Offer to Purchase vs P&S in MA: Cambridge Guide

Not sure if your Offer to Purchase actually locks you in, or if the real commitment happens later at the Purchase & Sale? If you are buying in Cambridge or relocating to the Cambridge‑Newton‑Framingham corridor, this is a common point of confusion. You want to be competitive without taking on surprises, and you need a clear path from offer to closing. In this guide, you will learn how Massachusetts treats the Offer versus the P&S, typical Cambridge timelines, key contingencies, deposits, and how attorneys and escrow work. Let’s dive in.

Offer vs Purchase & Sale: key differences

What an Offer to Purchase includes

Your Offer to Purchase lays out the headline terms you are proposing. It typically covers price, your desired closing date, a high‑level list of contingencies like inspection and financing, and the initial deposit structure. In Cambridge’s competitive market, you often attach a pre‑approval and proof of funds to show strength.

When an offer becomes binding

An offer starts as a proposal, but it can become binding once accepted and signed by both parties if it includes all material terms. In many Massachusetts transactions, the accepted offer is followed quickly by a fuller Purchase & Sale. Treat any signed, accepted document as potentially binding and plan to involve an attorney early.

What the P&S covers

The Purchase & Sale Agreement is the comprehensive contract that finalizes the purchase price, deposits, closing date, detailed contingencies, and the remedies if either side fails to perform. Local REALTOR associations provide standard forms that attorneys customize for single‑family, condo, or multi‑family deals. For background on standard practices and forms, see resources from the Massachusetts Association of REALTORS and the Greater Boston Association of REALTORS.

Why the P&S matters

The P&S allocates risk and sets the roadmap to closing. It will spell out what happens if an inspection issue appears, how financing deadlines work, who holds escrow, and what remedies apply if the deal falls apart. Most buyers and sellers treat the P&S as “the contract,” even though the accepted offer can carry legal weight.

Cambridge workflow and timing

Step-by-step from offer to closing

• Submit your Offer to Purchase with price, deposit terms, closing date, and key contingencies. Include a strong pre‑approval and proof of funds.
• The seller accepts, rejects, or counters. After acceptance, the parties either sign the offer form itself or move quickly to a P&S.
• Deliver the deposit per the contract. The escrow holder is identified in the offer or P&S.
• Contingency periods run. You complete inspections, the lender orders the appraisal and underwrites your loan, and attorneys review title and documents.
• Once contingencies are satisfied or waived, you schedule and prepare for closing.
• Close at an attorney or title office. Funds are disbursed and the deed is recorded. Keys are exchanged after recording.

Typical Cambridge timelines

• Offer to signed P&S: often same day to 72 hours.
• Inspection period: commonly 7 to 10 business days. Some buyers shorten this to compete.
• Mortgage commitment: often 30 to 45 days, depending on lender underwriting.
• P&S to closing: typically 30 to 60 days, driven by lender timelines and any title or scheduling needs.

In hotter pockets of Cambridge, buyers sometimes shorten or waive contingencies to win. That approach increases risk, so be sure your lender and attorney are aligned before making those choices.

Common contingencies in Cambridge

Home inspection contingency

This gives you time to inspect the property and request repairs or credits, or to cancel within the window. In Cambridge, 7 to 10 business days is common. For older buildings and multi‑family homes, inspectors may suggest specialized evaluations for systems or materials. Build in access time early.

Financing and appraisal contingencies

A mortgage contingency protects you if your lender cannot deliver financing. A typical timeframe runs 30 to 45 days to obtain a written commitment. The appraisal contingency may be a separate clause or built into the financing contingency. To understand the lending process and how timelines affect you, review the Consumer Financial Protection Bureau’s mortgage guidance.

Title review and attorney’s review

Your attorney will review the title search for liens, easements, or other defects and confirm that the seller can deliver clear title. The contract often sets a short window for attorney review after the P&S is signed. If a title issue appears, the P&S will define what the seller must cure and your options if it cannot be cured.

Condominium documents

For condos, you will review the master deed, bylaws, budgets, meeting minutes, and any known or proposed special assessments. The P&S often provides 7 to 10 days for this review. If you need FHA or VA financing, confirm whether the condominium meets your lender’s program requirements.

Lead paint and Title V

If a home was built before 1978, federal law requires a lead paint disclosure and any available reports. Learn more from the EPA’s lead paint disclosure page. Most Cambridge homes are connected to municipal sewer, but if you shop in nearby suburbs like parts of Framingham, a property may have a septic system that triggers Massachusetts Title V rules. See the Massachusetts Title V inspection guidance.

Deposits, escrow, and attorneys

How much is the deposit and when is it due

Deposits in Massachusetts often total 1 to 5 percent of the purchase price between the offer and P&S stages, with 5 percent commonly seen in many deals. The exact schedule is set by your offer or P&S. Your deposit is credited back to you at closing.

Who holds escrow

The contract will name the escrow holder. In Cambridge you may see funds held in a listing broker’s trust account, a seller’s attorney escrow, a buyer’s attorney account, or a title company escrow. Make sure the P&S lists the holder and account.

Role of attorneys in Massachusetts

It is customary for both sides to retain real estate attorneys. They review and negotiate the P&S, order and analyze the title search, manage closing documents, and coordinate with your lender. For consumer guidance on hiring an attorney for a purchase, visit the Massachusetts Bar Association’s home‑buying guide.

Title search and title insurance

Your attorney or title team will examine public records for liens, easements, or judgments. Lenders require lender’s title insurance if you are financing. An owner’s title policy is commonly recommended to protect you from unknown title defects.

Out-of-state buyers: practical tips

E‑signatures and remote closings

Electronic signatures are widely used for offers and many contract documents. Most brokerages and attorneys accept e‑signatures, and many lenders allow remote signing for some forms. Learn more about e‑signature acceptance from the National Association of REALTORS. Certain closing documents may still need notarization or a wet signature, so confirm requirements with your lender and attorney early.

Power of attorney

Some remote buyers use a limited power of attorney to authorize a trusted person to sign select documents. This should be prepared by your attorney and approved by your lender well before closing.

Scheduling and lender timelines

Build in extra time for document delivery, notarization, and underwriting. Your lender’s processing schedule will drive the pace, so stay responsive to document requests to keep the file moving.

Wire fraud prevention

Wire fraud is a real risk in real estate. Protect your funds with a few simple habits.

• Verify wiring instructions by phone using a trusted number you already have for your attorney or title office.
• Do not act on last‑minute wiring changes sent by email.
• Use dual verification with both your attorney and your lender before sending any wire.
• Read the FBI’s wire fraud warning for real estate and follow your attorney and title company’s security protocols.

What this means for you

Treat any signed, accepted offer as potentially binding. Aim to move from offer to P&S within 24 to 72 hours, keep your inspection window realistic, and set a financing deadline your lender can meet. Get a strong pre‑approval before you write, and involve a local attorney at the offer or P&S stage. If you are relocating, plan for e‑signatures, notarization logistics, and extra time for underwriting. Above all, keep deposits safe by confirming any wiring instructions by phone.

If you want a clear, step‑by‑step plan for your Cambridge purchase, connect with YPC Real Estate LLC. Our team helps you align timelines, structure contingencies, and coordinate with your lender and attorney so you can move forward with confidence.

FAQs

Is an accepted Offer binding in Massachusetts?

• Potentially yes. If a written offer includes material terms and is signed by both parties, it can be binding, although most transactions still move to a comprehensive P&S that governs the details.

When is my deposit due in a Cambridge deal?

• Deposit timing is set by your offer and P&S. It is commonly due at P&S signing, and the contract will name the escrow holder and account.

How long from P&S to closing in Cambridge?

• Many closings occur 30 to 60 days after the P&S, driven by lender underwriting, title work, and the parties’ scheduling needs.

Can I waive contingencies to compete in Cambridge?

• You can, and some buyers do, but it increases risk. Shortening or waiving inspection or financing protections should be done only after discussing trade‑offs with your lender and attorney.

What happens if an inspection finds issues?

• During your inspection window, you can negotiate repairs or credits, accept the property as‑is, or exercise any contractual right to terminate, based on your P&S terms.

How do condo purchases differ in Cambridge?

• Expect a condo document review period to examine the master deed, bylaws, budgets, meeting minutes, and any assessments. This review often runs 7 to 10 days.

What should out‑of‑state buyers know about signing and closing?

• E‑signatures are widely accepted for offers and many forms, yet some closing documents still require notarization or wet signatures. Confirm requirements with your lender and attorney early and consider a limited power of attorney if needed.