To fill out a real estate contract, work through the standard purchase agreement section by section with your information already gathered: the full legal names of every buyer and seller, the property’s street address and legal description, the price and financing terms, the earnest money amount and escrow holder, every contingency with a specific calendar deadline, what stays with the house and what leaves, the closing and possession dates, and any required disclosures. Real estate contracts must be in writing and signed to be enforceable, so every blank you leave empty and every date you write “TBD” next to is ambiguity you’ll answer for later.
Most buyers and sellers use a pre-printed form from a state or local realtor association. The boilerplate handles the legal framework; you fill in the specifics. If the deal involves unusual terms, an attorney can add addenda or modify the form.
Gather Your Information Before You Start
Sitting down with a blank contract and realizing you don’t have a critical piece of information is a common way to introduce errors. Collect everything first, then fill in the form. At minimum:
- Every buyer’s and seller’s full legal name, spelled exactly as it appears on government-issued ID. For a trust, LLC, or corporation, the entity’s legal name and the authorized signer.
- The street address and the full legal description from the current deed or county assessor records.
- The agreed purchase price, down payment, loan type and amount if financing, and earnest money deposit.
- Proposed closing date, possession date, and deadlines for each contingency.
- Which contingencies apply: inspection, appraisal, loan approval, clear title.
- Specific items staying with the property or leaving with the seller.
- Required federal and state disclosure forms, including lead-based paint documentation for pre-1978 homes.
Name the Parties Correctly
The first section names who is buying and who is selling. Use each person’s full legal name, not nicknames. If “Robert James Smith” is on the driver’s license, don’t write “Bob Smith.” A name mismatch between the contract and title records causes problems at closing that take time and money to fix.
When a business entity, trust, or estate is a party, the entity itself is named. Identify the entity’s full legal name and the person authorized to sign for it. A living trust would appear as something like “The Smith Family Trust, dated January 15, 2020, by Robert J. Smith, Trustee.” Vague entity names invite title issues later.
Describe the Property
The contract needs two things to identify the property: the street address and the legal description. The address is what everyone knows; the legal description is what matters to courts and title companies. It pinpoints the boundaries precisely enough that a surveyor could locate the parcel.
Legal descriptions come in a few standard formats: lot-and-block references in subdivisions, metes-and-bounds for rural or irregular parcels, and government survey references. You don’t need to understand the surveying. Copy the legal description exactly as it appears on the current deed. A small transcription error in a metes-and-bounds description can technically describe a different piece of land. If you can’t find the deed, the county recorder’s office or assessor’s website will have it.
Some contracts also include the county tax parcel number. That’s fine as a cross-reference but never a substitute for the full legal description. Parcel numbers can change when lots are subdivided or merged.
Purchase Price, Financing, and Earnest Money
Write the purchase price in both numbers and words. If the two don’t match, the written-out version controls in most jurisdictions, so check both. Below the price, the form asks how the buyer will pay. Common options are conventional mortgage, FHA loan, VA loan, or all cash. If financing is involved, fill in the loan amount, the loan type, and whether the buyer needs to sell another property to complete the purchase.
The earnest money deposit shows the seller you’re serious. The amount is negotiable and usually falls between 1% and 2% of the purchase price in a balanced market, though it climbs higher in competitive ones. The contract should state the exact deposit, when it’s due (often within a few days of mutual acceptance), and who holds it. A title company, escrow company, or the listing brokerage typically serves as escrow holder. The deposit goes toward your purchase at closing, and the conditions under which you get it back are defined entirely by the contingencies.
Contingencies and Their Deadlines
Contingencies are your exit ramps. Each gives you the right to back out and recover your earnest money if a specific condition isn’t met by a stated deadline. The common ones in residential deals:
- Inspection, typically a 7- to 10-day window to have the property professionally inspected. If problems turn up, you can ask for repairs, renegotiate, or cancel.
- Financing, usually 21 to 30 days, protecting you if your mortgage falls through.
- Appraisal, protecting you if the lender’s appraiser values the property below the purchase price. Without it, you’d need to cover the gap in cash or lose your deposit walking away.
- Title, letting you cancel if the search reveals liens, ownership disputes, unpaid taxes, or other defects that can’t be resolved before closing.
Every contingency needs a specific calendar deadline. Vague phrasing like “within a reasonable time” is an invitation to argue about what “reasonable” means. Most standard forms include a “time is of the essence” clause that makes deadlines strictly enforceable. Missing one by a day can put you in default. Treat every date as hard unless you’ve negotiated an extension in writing.
What Stays and What Goes
A surprising share of post-closing disputes involve items the buyer expected to stay and the seller planned to take. The general rule is that fixtures, meaning items physically attached to the property like built-in shelving, ceiling fans, and mounted light fixtures, convey with the sale unless the contract says otherwise. Freestanding personal property, like portable appliances and furniture, goes with the seller.
The gray area causes the fights. A chandelier the seller’s grandmother brought from Italy, a wall-mounted television, a wired-in hot tub. Reasonable people disagree. The fix is simple: list items specifically included and items specifically excluded. Verbal promises mean nothing once the contract is signed. If the seller says the washer and dryer stay, get it in writing.
In an as-is sale, the buyer accepts the property in its current condition and the seller won’t make repairs or offer credits for defects. You can still inspect the property and use what you learn to decide whether to proceed. What you can’t do is require the seller to fix anything. An as-is clause doesn’t override the seller’s duty to disclose known defects or eliminate warranties of title. It shifts repair risk to you, so factor that into your offer.
Closing Date, Possession, and Prorations
The closing date is when ownership transfers. Pick a date that gives the lender time to process the loan, the title company time to finish its search, and all contingency deadlines time to expire. Thirty to 45 days from mutual acceptance is typical for a financed purchase. Cash deals close faster.
Possession isn’t always the same as closing. Some sellers negotiate a rent-back to stay for days or weeks after closing. If the contract doesn’t address possession, the default expectation is that the buyer takes occupancy at closing. Spell out the exact date and time.
Property taxes, homeowners association dues, and similar charges are prorated between buyer and seller based on the closing date. The seller pays through the day of closing; the buyer picks up the rest. These adjustments appear on the closing statement. If you’re buying a tenant-occupied property, prepaid rent gets prorated the same way, and security deposits transfer to you as the new landlord.
Required Disclosures
Federal law requires specific disclosures for homes built before 1978. The seller must inform you about any known lead-based paint or lead hazards, hand over any lead inspection reports they have, provide the EPA’s “Protect Your Family From Lead in Your Home” pamphlet, and give you at least 10 days to arrange your own lead inspection before you’re locked into the contract.1U.S. Environmental Protection Agency. Real Estate Disclosures About Potential Lead Hazards The contract must include a Lead Warning Statement signed by the buyer confirming they received the information and had the opportunity to inspect.2Office of the Law Revision Counsel. 42 U.S. Code 4852d – Disclosure of Information Concerning Lead Upon Transfer of Residential Property
Most states also mandate their own seller disclosure forms covering the property’s physical condition: roof age, water intrusion, past termite damage, known defects. The specific items vary by state, but the principle is consistent. Sellers must reveal material facts they know about the property’s condition. These disclosures attach to the contract and are referenced in it. Read them before signing.
When the Seller Is a Foreign Person
If the seller is not a U.S. citizen or resident, federal tax law imposes a withholding obligation on the buyer. Under the Foreign Investment in Real Property Tax Act, you must withhold 15% of the sale price and remit it to the IRS.3Office of the Law Revision Counsel. 26 U.S. Code 1445 – Withholding of Tax on Dispositions of United States Real Property Interests Fail to withhold when required and you become personally liable for the tax, penalties, and interest.
A reduced 10% rate applies when the sale price is $1,000,000 or less and you plan to use the property as your residence. No withholding is required if the price is $300,000 or less and you intend to live there.4Internal Revenue Service. FIRPTA Withholding To qualify for the residence exemption, you must have definite plans to occupy the property for at least 50% of the days it’s used during each of the first two 12-month periods after purchase. Most standard agreements include a FIRPTA certification where the seller confirms whether they are a foreign person. Don’t skip past it. The consequences of missing withholding fall on the buyer.
Counteroffers and Amendments
Almost no contract goes through unchanged on the first pass. When the other side receives your offer, they can accept, reject, or send back a counteroffer with modified terms. A counteroffer kills the original offer. You can’t go back and accept the earlier version if talks break down. Each round creates a new proposal, and neither side is bound until both sign the same version.
There’s no cap on how many rounds go back and forth, though each usually carries an expiration to keep things moving. Common negotiation points are price, closing date, repair credits, and which contingencies stay. Once both parties agree and sign, the contract is binding.
After mutual acceptance, any change requires a written amendment or addendum signed by both parties. Verbal modifications aren’t enforceable, for the same reason the original contract must be in writing. If the inspection turns up a problem and the seller agrees to a repair credit, put it in a signed amendment. If you need to move the closing date, signed amendment. Every change on paper, with both signatures.
Review and Signing
Before anyone signs, read every line. The pressure to move fast in a competitive market leads people to skim past terms they’ll regret. Check that:
- All names match IDs and title records.
- The legal description matches the deed.
- Every dollar figure is correct.
- All dates are specific calendar dates, not “TBD.”
- Every blank that should be filled in actually is.
An empty field in a signed contract is ambiguity waiting to become a dispute.
In some states, both parties get an attorney review period after signing, typically three to five business days, during which either side’s lawyer can request changes or cancel without penalty. If your state offers this protection, use it.
All parties must sign, and standard practice is to initial every page. Date the signatures on the day they’re actually executed. Once everyone has signed, deliver the fully executed contract to the other party or their agent and confirm the earnest money hits escrow on schedule. Keep your own copy somewhere safe. You’ll reference it repeatedly between now and closing.
Why the Details Matter If Someone Defaults
The care you put into filling out the contract determines how you fare if the other side walks. When a buyer backs out without a valid contingency, the seller’s usual remedy is keeping the earnest money. Many contracts include a liquidated damages clause capping the seller’s recovery at the deposit, giving both sides certainty about their exposure. Without that clause, a seller could sue for broader damages, including the difference between the contract price and what the property later sold for.
When a seller refuses to close, the buyer can ask a court for specific performance, an order forcing the sale to go through, because every property is unique and monetary damages often can’t compensate a buyer for losing a specific home. To get that remedy, you need a valid contract, proof you held up your end, and a seller breach without legal justification. The clearer the terms on paper, the stronger your position.
Many standard contracts also require mediation before court or arbitration, and some require binding arbitration outright, which bypasses the courts and produces a decision neither party can appeal in most circumstances. Read the dispute resolution section before signing, because you’re choosing in advance how future disagreements get resolved.