ContractsCounsel Logo

Purchase Home Contract

Clients Rate Lawyers on our Platform 4.9/5 Stars
based on 10,638 reviews
No Upfront Payment Required, Pay Only If You Hire.
Home Types of Contracts Purchase Home Contract

Jump to Section

A purchase home contract, or a purchase agreement, is a legal document summarizing the provisions of a real estate transaction between a buyer and seller. This contract is an important step in home-buying and provides both parties with legal security. This contract is generally created after a buyer has made an offer on a home and the seller has got that offer. The purchase home contract acts as a binding agreement between the two parties. In addition, it is essential to ensure that all terms and conditions are clearly outlined and agreed upon before finalizing the deal.

Essential Elements of a Purchase Home Contract

Some important elements of a purchase home contract are as follows:

  • Introduction: The initial section of a purchase contract outlines the individuals and entities involved in the transaction, which may include the buyer, seller, and their representatives. Additionally, it may describe the property being sold, including its legal description, address, and notable features.
  • Purchase Price and Payment Terms: The purchase price refers to the amount the buyer agrees to pay for the property. The purchase contract should specify the purchase price and payment terms, which may include details about the down payment, financing, and any associated conditions.
  • Contingencies: Contingencies are prerequisites that must be fulfilled before the sale can be completed. Common contingencies include financing, inspection, appraisal, and title search. The purchase contract should state any applicable contingencies and the associated deadlines for satisfying them.
  • Disclosures and Representations: The purchase contract should contain any disclosures and representations made by the seller about the property, including its condition, known issues or defects, and any ongoing or past legal disputes.
  • Closing Date and Possession: The closing date is the finalization date when ownership of the property is transferred from the seller to the buyer. The purchase contract should define the closing date and location and when the buyer will take possession of the property.
  • Earnest Money: The buyer may deposit earnest money to demonstrate their commitment to the purchase. The purchase contract should specify the amount of earnest money required and how it will be held until closing.
  • Default and Remedies: The purchase contract should address the potential consequences if either party breaches the contract. These may include remedies like specific performance, where the party in default must complete the sale or the forfeiture of the earnest money deposit.
  • Closing Costs: Closing costs are the expenses and fees associated with the sale of the property. The purchase contract should clarify the party responsible for each closing cost, including transfer taxes, recording fees, and title insurance.
  • Signatures: The buyer and seller must sign the purchase contract to be legally binding. Additionally, it may require the signatures of any involved agents or brokers.

Why Hire a Lawyer in Purchase Home Contract

Here is a lawyer's key roles and responsibilities for a home purchase contract.

  • Title Examination: A thorough examination of a property's title reveals essential details about its ownership and other related records. When closing a house deal, a lawyer can assist in helping both the buyer and seller to clear the title for the specific property, checking the title of the house sold to the buyer and identifying any existing mortgages against it to facilitate a smooth closing process.
  • Title Insurance: Title insurance protects the buyer and seller if issues arise with the property's title. Also, property ownership is not legally enforceable until a person has obtained title insurance. In the home purchase process, the lawyer can perform the following tasks, such as investigating the title offered to the buyer after the title examination is completed, assisting in securing insurance for the buyer and ensuring a fair transaction closing.
  • Coordination: The lawyer can help create efficient lines of communication between all parties involved in the home purchase process. It includes the transaction's buyers, sellers, lenders, and other individuals. The lawyer can coordinate with surveyors, real estate brokers, merchants, insurance owners, and homeowner associations to ensure a smooth process.
  • Document Review: During the home purchase, the lawyer reviews various documents related to the purchase, loan closing, and other processes. They can also explain the documents to both parties, such as disbursements, deeds, and settlement statements.
  • Record and Disbursement: The lawyer responsible for the home purchase process is accountable for closing on transactions and interacting with both parties to collect records related to the deal. After reviewing and executing all necessary documents, the lawyer checks with the local registry to update titles, deed records, and all transactions.
Meet some lawyers on our platform

Nicole C.

1 project on CC
CC verified
View Profile

Daniel K.

8 projects on CC
CC verified
View Profile

Daniel R.

129 projects on CC
CC verified
View Profile

Michael M.

584 projects on CC
CC verified
View Profile

Importance of Purchase Home Contracts

A purchase home contract is important in real estate transactions. Here are some reasons why:

  • Legal Protection: This type of contract safeguards the buyer and seller from potential misunderstandings or disputes by establishing clear terms and conditions.
  • Record of Transaction: The contract also serves as a transaction record, providing essential details such as terms, contingencies, and other pertinent information. The contract can be helpful in case of any legal issues or disputes arising after the sale.
  • Expectations and Responsibilities: The purchase contract outlines the expectations and responsibilities of both parties, ensuring that everyone is on the same page and reducing the likelihood of surprises or misunderstandings.

Important Tips for a Purchase Home Contract

To create an effective purchase home contract, consider these tips:

  • Hire an Attorney: Real estate transactions can be complex, so hiring an experienced attorney is recommended to protect your interests.
  • Include Contingencies: Contingencies should be included in the contract to protect both parties by specifying the conditions that must be met before the sale proceeds. Home inspections, financing, and appraisal are contingencies that should be considered.
  • Clear Expectations: It's vital to define and communicate your expectations and sales requirements, such as the purchase price, closing date, contingencies, and other essential details.
  • Review Disclosures: Sellers must disclose any known defects or issues with the property. Make sure to review these disclosures thoroughly and feel comfortable with any problems before proceeding with the sale.
  • Dispute Resolution: Disputes can arise during any real estate transaction. Consider including a dispute resolution clause in the contract to establish a clear process for resolving any issues that may arise.

Key Terms for Purchase Home Contracts

  • Closing Costs: Fees associated with the home's sale, including title insurance, attorney fees, appraisal fees, and other charges.
  • Home Inspection: A detailed examination of the property to identify any defects or issues that may affect the value or safety of the home.
  • Title Search: An assessment of public records to ensure that the seller has clear ownership of the property and that there are no liens or other claims against it.
  • Appraisal: A licensed appraiser evaluates the home's value to ensure the purchase price is fair and reasonable.
  • Closing Date: The date on which the sale is finalized and ownership of the property is transferred from the seller to the buyer.

Final Thoughts on Purchase Home Contracts

In a nutshell, a home purchase agreement is a lawfully binding agreement between a buyer and a seller that summarizes the terms and conditions of the sale of a residential property. This contract acts as an essential document in the home-buying process as it specifies the responsibilities of both parties and offers a clear roadmap for the transfer of ownership.

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.

Need help with a Purchase Home Contract?

Create a free project posting

Meet some of our Purchase Home Contract Lawyers

David B. on ContractsCounsel
View David
5.0 (23)
Member Since:
September 5, 2023

David B.

Senior Transactional Counsel
Free Consultation
SF Bay Area
28 Yrs Experience
Licensed in CA
University of San Diego

Seasoned transactional attorney with extensive experience in the life sciences / medical device / pharmaceutical industries. Skilled at providing actionable legal advice that balances risk and reward.

Tim E. on ContractsCounsel
View Tim
4.9 (45)
Member Since:
August 12, 2020

Tim E.

Founding Member/Attorney
Free Consultation
Cleveland, OH
10 Yrs Experience
Licensed in OH
Cleveland State University College of Law

Tim advises small businesses, entrepreneurs, and start-ups on a wide range of legal matters. He has experience with company formation and restructuring, capital and equity planning, tax planning and tax controversy, contract drafting, and employment law issues. His clients range from side gig sole proprietors to companies recognized by Inc. magazine.

Pankaj R. on ContractsCounsel
View Pankaj
Member Since:
March 26, 2022

Pankaj R.

Owner
Free Consultation
Los Angeles/Inland Empire
15 Yrs Experience
Licensed in AZ, CA
University of Arizona Rogers College of Law

I advise clients in the areas of business, trademarks, real estate, employment, and finance. My overarching goals are to unite creative people and companies to assist them in making sound legal and business decisions. I have been fortunate enough to build a fast-growing, 21st-century law firm with an amazing staff by my side. Our focus is not just on providing invaluable legal insight but creating a better all-around client experience. We provide unique subscription pricing and flat-fee options for our clients, providing billing transparency and enhanced value to all of our wonderful clients. Focus areas: contract drafting, negotiations, research, trademarks international law, entertainment, business development, entity choice; business: manager, team builder, leader, motivator. Speaking Engagements: National Business Institute (NBI) - "Business Contracts 101"

Neilson B. on ContractsCounsel
View Neilson
Member Since:
March 26, 2022

Neilson B.

Managing Attorney
Free Consultation
Charlotte, NC
5 Yrs Experience
Licensed in IL, MO, NC
Shepard Broad School of Law

Hi, I am the founding member of Son of Brown Law Firm, based in Charlotte North Carolina. Our firm practices in the areas of Business Transactions, Cannabis/Hemp, Personal Injury and Immigration Law.

Patrycja S. on ContractsCounsel
View Patrycja
Member Since:
March 29, 2022

Patrycja S.

Attorney
Free Consultation
Cleveland, OH, United States
4 Yrs Experience
Licensed in OH
Cleveland Marshall College of Law

Freelance attorney helping others beat overflow work by assisting with legal research, legal drafting, discovery, litigation support and client relations.

Jerry L. on ContractsCounsel
View Jerry
Member Since:
May 17, 2022

Jerry L.

Attorney
Free Consultation
Nashville, Tennessee
7 Yrs Experience
Licensed in TN
University of Tennessee

Jerry provides legal advice to business owners regarding contracts, business law, labor & employment, wills and estates, and real estate.

Find the best lawyer for your project

Browse Lawyers Now

Need help with a Purchase Home Contract?

Create a free project posting
Real Estate lawyers by top cities
See All Real Estate Lawyers
Purchase Home Contract lawyers by city
See All Purchase Home Contract Lawyers

ContractsCounsel User

Recent Project:
Wholesaling contract
Location: California
Turnaround: A week
Service: Contract Review
Doc Type: Real Estate Purchase Agreement
Page Count: 8
Number of Bids: 3
Bid Range: $450 - $595

ContractsCounsel User

Recent Project:
Wholesaling contracts
Location: Indiana
Turnaround: Less than a week
Service: Drafting
Doc Type: Real Estate Purchase Agreement
Number of Bids: 2
Bid Range: $750 - $2,000
related contracts
See More Contracts
other helpful articles

Need help with a Purchase Home Contract?

Create a free project posting

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