What Is Purchase Agreement?
Purchase Agreement: The signed contract between buyer and seller that sets the price, terms and deadlines for a home sale.
Also called: purchase contract, sales contract
The purchase agreement is the legally binding contract for buying a home. Your offer becomes the purchase agreement once both sides sign the same terms.
What it covers
- Buyer, seller and property
- Price and how you're paying (loan type and down payment)
- Earnest money amount and deadline
- Contingencies and their deadlines
- Seller concessions
- Closing date and possession date
- Included and excluded items
- Who pays which closing costs
- What happens if either side defaults
- Addenda for extra terms
State forms
Most states have standard purchase agreement forms. Unbeatable generates the contract for the property's state from your answers.
Good to know
Read every deadline. In many states, missing one can waive a contingency or put your deposit at risk. Consider having a real estate attorney review terms you're unsure about.