums
  
• Real Estate Agency Disclosure
  
• Disclosures: Lead paint, HOA, Condo, etc.

• Market value of the house
  
• Condition of the house
  
Financing terms

• Circumstances surrounding the sale
  
• Loan pre-approval at the time of the offer
  
• Earnest money
  
• Once your offer has been presented to the seller, it will either be accepted, countered, or rejected. Often sellers accept portions of the agreement but counter other portions. Once the contract is mutually accepted by both buyer and seller the balance of the purchase process can begin.

Escrow:

• Requests a title report and policy
  
• Drafts the deed and/or other necessary documents
  
• Arranges to pay off existing loans when necessary
  
• Prorates taxes and insurance between buyer and seller
  
• Computes interest in loans
  
• Records the appropriate documents
  
• Disburses the documents and money to each party involved
  
• Arranges for signing of final documents