Free Real Estate Purchase Agreement Template

A real estate purchase agreement is a legal document that outlines the terms and conditions of a property sale. It defines the responsibilities of the buyer and seller, including price, contingencies, and key deadlines.

You’ll use this contract to confirm your offer, negotiate terms, and document the final agreement before transferring ownership. It’s typically signed after both parties agree on the sale conditions but before the closing process begins.

Who Prepares a Real Estate Purchase Agreement?

Either the buyer or seller can draft the agreement, but it’s most often prepared by the buyer or their real estate agent. In complex transactions, it’s best to have a lawyer review or help write the contract to ensure all terms are legally sound.

Start with a reliable template and adjust the terms to fit your sale. Here’s what to include:

1. Buyer and seller details: Include each party’s full name and mailing address. If a party is an LLC or trust, use the legal entity name.
2. Property information: Add the street address and legal description of the property, including the lot and parcel number if available.
3. Purchase price and payment terms: State the agreed purchase price and how the buyer will pay—whether in full at closing, by financing, or through other arrangements.
4. Closing date and possession: Set a target closing date and state when the buyer will take possession of the property.
5. Disclosures: Mention required disclosures, like lead paint for homes built before 1978, and whether the seller must disclose known property defects.
6. Contingencies: List any conditions that must be met before the sale goes through—common examples include inspections, financing approval, or selling another home.
7. Earnest money deposit: Identify the amount the buyer will pay as a deposit and where it will be held (usually in escrow). Specify the terms for refund or forfeiture.
8. Governing law: Choose the state laws that will apply to the agreement.
9. Signatures: Include a section for both parties to sign and date the contract. If necessary, a witness or notary may also be included.

Use the Document Genius template to fill in these sections step by step. You’ll be guided through the terms so nothing gets missed.

Before signing a real estate purchase agreement, ensure you understand the key elements that can affect your rights, obligations, and the transaction’s success. These details help ensure a smooth process and reduce the risk of disputes or delays.

Disclosures

Most states require sellers to disclose known defects or hazards. Common disclosures include:

• Lead-based paint (for homes built before 1978)
• Structural issues
• Water damage or mold
• Past pest infestations
• Deaths on the property (required in some states)

Failing to include required disclosures could make the contract unenforceable.

Addendums and Contingencies

You may attach addendums to expand or clarify terms not covered in the standard agreement. Common ones include:

• Contingency addendum for home inspection or loan approval
• Closing date extensions
• Repair agreements
• Escrow holdback clauses

Ensure both parties sign any addendums to make them enforceable.

Earnest Money

An earnest money deposit shows the buyer’s intent to follow through with the purchase. If the deal falls through without a valid contingency, the seller may keep the deposit. Terms should be clear about when the deposit is refundable.

Buyer Beware

Some states follow “buyer beware” (caveat emptor) rules, meaning the seller doesn’t have to disclose certain defects. In these states, buyers should get thorough inspections and understand that they’re purchasing the property “as-is.” Buyer beware states include Alabama, Georgia, and Wyoming, among others.

In most cases, a real estate purchase agreement doesn’t need to be notarized to be legally valid. A signed contract between the buyer and seller is typically enough.

However, some states may require notarization for related documents like the deed or disclosures. Even when it’s not required, having the agreement notarized can help prevent disputes by confirming the identities of both parties and the date the contract was signed.

If you’re unsure what’s required in your state, talk to a local real estate attorney or use our real estate purchase agreement template. It will ensure your document meets legal requirements and includes all the details.

Yes, but only under certain conditions. A buyer or seller can terminate the contract if:

• A contingency (like financing or inspection) is not met
• The other party breaches the agreement
• Both parties agree in writing to cancel

Without a valid reason, canceling the contract could result in legal or financial consequences, such as losing the earnest money deposit or facing a lawsuit.