Purchase Agreement

· 2 min read
A purchase agreement is the legally binding contract between you and the seller that spells out every detail of the home sale — price, contingencies,…

A purchase agreement is the legally binding contract between you and the seller that spells out every detail of the home sale — price, contingencies, timelines, and what happens if someone backs out.

This is the document that makes the deal real. Once both parties sign, you’re under contract. The purchase agreement (also called a sales contract or real estate contract) typically runs 10–20 pages and covers everything from the sale price to which light fixtures stay.

Your agent usually fills in a state-specific template, but an attorney should review it in states that require legal representation at closing.

Key Sections of a Purchase Agreement

  • Purchase price and earnest money: The agreed price and deposit amount
  • Financing terms: Loan type, down payment, and pre-approval details
  • Contingencies: Inspection, appraisal, financing, title
  • Closing date: When the sale finalizes
  • Possession date: When you get the keys
  • Inclusions/exclusions: What stays (appliances, blinds) and what goes
  • Default provisions: What happens if either party breaches

On a $350K home, every line in this contract has dollar implications. Don’t skim it.

Watch out for: Verbal agreements that aren’t in the contract. If the seller promises to fix the deck or leave the washer/dryer, it needs to be in writing. Verbal promises are unenforceable in real estate. If it’s not in the purchase agreement, it doesn’t exist. Your buyer’s agent puts everything in writing — that’s part of what they do.

Can You Change the Purchase Agreement After Signing?

Yes, through amendments and addenda. Both parties must agree to any changes. Common amendments include extending the closing date, adjusting the price after an inspection, or modifying contingency deadlines. Each change requires signatures from both sides.

What’s the difference between a purchase agreement and a contract?

They’re the same thing. “Purchase agreement,” “sales contract,” “purchase contract,” and “real estate contract” all refer to the same document. Different states and agents use different terms. What matters is the content, not the label. Use our closing cost calculator to understand the financial terms in your contract and check our glossary for addendum and amendment definitions.