The Washington state purchase and sale agreement is a formal document used in real estate transactions in the state of Washington. It’s not meant to close the deal; it’s just the first step of the process. Potential buyers issue Washington state real estate forms and send them to the sellers.
The purchase and sale agreement contains the offer the buyers are making, other relevant aspects concerning the sale, and the disclosures that need to be included. It’s the document that sets off negotiations. The seller studies the document and either signs it or adds their own mentions and makes a counteroffer.
What Is a Washington Purchase and Sale Agreement?
The purchase and sale agreement Washington state form is an excellent way to begin and organize the negotiation process during a real estate transaction. It’s the document that expresses the buyer’s intention to purchase the property, the price they are willing to offer, how they intend to pay, and what disclosures and other aspects they consider relevant to the transaction.
Since it is basically a proposal, the Washington state purchase and sale agreement has an expiration date, by which the seller has to respond and can send their counteroffer. If they agree on the terms of the purchase, both parties need to sign the document, and the purchase and sale agreement Washington form becomes legally binding.
Changing or adding something after this point, can only be done with a mutually accepted addendum. Once the Washington state purchase and sale agreement is issued, the seller has five business days to write the seller’s disclosure statement and give it to the buyer.
It’s the statement that informs the buyer of the state on the property, and on the flaws or regulation issues, they must expect. After they receive the disclosure statement, the buyer has to decide if they go on with the transaction in three business days.
Download Our Free Washington Agreement of Purchase and Sale Template
Gain access to our free downloadable version of the Washington Agreement of Purchase and Sale template today and give your real estate deals a legally verified look.
How Can I Finance Real Estate in Washington?
A real estate property is usually quite expensive, so people don’t always have the entire amount. In many cases, they are relying on financing to go through with the purchase. These are the main ways to finance the purchase of a property in Washington:
- A bank loan. This is a possible option, but banks usually have higher demands and request a lot of paperwork to approve a loan. You also need a credit score of at least 600; the higher, the better.
- A private lender can be a good option. Their demands are usually easier to meet, and they don’t take as long as a bank to give you an answer. Depending on your situation, you may use something as collateral, maybe even the property you wish to buy.
- If it’s a new property, you may have the option to receive financing from the seller; they are more interested in helping you buy than a bank, so the loan may be approved faster
- If you are changing homes, you may need to sell the old one first to pay for the one you intend to buy. That can be arranged with the purchase agreement if the seller accepts
- Turning to your family to buy a piece of real estate is an option in theory, but since the sums are usually high, it’s not a valid option in practice very often
What Are the Components of a Washington Purchase and Sale Agreement?
The Washington state purchase and sale agreement is a formal document and an essential part of any real estate transaction. Once signed, it becomes legally binding, so it must be issued with the utmost care.
It’s a good idea to write it using a template; you can take a look at the Washington state real estate forms we have created at CocoSign. These are the sections any purchase and sales agreement Washington State must include:
- The date when the Washington state purchase and sale agreement becomes effective
- The identifying information of both the buyer and the seller: full name and address
- The address of the property and the legal description
- Any personal property included in the purchase
- The price
- The source of financing, if applicable
- If the financing comes from the seller, the purchase agreement must mention that
- The deadline for paying the closing costs, as well as who will be in charge of paying it
- The state of the property; the buyer is entitled to bring their own inspector to check it
- The expiration date of the agreement
- The mandatory disclosures (Lead-based paint disclosure and the seller disclosure statement), as well as optional ones, if any
- The date and signatures of both the seller and the buyer
Download Our Free Washington Agreement of Purchase and Sale Template
Gain access to our free downloadable version of the Washington Agreement of Purchase and Sale template today and give your real estate deals a legally verified look.
Conclusion
The Washington state purchase and sale agreement is a comprehensive formal document that sets the base for the real estate transaction and the negotiations. It’s the way for the seller and the buyer to reach common ground and decide the final terms of the deal.
As such, you must write it with a lot of attention to detail. To make sure all the necessary parts are included, you can use the template we have at CocoSign. Our team has a vast experience in providing all the templates people need daily, as well as for more complex deals.
DOCUMENT PREVIEW
a.) In addition, Buyer agrees, within a reasonable time, to make a good faith loan application with a credible financial institution;
b.) If Buyer does not reveal a fact of contingency to the lender and this purchase does not record because of such nondisclosure after initial application, the Buyer shall be in default;
c.) On or before ____________________, 20___, the Buyer will provide the Seller a letter from a credible financial institution verifying a satisfactory credit report, acceptable income, source of down payment, availability of funds to close, and that the loan approval ☐ is ☐ is not contingent on the lease, sale, or recording of another property;
d.) In the event the Buyer fails to produce the aforementioned letter or other acceptable verification by the date above in Section V(c), this Agreement may be terminated at the election of the Seller with written notice provided to the Buyer within ____ days from the date in Section V(c);
e.) Buyer must obtain Seller’s approval, in writing, to any change to the letter described in Section V(c) regarding the financial institution, type of financing, or allocation of closing costs; and
f.) Buyer agrees to pay all fees and satisfy all conditions, in a timely manner, required by the financial institution for processing of the loan application. Buyer agrees the interest rate offered by lender or the availability of any financing program is not a contingency of this Agreement, so long as Buyer qualifies for the financing herein agreed. Availability of any financing program may change at any time. Any licensed real estate agent hired by either party is not responsible for representations or guarantees as to the availability of any loans, project and/or property approvals or interest rates.
☐ - Seller Financing. Seller agrees to provide financing to the Buyer under the following terms and conditions:
a.) Loan Amount: $____________________
b.) Down Payment: $____________________
c.) Interest Rate (per annum): ____%
d.) Term: ____ ☐ Months ☐ Years
e.) Documents
: The Buyer shall be required to produce documentation, as required by the Seller, verifying the Buyer’s ability to purchase according to the Purchase Price and the terms of the Seller Financing. Therefore, such Seller Financing is contingent upon the Seller’s approval of the requested documentation to be provided on or before ____________________, 20___. The Seller shall have until ____________________, 20___ to approve the Buyer's documentation. In the event Buyer fails to obtain Seller’s approval, this Agreement shall be terminated with the Buyer’s Earnest Money being returned within five (5) business days.
VI. Sale of Another Property. Buyer’s performance under this Agreement: (check one)
☐ - Shall not be contingent upon selling another property.
☐ - Shall be contingent upon selling another property with a mailing address of ___________________, City of ____________________, State of ____________________ within ____ days from the Effective Date.
VII. Closing Costs. The costs attributed to the Closing of the Property shall be the responsibility of ☐ Buyer ☐ Seller ☐ Both Parties. The fees and costs related to the Closing shall include but not be limited to a title search (including the abstract and any owner’s title policy), preparation of the deed, transfer taxes, recording fees, and any other costs by the title company that is in standard procedure with conducting the sale of a property.
VIII. Funds at Closing. Buyer and Seller agree that before the recording can take place, funds provided shall be in one (1) of the following forms: cash, interbank electronic transfer, money order, certified check or cashier’s check drawn on a financial institution located in the State, or any above combination that permits the Seller to convert the deposit to cash no later than the next business day.
IX. Closing. This transaction shall be closed on ______________________, 20____ at ____:____ ☐ AM ☐ PM or earlier at the office of a title company to be agreed upon by the Parties (“Closing”). Any extension of the Closing must be agreed upon, in writing, by Buyer and Seller. Real estate taxes, rents, dues, fees, and expenses relating to the Property for the year in which the sale is closed shall be prorated as of the Closing. Taxes due for prior years shall be paid by Seller.
X. Survey. Buyer may obtain a survey of the Property before the Closing to assure that there are no defects, encroachments, overlaps, boundary line or acreage disputes, or other such matters, that would be disclosed by a survey ("Survey Problems"). The cost of the survey shall be paid by the Buyer. Not later than ____ business days prior to the Closing, Buyer shall notify Seller of any Survey Problems which shall be deemed to be a defect in the title to the Property. Seller shall be required to remedy such defects within ____ business days and prior to the Closing.
If Seller does not or cannot remedy any such defect(s), Buyer shall have the option of canceling this Agreement, in which case the Earnest Money shall be returned to Buyer.
XI. Mineral Rights. It is agreed and understood that all rights under the soil, including but not limited to water, gas, oil, and mineral rights shall be transferred by the Seller to the Buyer at Closing.
XII. Title. Seller shall convey title to the property by warranty deed or equivalent. The Property may be subject to restrictions contained on the plat, deed, covenants, conditions, and restrictions, or other documents noted in a Title Search Report. Upon execution of this Agreement by the Parties, Seller will, at the shared expense of both Buyer and Seller, order a Title Search Report and have delivered to the Buyer.
Upon receipt of the Title Search Report, the Buyer shall have ____ business days to notify the Seller, in writing, of any matters disclosed in the report which are unacceptable to Buyer. Buyer’s failure to timely object to the report shall constitute acceptance of the Title Search Report.
If any objections are made by Buyer regarding the Title Search Report, mortgage loan inspection, or other information that discloses a material defect, the Seller shall have ____ business days from the date the objections were received to correct said matters. If Seller does not remedy any defect discovered by the Title Search Report, Buyer shall have the option of canceling this Agreement, in which case the Earnest Money shall be returned to Buyer.
After Closing, Buyer shall receive an owner’s standard form policy of title insurance insuring marketable title in the Property to Buyer in the amount of the Purchase Price, free and clear of the objections and all other title exceptions agreed to be removed as part of this transaction.
XIII. Property Condition. Seller agrees to maintain the Property in its current condition, subject to ordinary wear and tear, from the time this Agreement comes into effect until the Closing. Buyer recognizes that the Seller, along with any licensed real estate agent(s) involved in this transaction, make no claims as to the validity of any property disclosure information. Buyer is required to perform their own inspections, tests, and investigations to verify any information provided by the Seller. Afterward, the Buyer shall submit copies of all tests and reports to the Seller at no cost.
Therefore, Buyer shall hold the right to hire licensed contractors, or other qualified professionals, to further inspect and investigate the Property until ______________________, 20____ at ____:____ ☐ AM ☐ PM.
After all inspections are completed, Buyer shall have until ______________________, 20____ at ____:____ ☐ AM ☐ PM to present any new property disclosures to the Seller in writing. The Buyer and Seller shall have ____ business days to reach an agreement over any new property disclosures found by the Buyer. If the Parties cannot come to an agreement, this Agreement shall be terminated with the Earnest Money being returned to the Buyer.
If the Buyer fails to have the Property inspected or does not provide the Seller with written notice of the new disclosures on the Property, in accordance with this Agreement, Buyer hereby accepts the Property in its current condition and as described in any disclosure forms presented by the Seller.
In the event improvements on the Property are destroyed, compromised, or materially damaged prior to Closing, the Agreement may be terminated at Buyer’s option.
XIV. Seller’s Indemnification. Except as otherwise stated in this Agreement, after recording, the Buyer shall accept the Property AS IS, WHERE IS, with all defects, latent or otherwise. Neither Seller nor their licensed real estate agent(s) or any other agent(s) of the Seller, shall be bound to any representation or warranty of any kind relating in any way to the Property or its condition, quality or quantity, except as specifically set forth in this Agreement or any property disclosure, which contains representations of the Seller only, and which is based upon the best of the Seller’s personal knowledge.
XV. Appraisal. Buyer’s performance under this Agreement: (check one)
☐ - Shall not be contingent upon the appraisal of the Property being equal to or greater than the agreed upon Purchase Price.
☐ - Shall be contingent upon the appraisal of the Property being equal to or greater than the agreed upon Purchase Price. If the Property does not appraise to at least the amount of the Purchase Price, or if the appraisal discovers lender-required repairs, the Parties shall have ____ business days to re-negotiate this Agreement (“Negotiation Period”). In such event the Parties cannot come to an agreement during the Negotiation Period, this Agreement shall terminate with the Earnest Money being returned to the Buyer.
XVI. Required Documents. Prior to the Closing, the Parties agree to authorize all necessary documents, in good faith, in order to record the transaction under the conditions required by the recorder, title company, lender, or any other public or private entity.
XVII. Termination. In the event this Agreement is terminated, as provided in this Agreement, absent of default, any Earnest Money shall be returned to the Buyer, in-full, within ____ business days with all parties being relieved of their obligations as set forth herein.
XVIII. Sex Offenders. Section 2250 of Title 18, United States Code, makes it a federal offense for sex offenders required to register pursuant to the Sex Offender Registration and Notification Act (SORNA), to knowingly fail to register or update a registration as required. State convicted sex offenders may also be prosecuted under this statute if the sex offender knowingly fails to register or update a registration as required, and engages in interstate travel, foreign travel, or enters, leaves, or resides on an Indian reservation.
A sex offender who fails to properly register may face fines and up to ten (10) years in prison. Furthermore, if a sex offender knowingly fails to update or register as required and commits a violent federal crime, he or she may face up to thirty (30) years in prison under this statute. The Buyer may seek more information online by visiting https://www.nsopw.gov/.
XIX. Time
. The Parties agree that any dispute or claim in law or equity arising between them out of this Agreement or any resulting transaction, which is not settled through mediation, shall be decided by neutral, binding arbitration. The arbitrator is required to be a retired judge or justice, or an attorney with at least five (5) years of residential real estate law experience unless the Parties mutually agree to a different arbitrator. Under arbitration, the Parties shall have the right to discovery in accordance with Washington law. Judgment upon the award of the arbitrator(s) may be entered into any court having jurisdiction. Enforcement of this Agreement to arbitrate shall be governed by the Federal Arbitration Act.
a.) Exclusions. The following matters shall be excluded from the mediation and arbitration: (i) a judicial or non-judicial foreclosure or other action or proceeding to enforce a deed, mortgage or installment land sale contract as defined in accordance with Washington law; (ii) an unlawful detainer action, forcible entry detainer, eviction action, or equivalent; (iii) the filing or enforcement of a mechanic’s lien; and (iv) any matter that is within the jurisdiction of a probate, small claims or bankruptcy court. The filing of a court action to enable the recording of a notice of pending action, for order of attachment, receivership, injunction, or other provisional remedies, shall not constitute a waiver or violation of the mediation and arbitration provisions of this Section.
XXIV. Governing Law. This Agreement shall be interpreted in accordance with the laws in the State of Washington.
XXV. Terms and Conditions of Offer. This is an offer to purchase the Property in accordance with the above stated terms and conditions of this Agreement. If at least one, but not all, of the Parties initial such pages, a counter offer is required until an agreement is reached. Seller has the right to continue to offer the Property for sale and to accept any other offer at any time prior to notification of acceptance. If this offer is accepted and Buyer subsequently defaults, Buyer may be responsible for payment of licensed real estate agent(s) compensation. This Agreement and any supplement, addendum or modification, including any copy, may be signed in two or more counterparts, all of which shall constitute one and the same writing.
XXVI. Binding Effect. This Agreement shall be for the benefit of, and be binding upon, the Parties, their heirs, successors, legal representatives, and assigns, which therefore, constitutes the entire agreement between the Parties. No modification of this Agreement shall be binding unless signed by both Buyer and Seller.
XXVII. Severability. In the event any provision or part of this Agreement is found to be invalid or unenforceable, only that particular provision or part so found, and not the entire Agreement, will be inoperative.
XXVIII. Offer Expiration
. This offer to purchase the Property as outlined in this Agreement shall be deemed revoked and the Earnest Money shall be returned unless this Agreement is signed by Seller and a copy of this Agreement is personally given to the Buyer by ______________________, 20____ at ____:____ ☐ AM ☐ PM.
XXIX. Acceptance. Seller warrants that Seller is the owner of the Property or has the authority to execute this Agreement. Therefore, by the Seller’s authorization below, he/she/they accepts the above offer and agrees to sell the Property on the above terms and conditions and agrees to the agency relationships in accordance with any agreement(s) made with licensed real estate agent(s). Seller has read and acknowledges receipt of a copy of this Agreement and authorizes any licensed real estate agent(s) to deliver a signed copy to the Buyer.
Delivery may be in any of the following: (i) hand delivery; (ii) email under the condition that the party transmitting the email receives electronic confirmation that the email was received to the intended recipient; and (iii) by facsimile to the other party or the other party’s licensee, but only if the transmitting fax machine prints a confirmation that the transmission was successful.
XXX. Licensed Real Estate Agent(s). If Buyer or Seller have hired the services of licensed real estate agent(s) to perform representation on their behalf, he/she/they shall be entitled to payment for their services as outlined in their separate written agreement.
XXXI. Disclosures. It is acknowledged by the Parties that: (check one)
☐ - There are no attached addendums or disclosures to this Agreement.
☐ - The following addendums or disclosures are attached to this Agreement:
☐ - Lead-Based Paint Disclosure Form
☐ - _________________________________________________________________
☐ - _________________________________________________________________
☐ - _________________________________________________________________
XXXII. Additional Terms and Conditions. _____________________________________
________________________________________________________________________________________________________________________________________________________________________________________________________________________
