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Litigation & Court Documents

What to Know Before You Sign a Real Estate Purchase Agreement

A purchase agreement is where most of the real risk in a property deal actually lives — here's what to check before you sign.

6 min read

By the time a purchase agreement lands in front of you, the excitement of finding a property can make it tempting to sign quickly. The agreement is where contingencies, deadlines, and financial terms actually get locked in.

Contingencies protect your ability to walk away

Financing, inspection, and appraisal contingencies each give you an exit if something goes wrong — a failed inspection, a low appraisal, a denied loan. Waiving them speeds up a deal but removes your protection if something surfaces later.

Deadlines are enforceable, not suggestions

Inspection periods, financing deadlines, and closing dates are typically binding under the agreement. Missing one can mean losing an earnest money deposit or defaulting on the contract entirely.

Disclosures shift risk onto the seller — if they're accurate

Sellers are generally required to disclose known material defects. Reviewing the disclosure statement against the inspection report closely is what actually surfaces inconsistencies worth raising before closing.

What happens if either side backs out

The agreement should spell out what happens to the earnest money and what remedies each side has if the deal falls through — this section is often skimmed but matters most when a transaction goes sideways.

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