Purchase Sale Agreement

Washington Purchase and Sale Agreement (Form 21) ## NWMLS Forms vs. TREC Forms Unlike Texas (which mandates TREC-promulgated forms), Washington does not have a single state-mandated purchase and sale form. Instead, the overwhelming majority of residential transactions use forms published by the Northwest Multiple Listing Service (NWMLS) — particularly NWMLS Form 21, the Residential Purchase and Sale Agreement. Attorneys may draft custom agreements, and commercial transactions use forms from other sources. For exam purposes, understand the structure of NWMLS-style agreements because they represent standard Washington practice. ## NWMLS Form 21 Key Provisions Form 21 covers: - Identification of parties and property - Purchase price and financing terms - Earnest money amount and holder - Inspection and contingency provisions - Closing date and possession date - Prorations - Condition of property at closing ## Mutual Acceptance — The Washington Effective Date Under NWMLS practice, a purchase and sale agreement becomes binding when both parties have signed AND the signed contract has been delivered to (or received by) the other party or their agent. The date of mutual acceptance is the "Effective Date" — triggering all time-sensitive deadlines: - Financing contingency period - Inspection contingency period - Earnest money deposit deadline Mutual acceptance ≠ date of signing. A signed contract sitting undelivered has not been mutually accepted. ## Earnest Money in Washington Earnest money may be held by either: - The listing firm (must deposit in firm's trust account within 1 business day of receipt) - A closing agent (escrow/title company) When earnest money is disputed and parties cannot agree, the holding broker must either: 1. Disburse per written agreement of the parties, OR 2. **File an interpleader action in superior…