Buyers Beware: A "Free Look" Could Cost You
12.2.08News & Publications
The Institutional Real Estate Letter – North America
John Kuhl co-authored this article discussing a recent case which underscores the importance of a purchase and sale agreement.
- Buyers must think their PSA locks seller into the deal, but a California Appeals court recently ruled that a signed PSA that included a "free look"for the buyer was not a binding agreement.
- To minimize the risk of having a seller back out, buyers should tailor the PSA to the specific transaction and address potential legal challenges to its enforceability.