To fill out a real estate purchase agreement, start with a state-approved template and work through it section by section: name the parties exactly as they appear on title, describe the property by its legal description, enter the purchase price in numerals and words, set the earnest money amount and who holds it, check and date every contingency you want to keep, attach the required disclosures, list which fixtures and personal items stay, allocate closing costs and prorations, set a closing date, and sign. Each blank you leave or box you forget to check can cost you a protection you meant to have, so treat the form as a checklist rather than a formality.
Once both sides sign, the document is legally binding. Every state requires contracts for the sale of real property to be in writing and signed by the parties, a principle rooted in the statute of frauds.1Legal Information Institute. Statute of Frauds Most residential deals close 30 to 45 days after signing, which is the window your deadlines need to fit inside.
Start With the Right Template
Your state’s realtor association or local bar association almost certainly publishes a standardized purchase agreement form built for that state’s disclosure rules, default timelines, and customary practices. Look for a revision date or version number at the bottom of the document and use the most recent one. A generic template downloaded from a free website may omit required disclosures, use terminology your state does not recognize, or leave out contingency language local courts expect to see.
If you are working with a licensed real estate agent, they will usually supply the form approved by their local board. For sale-by-owner transactions, your state’s real estate commission website or bar association is the most reliable starting point. Whatever template you use, confirm it was designed for residential transactions in your state and reflects the current year’s legal requirements.
Fill In the Parties and the Property
Use the full legal names of every person or entity on the current deed. No nicknames, no shortened versions. If a trust, LLC, or corporation owns the property, the entity name must match the recorded title exactly. On the buyer’s side, every person who will appear on the new deed should be named in the agreement.
A street address alone is not enough for the property. The agreement should include the formal legal description that appears on the recorded deed, tax records, or a survey. It typically references lot numbers, block identifiers, subdivision names, or metes-and-bounds descriptions depending on how the land was originally platted.2Bureau of Land Management. Specifications for Descriptions of Land Including the county assessor’s parcel number alongside the legal description adds another layer of specificity. You can pull both from the county recorder’s office, a prior deed, or your local assessor’s website.
Enter the Purchase Price and Earnest Money
Write the agreed-upon price in the designated field in both numerals and words, for example “$350,000 / Three Hundred Fifty Thousand Dollars.” Having the amount in both forms eliminates ambiguity if the document is ever disputed. Below the price, the agreement specifies how the buyer will pay, usually some combination of earnest money deposit, down payment, and mortgage financing.
Setting the Earnest Money Amount
The earnest money deposit is the buyer’s upfront financial commitment showing the offer is serious. Deposits commonly range from 1% to 5% of the purchase price, though the amount varies with market conditions and local custom.3Freddie Mac. What Is Earnest Money and How Does It Work? In a competitive seller’s market, a larger deposit signals stronger commitment. In a slower market, 1% to 2% is common.
Fill in three things: the exact deposit amount, the deadline for delivering it, and who holds the funds. The holder is usually an escrow company, title company, or real estate attorney. The money goes into a trust account and stays there until closing, when it is applied toward the purchase price. The form will also have a section specifying when the buyer gets the deposit back (failed contingencies) and when the seller is entitled to keep it as damages — more on that below.
Writing In the Financing Terms
If the buyer is using a mortgage, the agreement should spell out the loan type (conventional, FHA, VA), the maximum interest rate the buyer will accept, and the loan amount. With 30-year fixed rates averaging around 6.4% as of early 2026,4Freddie Mac. Mortgage Rates buyers typically write the financing contingency rate slightly above current market rates to give themselves breathing room. An all-cash buyer skips this section but should still include proof-of-funds requirements and a timeline for verification.
Mark Each Contingency and Its Deadline
Contingencies are the escape hatches that let a buyer walk away without forfeiting the deposit if specific conditions are not met. Each one needs a firm deadline written in. Leaving a contingency checkbox blank when you intend it to apply, or forgetting to insert a date, can mean you have waived the protection entirely.
- Financing contingency. Gives the buyer a set number of days (commonly 30 to 45) to secure a mortgage commitment at or below the specified interest rate. If approval does not come through, the contract terminates and the earnest money is returned.
- Inspection contingency. Provides a window, usually 7 to 14 days, for the buyer to hire a professional inspector. If significant problems surface, the buyer can request repairs, negotiate a price reduction, or cancel.
- Appraisal contingency. Protects the buyer if a licensed appraiser values the property below the agreed price. Without this clause, a financed buyer could be stuck covering the gap out of pocket.
- Title contingency. Lets the buyer cancel if the title search reveals liens, encumbrances, or ownership disputes the seller cannot resolve before closing.
- Home sale contingency. Used when a buyer must sell their current home before closing on the new one. Sellers often resist it, and some negotiate a kick-out clause allowing them to accept other offers if the buyer’s home has not sold within a specified period.
For each contingency you want, check the box, fill in the deadline date, and specify who pays any associated costs (inspections, appraisals).
Attach the Required Disclosures
Lead-Based Paint Disclosure
Federal law requires sellers of any home built before 1978 to disclose known lead-based paint hazards before the buyer is obligated under the contract. The seller must provide a lead hazard information pamphlet, disclose any known lead paint or hazards in writing, and give the buyer at least 10 days to conduct a lead inspection, though both parties can agree to a different timeframe.5Office of the Law Revision Counsel. 42 US Code 4852d – Disclosure of Information Concerning Lead Upon Transfer of Residential Property The purchase agreement itself must contain a Lead Warning Statement signed by the buyer acknowledging they received the pamphlet and had the opportunity to inspect.
Sellers who skip this requirement face penalties of up to $10,000 per violation and can be held liable for three times the buyer’s actual damages if the violation was knowing.5Office of the Law Revision Counsel. 42 US Code 4852d – Disclosure of Information Concerning Lead Upon Transfer of Residential Property The obligation applies in every pre-1978 transaction, whether or not the seller knows of any actual lead paint.
Seller’s Property Disclosure
Most states require the seller to complete a property disclosure form listing known defects: a leaking roof, foundation cracks, past flooding, mold, or problems with major systems like HVAC, plumbing, and electrical. The form and the specific items vary by state, but the rule is consistent: the seller must reveal material defects they know about. The form is typically attached to the purchase agreement or delivered within a set number of days after signing. Review it carefully before your inspection contingency expires, since it often flags issues worth investigating further.
List What Stays and What Goes
One of the most common sources of friction at closing is disagreement over what stays with the house and what the seller takes. The general rule is that fixtures — items physically attached to the property — transfer with the sale, while personal property does not. The line between the two is blurrier than most people expect.
Courts typically look at how the item is attached, whether it was adapted or custom-built for the space, and what the parties intended. A chandelier bolted to the ceiling is a fixture. A floor lamp plugged into an outlet is personal property. A wall-mounted TV bracket is probably a fixture; the TV itself probably is not. Built-in bookshelves, window blinds, garage door openers, and landscaping are almost always fixtures.
Do not rely on these defaults. Most templates include a section where you list specific items included in or excluded from the sale. If the seller’s refrigerator, washer, dryer, or patio furniture is part of the deal, name each item. If the seller plans to remove a decorative light fixture or a built-in wine rack, write that exclusion into the agreement before signing. Ambiguity here leads to walk-through disputes the day before closing, exactly when nobody wants to renegotiate.
Allocate Closing Costs, Prorations, and the Closing Date
Who Pays What at Closing
The agreement should address which party pays for each category of closing costs. Local custom drives the default split in most markets, but everything is negotiable. Common costs allocated in the agreement include the title search and title insurance premiums, escrow fees, recording fees, transfer taxes (in states that charge them), and lender-required fees. Some buyers negotiate a seller credit toward closing costs as part of the offer; if so, write the dollar amount or percentage cap into the agreement.
Prorating Taxes and HOA Dues
Property taxes, homeowner association dues, and similar recurring costs need to be split between buyer and seller based on who owned the property during each portion of the billing period. The agreement should specify that prorations are calculated as of the closing date and whether taxes paid in arrears result in a credit to the buyer, since the seller owes for the days they owned the property before closing. For HOA dues paid in advance, the buyer typically reimburses the seller for the unused portion. Getting the proration method into the agreement prevents arguments when the settlement statement arrives.
Setting the Closing Date
The agreement needs a specific closing date or a formula for calculating one, such as “within 45 days of the effective date.” Build in enough time for the lender to process the mortgage, inspections and appraisals to be completed, and title work to clear. If a contingency deadline falls too close to the closing date, a failed inspection or appraisal can throw off the entire timeline. Most residential closings take 30 to 45 days from the executed agreement, but complex transactions or loan programs like VA loans can take longer.
Sign, Deliver, and Keep Copies
Both buyer and seller must sign and date the agreement for it to become binding, and each party should receive an identical executed copy. Most states do not require a purchase agreement to be notarized (unlike a deed), though notarization can help prevent later claims that a signature was forged or unauthorized.
Electronic signatures are legally valid for purchase agreements under the federal Electronic Signatures in Global and National Commerce Act and the Uniform Electronic Transactions Act adopted by most states. Digital signing platforms create an audit trail showing when each party signed. Deeds, mortgages, and promissory notes typically still require original wet signatures for recording, but the purchase agreement itself can be signed electronically.
Once signed, the buyer delivers the earnest money to the designated escrow holder within the deadline stated in the agreement. This delivery starts the escrow period and sets every contingency clock running. Missing the earnest money delivery deadline can give the seller grounds to void the contract, so treat that date as firm.
Add a 1031 Exchange Cooperation Clause If It Applies
If either party plans to defer capital gains taxes through a like-kind exchange under IRC Section 1031, the purchase agreement needs a cooperation clause. The language notifies the other party that the transaction will be structured as an exchange, that the exchanging party’s rights may be assigned to a qualified intermediary, and that the other side agrees to cooperate without taking on additional cost or delay.6IPX1031. Exchange Cooperation Clauses Add this at the contract stage; a qualified intermediary cannot be set up after the seller has already received the sale proceeds.
Default Remedies and Dispute Resolution Clauses
Many purchase agreements include a liquidated damages clause that caps the seller’s remedy at the earnest money deposit if the buyer defaults after contingencies have been removed. This saves both sides from litigating the seller’s actual losses, which can be hard to calculate. Where the clause applies, the seller keeps the deposit as their sole compensation and generally cannot sue for more. Even then, the escrow holder will not hand the deposit over on demand. Both parties must provide written instructions agreeing to the release, and if they disagree, the escrow agent can file an interpleader action, depositing the funds with the court for a judge to decide.
Many standard templates also include a dispute resolution clause requiring the parties to attempt mediation before filing a lawsuit. A mediator helps negotiate but cannot force a decision. Some agreements go further and require binding arbitration, where an arbitrator hears both sides and issues a final ruling with limited ability to appeal. Read the clause carefully before initialing. If you sign the arbitration provision, you may be giving up your right to go to court, and in many templates that provision is optional.
Changing the Agreement After Signing
Circumstances change between signing and closing. An inspection reveals a broken furnace, the closing date needs to shift, or the parties agree to a price adjustment. Any change to the signed agreement requires a written amendment, sometimes called an addendum, signed by all parties. A verbal agreement to change terms is not enforceable for real estate contracts.
An effective amendment identifies the original agreement by date, parties, and property address; describes exactly which clause or term is being changed; states the new language; and confirms that all other terms remain in effect. Every person who signed the original agreement must sign the amendment. Attach it to the original contract so it travels with the file through closing.