The Purchase and Sale or P & S for short is a multi-page document executed about 10 days from the Offer or 3 business days after the Home Inspection Contingency. Both the Buyer and Sellers Attorneys will work together to draft and each will add verbiage to protect their Clients.
All information from the offer and from the Home Inspection if applicable will be included in the document. The Purchase & Sale now takes the place of the original offer.
The second more substantial deposit will be due at the time of signing and that amount is usually 5% of the purchase price minus the $1000 already paid. For example, if a home costs $500k the P & S deposit would be $24k ($500,000 x 5%=$25,000-$1000= $24,000).
It is certainly possible and could be appropriate for some Buyers to put down less if necessary but worth asking the reason since 5% of the purchase price is the norm.
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