ContractsCounsel Logo
Home Types of Contracts Purchase Contract for Real Estate

Jump to Section

A purchase contract for real estate is a legal document formalizing the sale or purchase of a property between a buyer and a seller in a particular location. These terms and conditions of the transaction include the purchase price, payment terms, contingencies, and closing details. Now, let us get an in-depth overview of everything you need to know about this contract, including its purpose, key elements, and tips for negotiating and drafting a successful agreement.

Important Considerations for a Purchase Contract for Real Estate

The considerations of a Purchase Contract for Real Estate include the purchase price, financing terms, contingencies, and closing details.

  • Purchase Price: The purchase price is the amount of money the buyer agrees to pay for the property. It's important to be clear about this amount in the contract, including any down payment and any contingencies related to financing.
  • Financing Terms: The financing terms outline how the buyer will pay for the property, including the down payment, interest rate, and repayment schedule. The contract should also specify any financing-related contingencies, such as the buyer's ability to obtain a mortgage or the seller's agreement to carry a portion of the financing.
  • Contingencies: Contingencies must be met for the sale processes to proceed. For example, a financing contingency might require the buyer to obtain a mortgage within a certain period, or a home inspection contingency might give the buyer the right to back out of the sale if significant issues are found during the inspection.
  • Closing Details: The closing details specify when and where the closing will occur, who will be present, and what documents must be signed. They may also include title search details, property transfer, and other legal requirements.

How to Draft a Purchase Contract for Real Estate

Negotiating and drafting a successful Purchase Contract for Real Estate requires careful attention to detail and a thorough understanding of the terms and conditions involved. Here are some tips to help you negotiate and draft a successful agreement:

  1. Be Clear about Your Needs. List your needs and priorities before negotiating the contract. This will help you stay focused and ensure the contract reflects your interests.
  2. Know the Market. Research the local real estate market to understand what similar properties are selling for and what terms are typical in your area.
  3. Use Concise Language. The contract should be written in clear, concise language that is easy for both parties to understand. Avoid using legal jargon or overly complicated terms.
  4. Consider All Contingencies. Make sure all contingencies are included in the contract and clearly defined and realistic.
  5. Be Prepared to Negotiate. Negotiating a Purchase Contract for Real Estate is a give-and-take process. Be prepared to make concessions and compromise on some issues to reach an agreement that works for both parties.
Meet some lawyers on our platform

Rebecca R.

8 projects on CC
CC verified
View Profile

Leonid G.

4 projects on CC
CC verified
View Profile

Sara S.

132 projects on CC
CC verified
View Profile

Linda W.

10 projects on CC
CC verified
View Profile

Legal Implications in a Purchase Contract for Real Estate

There are several legal implications that must be considered when drafting and signing a real estate Purchase Contract for Real Estate.

  • Property Description: The contract should include a detailed description of the property, including the legal address, lot number, and any other identifying information to ensure clarity and accuracy.
  • Disclosures: The seller must disclose any known defects or issues with the property, such as structural damage, lead-based paint, or zoning violations, as required by law.
  • Title and Deed: The contract should include provisions for transferring the title and deed of the property, including any necessary legal documents and procedures.
  • Procedures: The contract should outline the procedures and requirements for the closing of the sale, including the responsibilities of each party, the transfer of funds, and the recording of the sale with the appropriate government agencies.
  • Dispute Resolution: The contract should specify the procedures for resolving any disputes between the buyer and seller, such as mediation, arbitration, or litigation.
  • Applicable Laws and Regulations: The contract must comply with all relevant laws and regulations governing real estate transactions, including state and federal laws, zoning regulations, and building codes.
  • Signatures and Execution: The contract must be signed and executed by all parties involved in the transaction, including any necessary witnesses and notaries, to ensure the legal validity of the agreement.

Mistakes to Avoid in a Purchase Contract for Real Estate

When it comes to drafting a Purchase Contract for Real Estate, there are several common mistakes that both buyers and sellers should avoid. These include:

  • Failing to Include Contingencies: Contingencies are an important part of the contract, as they help to protect both parties. Failing to include contingencies can leave you vulnerable to unexpected issues or delays.
  • Ignoring Important Details: It's important to pay attention to all of the details of the contract, including the payment terms, contingencies, and closing details. Ignoring important details can lead to misunderstandings or even legal disputes.
  • Rushing the Process: Buying or selling a property is a major transaction, and it's important to take the time to negotiate and draft a contract that reflects your needs and interests. Rushing the process can lead to mistakes or oversights that can be costly in the long run.
  • Failing to Seek Legal Advice: Real estate contracts can be complex and nuanced, and it's important to seek legal advice before signing any agreement. A qualified real estate attorney can help you understand the contract terms and ensure your interests are protected.

Types of Purchase Contracts for Real Estate

Several types of Purchase Contracts for Real Estate are available, each with advantages and disadvantages. They are as follows:

  • Standard Purchase Agreement: A standard purchase agreement is the most common type of real estate contract, including all the key elements discussed above.
  • As-Is Purchase Agreement: An as-is purchase agreement is a contract in which the buyer agrees to accept the property in its current condition without any repairs or upgrades from the seller.
  • Lease-Purchase Agreement: A lease-purchase agreement is a contract in which the buyer leases the property for a set period, with the option to purchase the property at the end of the lease term.
  • Installment Land Contract: An installment land contract is a type of contract in which the buyer agrees to pay the seller over a set period, with the property transferring to the buyer once all payments have been made.
  • Option Contract: An option contract is a contract in which the buyer pays a fee for the option to purchase the property at a later date. This type of contract is often used when the buyer needs more time to secure financing or complete due diligence on the property.

When choosing a Purchase Contract for Real Estate, it's important to consider your needs and priorities, as well as the specific requirements of the transaction. A qualified real estate attorney can help you to understand the different types of contracts available and to choose the one that is right for you.

Key Terms for the Purchase Contract for Real Estate

  • Contingencies: Clauses that outline specific conditions that must be met for the contract to be binding.
  • Payment Terms: Details regarding the payment of the purchase price, including the amount, method, and timing of payments.
  • Closing Details: Specifics regarding the transfer of ownership and possession of the property, including the date, time, and location of the closing.
  • Legal Description: A detailed property description, including its boundaries and physical characteristics.
  • Disclosures: Information that the seller must provide to the buyer regarding the property, including any known defects or issues.

Final Thoughts on the Purchase Contract for Real Estate

A Purchase Contract for Real Estate is an important document outlining the terms and conditions of a real estate transaction. Whether buying or selling a property, it's important to negotiate and draft a contract that reflects your needs and interests while protecting your legal rights. By understanding the key elements of a Purchase Contract for Real Estate, negotiating and drafting a successful agreement, understanding payment terms and contingencies, avoiding common mistakes, and choosing the contract that suits your purpose.

If you want free pricing proposals from vetted lawyers that are 60% less than typical law firms, click here to get started. By comparing multiple proposals for free, you can save the time and stress of finding a quality lawyer for your business needs.


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 Contract for Real Estate?

Create a free project posting
Clients Rate Lawyers 4.9 Stars
based on 11,053 reviews

Meet some of our Purchase Contract for Real Estate Lawyers

Brian R. on ContractsCounsel
View Brian
5.0 (1)
Member Since:
August 15, 2023

Brian R.

Owner/Lawyer
Free Consultation
Fort Worth
24 Yrs Experience
Licensed in TX
Texas A&M University School of Law (formerly known as Texas Wesleyan University School of Law)

Brian C. Restivo, the managing member of Restivo Legal, PLLC, has been licensed by the State Bar of Texas and continuously practicing as an attorney since November of 2000. Over these years, he has represented customers across the spectrum - from a Fortune 500 company to individuals - and is seasoned at tailoring his services to the unique needs of each customer.

Charlton M. on ContractsCounsel
View Charlton
5.0 (11)
Member Since:
September 19, 2022

Charlton M.

Attorney
Free Consultation
Dallas, TX
10 Yrs Experience
Licensed in TX
University of St. Thomas School of Law

Charlton Messer helps businesses and their owners with general counsel and contract drafting services. He has helped over 500 businesses with their legal needs across a variety of industries in nearly a decade of practice.

Samuel R. on ContractsCounsel
View Samuel
5.0 (43)
Member Since:
October 2, 2021

Samuel R.

Attorney
Free Consultation
Phoenix - Arizona
5 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, and Mergers and Acquisitions, as well as Real Estate Law, Estate Planning Law, Tax, 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 Mergers & Acquisitions, 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 2024 Super Lawyers Southwest Rising Stars list. 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, mergers and acquisitions and also trademark registration and licensing.

Atilla B. on ContractsCounsel
View Atilla
5.0 (1)
Member Since:
October 4, 2021

Atilla B.

Counsel
Free Consultation
Denver, CO
5 Yrs Experience
Licensed in CO, DC
American University - Washington College of Law

Atilla Z. Baksay is a Colorado-based attorney practicing corporate and securities attorney. Atilla represents clients in the negotiation and drafting of transactional (e.g. master service, purchase and sale, license, IP, and SaaS agreements) and corporate (e.g. restricted stock transfers, stock options plans, convertible notes/SAFE/SAFT agreements, bylaws/operating agreements, loan agreements, personal guarantees, and security agreements) contracts, in-house documents (e.g. employment policies, separation agreements, employment/independent contractor/consultant agreements, NDAs, brokerage relationship policies, and office policy memoranda), and digital policies (e.g. terms of service, privacy policies, CCPA notices, and GDPR notices). Atilla also reviews, and issues legal opinions concerning, the security status of digital currencies and assets. Following law school, Atilla practiced international trade law at the Executive Office of the President, Office of the United States Trade Representative, where his practice spanned economic sanctions enacted against goods originating in the People’s Republic of China valued at $500 billion. Afterwards, Atilla joined a Colorado law firm practicing civil litigation, where the majority of his practice comprised of construction defect suits. Today, Atilla's practice spans all corporate matters for clients in Colorado and the District of Columbia.

Gregory B. on ContractsCounsel
View Gregory
5.0 (88)
Member Since:
October 18, 2021

Gregory B.

Attorney
Free Consultation
San Diego, CA
5 Yrs Experience
Licensed in CA
University of San Diego

I love contracts - and especially technology-related contracts written in PLAIN ENGLISH! I've worked extensively with intellectual property contracts, and specifically with IT contracts (SaaS, Master Subscriptions Agreements, Terms of Service, Privacy Policies, License Agreements, etc.), and I have built my own technology solutions that help to quickly and thoroughly draft, review and customize complex contracts.

Clara D. on ContractsCounsel
View Clara
Member Since:
October 8, 2021

Clara D.

Principal
Free Consultation
Illinois
21 Yrs Experience
Licensed in IL
University of Chicago

After graduating from The University of Chicago Law School in 2002, Clara spent eight years in private practice representing clients in complex commercial real estate, merger and acquisition, branding, and other transactional matters. Clara then worked as in-house counsel to a large financial services company, handling intellectual property, vendor contracts, technology, privacy, cybersecurity, licensing, marketing, and otherwise supporting general operations. She opened her own practice in September of 2017 and represents hedge funds, financial services companies, and technology companies in a range of transactional matters.

Find the best lawyer for your project

Browse Lawyers Now

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 Contract for Real Estate?

Create a free project posting
Clients Rate Lawyers 4.9 Stars
based on 11,053 reviews
Real Estate lawyers by top cities
See All Real Estate Lawyers
Purchase Contract for Real Estate lawyers by city
See All Purchase Contract for Real Estate Lawyers

ContractsCounsel User

Recent Project:
Real Estate sales agreement/contract
Location: California
Turnaround: A week
Service: Contract Review
Doc Type: Real Estate Purchase Agreement
Page Count: 1
Number of Bids: 2
Bid Range: $650 - $950

ContractsCounsel User

Recent Project:
Review New Construction Housing Contract in Bakersfield California.
Location: California
Turnaround: Less than a week
Service: Contract Review
Doc Type: Real Estate Purchase Agreement
Page Count: 45
Number of Bids: 3
Bid Range: $975 - $1,250

Need help with a Purchase Contract for Real Estate?

Create a free project posting
Clients Rate Lawyers 4.9 Stars
based on 11,053 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