Real Estate Purchase Agreement
Real Estate Purchase Agreement Generator
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Signature Requirements
E-Signature Valid · Notarization at Closing
Purchase agreements accept e-signatures, but the deed transfer at closing typically requires notarization.
The purchase agreement itself is valid with e-signatures, but deed transfers require notarization at closing.
Sample Real Estate Purchase Agreement Generated by Legal Tank
Real Estate Purchase Agreement
Parties and Property
This Real Estate Purchase Agreement (the "Agreement") is made and entered into as of [____________] by and between [____________] ("Seller") and [____________] ("Buyer"). Seller agrees to sell and convey, and Buyer agrees to purchase, the real property located at [____________], County of [____________], State of [____________], together with all buildings, structures, improvements, fixtures, and appurtenances thereon, and all of Seller's right, title, and interest in all rights, privileges, and easements appurtenant thereto (collectively, the "Property"), as more particularly described in Exhibit A attached hereto.
The Property includes the following items of personal property, which shall be conveyed to Buyer by bill of sale at Closing at no additional cost: [____________]. The following items are specifically excluded from this sale: [____________]. The Property is identified by Tax Parcel Number [____________] and is currently [occupied by Seller / occupied by tenant(s) / vacant]. Seller represents that the Property is a [single-family residence / multi-family dwelling / condominium / townhouse / other: ____________] and consists of approximately [____________] square feet of living area on a lot of approximately [____________] square feet.
Purchase Price
The total purchase price for the Property shall be [$__________] (the "Purchase Price"), payable as follows: (a) Earnest Money Deposit of [$__________] as set forth in Article 3; (b) any additional deposit(s) required under this Agreement; and (c) the balance of the Purchase Price, subject to adjustments and prorations, payable at Closing by wire transfer of immediately available funds, certified check, or cashier's check. The Purchase Price [is / is not] contingent upon the appraised value of the Property as set forth in Section 4.2.
Earnest Money Deposit
Within [number] business days of the effective date of this Agreement, Buyer shall deliver an earnest money deposit in the amount of [$__________] (the "Earnest Money") to [____________] ("Escrow Agent"), to be held in an escrow account in accordance with the terms of this Agreement. The Earnest Money shall be applied toward the Purchase Price at Closing. If Buyer fails to timely deliver the Earnest Money, Seller may terminate this Agreement by written notice to Buyer.
The Earnest Money shall be refundable to Buyer if this Agreement is terminated during any applicable contingency period as provided herein. The Earnest Money shall become non-refundable upon the expiration or waiver of all contingencies, except in the event of Seller's default. If Buyer defaults after all contingencies have been satisfied or waived, Seller shall be entitled to retain the Earnest Money as liquidated damages, which the Parties agree is a fair and reasonable estimate of Seller's actual damages and is not a penalty. This provision shall not limit Seller's right to recover attorneys' fees as provided in Section 10.2.
Financing Contingency
This Agreement is contingent upon Buyer obtaining a commitment for [conventional / FHA / VA / USDA / other: ____________] mortgage financing in the amount of [$__________] (the "Loan"), at an interest rate not exceeding [____________] percent ([___]%) per annum, for a term of [____________] years, with monthly payments not exceeding [$__________] (the "Financing Contingency"). Buyer shall apply for the Loan within [number] business days of the effective date and shall diligently pursue obtaining a commitment. Buyer shall promptly provide Seller with evidence of loan application and shall keep Seller informed of the status of the Loan.
If Buyer is unable to obtain a loan commitment satisfying the terms of Section 4.1 within [number] days of the effective date (the "Financing Contingency Period"), Buyer may terminate this Agreement by delivering written notice to Seller prior to the expiration of the Financing Contingency Period, together with written evidence from the lender of the denial or inability to obtain financing, and the Earnest Money shall be refunded to Buyer. If Buyer does not deliver a termination notice prior to the expiration of the Financing Contingency Period, the Financing Contingency shall be deemed waived. If the Property appraises for less than the Purchase Price, Buyer may: (a) proceed to Closing paying the difference in cash; (b) negotiate a reduced Purchase Price with Seller; or (c) terminate this Agreement and receive a refund of the Earnest Money.
View all 12 sections
Title and Survey
Seller shall, at [Seller's / Buyer's] expense, deliver to Buyer within [number] days of the effective date a commitment for an owner's policy of title insurance (the "Title Commitment") in the amount of the Purchase Price, issued by a title insurance company acceptable to Buyer, together with legible copies of all documents constituting exceptions to title. Buyer shall have [number] days after receipt of the Title Commitment to examine the same and to deliver written notice to Seller of any objections to matters disclosed therein (the "Title Objection Notice").
Seller shall have [number] days after receipt of the Title Objection Notice to cure the objected-to matters. If Seller is unable or unwilling to cure any title objection, Buyer may: (a) waive the objection and proceed to Closing, accepting title subject to such matter; (b) terminate this Agreement and receive a full refund of the Earnest Money; or (c) cure the defect at Buyer's expense and deduct such cost from the Purchase Price with Seller's written consent. At Closing, Seller shall convey marketable and insurable fee simple title to the Property by general warranty deed, free and clear of all liens, encumbrances, and defects except for Permitted Exceptions as approved by Buyer.
Inspections
Buyer shall have [number] days from the effective date (the "Inspection Period") to conduct, at Buyer's expense, such inspections, tests, and investigations of the Property as Buyer deems necessary, including without limitation: (a) a general home inspection by a licensed inspector; (b) pest and termite inspection; (c) radon testing; (d) mold testing; (e) lead-based paint inspection (if applicable); (f) septic system inspection; (g) well water testing; (h) structural and engineering evaluation; and (i) any other inspections Buyer deems appropriate. Seller shall provide reasonable access to the Property for all inspections upon reasonable notice.
If the inspections reveal defects or conditions unacceptable to Buyer, Buyer shall deliver written notice to Seller prior to the expiration of the Inspection Period specifying the defects and either: (a) requesting that Seller repair or remedy the specified defects prior to Closing, at Seller's expense; (b) requesting a reduction in the Purchase Price; or (c) terminating this Agreement and receiving a full refund of the Earnest Money. If Buyer requests repairs, Seller shall respond in writing within [number] days, and if the Parties cannot reach agreement, either Party may terminate this Agreement. If Buyer does not deliver a notice of defects prior to the expiration of the Inspection Period, Buyer shall be deemed to have accepted the Property in its present condition.
Closing
The Closing shall take place on or before [____________] (the "Closing Date"), at the office of the title company or at such other location as the Parties may agree. At Closing, Seller shall deliver: (a) a duly executed general warranty deed; (b) a seller's affidavit and FIRPTA affidavit; (c) all keys, garage door openers, and access devices; (d) the property disclosure statement required by applicable state law; (e) a bill of sale for any included personal property; and (f) such other documents as are customarily required to consummate the transaction in the jurisdiction in which the Property is located.
At Closing, Buyer shall deliver the balance of the Purchase Price and execute all documents required by Buyer's lender and the title company. The following items shall be prorated as of the Closing Date: real property taxes, assessments, homeowners association dues, prepaid insurance premiums (if policy is assumed), utility charges, rents (if applicable), and any other items customarily prorated. Closing costs shall be allocated as follows: Seller shall pay [____________]; Buyer shall pay [____________]; transfer taxes shall be [split equally / paid by Seller / paid by Buyer]. Possession shall be delivered to Buyer at Closing [or on ____________].
Representations and Warranties
Seller represents and warrants to Buyer that: (a) Seller is the lawful owner of the Property with full authority to sell; (b) there are no undisclosed liens, encumbrances, or assessments against the Property; (c) the Property complies with all applicable zoning, building, and environmental laws; (d) all mechanical systems, appliances, and structural components are in working order as of the date hereof; (e) there are no pending or threatened actions, suits, or proceedings affecting the Property; (f) Seller has disclosed all known material defects in the Property Disclosure Statement; and (g) the information provided in the Property Disclosure Statement is true and correct.
Seller further represents that: (a) the Property is not located in a designated flood zone, or if it is, Seller has disclosed this fact; (b) Seller has not received notice of any planned changes to the zoning or use of adjacent properties; (c) there are no boundary disputes or encroachments known to Seller; (d) all additions and improvements to the Property were made with required permits and are in compliance with building codes; and (e) there are no hazardous materials on the Property known to Seller. These representations and warranties shall survive Closing for a period of [number] months from the Closing Date.
Risk of Loss and Condition
Risk of loss or damage to the Property shall remain with Seller until Closing. If the Property is materially damaged prior to Closing, Buyer may: (a) terminate this Agreement and receive a full refund of the Earnest Money; or (b) proceed to Closing with an assignment of Seller's insurance proceeds and a reduction of the Purchase Price by the amount of any deductible. Seller shall maintain all existing insurance on the Property through the Closing Date and shall not cancel or reduce coverage without Buyer's prior written consent.
Seller shall maintain the Property in its present condition, normal wear and tear excepted, from the effective date through the Closing Date. Seller shall not make any material alterations to the Property or enter into any contracts or agreements affecting the Property without Buyer's prior written consent. Seller shall not remove any fixtures, improvements, or personal property included in this sale. Buyer shall have the right to conduct a final walk-through inspection of the Property within [number] days prior to Closing to verify that the Property is in the condition required by this Agreement.
Default and Remedies
If Buyer defaults under this Agreement after all contingencies have been satisfied or waived, Seller may retain the Earnest Money as liquidated damages, which shall be Seller's sole and exclusive remedy, except that Seller shall retain the right to recover reasonable attorneys' fees. If Seller defaults under this Agreement, Buyer may: (a) terminate this Agreement, receive a full refund of the Earnest Money, and recover Buyer's actual documented expenses, not to exceed [$__________]; (b) seek specific performance; or (c) pursue any other remedies available at law or in equity.
The prevailing Party in any litigation arising from this Agreement shall be entitled to recover reasonable attorneys' fees and costs from the non-prevailing Party. If either Party fails to perform any obligation under this Agreement, the non-defaulting Party shall give written notice of default, and the defaulting Party shall have [number] days from receipt of such notice to cure the default. No waiver of any default shall constitute a waiver of any subsequent default.
Governing Law
This Agreement shall be governed by the laws of the state in which the Property is located. Any dispute arising under this Agreement shall be resolved in the state or federal courts located in the county in which the Property is situated. This Agreement constitutes the entire agreement of the Parties with respect to the sale and purchase of the Property and supersedes all prior negotiations, representations, and agreements. Time is of the essence with respect to all dates and deadlines set forth herein.
General Provisions
This Agreement may not be amended except by written instrument signed by both Parties. If any provision is held invalid or unenforceable, the remaining provisions shall remain in full force. All notices shall be in writing and deemed given when delivered personally, by overnight courier, or by certified mail, return receipt requested. This Agreement shall be binding upon and inure to the benefit of the Parties and their respective heirs, successors, and permitted assigns. Buyer may assign this Agreement only with Seller's prior written consent.
Seller and Buyer each represent that they have not dealt with any real estate broker or agent in connection with this transaction other than [____________] (representing [Seller/Buyer]) and [____________] (representing [Seller/Buyer]). Broker commissions shall be payable by [Seller/Buyer] in accordance with separate brokerage agreements. Each Party shall indemnify the other against any claims for brokerage fees or commissions by any broker or agent claiming through such Party. This Agreement may be executed in counterparts, each of which shall be deemed an original.
What Is a Real Estate Purchase Agreement?
A real estate purchase agreement is the binding contract between a buyer and seller that sets the terms for the sale of real property: the purchase price, the deposit, the contingencies that must be satisfied, and the date and conditions of closing. Once both parties sign, it governs the transaction from contract to closing and defines what each side must do to complete the sale and what happens if they do not.
Because it transfers an interest in land, a real estate purchase agreement must be in writing to be enforceable under the Statute of Frauds, which every state applies to contracts for the sale of real property. The writing must identify the parties, the property, the price, and the essential terms, and be signed by the party to be charged. An oral agreement to sell real estate, no matter how clear, generally cannot be enforced.
The heart of the agreement is its contingencies, conditions that must be met before the buyer is obligated to close. Common contingencies include financing (the buyer obtaining a mortgage), inspection (the right to inspect and to cancel or renegotiate based on findings), appraisal (the property appraising at or above the price), and clear title. If a contingency is not satisfied, the buyer can typically cancel and recover the earnest money rather than being forced to buy.
Earnest money, a good-faith deposit the buyer places into escrow when the contract is signed, signals commitment and is credited toward the price at closing. Whether the buyer can recover it if the deal falls apart depends on the contingencies: a buyer who cancels for a permitted reason usually gets it back, while a buyer who walks away without a contractual basis may forfeit it to the seller as liquidated damages. Some states, notably New Jersey, give both parties a short attorney-review period after signing during which the contract can be canceled.
Why You Need a Real Estate Purchase Agreement
You are buying or selling a home directly (for sale by owner) and need a binding, state-aware contract that protects both sides without a broker's standard form.
A buyer wants the protection of inspection, financing, and appraisal contingencies so they can recover their earnest money if the property, loan, or value does not check out.
A seller wants clear default and earnest-money terms so a buyer who walks away without cause does not leave them with a failed sale and no compensation.
You are purchasing land, a rental property, or a second home and need a purchase agreement tailored to the financing, closing timeline, and contingencies of that specific deal.
Parties have agreed on price and terms and want a signature-ready document to take to escrow, title, and lenders to move the transaction to closing.
Key Sections in a Real Estate Purchase Agreement
Parties and Property Description
Identifies the buyer and seller and describes the property by address and legal description. An accurate legal description, not just a street address, is what ties the contract to the specific parcel being conveyed.
Purchase Price and Earnest Money
States the total purchase price, the earnest money deposit and where it is held, and how the balance will be paid at closing. It specifies the conditions under which the earnest money is refunded or forfeited.
Financing Terms
Describes whether the purchase is all cash or financed, the type and amount of any mortgage, and the financing contingency that lets the buyer cancel and recover the deposit if a loan cannot be obtained by a deadline.
Contingencies
Sets out the conditions that must be satisfied before the buyer is bound to close, typically inspection, appraisal, financing, and clear title, along with the deadlines and the buyer's rights (cancel, renegotiate, or proceed) if a contingency fails.
Disclosures, Title, and Closing
Covers the seller's required property disclosures, the obligation to deliver marketable title (often via a title commitment and owner's policy), prorations of taxes and fees, the closing date, and how possession transfers. Federal law requires a lead-based-paint disclosure for most homes built before 1978.
Default and Remedies
Defines what constitutes a default by either party and the remedies available, such as the seller retaining earnest money as liquidated damages, or either party pursuing specific performance to force the sale or other contractual remedies.
Real Estate Purchase Agreement Legal Requirements
Under the Statute of Frauds, a contract for the sale of real property must be in writing, identify the parties, property, and price, and be signed by the party against whom it is enforced.
The seller of most residential property built before 1978 must provide a federal lead-based-paint disclosure and pamphlet, and most states require a property condition disclosure to the buyer.
Earnest money is typically held in escrow, and the agreement should state the conditions under which it is refunded to the buyer or forfeited to the seller as liquidated damages.
Some states, such as New Jersey, provide a statutory attorney-review period after signing during which either party may cancel the contract; New York, by contrast, has no such period.
Transfer of title generally requires a deed delivered at closing, and recording the deed with the county is what establishes the buyer's ownership against third parties.
Common Real Estate Purchase Agreement Mistakes to Avoid
Relying on an oral agreement or informal emails; because of the Statute of Frauds, a contract to sell real property must be a signed writing with the essential terms to be enforceable.
Waiving or omitting key contingencies (inspection, financing, appraisal, title) to make an offer more attractive, then losing the earnest money when an unforeseen problem makes closing impossible.
Leaving contingency deadlines vague or missing them, which can waive the contingency and lock the buyer into the purchase or forfeit the deposit.
Failing to include required disclosures, such as the federal lead-based-paint disclosure for pre-1978 homes or state-mandated property condition disclosures, which can expose the seller to later liability.
Using a generic form that ignores state-specific rules, such as New Jersey's attorney-review period or local transfer-tax and title-practice differences.
Frequently Asked Questions About Real Estate Purchase Agreements
What is a real estate purchase agreement?
What should a real estate purchase agreement include?
Is a purchase agreement legally binding?
What is the difference between a purchase agreement and a contract?
Can you back out of a purchase agreement?
What is earnest money in a purchase agreement?
Who writes the real estate purchase agreement?
What are common contingencies in a purchase agreement?
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