Real Estate Purchase Agreement

Create a binding contract to legally transfer ownership of residential real estate between a buyer and seller.

What Is a Real Estate Purchase Agreement?

A Real Estate Purchase Agreement (also known as a Purchase and Sale Agreement) is a legally binding contract that outlines the terms and conditions of a property sale. It commits the buyer to purchase the property and the seller to sell it, provided all contingencies and conditions listed in the contract are met before the closing date.

Essential Contract Elements

A standard Real Estate Purchase Agreement includes Several crucial components:

Purchase Price and Financing Method (Cash, mortgage, or seller financing)

Earnest Money Deposit (Good faith money held in escrow)

Closing Date (When the title transfers and funds are disbursed)

Closing Costs (Who pays for title insurance, transfer taxes, and escrow fees)

Property Description (Legal description and physical address)

Fixtures and Chattel (What appliances or furniture stay with the house)

Required State Disclosures (e.g., Lead-based paint, seller's property disclosure)

Common Contingencies

Contingencies are conditions that must be met for the transaction to proceed. If a contingency is not met, the buyer can usually walk away and keep their earnest money deposit.

Inspection Contingency: Allows the buyer to hire a professional to inspect the home and cancel if severe defects are found or renegotiate repairs.
Financing Contingency: Protects the buyer if they cannot secure a mortgage approval within a specified timeframe.
Appraisal Contingency: Allows cancellation if the property appraises for less than the agreed-upon purchase price.
Home Sale Contingency: Requires the buyer to successfully sell their current home before purchasing the new one.

Draft a Purchase Agreement

Custom-build a purchase contract tailored to your state's specific real estate transaction laws.

Create Agreement