Buying in Massachusetts can feel like two contracts for one home. You hear Offer to Purchase and Purchase and Sale, and you wonder which one actually binds the deal. You want clarity, confidence, and a smooth path to closing. In this guide, you will learn what each document does, how Hanover timelines and deposits typically work, and how to protect your deposit while staying competitive. Let’s dive in.
Offer to Purchase vs Purchase and Sale
Offer to Purchase: the first step
An Offer to Purchase, often called an OTP, is your written proposal to the seller. It lays out price, your identity and financing status, target closing date, an initial deposit, and short deadlines to move to the Purchase and Sale. In many cases, the OTP includes brief contingency language, like inspection and financing, and states who will hold the initial deposit.
While an accepted OTP can create obligations if drafted that way, it usually functions as a framework for the next step. In practice, your attorney and the seller’s attorney use the OTP to negotiate a detailed Purchase and Sale.
Purchase and Sale: the binding contract
The Purchase and Sale, often called the P&S, is the comprehensive, enforceable agreement. It governs deposits and escrow, contingencies, title, closing mechanics, and remedies if either side defaults. Once both parties sign the P&S, its deadlines and terms control the transaction through closing.
In Massachusetts, attorneys commonly review and negotiate the P&S. This is when details like inspection remedies, mortgage commitment deadlines, title cure periods, and default provisions are finalized.
Hanover timelines at a glance
Local pace depends on market conditions and price point, but these ranges are common in Hanover and Plymouth County:
- Offer acceptance to P&S signing: about 3 to 10 days, with 7 days as a typical target.
- Home inspection window: about 7 to 10 days, often measured from P&S execution.
- Septic, percolation, or well tests if applicable: plan for 7 to 21 days depending on scheduling.
- Mortgage commitment: about 30 to 45 days from P&S.
- Closing: about 30 to 60 days after P&S, tied to lender and title timelines.
If the market tilts to sellers, expect tighter windows and stronger escrow signals. In a softer market, you can often negotiate longer periods and smaller deposits.
Deposits and escrow: what is customary
Your escrow deposit signals seriousness and provides security to the seller.
- Initial deposit with the OTP: commonly a modest amount. You might see a flat dollar figure such as about $1,000 or a percentage up to about 2 percent of the purchase price.
- Increased deposit at P&S: the total escrow deposit often rises to about 3 to 5 percent of the purchase price when you sign the P&S. Your initial deposit is credited toward this total.
- Who holds the funds: the seller’s listing broker often holds the initial deposit. After the P&S, funds are frequently held by the seller’s attorney, the listing broker, or a title company in escrow.
- Refund conditions: the documents should clearly state when your deposit is refundable, such as if you terminate within a valid contingency window. Confirm payee and escrow instructions before sending funds.
Contingencies that protect you
Contingencies outline conditions that must be met. They also give you a clear, time-bound path to cancel if something material changes.
- Financing contingency: protects you if your loan is not approved by a set date. Many buyers clarify that financing is subject to appraisal.
- Home inspection contingency: allows a defined period to inspect and request repairs or credits, or to terminate if agreement is not reached.
- Sale of buyer’s property: less common in competitive settings. If used, it should be explicit and time-boxed.
- Condo document review: for condos, you typically receive up-to-date documents and have a set review period.
- Title and closing logistics: title review and cure obligations are usually governed in detail by the P&S.
Keep in mind that shorter windows can strengthen your offer, but they require tight coordination with your agent, inspector, and lender.
What the P&S adds and why it matters
The P&S allocates risk and clarifies rights. It typically includes:
- Purchase price allocation, total deposit schedule, and escrow instructions.
- Closing date, location, deed delivery, possession, and prorations.
- Inspection remedies, such as repair, credit, or the right to terminate within set timelines.
- Title warranties and seller obligations to cure defects.
- Condo or HOA disclosures and buyer review rights when applicable.
- Default remedies, which may include liquidated damages clauses, specific performance, or other terms.
Once you sign the P&S, deadlines are strict. Missing an inspection or mortgage commitment date can waive rights or put you in default, so calendar alerts and written notices are essential.
Negotiation levers in this market
In Hanover and across Plymouth County, you can tailor these levers to the level of competition:
- Deposit size and timing: bigger, faster deposits can rise to the top in multiple offers. Smaller deposits are possible in softer markets.
- Contingency windows: shorter but reasonable timelines can strengthen your position. Longer windows give you more protection.
- Inspection language: define acceptable outcomes, set thresholds for repairs, or agree on credits. Be specific about timelines and documentation.
- Financing terms: clarify loan type, commitment date, and whether the offer is subject to appraisal.
- Closing flexibility: offering the seller a flexible date or rent-back can be attractive.
- Escalation clauses: can help in bidding, but they require careful drafting to avoid overpaying.
Your step-by-step plan
Use this practical path to stay organized and confident:
- Get pre-approved with your lender so your OTP is credible on day one.
- Draft the OTP with your agent, including an initial deposit and realistic deadlines for P&S signing and inspections.
- Once accepted, send the draft P&S immediately to your attorney for review and negotiation.
- Schedule inspections right away. For older Hanover properties or rural lots, include septic or well testing and allow for scheduling time.
- Track every deadline. Deliver written notices for inspection objections, financing, condo doc review, and any extensions.
- Coordinate with your lender on appraisal and underwriting to meet the mortgage commitment date.
- Confirm escrow details and who holds the deposit at each step before wiring funds.
- Prepare for closing logistics, including final walk-through, utilities, and insurance.
When to involve your attorney and agent
- Your agent: strategy, pricing, offer terms, deposit logistics, and coordination with inspectors and lenders.
- Your attorney: P&S review and negotiation at a minimum. Engage earlier if your offer includes unusual terms, if the property is part of an estate sale, or if you anticipate title or repair complexities.
This division of labor reflects common Massachusetts practice. Your team keeps you competitive while protecting your deposit and rights.
Common pitfalls to avoid
- Signing a P&S without clear contingency windows or inspection remedies.
- Missing deadlines for inspection, mortgage commitment, or title objections.
- Sending funds without written escrow instructions and a clear payee.
- Waiving protections to win a bid without a plan to manage risk.
- Waiting too long to order septic, well, or specialized inspections.
- Delays in obtaining condo documents that compress your review timeline.
Bottom line for Hanover buyers
Treat the Offer to Purchase as your opening move that sets price, deposits, and pace. Treat the Purchase and Sale as the binding contract that controls the rest of the journey. Typical local practice is a quick shift from OTP acceptance to P&S within about a week, with deposits increasing to about 3 to 5 percent at P&S and clear contingency windows for inspection and financing.
If you want a steady hand through these steps, the Doran Hall Team offers boutique, high-touch buyer representation with local coordination for lending, legal, and inspections across the South Shore. Reach out when you are ready to write a confident offer and close with clarity.
FAQs
Is my Hanover offer binding once accepted?
- Acceptance of an Offer to Purchase shows agreement on key terms, but the detailed, binding contract is the Purchase and Sale, and specific OTP language can create obligations.
How much deposit is typical in Hanover?
- Many buyers submit about $1,000 to 2 percent with the OTP, then increase to a total of about 3 to 5 percent at P&S, subject to market conditions and negotiation.
How fast do I move from offer to P&S in Plymouth County?
- A common local target is about 7 days, though the range is roughly 3 to 10 days depending on the deal and market.
Can I back out after signing the P&S in Massachusetts?
- Only if the P&S gives you a valid contingency and you act within the stated timelines; otherwise you risk losing your deposit or other remedies.
Who holds my escrow deposit in a Hanover purchase?
- The listing broker often holds the initial deposit, and after P&S the funds are commonly held by the seller’s attorney, the listing broker, or a title company in escrow.
What contingencies should first-time Hanover buyers consider?
- Standard protections include financing subject to appraisal, a defined home inspection window, and condo document review when applicable, with clear timelines and notice requirements.
