Before signing a real estate purchase agreement, check that the written terms match your deal, understand each contingency and deadline, and know what happens to your deposit if the sale does not close. Read the entire agreement—including addenda and documents it incorporates—and get local legal advice about unclear or unusual terms. Contract rules and remedies vary by state, so this general U.S. guide cannot determine your rights under a specific agreement.
Start with the complete agreement
Read every page, addendum, and document incorporated by reference. Confirm that the buyer and seller names, property address and legal description, purchase price, included items, deposit, financing terms, and material dates match what you and the other party actually agreed to. Make sure you have all referenced documents and obtain a complete copy of the signed agreement.
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Do not assume that outstanding inspections or other contingencies mean a signed offer has no effect. Oregon’s administrative rule, for example, states that a signed offer is an offer to purchase regardless of pending inspections, conditions, or contingencies, and requires transaction terms to be included in the offer or counteroffer. That is an Oregon-specific rule, not a statement of law in every state. Read Or. Admin. Code § 863-015-0135.
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Check the price, deposit, and money terms
Verify the purchase price and the earnest-money amount, due date, holder, and handling. Earnest money is a good-faith deposit, not the down payment. It is commonly held by a third party in escrow until closing or resolution of a dispute, and may be credited toward the down payment or closing costs at closing. Whether it is refundable if the transaction ends depends on the agreement and applicable law; NAR notes that a deposit may be refunded when a contingency such as inspection, appraisal, or financing cannot be resolved. NAR’s guide to escrow and earnest money.
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Review contingencies as separate protections
A contingency is a contract condition. Its protection depends on the exact wording, deadlines, required evidence or notice, available outcomes, and local law. Review each one on its own rather than treating “contingencies” as a single safety net. CFPB and NAR describe financing, appraisal, and inspection contingencies as distinct provisions. CFPB: Find the right home and NAR: Real estate sales contract contingencies.
Financing
Check whether the purchase depends on obtaining a mortgage, which loan terms matter, how long you have to secure financing, and how and when you must notify the seller if approval is delayed or denied. CFPB recommends considering a financing contingency so that a buyer who cannot obtain a loan is not contractually required to buy. The agreement’s exact language determines the protection available to you.
Appraisal
Find the appraisal provision and determine what happens if the appraised value is below the purchase price. Check whether the agreement gives you a way to renegotiate or terminate, whether you may need to cover a shortfall, and what notice and timing requirements apply. Do not assume an appraisal provision has the same effect as a financing contingency; they address different risks.
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Inspection and property condition
Identify the inspection deadline, what inspections are covered, how results must be reported, and what choices you have if defects are found. Depending on the agreement, you may be able to seek repairs or a credit, proceed, or cancel. A satisfactory-inspection contingency can allow cancellation without penalty if you are dissatisfied, subject to the contract. If possible, attend the inspection and ask which components are not covered. CFPB: Schedule a home inspection.
Confirm closing, possession, title, and included items
Check the closing date and when you can take possession. If the seller will remain in the home after closing, understand the occupancy arrangement and its terms. Confirm which appliances, fixtures, or other personal property are included, and who is responsible for any agreed repairs. Review provisions on title evidence or title defects, and identify which party chooses or pays for closing services.
If you are buying with another person, decide how you want ownership held and confirm that the deed will reflect that choice. CFPB notes that a real estate attorney may help co-buyers ensure the deed provides the intended form of ownership. CFPB: Review documents before closing.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.Put deadlines and notices on a calendar
List every deposit, financing, inspection, appraisal, title, and closing deadline. For each one, record the person responsible, the required action, how notice must be delivered, and the correct recipient. A contingency may offer little practical protection if you miss its deadline or fail to give notice in the required way.
Document any extension, repair agreement, credit, change, or waiver in a signed writing if the agreement or local rules require it. Do not rely on a verbal promise that is absent from the signed documents.
Know when to get a real estate attorney
Ask a local real estate attorney to explain unclear language, evaluate deadlines and contingencies, or flag title and ownership concerns before you sign. Attorney involvement is required in some states and optional in others; check the rules where the property is located. NAR identifies renovation loans, probate or trust ownership, co-buying, seller financing, and title concerns as examples of situations where legal help may be useful. NAR: Working with a real estate attorney.
Do not confuse the sale agreement with mortgage closing documents
The purchase agreement sets out sale obligations between buyer and seller. Mortgage and loan-closing documents come later and serve a different purpose. For most covered mortgage transactions, the lender must provide a Closing Disclosure three business days before closing. Compare it with your Loan Estimate and review the loan amount, term, rate, payment, and costs; that later disclosure does not replace reviewing the purchase agreement before signing. CFPB: What to expect in the mortgage closing process.
Quick Recap
Pre-signing checklist
- Buyer and seller names, property address and legal description, price, and included items are correct.
- Deposit amount, due date, escrow holder, and refund conditions are clear.
- Financing and appraisal provisions match your actual plan and risk tolerance.
- Inspection rights, deadline, notice method, and available responses to defects are understood.
- Closing, possession, occupancy, title, and repair terms are clear.
- Every deadline and notice recipient is on your calendar.
- All addenda and referenced documents are present, and verbal promises are reflected in the signed writing.
- Questions about local law, unclear language, shared ownership, title, or unusual terms have been raised with a local real estate attorney before signing.
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