Real Estate Purchase Agreement
The purchase agreement is where a property deal becomes real. It names the price, the deposit and the closing date — and, more importantly, the conditions under which either side may walk away without losing money.
Contingencies are the whole document
Buyers focus on price. Experienced buyers focus on contingencies, because a contingency is the only thing standing between a deposit and a loss. Financing, inspection, appraisal, title, sale of an existing home — each needs a deadline and a stated consequence. A contingency without a date is not protection; it is a conversation you will have under time pressure.
What the template covers
Price, deposit, and when the deposit goes hard
The date the earnest money stops being refundable is the single most important date in the contract, and the one most often left implicit.
Financing and appraisal contingencies
Whether the buyer may terminate if the loan is denied or the appraisal comes in low, by what date, and what happens to the deposit in each case.
Inspection rights and remedies
How long the buyer has, what access they get, and whether they may demand repairs, a credit, or simply terminate. Ambiguity here creates the most common mid-contract dispute.
What conveys with the property
Appliances, fixtures, window treatments, mounted equipment. Cheap to list; expensive to argue about the day before closing.
Writing requirement and signature
The Statute of Frauds, in force in every U.S. state, requires that a contract for the sale of an interest in land be in writing and signed by the party against whom enforcement is sought. Electronic signature satisfies this: 15 U.S.C. § 7001 under the ESIGN Act provides that a contract may not be denied legal effect solely because an electronic signature was used, and UETA does the same at state level in 49 states, with New York relying on State Technology Law § 304. Disclosure obligations vary substantially by state — several require specific written disclosures about property condition, lead paint in older housing under federal law, or natural hazards — and those are separate from the contract itself.
A financing contingency with no deadline
A buyer wrote an offer contingent on obtaining financing, without a date by which the contingency had to be removed. The lender took nine weeks. The seller, who had a move scheduled, wanted to terminate and relist; the buyer maintained the contingency was still live. Both were arguably right, which is another way of saying the contract had not decided the question. They settled by extending, and the seller paid for a month of storage that a single date in the offer would have avoided.
Questions people ask about this
Do I need a lawyer for a purchase agreement?
Several states require attorney involvement in residential closings, and in others it is customary. A template gets the terms organised and the deal moving; it does not replace advice on a specific property or an unusual structure.
How much earnest money is normal?
Commonly one to three percent of the purchase price in residential transactions, higher in competitive markets and in commercial deals. What matters more than the amount is when it becomes non-refundable.
Can the seller accept another offer after signing?
Not without breaching, once the contract is executed. Sellers sometimes accept back-up offers explicitly contingent on the first contract terminating, which is a different arrangement and should be documented as one.
Is a purchase agreement the same as a letter of intent?
No. A letter of intent records an understanding and is usually mostly non-binding; a purchase agreement is the binding contract. In commercial transactions the LOI typically comes first and the purchase agreement is drafted from it.