{"id":548937,"date":"2026-03-31T00:41:52","date_gmt":"2026-03-31T04:41:52","guid":{"rendered":"https:\/\/www.houzeo.com\/blog\/?p=548937"},"modified":"2026-03-31T00:41:57","modified_gmt":"2026-03-31T04:41:57","slug":"purchase-agreement","status":"publish","type":"post","link":"https:\/\/www.houzeo.com\/blog\/purchase-agreement\/","title":{"rendered":"Selling or Buying a Home? Read the Purchase Agreement First!"},"content":{"rendered":"\n<p class=\"highlight\">Nearly <a     href=\"https:\/\/www.redfin.com\/news\/pending-sales-fall-through-january-2026\/#:~:text=That's%20up%20from%2013.1%25%20a,11.2%25\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">40,000<\/a>! That&#8217;s how many home-purchase agreements were canceled nationwide this past January. As the market slowly shifts in favor of buyers, &#8220;deal-killers&#8221; like home inspection red flags, appraisal gaps, and financial hurdles are becoming increasingly common.<\/p>\n\n\n\n<p>In this new landscape, precision is everything. Buyers must be diligent and account for, and fulfill, all conditions in a purchase contract. Sellers must ensure that the agreement terms are clear and easy to understand, while being subject to similar clauses. This avoids unnecessary hiccups during a transaction.<\/p>\n\n\n\n<p>Since drafting a purchase agreement can be a legal minefield, it is advised to seek professional help. Houzeo&#8217;s Gold Plan bridges this gap and gets you dedicated assistance with all paperwork from a licensed broker.<\/p>\n\n\n\t<div style=\"display: block ;\" class=\"home-page-quick-listing-wrapper  content-ql-new-ui \" main-title=\"List With Our Gold Plan &amp; Get Professional Support \ud83e\udd47\" list-title=\"\" list-item-1=\"Upfront pricing - No hidden fees\" list-item-2=\"100% online - fast listing, faster changes\" list-item-3=\"Rated 4.9 stars on Google Reviews &amp; Trustpilot\" ql-button=\"\" minimize=\"true\" sidebar=\"\" contact-title=\"\" contact-content=\"\" siteurl_qlb=\"https:\/\/www.houzeo.com\" cash-ql=\"false\"><\/div>\n\t<script>\t\t\n\n\t\tdocument.addEventListener(\"DOMContentLoaded\", function () {\n\t\t\tconst isMobile = window.screen.width <= 768;\n\n\t\t\t\/\/ Global flags to prevent multiple loads\n\t\t\twindow.quickListingCssLoaded = window.quickListingCssLoaded || false;\n\t\t\twindow.quickListingJsLoaded = window.quickListingJsLoaded || false;\n\n\t\t\tconst cssURL = 'https:\/\/www.houzeo.com\/css\/quick-listing-block-v3.css?v=9.8';\n\t\t\tconst jsURL  = 'https:\/\/www.houzeo.com\/js\/quick-listing-block-v3.js?v=9.8';\n\n\t\t\t\/\/ \u2705 Load CSS immediately on mobile only\n\t\t\tif (isMobile && !window.quickListingCssLoaded) {\n\t\t\t\twindow.quickListingCssLoaded = true;\n\t\t\t\tloadCSS(cssURL);\n\t\t\t}\n\n\t\t\t\/\/ \u2705 Define JS loader (and CSS for desktop)\n\t\t\twindow.quickListingJsLoadfn = function () {\n\t\t\t\tif (!window.quickListingJsLoaded) {\n\t\t\t\t\twindow.quickListingJsLoaded = true;\n\n\t\t\t\t\t\/\/ On desktop: load CSS here (lazy), since it wasn't loaded initially\n\t\t\t\t\tif (!isMobile && !window.quickListingCssLoaded) {\n\t\t\t\t\t\twindow.quickListingCssLoaded = true;\n\t\t\t\t\t\tloadCSS(cssURL);\n\t\t\t\t\t}\n\n\t\t\t\t\tloadScript(jsURL);\n\n\t\t\t\t\t\/\/ Remove listener after load\n\t\t\t\t\tdocument.removeEventListener(isMobile ? 'touchstart' : 'mousemove', window.quickListingJsLoadfn);\n\t\t\t\t}\n\t\t\t};\n\n\t\t\t\/\/ \u2705 Add the correct event listener\n\t\t\tconst quickListingEvents = isMobile ? ['touchstart'] : ['mousemove', 'scroll'];\n\n\t\t\tquickListingEvents.forEach((eventName) => {\n\t\t\t\tdocument.addEventListener(eventName, window.quickListingJsLoadfn, {\n\t\t\t\t\tpassive: true,\n\t\t\t\t\tonce: true,\n\t\t\t\t});\n\t\t\t});\n\t\t\t\n\n\t\t\t\/\/ \u2705 Helpers\n\t\t\tfunction loadCSS(href) {\n\t\t\t\tconst link = document.createElement('link');\n\t\t\t\tlink.rel = 'stylesheet';\n\t\t\t\tlink.href = href;\n\t\t\t\tdocument.head.appendChild(link);\n\t\t\t}\n\n\t\t\tfunction loadScript(src) {\n\t\t\t\tconst script = document.createElement('script');\n\t\t\t\tscript.src = src;\n\t\t\t\tscript.async = true;\n\t\t\t\tdocument.head.appendChild(script);\n\t\t\t}\n\t\t});\n\t<\/script>\n\t\n\n\n\n<h2 class=\"wp-block-heading margin-top-28\" id=\"what-is-a-purchase-contract\"><strong>What Is a Purchase Agreement in Real Estate?<\/strong><\/h2>\n\n\n\n<p>A real estate sales and purchase agreement (SPA) legally places the buyer, seller, and for-sale property \u2018<a     href=\"https:\/\/www.houzeo.com\/blog\/what-does-under-contract-mean\/\" target=\"_blank\" rel=\"noreferrer noopener\">under contract<\/a>\u2019. Once the buyers and sellers have signed it, the SPA becomes legally binding for all parties involved.&nbsp;<\/p>\n\n\n\n<p>A purchase agreement clearly chalks out the terms and intent of all parties. It also includes conditions to be met for the sale and transfer of assets to happen. <\/p>\n\n\n\n<h2 class=\"wp-block-heading margin-top-28\" id=\"things-to-check-purchase-agreement-for-real-estate\"><strong>What Should You Check in a Purchase and Sales Agreement?<\/strong><\/h2>\n\n\n\n<p>Here\u2019s a list of clauses in a contract of purchase and sale you should be aware of:<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td><strong>Topic<\/strong><\/td><td><strong>Description<\/strong><\/td><\/tr><tr><td><strong>Parties Involved<\/strong><\/td><td>Names and contact information of all buyers and sellers.<\/td><\/tr><tr><td><strong>Property Details<\/strong><\/td><td>Property\u2019s address, measurements of the property, and buyer and seller\u2019s agreed-upon home purchase price.<\/td><\/tr><tr><td><strong>Representations and Warranties<\/strong><\/td><td>The facts and conditions of the property as given by the seller.&nbsp;<\/td><\/tr><tr><td><strong>Financing and Taxes<\/strong><\/td><td>Details of any mortgage loan taken by the buyer and the payment method. Also, the liability of property taxes is mentioned.<\/td><\/tr><tr><td><strong>Title Insurance<\/strong><\/td><td>A note about whether the buyer or lender is purchasing insurance against bad title in the future.<\/td><\/tr><tr><td><strong>Closing and Possession Date<\/strong><\/td><td>The date of transfer of title and the date when the buyer will receive the keys to the property.<\/td><\/tr><tr><td><strong>Contingencies<\/strong><\/td><td>Conditions such as home inspection, <a     href=\"https:\/\/www.houzeo.com\/blog\/home-appraisal-process\/\" target=\"_blank\" rel=\"noreferrer noopener\">appraisal<\/a>, or mortgage approval have to be met by a certain date. Otherwise, the sale of the property can\u2019t go through.<\/td><\/tr><tr><td><strong>Earnest Money<\/strong><\/td><td><a     href=\"https:\/\/www.houzeo.com\/blog\/earnest-money\/\" target=\"_blank\" rel=\"noreferrer noopener\">Earnest money<\/a> deposits act as a security deposit. It\u2019s paid by the buyer before a home purchase and must be mentioned in the agreement.<\/td><\/tr><tr><td><strong>Closing Costs<\/strong><\/td><td>The required closing costs and the person who is responsible for paying them. The amount of the costs is not mentioned.<\/td><\/tr><tr><td><strong>Conflict Resolution<\/strong><\/td><td>Options to resolve a conflict and terminate the contract.<\/td><\/tr><tr><td><strong>Signatures<\/strong><\/td><td>Required of each party to finalize every purchase agreement.<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<h2 class=\"wp-block-heading margin-top-28\" id=\"contingencies-in-purchase-contract\"><strong>What Are the Contingencies in a Contract to Purchase?<\/strong><\/h2>\n\n\n\n<p>Here are some common contingencies that one may see when buying or selling a house:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Inspection Contingency<\/strong>: Home sellers must get a home inspection done beforehand. This is because, the buyer can cancel the contract, if the seller doesn&#8217;t conduct one. Buyers are also allowed to nullify it if any defects are found on the property after inspection. <\/li>\n\n\n\n<li><strong>Appraisal Contingency<\/strong>: It ensures that a home\u2019s <a     href=\"https:\/\/www.houzeo.com\/blog\/appraised-value-vs-market-value\/\" target=\"_blank\" rel=\"noreferrer noopener\">appraised value<\/a> is at least equal to or higher than the purchase price.<\/li>\n\n\n\n<li><strong>Mortgage Contingency:<\/strong> Sellers can cancel the sale if a buyer can\u2019t obtain a mortgage. This will result in buyers getting their earnest money deposit back.<\/li>\n\n\n\n<li><strong>Title Contingency<\/strong>: A clean title report saves the buyer from a future dispute over a bad title. It assures the buyer that the property has no <a     href=\"https:\/\/www.houzeo.com\/blog\/what-is-a-lien\/\" target=\"_blank\" rel=\"noreferrer noopener\">liens<\/a>.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading margin-top-28\" id=\"purchase-and-sales-agreement\"><strong>How Binding Is a Real Estate Purchase Contract?<\/strong><\/h2>\n\n\n\n<p>A real estate purchase agreement legally binds all parties involved in a property transaction. Once signed, it shows their intent to transfer the house from the seller to the buyer. But they must meet all contingencies before the contract is enforced. <\/p>\n\n\n\n<p>It protects both the buyer and seller and helps avoid issues that could halt the transaction. Consult with a professional agent or <a     href=\"https:\/\/www.houzeo.com\/flat-fee-mls\" target=\"_blank\" rel=\"noreferrer noopener\">list with a flat fee MLS company<\/a> to delegate heavy documentation. <\/p>\n\n\n\n<p>Choose a reliable real estate agent to check for and fix property-related issues to ensure a smooth transfer of ownership. With Houzeo&#8217;s network of real estate professionals, it has never been easier to find one.<\/p>\n\n\n\t<div  class=\"hfsWidget \" data-widget-title=\"Find Top Real Estate Agents Near Me\" data-widget-list-item1=\"1st item\" data-widget-list-item2=\"2nd item\" data-widget-list-item3=\"3rd item\" data-widget-type=\"vendor\" data-widget-vendor-type=\"real_estate_agent\" data-widget-state=\"US\" data-widget-city=\"\" data-widget-redirect-url=\"https:\/\/www.houzeo.com\/pros\/real-estate-agents-near-me\" data-widget-redirect-text=\"Search a Real Estate Agent Near Me\" data-widget-button-url=\"https:\/\/www.houzeo.com\/pros\/real-estate-agents-near-me\" data-widget-button-text=\"Find a Real Estate Agent\" data-widget-min-price=\"0\" data-widget-max-price=\"0\" data-widget-min-area=\"0\" data-widget-max-area=\"0\" data-widget-sidebar=\"false\">\n       \n    <\/div>\n\t<script>\n    document.addEventListener(\"DOMContentLoaded\", function() {        \n        if (!window.assetsLoaded) {\n            window.assetsLoaded = true;\n            var version = (typeof customData !== 'undefined' && customData.customVersion) ? customData.customVersion : '1.0';\n            loadScript('\/blog\/wp-content\/themes\/houzeo-new-design\/js\/hfs-widget.js?version=' + version);\n            loadCSS('\/blog\/wp-content\/themes\/houzeo-new-design\/css\/hfs-widget.css?version=' + version);\n        }    \n    });\n\t\t\n\t<\/script>\n\t\n","protected":false},"excerpt":{"rendered":"<div class=\"new-excerpt\"><p class=\"small-desc\">Purchase agreement shows intent of parties to transfer a property. It's generally signed at closing and is the actual contract to purchase\/sell a...<\/p><\/div><div class=\"reading_date\"><span class=\"readtime\">4 mins read<\/span><span class=\"date\">Mar 31, 2026<\/span><\/div>","protected":false},"author":218,"featured_media":549042,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[46226],"tags":[35681,35682,35678,35676,35679,35677,35680],"class_list":["post-548937","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-seller","tag-agreement-in-real-estate","tag-contract-of-purchase","tag-purchase-aggreement","tag-purchase-agreement","tag-purchase-agreement-real-estate","tag-purchasing-agreement","tag-real-estate-sales-contract"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v26.6 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Selling or Buying a Home? 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