Contracts, Purchase and Sale Agreements, and Transaction Handling
Contract basics
Offer, acceptance, consideration, capacity, and legality, plus the statute of frauds - real estate contracts must be in writing and signed. A counteroffer terminates the original offer. Acceptance is effective on delivery, not on signing.
The Maine purchase and sale agreement
The PSA is the transaction roadmap: price, deposit, financing and inspection contingencies, closing date, title and survey, and who pays what. Maine closings are customarily attorney-conducted; the licensee coordinates deadlines but does not practice law. Time is of the essence clauses make deadlines enforceable - calendar every contingency date.
Transaction handling
Deposits are held in escrow and accounted for; the Maine Residential Property Disclosure form must be delivered to the buyer, and the federal lead-based paint disclosure applies to pre-1978 housing. Smoke and carbon monoxide detectors are required at transfer. The Maine Real Estate Transfer Tax is $2.20 per $1,000 of price, split evenly between buyer and seller.
Traps: treating a counteroffer as a binding acceptance; verbal modifications of a written contract; assuming 'as-is' eliminates disclosure duties; missing a financing deadline by one day.
Rule of thumb: nothing is binding until it is written, signed, and delivered - and a counteroffer starts a new ballgame.