Home Types of Contracts Purchase Agreement

Purchase Agreement: Definition, What's Included

Jump to Section

Quick Facts — Purchase Agreement Lawyers

A purchase agreement, also known as a real estate purchase agreement and purchase and sales agreement, is a legal instrument between two or more parties for the purchase and transfer of an asset, which is typically a residential, commercial, or industrial property. The general rule of thumb on these documents is that you use a purchase agreement when the transaction exceeds $500. However, a purchase agreement may also be necessary for transactions that do not exceed $500, depending on the jurisdiction and the type of transaction.

What Is A Purchase Agreement?

A purchase agreement formalizes the details of an asset purchase. A purchase agreement establishes the terms and conditions of the transaction, including price, limitations, legal disputes, and contract governance. They can be signed digitally or using ink and entered into by all parties’ free will in the transaction.

When Is A Purchase Agreement Needed?

There are several types of purchase agreements. They can be used for the purchase and sale of almost any kind of asset. However, they are most commonly used for large transactions that exceed the normal scope of business.

For example, a business may sell computers to consumers that cost $1,000. A receipt is typically issued for this transaction since the implications of the sale, price, and limitations are different from that of a large asset or real estate purchase.

A buyer or seller may use a purchase agreement to facilitate the following types of transactions:

  • Sale or purchase of real estate
  • Large volume purchases
  • Used equipment purchases
  • Mutual preference sales
  • Motor vehicle purchases
  • And more

In general, it is wise to hire transactional lawyers to help you draft the first iteration of the purchase agreements, which can also make modifications during the negotiation process. This strategy prevents legal mistakes from being made while remaining compliant with the governing local, state, and federal laws.

See Purchase Agreement Pricing by State

What Happens After Signing A Purchase Agreement?

After signing a purchase agreement, you then finalize the sale. How you structure the closing ultimately depends upon the terms and conditions set forth in the agreement. Ensure that you read your requirements carefully to execute the deal as anticipated fully.

Here is what generally happens after the signing of a purchase agreement:

  • Fund escrow with an escrow company to handle the paperwork if necessary
  • Confirm the funding with the company or listing agent for real estate transactions
  • Hire third-party experts, such as licensed inspectors, to evaluate the condition of the asset or property before escrow release
  • File a report with both the buyer, seller, and other relevant third-parties to confirm the condition of the asset or property
  • Sign the escrow, loan, promissory, and deed to close on the asset
  • Buyer releases escrow to the seller, which signifies the end of this part of the transaction

It is not uncommon for several US states to allow for a grace period to rescind a loan required for the purchase. This grace period may affect escrow release since the escrow company may wait until it passes. Thereafter, the transaction is completely closed.

What Is The Difference Between A Real Estate Sales Agreement And Purchase Agreement?

While a purchase agreement can be used for any large transaction, a real estate sales agreement is used to sell and transfer residential, commercial, or industrial property.

Different names for a real estate sales agreement may include:

The difference between a real estate sales agreement and a purchase agreement may also consider the role of the person offering it. The seller uses a real estate sales agreement, while the buyer uses a real estate purchase agreement to present an offer.

ContractsCounsel Purchase Agreement Image

Image via Canva by anyaberkut

Parts Of A Purchase Agreement

While the asset being sold under a purchase agreement may vary from transaction-to-transaction, the sections are generally the same. Essentially, there are specific elements that you must include for it to be lawful and enforceable according to the governing jurisdiction. Ensure that you contain the following features in your purchase agreement at a minimum, although additional terms may be necessary depending on the jurisdiction and the specifics of the agreement.

Article 1: Recitals

You must include the names, business names, and addresses of the parties involved, the date that the agreement goes into effect, and a general acknowledgment and agreement to the terms contained therein. If the agreement is for a real estate transaction, be sure to address tenancy if applicable.

Article 2: Sale Inclusions and Exclusions

List the specific assets that you are transferring and details that describe them as such. If you are buying or selling property, list all sales inclusions and exclusions in the transaction, as well as inspection requirements, appraisals, financing, and titling.

Article 3: Disclosures

The seller must disclose information about the asset or property that could impact the value or sale. Examples of disclosures should include lead hazards, well locations, asbestos hazards, and other pertinent facts.

Article 4: Pricing Terms and Conditions

Next, you will want to address how much the asset or property will cost as well as the terms and conditions surrounding the price. You can also include how the structure of the deal will be made, including cash payments, loan options, closing costs, and more. You should also have the dates of each transaction as well.

Article 5: Possession Terms and Conditions

This section describes how and when the transfer and possession of the asset or property will go. For example, describe when the keys of the property will be delivered for real estate transactions.

Article 6: Default Clause

Buyers and sellers must offer each other the opportunity to cancel the purchase agreement when a provision goes unsatisfied. For example, not paying for the transaction according to the terms could result in the contract entering into default. The default clause should address what steps or actions should be taken if a default occurs.

Article 7: Dated Signatures from All Parties

For a purchase agreement to be valid, it must be executed or signed by all parties. Create a separate date and signature line for each signing individual since it is possible that the signing could occur on different dates.

How To Write A Purchase Agreement

While there are numerous purchase agreements available for reuse online, there are problems with this method. First, they were created for another business or person, and the particulars may not entirely meet your situation’s needs. Start by making a list of the essential parts of the transaction to account for the agreement.

Then you will want to hire property lawyers to draft the first iteration of the purchase agreement. You can then use the document as a jumping-off point when it comes to the negotiation of the transaction’s finalization. As the deal becomes more evident, you can return to your attorney, who can provide legal advice and make modifications to the first draft of the agreement.

Purchase Agreement Templates

Purchase and download templates drafted by lawyers in our network that match your needs.
Template Purchase Agreement
Template Car Purchase Agreement
Purchase Agreement Template
Template Vehicle Purchase Agreement
Template Mobile Home Purchase Agreement
Template RV Purchase Agreement
*By purchasing a template, you acknowledge that you have read and understood ContractsCounsel's Terms of Use.

Preparing A Purchase Agreement

Since purchase agreements affect your legal rights, you should discuss the drafting and execution of the deal with transactional lawyers licensed to practice in your state. You should also consider working with a legal professional that has experience in the specific area of practice for the type of contract you are drafting. For example, transactions involving real estate should be prepared by real estate lawyers, especially if the transaction is complex.

ContractsCounsel Will Help You Prepare a Purchase Agreement

If you are ready to start drafting your purchase agreement, post your project needs to ContractsCounsel at no cost, and start receiving responses from attorneys who can help.

See Real Purchase Agreement Projects

Texas Digital Artwork Purchase Agreement Drafting
  • Texas
  • 4 lawyer bids
  • $350 - $850
View Details
Florida Condo closing contract Review
  • Florida
  • 3 lawyer bids
  • $300 - $500
View Details
California Hair Salon and Spa Purchase Agreement Review
  • California
  • 4 lawyer bids
  • $500 - $1,595
View Details
Colorado Membership Purchase Agreement for small LLC (looking to leave the LLC) Drafting
  • Colorado
  • 11 lawyer bids
  • $485 - $1,995
View Details
Wyoming Motorhome Sale Drafting
  • Wyoming
  • 3 lawyer bids
  • $375 - $850
View Details
Georgia Review purchase Agreement for Small Franchise Aquisition. Review
  • Georgia
  • 7 lawyer bids
  • $325 - $2,000
View Details

See all Purchase Agreement projects


ContractsCounsel is not a law firm, and this post should not be considered and does not contain legal advice. To ensure the information and advice in this post are correct, sufficient, and appropriate for your situation, please consult a licensed attorney. Also, using or accessing ContractsCounsel's site does not create an attorney-client relationship between you and ContractsCounsel.


Need help with a Purchase Agreement?

Create a free project posting
Clients Rate Lawyers 4.9 Stars
based on 24,594 reviews

Meet some of our Purchase Agreement Lawyers

Garrett M. on ContractsCounsel
View Garrett
5.0 (12)
Member Since:
August 30, 2021

Garrett M.

Attorney
Free Consultation
Dexter, MO
10 Yrs Experience
Licensed in MO, TX
University of Texas

I am a solo practitioner with a practice mostly consisting of serving as counsel to start-ups and small business owners and investors. With a practical business background, I aim to bring practical, business minded solutions to my client's legal problems and pride myself on efficient yet effective work.

Recent  ContractsCounsel Client  Review:
5.0

"Garrett was extremely professional, attentive, and adhered to the very tight deadlines we had set. I would like to highlight that, in addition to completing the task assigned to him, he took the initiative to research all parties involved in the contract to provide us with the best possible support. We are very satisfied and look forward to working with him again."

Scott S. on ContractsCounsel
View Scott
5.0 (69)
Member Since:
October 27, 2021

Scott S.

Attorney
Free Consultation
New York, NY
19 Yrs Experience
Licensed in NY
Benjamin Cardozo School of Law

I specialize in business law and contracts, with an emphasis on commercial transactions and negotiations, document drafting and review, employment, business formation, e-commerce, technology, healthcare, privacy, commercial real estate, data security and compliance. Specifically, I've drafted, reviewed and/or negotiated thousands of MSA's, NDA's, TOS', SAAS, sales, service, managed services, referral, reseller, royalty, finder’s fee, employment, contractor, consulting, advertising, marketing, manufacturing, distribution, management, artist, author, agency, photography, rental, lease, vendor, partnership, website, platform, application, privacy, non-compete, non-circumvent, confidentiality, IP ownership and licensing agreements so I'm very familiar with these types of documents. Practicing law since 2006, I worked in-house before starting my own solo practitioner law firm in 2011. I've worked with individuals and start-ups, Fortune 500 companies, and every type of entity in between, always providing quality legal work that fits the exact needs of the person and/or business. I’m a graduate of the Benjamin Cardozo Law School and also have an English degree from Penn.

Recent  ContractsCounsel Client  Review:
5.0

"The language of the commercial lease i was negotiating was much more favorable in terms of how the Lessor was expected to conduct their end of business regarding "Additional Charges" requiring itemization and examples of comparable rates where increases may occur."

Daehoon P. on ContractsCounsel
View Daehoon
4.8 (233)
Member Since:
November 26, 2021

Daehoon P.

Corporate & M&A | Venture Capital, Private Equity & Web3 Counsel | Real Estate Transactions
Free Consultation
New York, NY
10 Yrs Experience
Licensed in NY
American University Washington College of Law

Corporate, M&A & Securities Lawyer | Managing Attorney, DP Counsel PLLC Practice Areas: Business Formation | Commercial Contracts | Contract Drafting & Review | Mergers & Acquisitions | Venture Capital | Securities Offerings | Franchise Law | Employment & Equity Compensation | Intellectual Property | Cross-Border Transactions About/Bio: I represent companies, investors, and fund sponsors in corporate transactions, commercial contracting, and private securities matters, from entity formation and early-stage financings to acquisitions, exits, and ongoing strategic counsel. As Managing Attorney of DP Counsel PLLC, I help clients structure transactions clearly, allocate risk thoughtfully, and move deals forward with documentation that is practical, enforceable, and aligned with business objectives. My practice includes both day-to-day commercial matters and more complex transactional work, including venture financings, private offerings, M&A deals, fund-related documents, and cross-border structuring. What I Do: Corporate & Commercial • Entity formation and structuring for corporations, LLCs, and limited partnerships • Operating agreements, shareholder agreements, and governance documents • Commercial contract drafting, review, and negotiation • Vendor, distribution, manufacturing, SaaS, and licensing agreements • Employment, consulting, confidentiality, and equity compensation agreements • Outside general counsel support for growing companies Securities & Private Capital • Private offerings under Regulation D and Regulation S • Private placement memoranda, subscription agreements, and investor documents • SAFE, convertible note, and priced equity financings • Venture capital and private fund formation matters • Fund governing documents and offering document packages • Securities law analysis for private capital raising transactions Mergers & Acquisitions • Letters of intent and term sheets • Stock purchase, asset purchase, and merger agreements • Due diligence coordination and transaction support • Disclosure schedules, closing documents, and post-closing matters • Earnouts, rollover equity, indemnity structures, and related deal terms • HSR, CFIUS, and related regulatory issue spotting for qualifying transactions Digital Assets & Emerging Technologies • Federal-law digital asset and token securities analysis • Entity structuring for blockchain and Web3 ventures • Digital asset fund and operating structures • AML/KYC documentation support and regulatory issue spotting Franchising • Franchise Disclosure Documents (FDDs) • Franchise agreements • Master franchise and area development agreements • Franchise structuring and registration coordination Real Estate Transactions • Commercial real estate acquisitions and dispositions • Real estate joint ventures and syndications • Commercial lease drafting and negotiation • Real estate investment structures and related offering documents Cross-Border & International • U.S. market entry and entity structuring for international clients • Delaware and multi-entity holding structures • Cross-border transaction planning and documentation • Coordination with foreign counsel and tax advisors on cross-border matters Why Clients Hire Me: • Big-law-level drafting with boutique responsiveness • Practical, business-focused advice grounded in execution reality • Clear scoping and transparent fee arrangements • Experience across financings, acquisitions, fund formations, and cross-border transactions Typical Projects: • Contract drafting and negotiation • Entity formation and governance packages • Private offering document suites • Venture financing documentation • M&A transactions from LOI through closing • Fractional or outside general counsel support Industries Technology | SaaS | FinTech | Digital Assets | E-commerce | Healthcare | Real Estate | Food & Beverage | Professional Services

Recent  ContractsCounsel Client  Review:
5.0

"Answered all my questions and delivered a contract we both could understand!"

Samuel R. on ContractsCounsel
View Samuel
5.0 (68)
Member Since:
October 2, 2021

Samuel R.

Attorney
Free Consultation
Phoenix - Arizona
7 Yrs Experience
Licensed in AZ, PA, UT
Widener University Delaware Law School

My career interests are to practice Transactional Corporate Law, including Business Start Up, as well as Real Estate Law, Estate Planning Law, and Intellectual Property Law. I am currently licensed in Arizona, Pennsylvania and Utah, after having moved to Phoenix from Philadelphia in September 2019. I currently serve as General Counsel for a bioengineering company. I handle everything from their Business Transactional Agreements, Private Placement Memorandums, and Corporate Structures to Intellectual Property Assignments, to Employment Law and Beach of Contract settlements. Responsibilities include writing and executing agreements, drafting court pleadings, court appearances, mergers and acquisitions, transactional documents, managing expert specialized legal counsel, legal research and anticipating unique legal issues that could impact the Company. Conducted an acquisition of an entire line of intellectual property from a competitor. In regards to other clients, I am primarily focused on transactional law for clients in a variety of industries including, but not limited to, real estate investment, property management, and e-commerce. Work is primarily centered around entity formation and corporate structure, corporate governance agreements, PPMs, opportunity zone tax incentives, and all kinds of business to business agreements. I have also recently gained experience with Estate Planning law, drafting numerous Estate Planning documents for people such as Wills, Powers of Attorney, Healthcare Directives, and Trusts. I was selected to the Super Lawyers Southwest Rising Stars list for 2024 - 2026. Each year no more than 2.5% of the attorneys in Arizona and New Mexico are selected to the Rising Stars. I am looking to further gain legal experience in these fields of law as well as expand my legal experience assisting business start ups, and also trademark registration and licensing.

Recent  ContractsCounsel Client  Review:
5.0

"Sam was awesome to work with, super helpful, knowledgeable, and professional. Highly recommend."

Michael K. on ContractsCounsel
View Michael
5.0 (84)
Member Since:
June 28, 2021

Michael K.

Associate Counsel
Free Consultation
Miami, FL
8 Yrs Experience
Licensed in FL
St. Thomas University School of Law

A business-oriented, proactive, and problem-solving corporate lawyer with in-house counsel experience, ensuring the legality of commercial transactions and contracts. Michael is adept in reviewing, drafting, negotiating, and generally overseeing policies, procedures, handbooks, corporate documents, and more importantly, contracts. He has a proven track record of helping lead domestic and international companies by ensuring they are functioning in complete compliance with local and international rules and regulations.

Recent  ContractsCounsel Client  Review:
5.0

"Michael was great. Very quick, knowledgeable and thorough. Highly recommend."

Dawn K. on ContractsCounsel
View Dawn
4.3 (1)
Member Since:
November 5, 2023

Dawn K.

Partner
Free Consultation
Los Angeles, CA
11 Yrs Experience
Licensed in CA
Concord Law School Kaplan University

Dawn K Kennedy has been licensed to practice law since 2015, but has been an entrepreneur since 2011. She uses her extensive project management and business background to support small and mid-sized businesses with contracts, negotiations, and other matters relating to the operation of a successful business venture.

Boris K. on ContractsCounsel
View Boris
Member Since:
November 7, 2023

Boris K.

Attorney
Free Consultation
Newport Brach
13 Yrs Experience
Licensed in CA
Western Michigan Law

With over 10 years experience as a Real Estate Broker and an attorney, I can help you with all your residential real estate needs such as For sale by owner transactions and drafting grant deeds

Find the best lawyer for your project

Browse Lawyers Now

Lawyer Reviews for Purchase Agreement Projects

Purchase Agreement

5.0

"Adam was great to work with and generous with his time. He was very quick to respond via email and phone. He did a dual representation between buyer and seller for a stock purchase agreement which seemed like could be tricky to navigate but Adam knew exactly what to say and how to word things so both parties were extremely satisfied. I highly recommend working with him if looking for an attorney."

Reply From Adam J.

View More
California
Hourly
Drafting
Purchase Agreement
ContractsCounsel User

Georgia Attorney Needed to Review Purchase and Sale Contract for Barber Salon

5.0

"Very satisfied."

Georgia
Review
Purchase Agreement
ContractsCounsel User

Wisconsin Gas Station Purchase Agreement and Land Contract Drafting

5.0

"Great communication"

Wisconsin
Review
Purchase Agreement
ContractsCounsel User

Review DD materials for a NNN lease purchase of a Valvoline in Cedartown GA and draft a review and assessment memorandum addressing specific concerns

5.0

"Alex Nahai was a pleasure to work with. He helped review due diligence and closing docs for a NNN commercial real estate investment and did a great job."

California
Review
Purchase Agreement
ContractsCounsel User

Cash land purchase contract

5.0

"Excellent and quick turnaround time for the project."

Alabama
Drafting
Purchase Agreement
ContractsCounsel User

Real Estate

Purchase Agreement

New York

Asked on Mar 29, 2021

Who has the lawyer draft the purchase agreement for a for sale by owner?

I am selling my home and am being asked to provide an agreement.

Jane C.

Answered Mar 29, 2021

Typically, the seller has a lawyer draft the purchase agreement. Disclaimer - This information is provided for general informational purposes only. No information contained in this post should be construed as legal advice and does not establish an attorney-client relationship.

Read 1 attorney answer>

Business

Purchase Agreement

California

Asked on Oct 4, 2022

When asset purchase agreement vs. stock purchase agreement?

I am considering buying a business and I'm not sure what type of legal document I should use. I think I want to buy the business but I'm not sure what comes with that. The deal size is ~$100k and it is a printing company.

Michael M.

Answered Oct 7, 2022

The nature of the purpose is of essential importance in any acquisition and the first decision that should be made. The 2 traditional types are either "asset" or "stock". In a stock transaction you purchase the shares of the corporation or membership interests of an LLC. In an asset sale, only assets are acquired. Each of these has major tax and liability implications that should be discussed with counsel and your cpa.

Read 2 attorney answers>

Real Estate

Purchase Agreement

California

Asked on Sep 5, 2021

seller is a divorced man whose ex lives across street. She turned him in for not permitting a deck. Court applied restraining orders on both. seller had plans drawn and submitted but pandemic hit, He is in financial crisis and has a buyer for home whose bank has agreed to lend . seller has paid all violation fees but county is slow in helping him. he is evacuated from Caldor fire with his other home. Seller needs to due a subordination and let sale happen while county reviews his plans and inspects. Is there anything else he can do? California ..e

code violation paid in full but County is not open and working from home. have not been able to handle this issue in timely manner has been 2 1/2 yrs since first submitted drawings . he is not permitted to go in the area due to a nasty divorce and wife living across street..he also is diabetic and has been hospitalized and needs medicine not covered by insurance

Donya G.

Answered Sep 24, 2021

You will need an attorney to advise you, as such, you will need to post your project on the website Here are the steps you need to take to accomplish this 1. Post the job you need to get accomplished – for example “ I am looking for a California attorney to assist me in the sale of my property and to help me get the county to approve the sale -------------“ 2. Once posted, attorneys on the website that are interested and qualified will respond to your posting 3. Choose an attorney/s based upon their qualifications and cover letter to have a quick call so that you can decide who you would like to hire. 4. After talking with attorneys, choose who you will decide to proceed with. Remember to discuss the cost of the project as well as how long it will take to be completed as well as when payments will be made. 5. Once you have decided who to hire, click “HIRE” and that attorney will now be hired by you. Donya Gordon, Esq.

Read 1 attorney answer>

Real Estate

Purchase Agreement

Washington

Asked on Oct 31, 2023

Can I back out of a purchase agreement?

I recently signed a purchase agreement for a house. I was unaware of some major repairs that need to be done and now I am worried that I won't be able to afford them. I am trying to figure out if there is any way I can back out of the purchase agreement and if so, what steps would I need to take.

Merry K.

Answered Nov 10, 2023

A well-written purchase offer usually includes several ways for a buyer to back out of the purchase without any penalty - for example, if the buyer doesn't like the inspector's report, one can usually back out on that basis - another typical one is failing to obtain a loan. I hope your buyer's agent wrote up the offer in a way that gave you 2 or 3 "escape clauses" - you should talk with your agent, but if there are problems, I would recommend that you have a real estate attorney review your offer and help you get out of the offer - if possible - with minimal or no cost to you.

Read 1 attorney answer>

Contracts

Purchase Agreement

Pennsylvania

Asked on Oct 4, 2021

Purchased monitor Camera From Lorex technologhy.com valued $1,200 , only delivered 6 out of 10 Camera , usung credit card , happened A month Shi , now payment in pending , It dosen’t stay long , can We Dispute It ?

Website purchased From LorexTechlologhy.com Usung credit card , send to Address in Philadrlphia PA

Samuel R.

Answered Oct 6, 2021

Yes you can dispute this. Have you contacted the company and notified your credit card company?

Read 1 attorney answer>
See more legal questions…

Quick, user friendly and one of the better ways I've come across to get ahold of lawyers willing to take new clients.

View Trustpilot Review

Need help with a Purchase Agreement?

Create a free project posting
Clients Rate Lawyers 4.9 Stars
based on 24,594 reviews
Business lawyers by top cities
See All Business Lawyers
Purchase Agreement lawyers by city
See All Purchase Agreement Lawyers

ContractsCounsel User

Recent Project:
Asset purchase agreement
Location: Florida
Turnaround: Over a week
Service: Drafting
Doc Type: Purchase Agreement
Number of Bids: 4
Bid Range: $1,500 - $3,550
User Feedback:
Michael prepared our Business Purchase Agreement as well our Operating Agreement. He is brilliant and is an EXCELLENT legal writer. He is easy to talk to, very responsive and caring. I am so very grateful for his work and so happy I chose to work him.

ContractsCounsel User

Recent Project:
Company I hold a small portion of stock in is being bought out and I have been advised to have a lawyer review the purchase contract.
Location: California
Turnaround: A week
Service: Contract Review
Doc Type: Purchase Agreement
Page Count: 95
Number of Bids: 5
Bid Range: $1 - $1,000

Need help with a Purchase Agreement?

Create a free project posting
Clients Rate Lawyers 4.9 Stars
based on 24,594 reviews

Want to speak to someone?

Get in touch below and we will schedule a time to connect!

Request a call

Find lawyers and attorneys by city