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Is an offer to purchase real estate a binding contract in MA?

In one of your Quick Information articles you said something about an Offer to Purchase Real Estate being a binding contract in MA. Can you explain, because I thought that was not the case.

Editor's Response

Up until a few years ago most people assumed, like you, that an offer was just that: an offer, not a contract.  But in the McCarthy case (McCarthy v. Tobin, 429 Mass. 84, (1999), the Massachusetts Supreme Judicial Court held that a signed and accepted written offer that contains all material terms may be a binding contract.  So, sometimes, even if a Purchase and Sale Agreement is never signed, the seller or the buyer can seek specific performance (forcing the other party to go through with the sale and purchase).  So, before signing an offer, I would make sure you have it reviewed by an attorney.  If you do not do that, at least make sure you understand the nature of the document you are signing and intend to move forward with the purchase.  For more information or to post a question, visit our MA Real Estate Law Discussion Forum.

 

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